Marine to Papua New Guinea

Trends and opportunities

The market

There are 14 main public seaports that are administered by the Papua New Guinea Harbours Board. There are also an estimated 300 government and private small ports. Privately-operated ports mainly handle liquid and dry bulk commodities.

Spread throughout Papua New Guinea, the local boat-building industry manufactures wooden, aluminium, steel, and fibreglass boats. The most popular small craft is the ‘banana boat’ – an extremely strong, open, fibreglass boat, ranging in length from approximately four to eight metres, with a slightly upward-curved bow.

Most pleasure craft marine fittings and motors are imported. There is a large boating fraternity in Port Moresby and Lae. The Royal Papuan Yacht Club in Port Moresby operates a world-class marina.

For more general information please visit the Austrade Marine website. This site provides information to Australian marine companies looking to internationalise.

Opportunities

The AusAID-funded Infrastructure Sector (Transport) Study proposed several future development strategies for Papua New Guinea’s marine sector, including the following plans:

• Main Ports Development Strategy
• Maritime Safety Strategy
• Small Ports Development Strategy
• Integrated Planning and Implementation Strategy
• Inland Waterways Strategy
• Institutional Strengthening Strategy

Funding has been provided to the Papua New Guinea Government by the Asian Development Bank of US$69 million loan for marine infrastructure development. Work began in 2004 and includes:

• Community waterways improvements
• Improvement and expansion of navigational aids network
• Fisheries wharf construction
• Technical assistance

Australian marine exports to Papua New Guinea in the last five years included the following vessel types:

• Sailboats
• Motorboats (excluding outboard motorboats)
• Yachts and other vessels for pleasure
• Fishing and fish processing vessels
• Transport (goods/passenger) vessels
• Cruise and excursion vessels
• Ferries
• Tugs/pusher craft

Competitive environment

There are a number of large Australian brand name suppliers already represented in the Papua New Guinea. These include:

• Haines Hunter
• Nustar
• Zodiac
• Image Marine
• Auscraft International

The local industry provides general woodwork and fitting services. 

Recently, local production of the banana boat has declined with imports from Japan catering for the demand.

Tariffs, regulations and customs

There are no import restrictions or duties applying to marine vessels.

Sailboats (with or without auxiliary motor), motor boats, dinghies, ferry-boats, cargo ships, barges, etc are duty-free but are subject to the 10 per cent value added tax.

Papua New Guinea has a single rate value added tax (VAT) of 10 per cent. The VAT is collected as part of the normal procedure at the point of entry. The customs valuation is calculated according to the cost, insurance and freight (CIF) value of the imported goods and the VAT is also charged on any customs or excise duty paid.

Papua New Guinea has undertaken a process of steady reduction in tariff rates since 1997.

As of January 2006 the tariff rate regime is:

• 0 per cent for goods if Papua New Guinea doesn’t produce that product 
• 15 per cent goods used as inputs to businesses
• 25 per cent for final goods competing with Papua New Guinea production 
• 40 per cent for goods, competing with Papua New Guinea production and designated as in need special protection

Specific duties, expressed in Kina per measure, are levied on beer, matches, and poultry meat, eggs and tobacco products.

Papua New Guinea Customs use the single column based on the Harmonised system. Most duties are applied ad valorem using the World Trade Organisation (WTO) valuation code guidelines of CIF value (as per Incoterms 1990)

Exporters should ascertain the duty rate that applies to its products, before export. Austrade can assist with this process.

Samples of no commercial value are admitted duty-free although sales tax may still be levied. Valuable samples are admitted, subject to invoice declaration, under a deposit or bond equivalent to normal duty. The deposit is refunded on re-export of the samples.

Industry standards

Industry standards in Papua New Guinea are based on Australian standards for the most part. Exporters should therefore apply regulations applicable in Australia to marine goods they are going to export to Papua New Guinea.

Marketing your products and services

Market entry

Papua New Guinea is a demanding market. Potential suppliers should be careful before extending credit for purchases; this should include all government agencies.

The recommended method of market entry would be through a qualified distributor.

