By ORCHY REX
THE Marape-Rosso government has unveiled a plan to boost Papua New Guinea’s fishing industry, aiming to transform it into a major revenue generator.
Minister for International Trade and Investment, Hon. Richard Maru, announced yesterday that the National Executive Council (NEC) has approved the development of the Pacific Marine Industrial Zone (PIMZ) in Madang Province, set to be completed in two phases.
Minister Maru highlighted that PNG is currently earning a net revenue of only K300 million annually from its fishing industry. However, he emphasized that the nation has the potential to earn K5 billion in revenue if it fully domesticates its fishing operations.
“We are losing many revenue streams ranging from landing fees, shipping licenses, jobs, wages, electricity, and other opportunities for business revolving around commercial fishing enterprises,” he said.
The first phase of the PIMZ project will involve the establishment of a fishing Joint Venture (JV) between the state and RD, a move aimed at jumpstarting a PNG-owned fishing company.
“The government aims to start up a PNG fishing company so we can have our own master fishermen, fishing boats, and fish security before we can go to canning and processing,” Maru explained.
Minister Maru highlighted the high costs and challenges associated with establishing a new venture from scratch and said it is a good idea the government has opted for a strategic joint venture.
“We need to partner and learn the trade of the commercial fishing business first over a period of time until we’re confident to venture into our own,” Maru added.
For decades, PNG’s fishing industry has remained largely undeveloped, resulting in significant losses.
“Over the last 50 years, PNG has never domesticized their fishing industry, and as a result, 50,000 jobs are being lost, and 80% of the catch is being taken overseas, including the revenue,” Minister Maru said.
Once the initial phase proves successful, phase two will focus on building PNG’s own cannery and other associated businesses.
“If phase one is successful and we’re able to catch enough fish, have our own fishing boats, have our own master fishermen and our own people trained to fish, then phase two is imminent which is to build our own cannery and other associated businesses,” Maru said.
With a rich Special Economic Zone (SEZ) of 2.4 square kilometers, PNG is one of the most productive regions in the Pacific, accounting for approximately 18% of the world’s tuna catch and controlling around 15% of the global tuna trade.
However, much of this catch is currently processed overseas, depriving PNG of significant benefits.
“PNG needs to break this cycle and get into the fishing business and benefit from the K12 billion – K15 billion revenue that is generated from the fish harvested by others,” Minister Maru said.
The NEC has approved the state negotiating team, led by Chairman Mr Dairi Vele, to finalize the JV company agreement with RD before it is presented to the cabinet for consideration and approval.
Minister Maru commended the Marape-Rosso government for their forward-thinking decision to develop the PIMZ in two phases, describing it as an important policy shift for the nation’s economic future.
