THE National Trade Office (NTO) is facilitating a visit from Vanuatu Ferry Limited, a subsidiary of Degage Group. The company has expressed a strong interest in establishing operations in Papua New Guinea’s coastal shipping sector.
In welcoming the delegation, Mr Richard Yakam, Chief Trade Officer of the National Tarde Office, said the investment presents a significant opportunity for PNG, given the ongoing challenges surrounding foreign direct investment (FDI) and the increasing demand for reliable and affordable coastal shipping services. The introduction of Vanuatu Ferry Limited could help address longstanding transportation issues, particularly in connecting maritime and coastal provinces.
With nearly 60 years of experience in the shipping industry, Vanuatu Ferry Limited formally expressed its interest in investing in PNG through a letter to the National Trade Office. In response, NTO acknowledged their proposal and initiated discussions on the necessary logistical and administrative arrangements to facilitate their visit with support from other stakeholder agencies. The company’s delegation is in PNG to meet with relevant government departments and agencies to assess the investment climate and the country’s legal and regulatory environment in the Martine time transportation sector.
During their visit to the NTO office, Chief Trade Officer Mr. Richard Yakam officially welcomed the Vanuatu Ferry Limited delegation and acknowledged their interest in doing business in Papua New Guinea.
“The Minister should have met with you today, but unfortunately, he is currently out of the country. However, we are here to ensure that your visit is productive and that you receive the necessary support from relevant agencies,” Mr. Yakam said.
He further emphasized the need for competition in PNG’s coastal shipping industry, noting that the sector has long been dominated by a monopoly, leading to high costs and limited accessibility.
“Your group’s interest in investing in PNG will make a big difference and bring much-needed relief to the people by offering a more cost-effective shipping option. This will not only improve transportation efficiency but also benefit businesses, farmers, and consumers who rely on reliable shipping services,” Mr. Yakam stated.
The CTO reaffirmed NTO’s commitment to facilitating Vanuatu Ferry Limited’s business setup in the country, ensuring a smooth investment process.
“Our office is here to assist you with the necessary processes to establish your operations in PNG. In the long run, we want your company to have a base here, strengthening trade links with key regional partners such as China, Indonesia, and other markets. Your investment will contribute to the broader economic agenda of PNG and create more opportunities for trade, employment, and economic growth,” he added.
The Vanuatu Ferry Limited team expressed their enthusiasm for entering PNG’s shipping industry, stating that it was their first time visiting Papua New Guinea.
“We are happy to be here and excited about the opportunity to tap into the shipping industry in PNG,” the team stated. They highlighted that their ferries can transport both cargo and passengers, offering a dual-service model that can greatly benefit PNG’s trade and transportation sector.
The ferry has a cargo capacity of 500,000 tonnes and can accommodate 500 to 600 passengers per trip, making it one of the largest vessels of its kind to potentially operate in PNG waters. The likely routes for the ferry service will include:
- Lae to Port Moresby
- Lae to Manus
- and
- Most coastal provinces
This extensive inter-provincial network will greatly enhance domestic connectivity, making transportation more affordable, accessible, and efficient for both businesses and the general public.
During the meeting, the Vanuatu Ferry Limited team asked about the demand for coastal shipping services in PNG, to which Mr. Yakam assured them:
“We have a high demand in this sector. The need for more shipping services is evident, especially for moving fresh produce, general cargo, and passengers between major ports such as Lae and Port Moresby,” he said.
The delegation also inquired about operational logistics and requested relevant data regarding shipping trends, trade volume, and market demand. Mr. Yakam advised them that the Papua New Guinea Maritime Authority (PNGMA) would be responsible for providing specific data and regulatory requirements necessary for their business operations.
The company’s interest in PNG aligns with the government’s broader strategy to attract FDI, create employment opportunities, and enhance the country’s transportation infrastructure. If established, Vanuatu Ferry Limited will support key sectoral plans and policies, including:
- Medium-Term Development Plan IV (MTDP IV) launched in 2024.
- National Trade Policy and National Agricultural Plans, which focus on modernizing the agricultural sector, promoting commercial farming, fisheries, and improving the movement of goods and people in coastal regions.
From a trade perspective, this investment will introduce competition in the coastal shipping sector, offering affordable rates and improved service quality. Additionally, addressing logistical challenges in food transportation—particularly between Lae and Port Moresby—will help alleviate food shortages in PNG’s major cities and support local traders, firms, and farmers in bringing their produce to market.
Beyond shipping, Degage Group has long-term plans to explore downstream processing of agricultural products such as cocoa, vanilla, and kava for pharmaceutical and nutraceutical markets in Europe, Asia, and the Americas. The company already exports such products from its small factory in Vanuatu, and its potential expansion into PNG would add value to the agriculture sector by transforming raw materials into finished goods for international markets.
The National Trade Office will continue working closely with Vanuatu Ferry Limited to ensure compliance with all relevant government regulations and industry standards. Key government departments and agencies have been informed and are prepared to assist with the necessary processes for the company’s establishment in PNG.
The delegation will be in the country from February 17th to 21st, 2025, and will engage with relevant government authorities during their visit.
