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.

Business Advantage Papua New Guinea - - Contents - Busi­ness Ad­van­tage

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.

Edai Town

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.

Petro­chem­i­cal plant

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.

The AES- owned Ravuvu Busi­ness Park over­look­ing Fair­fax Har­bour, with Cur­tain Brother’s PNG Dock­yard in the dis­tance.

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