DCN AUGUST Edition 2019

Delegates at the Pacific Connect Dialogue
Inter-island ferry, Honiara
FROZEN FISH
The total annual volume of containers
through both ports is about 40,000 TEU,
the majority of which is through Honiara.
About 3000 TEU is shipped via the Port of
Noro, comprising mainly ‘super freezer’
FEUs full of hard frozen tuna for export
to Korea and Japan. Maersk has invested
heavily in this trade and picks up about
100 containers from Noro each vessel
visit. Container throughput in Honiara is
concentrated on imports and repositioning
of empty containers. Four from five
containers are empty, a problem also
experienced in Australia where 25% of
the total container throughput is empty
containers. Rice is one of the main imports
with large shipments arriving from China,
Indonesia and, to a lesser extent, Australia.
The port allows for 10 days free storage
on import containers, consequently the
dwell time is more than 15 days. This is
exacerbated by there being no ‘off wharf’
for empty container storage so all empty
containers are returned directly to the
wharf after being unpacked.
REGULAR CALLERS
Shipping lines which regularly call at
Honiara are Swire Shipping, Maersk, NYK,
Pacific Direct Line, Sofrana ANL and
Neptune Pacific Line. Besides container
vessels Honiara handles tankers which load
palm oil (in bulk) for export to Europe,
some bulkers and a small number of cruise
vessels. Bulk bauxite is the other main
export earner for the SI with bauxite mines
on a number of small islands. However, the
recent grounding of the bulk carrier MV
Solomon Trader, which had been loading
bauxite from Rennell Island when it ran
aground on a coral reef dented export
revenue for the government. The shipgrounding
resulted in an oil spill in a
UNESCO declared area.
Honiara has two berths: a 50-year-old
berth and a more modern berth which
can service vessels up to 260 metres in
length and a draft of 12.5 metres. The new
berth, completed in 2016, was funded by
the Japanese government, who has been
Most agribusinesses are small operators and
filling and funding an FCL export container
is too big a task for them.
a major contributor to infrastructure
projects in the SI over the years. Berth
availability has improved dramatically since
the new berth was opened and occupancy
is currently about 30 to 40%. However,
increasing container volumes and long dwell
times pose a challenge on the landside.
INTER-ISLAND FERRY AT HONIARA
The terminal operating system at the
international container terminal is still
predominately a hands-on paperwork
driven system where shipping line
representatives, custom brokers and truck
drivers gather in a central office and pay
container storage, customs duties etc.
with cash and/or cheques before being
allowed access to the import container
terminal. Once the container is cleared
the job is given to a waiting truck driver
and the container is loaded onto the truck.
Truck turnaround time is relatively short
once the container is cleared for pick-up.
Some 90% of the truck fleet is fitted with
so-called ‘sideloader equipment’, which
can independently lift containers on and
off the truck, and which are a necessity, as
most businesses in the SI do not have any
container lifting equipment.
PORT OPERATIONS
While wages in the SI are low (i.e. a
stevedore might earn A$3500 per annum)
the container tariff schedule is relatively
steep with about $200 for a TEU container
discharge/load and more than double
that for a FEU container discharge/load.
An interesting tariff item is ‘looking for a
lost container’ which is about $90 within
Honiara and $130 for a wider search. The
port authority employs about 500 people
and a ship’s gang consists of 70 people.
Gangs work 12-hour shifts (8am until 8pm
and 8pm until 8am) with two breaks in the
shift. Production is about 15 containers per
hour using ship’s gear. There are no shore
cranes in Honiara Port. Usually ships are in
port for about 36 hours with few delays in
getting onto a berth. Kalmar forklifts and
reach stackers are used to move containers
around the port and all containers for
export are cleaned and washed.
FINAL THOUGHTS
The port authority previously lost money
due to mismanagement but has turned
the corner and is hoping to use its profits
to modernise its practices and invest in
equipment and infrastructure. Hopefully
the proposed LCL project will help.
Combined with the new terminal operating
system and improved ICT connectivity once
the new undersea cable is completed, the
future is looking bright for SIPA and the
people of the SI.
thedcn.com.au August 2019 59