By ANTON HUAFOLO
PAPUA New Guinea stands to gain immensely in job creation and increased revenue from onshore tuna processing when the proposed Pacific Marine Industrial Zone Park in Madang becomes a reality.
Commerce and Industry Minister Gabriel Kapris last Friday said the project has the potential to fetch PNG as well as other Pacific Island countries revenue of up to US$2 billion (K5.6 billion).
He said presently the Pacific region contributes 67% of tuna to the world tuna market and only gains US$67 million (K1.9 billion) from fishing access fees from foreign vessels that fish for tuna in the region.
When the Pacific Industrial Zone becomes a reality, it will be a breakthrough and will see the region gain a mark-up of 200% or over K5.6 million in revenue from on-shore tuna processing in Madang.
The Pacific Industrial Zone has the support of the PNG Government, which according to Mr Kapris, recently allocated K19 million to have it kick-started.
The recruitment of the park’s management team will be finalised this week and will base in Madang.
RD Tuna Cannery in Madang has agreed to free up part of its land where its cannery is located. The property has been partitioned for interested parties to acquire for their facilities.
The project, expected to be fully operational by 2010, has the potential to create approximately 40,000 jobs in PNG, and will be modelled on the Philippine’s current set up of its on-shore tuna processing plants.
Mr Kapris said the park will also achieve economies of scale that will see an increase in tuna production, volume demand, reduced costs and high socio-economic benefits not only to PNG but other Pacific Island countries as well.
Pacific island countries that have so far shown interest in the project are Kiribati, Nauru and the Solomon Islands which will set up their facilities.
Others are expected to come on board.
Mr Kapris said the Asian Development Bank was “impressed” with PNG’s proposal for the fisheries park when he met bank officials during his recent visit to the Philippines.
ADB would likely come on board with project funding.
Other potential funding agencies that the Government is looking at negotiating with for project funding included the World Bank’s International Finance Corp and the European Union.
The EU has already granted PNG and Pacific Island nations the basis to export to its member countries on a duty free basis, Mr Kapris said.