“Agreement Reached to Develop a Fully Integrated SEZ in Madang” — News — PNG Business News

The National Government, through the Ministry of International Trade and Investment, the Madang Provincial Government, and RD Corporation, have reached an agreement to initiate immediate feasibility studies for the proposed Madang Integrated Special Economic Zone (SEZ) in Vidar, Madang.

In discussions recently concluded at the RD Corporation Headquarters in General Santos City, Philippines, the three parties committed to developing a fully integrated SEZ on 650 hectares of land owned by RD Corporation. The SEZ will be modelled after the Java Integrated Industrial Port Estate (JIIPE) in Indonesia.

Minister for International Trade and Investment, Hon. Richard Maru, stated, “This proposed integrated SEZ will include fish canneries, a fuel depot for all purse-seiners, cold storage, a slipway, a shipyard, and various associated businesses such as tin can manufacturing, a packaging factory, and aquatic feed production for aquaculture, including shrimp and inland fish farms. The SEZ will also feature a residential estate, shopping malls, schools, its own bank, and an international wharf. This wharf will serve as an alternative to Lae Port for the Highlands via the Baiyer-Madang Road, reducing freight costs by half due to the proximity of the new wharf compared to Lae Port.”

Minister Maru emphasised, “This SEZ is the highest priority for the National Government and the Madang Provincial Government. It marks the beginning of Madang Town’s transformation into an industrial hub.”

During their two-day visit to General Santos City, Minister Maru and the Governor of Madang, Hon. Ramsey Pariwa, toured RD Corporation’s facilities, including their cannery, cold storage, packaging factory, aquaculture farm, and a state-of-the-art shipyard complex equipped with floating dry docks and slipways. The shipyard provides a full range of services, including ship repair and maintenance, and caters to both local and international clients, including the Philippine Navy. The delegation also visited RD Corporation’s bank and hardware operations.

RD Corporation first built its vessel under the RD Fishing Group in 1984 and later expanded its fishing operations by acquiring other fishing companies. Today, it operates the largest and most modern fishing fleet in General Santos City, which is recognised as the Tuna Capital of the Philippines.

Minister Maru highlighted the significance of RD Corporation’s operations in Madang, stating, “What RD Corporation has established in Madang is just a fraction of what they have in General Santos City. The Marape-Rosso Government has made a sound commercial decision by partnering with RD Corporation, a well-established fishing company with extensive facilities, management expertise, and global industry networks. RD Corporation brings years of experience and an in-depth understanding of the global market.”

Minister Maru further stated, “Papua New Guinea (PNG) has missed significant opportunities over the past 49 years by being merely a rent collector in the fisheries sector. We should have fully domesticated our fisheries industry, but we have not. As a result, 80% of our catch is taken overseas, and we have missed out on building additional canneries, losing 50,000 jobs. Our current net revenue is only K300 million a year, but we could be generating K5 billion in revenue. We also lose out on landing fees, shipping licences, jobs, wages, income taxes, corporate taxes, GST, and local commercial opportunities linked to the fishing industry.”

He added, “PNG accounts for approximately 18% of the world’s tuna catch and controls around 15% of the global tuna trade, with an estimated value between USD$4 billion and USD$5 billion (K13.3 billion – K16.9 billion). However, the majority of this catch is rerouted at high seas and processed overseas, depriving PNG of significant benefits. The overall production output of PNG’s fisheries exports has remained steady at over K1 billion since 2016, but most of the revenue comes from resource rents.”

“The Government’s decision to partner with RD Corporation in the fisheries business is a bold step in transitioning PNG from a rent collector to a true Fishing State,” concluded Minister Maru.

_{Images are for reference only.Images and contents gathered automatic from google or 3rd party sources.All rights on the images and contents are with their legal original owners.}