PORT MORESBY’S NEXT GROWTH CORRIDOR
Major industrial projects underway or in the pipeline north-west of Port Moresby seem likely to create an industrial and logistics corridor over the next five years. examines the progress.
Major industrial projects seem likely to create an industrial and logistics corridor north-west of Port Moresby. We examine the progress.
The presence of Exxonmobil’s giant PNG LNG gas plant 20 kilometres north-west of Port Moresby, combined with plenty of available land, has made the area in Central Province just outside the National Capital District ripe for a new industrial corridor.
With gas exports from the plant due to continue until at least 2030, the area has long-term potential not only for petrochemicalrelated activity, but wider business and residential development.
Existing infrastructure in the area already includes Interoil’s 10-year-old Napa Napa oil refinery, the recently-expanded Kanudi power station, Curtain Brothers’ PNG Dockyard on Motukea Island and the recently-opened Kavuvu Business Park, operated by Avenell Engineering Systems Ltd (AES).
But that’s just the start.
A modern, gated 500-unit executive K250 million (US$100 million) housing estate called Edai Town is being designed to house as many as 2000 people, mainly executives, expected to be working in this new industrial corridor.
‘It’s a new concept for this country, with a mix of housing, industry, shopping, police station, fire station, a market, a CBD, including hotel. It will cater for PNG nationals,’ says Kym Yong, Director of landowner company Portion 11 (Management) Ltd, the estate’s developer.
Private ports expand
Further south, the two private ports in the area, Curtain Brothers’ PNG Dockyard and AES’S Ravuvu Business Park, are both planning to expand.
Already operational, the 72-hectare Ravuvu park aims to offer a full range of facilities including accommodation, office space, commercial and industrial lots, workshops, a licensed dangerous goods area, holding yards and lay down areas, as well as recreational and catering facilities.
‘I want to give companies a fully-serviced platform on which they can build their business,’ Dominic Avenell, Managing Director of AES. tells Business Advantage.
Across Fairfax Harbour, Curtain Brother’s PNG Dockyard will open a new dry dock facility, valued at K500 million (US$198 million), in 2014. This will enable vessels to be repaired in PNG instead of having to travel to Singapore, China or the Philippines.
Looking further into the future, PNG'S Independent Public Business Corporation is working on plans to relocate the port of Port Moresby, possibly into Fairfax Harbour, as part of stateowned PNG Ports’ 2012–2032 strategic plan.
The as-yet undeveloped site of the proposed Konebada Petroleum Park—set aside by PNG’S government for the development of a local petrochemical industry—is adjacent to the PNG LNG plant.
In June 2013, Prime Minister Peter O’neill announced he had met executives from Mitsubishi Gas Chemical Co and Itochu Corporation to discuss their proposal—first raised in 2006—to build a petrochemical plant in the park.
If the project goes ahead, O’neill said at the time, it could create 5000 jobs during construction and afterwards.