PNGCars

The PNG LNG project is billion kina project involving several 100 hundreds of companies and several thousands of people.

It creates a vast amount of opportunities for businesses as well as tremendous amount of challenges, that if not managed well can have severe consequences for the un-prepared. 

Early on in the life of the project, as it was being approved by the powers that be, Ela Motors recognising the enormous growth potential that project would have on its business as well as the potential threat that demand can impose on Ela Motors business system, the company took a proactive step and developed the Ela Motors LNG Team.

 

The LNG Team is a special division created within Ela Motors sales and service to address the demands created by the development of the massive PNG LNG project.

 

The team consists of James Cooper - LNG Project Manager, Donna Nagul – LNG Sales Coordinator and Puval Kovan – LNG Parts and Service.

 

The team was formed in 2009.  The aim is that they would focus on meeting the direct and indirect demands created by organisations involved in the different phases of the LNG project.

 

By forming a special team dedicated to the PNG LNG project and its unique demands, Ela Motors can manage and improve its ability to deliver efficiently to the project, which is driven by very focused and goal oriented companies.

 

Many of these companies are operating for the first time in PNG and do not know local conditions.

Also the PNG LNG project various stages of development and production create unique vehicle, service and parts demands and Ela Motors must be able to cater for these, being flexible but without breaking the systems and practices that lie at the core of the company and have made it successful.

 

For example Ela Motors doesn’t hold stock enormous amount of stock. They deliver to the market, as the market needs it. Ela Motors has many years of delivering and meeting traditional market expectations. But the LNG project obviously changes this, creating a long-term spike in the demand for vehicles for a long period, which Ela Motors must meet without compromising its successful practice of not holding immense amounts of stock.

 

This means the Ela Motors must know the PNG LNG demands, meet with PNG LNG contractors (many of whom are operating for first time in PNG), develop PNG LNG projections, estimated the life of vehicles in the project, estimate the growth demand for spare parts and service and more.

 

Creating the team is also an important proactive step in protecting the traditional pre LNG customer base of Ela Motors and the company’s service delivery to these customers. Without a division like this in place, it is possible that the demands of the project might have made Ela Motors redirect its resources and attention and forget its traditional customers, organisations and peoples who have contributed to the development of the company over its 40 plus years of existence.

 

It’s a tight rope of delivering to the demands of the project without breaking its best business practice and at the same time, continues to deliver successfully to its traditional customer base.

 

“The biggest focus is to make sure we look after both sides, we didn’t survive 47 years in PNG without looking after the local customers,” says Cooper.

 

The PNG LNG project has ignited vehicle sales not juts in Ela Motors but also to other dealers with market growth up to 30%.

 

As the project progresses, there should be a corresponding growth in demand for service and parts as these vehicles age. Many of the contractors are working in remote locations so spare parts demand has already seen an increase and is expected to grow.

 

The LNG effect has been great for Ela Motors.  Sales of the Hilux Landcruiser series of vehicles has been very good, especially in the Waigani, Lae and Mt Hagen offices.

 

The demands for trucks at Ela Motors has also seen sales for dump trucks outstrip supply, with all trucks sold out for another three months.

 

As time progresses, the success of the Ela Motors PNG LNG Team can be properly assessed and lessons shared in business schools across the country, of how one company responded proactively to demands created by a very large billion kina resource project. 

 

Please share your thoughts on how companies respond to such a big project below in the comments sections.

 

 

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