Papua New Guinea’s K40 million a year fresh tuna export industry is under threat and faces possible liquidation. This is the direct result of stiff airfreight charges, says industry leaders.
Companies involved in the industry said the sharp increases in airfreight charges by the national flag carrier Air Niugini is driving them out of business.
Fresh tuna exporter Peter Hickey, of MAPS Tuna, said the tuna export industry, especially in Lae, Morobe Province would close because of the increased costs in exporting fresh tuna as a result of new freight charges by Air Niugini. Air Niugini is charging K12 per kilogram for freighted out of PNG. Mr. Hickey said fresh tuna exports involved a lot of careful and technical procedures, which added to the overall expenses.
Tuna exporters from Lae fly their catch to Port Moresby and from where tuna is then airfreighted to overseas markets.
Air Niugini was sent a list of questions regarding their freight charges but there was no response from the company by the time of going to press last night. Fresh tuna exporter and prominent businessman Sir Henry Chow said yesterday he had to suspend his fishing fleet and put his boats in for repair and maintenance as he negotiates for possible tuna charter flights out of Papua New Guinea to overseas markets.
Sir Henry, who owns Neptune Fishery Company Limited, said the tuna industry would be hit hard as Air Niugini continued to increase its freight charges on fresh tuna exports. “Air Niugini is charging me K12 per kilogram on all my tuna exports and freight alone is taking up two-thirds of what I am selling my fish for,†Sir Henry said. He said he sold fresh tuna for K18 for 1kg in Australian and Japan. Sir Henry said he would look forward to a positive outcome from his negotiations so that he would continue to export fresh tuna.
Another tuna exporter Blaise Paru, who owns the Sanko Bussan, said he would also be affected by any freight increase as he airfreights his fish from Lae to Port Moresby and then from Port Moresby to his overseas markets. He said he would comment after he saw the freight increase.
Sir Henry said the freight charges by Air Niugini was too much and did not help the Government’s strategy on export-driven economic recovery strategy.
Tuna is one of PNG’s main export revenue earners with exports of up to 250,000 metric tons over the past five years but that has since increased to 300,000 tons.
The current long line catch is around 5000 tons with exports mostly to Australia and Japan now valued at close to K40 million every year.