Outlined hereunder are the procedures required as per the Maritime Transport Division.

Preference will continue to be given to:

► Qualified person or company intending to operate a commercial ship registered in Papua New Guinea and seeking to buy a Coasting Trade Permit or Coasting Trade Licence or existing licence holders.

► Foreign companies which incorporate with Papua New Guinea Investment Promotion Authority and have its principle place of business in Papua New Guinea.
By fulfilling the above qualification of ownership,

► Owners will complete and lodge formal application form that should be duly completed coupled with the Ship Specification, Registry Certificate and valid survey certificate inclusive of a letter advising the Department of the applicant’s proposed shipping activities and proposed trade routes in Papua New Guinea coastal waters.

Upon completion of the above requirements, the Administration will determine the evaluation process of the vessels requirements.  If the application is considered to be in good order; an invoice will be raised to the applicant for issuance of Coasting Trade Permit.  Whilst the original documents will be brought before the Coasting Trade Committee meeting to further deliberate on it.  The Coasting Trade Committee will then make recommendations to the Minister for final approval.

Where a ship is under charter, the ships documents including the charter party Agreement must be verified by National Maritime Safety Authority to be in order and an endorsement letter to be provided and must accompany the application.

A foreign registered vessel that is intending to operate in PNG coastal waters will only be issued with a Temporary Coasting Permit (Coasting Trade Permit) upon satisfaction of the above required.  The duration of the Coasting Trade Permit shall be granted not exceeding one year, normally on six (6) months basis.

A PNG registered vessel is issued with the Coasting Trade License to operate in compliance with the license condition.  The vessel will be issued with the Coasting Trade Permit to carrying out shipping activities that are not in the Coasting Trade License condition.

The duration of licenses are subject to the condition of the vessels and can be granted for a period not exceeding eight (8) years and not less than one year.

In the event that the license is approved by the Minister, the applicant will be advised accordingly of the Decision to introduce the vessel into the appropriate route to provide shipping services.  Licensing fees will be notified to the applicant prior to processing and endorsement of the Coasting Trade License by the Secretary.

Fees

Coasting Trade License fees

Papua New Guinea Registered vessel K 6.00 per metre or part of a metre.

Foreign Registered vessel K 10.00 per metre or part of a metre.

Coasting Trade Permit fees

Papua New Guinea Registered vessel  K6.00 per metre or part of a metre.

Foreign Registered vessel  K10.00 per metre or part of a metre.

The fee of K200.00 per voyage also applies to all cruise ships above 10metres, however, this fee would be for the whole duration of time the vessel operates in the country.

All yachts are non-commercial vessels and are exempted from Coasting Trade Permit or its fees.