Security to Papua New Guinea

Trends and opportunities

The market

Regrettably, the Papua New Guinea has a serious problem with personal and property security and, consequently, a growing marketing for the services and products of the security industry.

It is acknowledged that the failures in disciplines and systems have caused the local police force, the Royal Papua New Guinea Constabulary, to be largely ineffective. There have been repeated calls by private sector citizens, industry leaders and prominent entities for the government to address the marked increase in law and order problems. Security will remain a major concern for some time yet.

Opportunities

Opportunities exist for Australian expertise in the Papua New Guinea security industry in the following areas:

• Electronic security and surveillance systems
• Systems technicians
• Security uniforms and accessories
• Guard dogs and the associated care
• Veterinarians
• Physical barrier systems

Competitive environment

There is no domestic manufacturer of alarm/security systems, two-way radios or specialist dog foods; there are very few qualified systems technicians and fewer veterinarians.

The larger, more professionally run, security operations in Papua New Guinea include:

Protect Security

• Approximately 1200 uniformed guards providing static sentry services
• Australian and Papua New Guinean ownership
• Has purchased the security monitoring interests of Honeywell Australia (PNG) Ltd, making it the only security firm in the country with a 24-hour monitored centrally-controlled alert system
• Company has been in operation since 1978 as Protect Security Services, and amalgamated with Wormald to form Protect Security, which is Papua New Guinea registered

Securimax Pty Ltd

• Approximately 1500 uniformed guards
• Owned by Australian but Papua New Guinea registered
• Specialist in the provision of armoured vehicle services
• Has operated since 1980 and enjoys strong links with mining/petroleum companies
• Operates branches in five centres

Guard Dogs Pty Ltd

• Approximately 600 uniformed guards
• Australian owned
• Has been in business for over 10 years
• Primary line of business is provision of guard and guard dog services
• An associated company (Security Systems) supplies, installs, and services security and alarm systems

The Corps Pty Ltd

• Australian owned
• Services restricted to provision of armoured vehicle services
• Operations limited to Port Moresby
• A professionally-run, smaller operation

Tariffs, regulations and customs

Import of guard dogs must meet with the approval of quarantine and health authorities.

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. The deposit is refunded on re-export of the samples.

Industry standards

There are no official industry organisations to mandate industry standards although an informal group, the Security Service Providers Association, organise ad hoc meetings to discuss issues within the industry as, and when, they arise.

Marketing your products and services

Market entry

There are a large number of local security firms that provide static security guards, guard dogs and security guard escort services. However, most firms lack experience, technical expertise and supply capacity, in regard to the sophisticated electronic security and surveillance systems that are evident in more developed countries such as Australia.

There are a small number of firms in Papua New Guinea with the necessary market and professionalism to be of potential buyers of Australian security exports. Personal representation to these firms is the most efficient means to market your product and services.

Mining operations represent a distinct segment of the market as they often maintain remote communities. Many mining companies in Papua New Guinea maintain facilities in Australia (especially Queensland) to assist in servicing their operations including buying offices that often use public tender to purchase long-term requirements. Security suppliers should register their capabilities with these buying offices.

It is not advisable to arrive unannounced at any mine site.

Although the email use is increasing, e-commerce has had very little impact in the Papua New Guinea security industry and the Internet, in general, is not an effective marketing channel.

Distribution channels

There are a number of distributors or agents for security related items in Papua New Guinea, such as DALCO International, Guard Dogs Pty Ltd, and Security Systems Pty Ltd.

There are a number of textile companies in Port Moresby where some of the smaller security companies purchase uniforms from, but almost all of the larger firms order direct from makers in Australia (particularly Queensland).

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

Security-related resources

Protect Security
PO Box 5392
Boroko 111
Papua New Guinea
Tel: (675) 325 6377 or 325 6211
Fax: (675) 326 8204

Guard Dogs Pty Ltd
PO Box 648
Port Moresby
Papua New Guinea
Tel: (675) 325 4982 or 325 1433
Fax: (675) 325 4878

Securimax Security Group Ltd
PO Box 6774
Boroko 111
Papua New Guinea
Tel: (675) 323 0100
Fax: (675) 323 0007

The Corps (PNG) Ltd
PO Box 325
Jacksons
Port Moresby
Papua New Guinea
Tel: (675) 320 1411
Fax: (675) 320 1808

Alert Security
PO Box 4534
Boroko 111
Papua New Guinea
Tel: (675) 323 6345 or 323 6342
Fax: (675) 323 1391

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 contact Austrade on 13 28 78 or email info@austrade.gov.au

(Last updated: 31 Jul 2007)