The PNG transport sector is already well down the track of liberalisation so further relaxation will be subject to tests and safeguards against unintended and unwanted consequences.

Present transport regulation requires road freight operators and domestic shipping operators to hold transport services licences based partly on the size of the market and the services provided by incumbent operators. In future the policy will be, where economically beneficial, to remove quantitative transport licensing for hire-or-reward transport services subject to the following:

  • safeguards against monopolistic and market dominant behaviour;
  • safeguards against competition from directly or indirectly subsidised services, such as from public funding or “free” provision of transport equipment and services, except as provided for under the CSO policy;
  • assurance of acceptable levels of service quality, safety and security;
  • good character, financial competence and long term intention of new operators;
  • that the delivery of transport services to communities not able to sustain commercial services is not compromised by market competition;
  • ensuring reliable and orderly public passenger transport services in urban areas;
  • fostering the development of a PNG citizen-owned companies and PNG citizen skills base in the transport services and supporting industries and participation at all levels.

The Government will retain the option of prohibiting or selectively regulating overseas transport operators who wish to operate in the PNG domestic transport market by linking their international services to, from or through PNG with the carriage of domestic passengers or cargo, where the economic benefits of such competition are likely to be outweighed by the economic and social costs to the local industry, employment and the PNG economy in general.