Vanuatu Ferry Limited a subsidiary of Degage Group, has expressed strong interest in investing in Papua New Guinea’s (PNG) coastal shipping sector. The company’s delegation is currently visiting PNG, facilitated by the National Trade Office (NTO), to explore opportunities in the maritime transportation industry.
Addressing PNG’s Coastal Shipping Challenges.
Chief Trade Officer of the National Trade Office, Richard Yakam, welcomed the delegation, emphasizing that this potential investment could significantly improve PNG’s coastal shipping services. He highlighted the sector’s long-standing issues, including high costs and limited accessibility due to monopolization.
“Your group’s interest in investing in PNG will make a big difference and 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.
Vanuatu Ferry Limited with nearly 60 years of experience in the shipping industry, formally expressed its interest through a letter to the NTO. In response, the office initiated discussions and facilitated the company’s visit, ensuring engagement with relevant government agencies.
Exploring the PNG Shipping Market.
The Vanuatu Ferry Limited delegation is conducting meetings with key government departments to assess the business climate, regulatory framework and market demand. The company’s representatives expressed enthusiasm about entering PNG’s shipping industry.
“We are happy to be here and excited about the opportunity to tap into the shipping industry in PNG.” the delegation stated. The company’s ferry fleet offers both cargo and passenger services, with a vessel capable of carrying up to 500,000 tonnes of cargo and 500 to 600 passengers per trip.
Proposed routes include Lae to Port Moresby and Lae to Manus, and other major coastal provinces. This extensive network aims to enhance domestic connectivity, making transportation more affordable and efficient for businesses and the general public.
Government support and economic impact. Mr. Yakam reaffirmed NTO’s commitment to assisting Vanuatu Ferry Limited in establishing operations in PNG. He noted that this investment aligns with the government’s broader economic goals, including the Medium Term Development Plan IV (MTDP IV) (20024) and the National Trade Policy and National Agriculture Plans.
From a trade perspective increased competition in the shipping sector will lead to more affordable rates and improved service quality. Additionally, better logistical support for food transportation, particularly between Lae and Port Moresby, which could help address food shortages and support local farmers in bringing their products to market.
Beyond shipping, Degage Group has long-term plans to explore downstream processing of agriculture such as cocoa, vanilla and kava for export to Europe, Asia and the Americas.
Next Steps and Ongoing Discussions.
The delegation has inquired about operational logistics shipping trends, and trade volume data. Mr. Yakam assured them that the Papua New Guinea Maritime Authority (PNGMA) would provide the necessary regulatory and industry information.
The Trade National Trade Office is committed to working closely with Vanuatu Ferry Limited to ensure compliance with all government regulations. The delegation will be in PNG from February 17 to 21, 2025, meeting with relevant authorities to discuss further steps.
This investment marks a significant step towards improving PNG’s maritime infrastructure, fostering economic growth, and strengthening trade partnerships in the Pacific region.
