Freighting agencies receive funding support.

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Freighting agencies receive funding support.

There are approximately 3,000 tons of parchment coffee yet to be air freighted from 67 operational airstrips in remote areas in the country.

Coffee Minister Joe Kuli said this when presenting dummy cheques totaling K1 million to various third level airlines and shipping agencies on Monday, July 31, 2023 in Port Moresby.

Minister Kuli said the volume of coffee freighted from these airstrips would increase if jetties and airstrips were upgraded and maintained.

Kuli said the Coffee Industry Corporation (CIC) already has a program called the Freight Surety Scheme (FSS), which has been working closely with the freighting agencies to move coffee out from remote areas. “It is a government funded program and uses third level airline and shipping companies to move coffee out. I would like to commend the third level airlines and shipping agencies for their services to the remote areas and for making market accessibility possible for the farmers,” he said.

The cheque presentation was done by Mr. Kuli and CIC chief executive officer Charles Dambui at Morauta Haus. Recipients of the funding support included Niugini Aviation Services Ltd who received K300, 000, North Coast Aviation, Adventist Aviation Services, Air Sanga, Lutheran Shipping Services, JJ Shipping and Consort Express Lines with K100, 000 each for coffee freighting.

CIC chief executive officer Charles Dambui said the reported volume of coffee for airfreighting was 108, 700kg, but only 27, 202kg or 25% of the total were freighted while 75- 80% are yet to be freighted. “The return on investment on the FSS program in the last 6 months was 1:8, meaning that every K1 spent on freight, a farmer generates K8 from the coffee sales. The economic returns of the program clearly demonstrates FSS as a people[1]level impact project that needs to be sustained with wider coverage.”

Dambui said that to date, the FSS program serves at least 15 provinces and 26 districts in the country through 48 airstrips and seven jetties and wharves.

Air Sanga Ltd representative Kingsley Slowat thanked the government through the coffee ministry and CIC for the funding support. Slowat stressed that regular maintenance and upkeep of the airstrips would enable them and other third level airlines to continue airfreighting coffee from remote areas.

Slowat also added that high costs in wear and tear and retaining experienced bush pilots was a big challenge for them and others. He urged the District Development Authorities to step in and help in maintaining the respective airstrips in their districts.

Niugini Aviation Services Ltd Representative Hupsie Rami (far-right) receiving the dummy cheque from Coffee Minister 
Hon. Joe Kuli, CIC CEO Charles Dambui and CIC SME and Development Manager Rebecca None at Morauta House on 
Monday July 31st, 2023.
Niugini Aviation Services Ltd Representative Hupsie Rami (far-right) receiving the dummy cheque from Coffee Minister Hon. Joe Kuli, CIC CEO Charles Dambui and CIC SME and Development Manager Rebecca None at Morauta House on Monday July 31st, 2023.

APPROVED FOR RELEASE:
Charles Dambui
Chief Executive Officer

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