There are no boating shows or marine trade displays for active marketing. Most sales are direct to the end user or, for small craft and accessories, through local distributors.

The Papua New Guinea marine industry relies heavily on personal contact for successful business relationships. Regular visits to the market establish these relationships and ensure products and services receive maximum exposure.

Other marketing options for suppliers include direct advertising through the media and sponsorship of game fishing tournaments. Suppliers can obtain information by contacting the Royal Papuan Yacht Club in Port Moresby or the Lae Yacht Club in Lae.

Distribution channels

Suppliers of major pieces of marine equipment and large vessels tend to deal direct with end users.  Suppliers can achieve sales of smaller craft or accessories through local agents and distributors such as Trans Melanesian Marine, Manta Marine and The Net Shop – which have been in the industry for many years and are reputable.

Transport

Despite the close proximity of Australia and Papua New Guinea, freight charges tend to be relatively high due to the fact that ships returning from Papua New Guinea to Australia return virtually empty.

Transit time can vary significantly from a few days to weeks. Rapid delivery of shipping documents is essential as wharf storage dues are levied four days after the discharge of cargo. This is strictly enforced.

All goods must be air or sea freighted for the most part and consolidators are frequently used as consignments are often requested as a size or quantity that can fit on to a small truck or the back of a utility vehicle.

Physical distribution within Papua New Guinea can be complex due to:

• Geographic fragmentation
• Small market centres
• Contrasting demographic centres
• Lack of an extensive transport network

For these reasons, most goods are air or sea freighted. Air courier services are the faster means of means of delivery.

Qantas and Air Niugini service the international passenger and cargo market.

Links and industry contacts

Marine-related resources

Papua New Guinea Harbours Board
PO Box 671
Port Moresby NCD
Papua New Guinea
Tel: (675) 321 1400
Fax: (675) 321 1546

The Royal Papuan Yacht Club
PO Box 140
Port Moresby NCD
Papua New Guinea
Tel: (675) 321 1700
Fax: (675) 321 4935

The Lae Yacht Club
PO Box 392
Lae
Papua New Guinea
Tel: (675) 472 4091
Fax: (675) 472 4462

Trans Melanesian Marine Pty – retailer/agent/ships chandler
PO Box 477
Port Moresby NCD
Papua New Guinea
Tel: (675) 321 3590 or 321 2039
Fax: (675) 321 1074

The Net Shop – retailer/agent
PO Box 5860
Boroko NCD
Papua New Guinea
Tel: (675) 325 8222
Fax: (675) 325 8994

Manta Marine Engineering Services – retailer/agent
PO Box 1879
Port Moresby NCD
Papua New Guinea
Tel: (675) 321 4252
Fax: (675) 321 4246

Hornibrook NGI Pty Ltd (Marine Division) – marine fittings and fishing equipment/accessories
PO Box 1396
Boroko NCD
Papua New Guinea
Tel: (675) 321 7127
Fax: (675) 321 3235

Government, business and trade resources for Papua New Guinea

Investment Promotion Authority – www.ipa.gov.pg
Nationwide PNG Pages – www.nationwidepngpages.com  
PNG Directory – www.pngdirectory.com 
Papua New Guinea Business Resources Directory – www.apngbc.org.au

Australia PNG Business Council – www.apngbc.org.au
PO Box 3383
Weston ACT 2611
Australia
Tel: (02) 6231 9399
Fax: (02) 6231 9403

Department of Trade and Industry
PO Box 375
Waigani NCD
Papua New Guinea
Tel: (675) 323 1179 or 325 5816
Fax: (675) 323 1109 or 325 6108

Papua New Guinea Internal Revenue Commission
PO Box 777
Port Moresby NCD
Papua New Guinea
Tel: (675) 322 6600
Fax: (675) 321 4249

National Institute of Standards and Industrial Technology
PO Box 3042
Boroko NCD
Papua New Guinea
Tel: (675) 323 5339
Fax: (675) 325 6793

Department of Labour & Employment
PO Box 5644
Boroko NCD
Tel: (675) 321 7408
Fax: (675) 320 1062

Service providers

Financial

Touche Tohmatsu – www.deloitte.com.pg 
PO Box 1275
Port Moresby NCD
Papua New Guinea
Tel: (675) 308 7000
Fax: (675) 308 7001

Frank J de Graaf
PO Box 5999
Boroko NCD
Papua New Guinea
Tel: (675) 325 6366
Fax: (675) 325 0984

KPMG
PO Box 507
Port Moresby NCD
Papua New Guinea
Tel: (675) 321 2022
Fax: (675) 321 2780

Michael Mayberry Chartered Accountant
PO Box 1988
Port Moresby NCD
Papua New Guinea
Tel: (675) 320 1988
Fax: (675) 320 1989

PricewaterhouseCoopers – www.pwcglobal.com 
PO Box 484
Port Moresby NCD
Papua New Guinea
Tel: (675) 321 1500
Fax: (675) 321 1428

Sinton Spence
PO Box 6861
Boroko NCD
Papua New Guinea
Tel: (675) 325 7611
Fax: (675) 325 9389

Smiths
PO Box 487
Port Moresby NCD
Papua New Guinea
Tel: (675) 321 7099
Fax: (675) 321 7183

Legal

Allens Arthur Robinson Lawyers – www.aar.com.au 
PO Box 1178
Port Moresby NCD
Papua New Guinea
Tel: (675) 320 2000
Fax: (675) 320 0588

Blake Dawson Waldron Lawyers – www.bdw.com.au 
PO Box 850
Port Moresby NCD
Papua New Guinea
Tel: (675) 309 2000
Fax: (675) 309 2099

Gadens Lawyers – www.gadens.com.pg 
PO Box 1042
Port Moresby NCD
Papua New Guinea
Tel: (675) 321 1033
Fax: (675) 321 1885

Norton White Lawyers and Notaries
PO Box 21
Port Moresby NCD
Papua New Guinea
Tel: (675) 321 1788
Fax: (675) 321 2195

Pacific Legal Group
PO Box 904
Port Moresby NCD
Papua New Guinea
Tel: (675) 321 7477
Fax: (675) 321 3491

Warner Shand Lawyers
PO Box 1817
Port Moresby NCD
Papua New Guinea
Tel: (675) 325 4422
Fax: (675) 325 0682

Logistics

Qantas – www.qantas.com.au/freight/dyn/contacts/australasia
Papua New Guinea Online – www.niugini.com 
Commercial forum – www.pngtradepost.com.pg 
Air Niugini – www.airniugini.com.pg  (the national airline)

Media

Post-Courier Online – www.postcourier.com.pg
The National Online – www.thenational.com.pg
The Independent – www.niugini.com/independent

Australian resources

Australian High Commission
Godwit Road
(Locked Bag 129)
Waigani NCD
Port Moresby
Papua New Guinea
Tel: (675) 325 9333
Fax: (675) 325 9183

Operating hours:
Monday to Friday, 7.45am-4.15pm

Department of Foreign Affairs
PO Box 422
Waigani, NCD
Papua New Guinea
Tel: (675) 301 4121 or (675) 301 4122
Fax: (675) 325 4886

Papua New Guinea High Commission
39-41 Forster Crescent
Yarralumla ACT 2600
PO Box E432 Kingston ACT 2604
Tel: (02) 6273 3322 
Fax: (02) 6273 3732

South Pacific Trade Commission
Level 30, 133 Castlereagh Street
Sydney NSW 2000
Tel:  (02) 9283 5933
Fax: (02)  9283 5948

Contact details

The Australian Trade Commission (Austrade) is the Federal Government agency that helps Australian companies win overseas business for their products and services by reducing the time, cost and risk involved in selecting, entering and developing international markets.

Austrade offers practical advice, market intelligence and ongoing support (including financial) to Australian businesses looking to develop international markets. Austrade also provides advice and guidance on overseas investment and joint venture opportunities, and helps put Australian businesses in contact with potential overseas investors.

A list of Austrade offices (in alphabetical order of country) is available.

More information

For further information please visit the Austrade Marine website.
You can also contact Austrade on 13 28 78 or email info@austrade.gov.au

(Last updated: 31 Jul 2007)