Importance of the Daru fisheries industrial park to PNG

The island of Daru has become the center of attention after a Chinese company decided to build a multi-functional fisheries industrial park on the island. There has been both negative and positive comments made about the investment project based on economic, political and security interest of various state actors. More importantly, economic and security interest outweighs the political interest if you look at the investment project from a PNG perspective.  

The MOU was signed on November 12 in Port Moresby by; the Governor of Western Province, the Minister for Fisheries and Marine Resources including the General Manager for Fujian Zhonghong Fishery Limited. The Minister made it clear in his recent statement that the MOU..."provides a cooperative arrangement in managing the relationship and responsibilities between the three parties towards the exploration and facilitation of a proposed integrated and multi-use fishery industrial park investment project."

Photo from Twitter shared by @RNemala 

 

He also said the MOU does not include fishing permits or licenses. His statement addresses the concern by Australia that Chinese fishing fleets might catch all the fish in the seas around the island and the border area. The Minister will now need to plan properly the next phase of the investment project. 

PNG and China via the use of the Belt and Road Initiative want to increase economic opportunities for citizens living in Western Province including Gulf and Central provinces. In particular, fishermen who have been fishing the southern seas for generations. There is a possibility that the fishing permits or licenses will be given to them instead of Chinese fishing vessels, or the government might ask for a joint venture if the locals do not have the capacity. 

There is another possibility that fishermen from the eastern seas, in the province of Milne Bay, will travel to Daru to sell their fish. The provinces that make up the southern region are geographically close to each other, with better boats and the use of GPS technology they can easily travel the seas to engage in this economic activity.

Apart from the sea, the Western Province has delta regions and swampy areas which are different to other provinces. Ok Tedi and Strickland rivers are tributaries that flow into the big Fly River. The Aramia, Wawoi and Guavi rivers also flow down into the sea. The Balimo area is known for its swampy areas which contain an abundance of fresh water marine life. The rivers have a good stock of fresh water fish and prawns which can be consumed locally or exported to the Chinese market. 

The MOU was signed after the agreement between the National Fisheries Authority (NFA) and the Chinese Embassy in PNG to export seafood to the lucrative Chinese market. PNG was given accreditation as an approved country by The General Administration Customs of China to export its seafood directly to mainland China instead of going to Hong Kong or Singapore for customs clearance. This was possible due to years of lobbying and compliance work done by the NFA and a company known as Pacific Trade Invest China.  . 

The Minister made another important statement that helps us to understand the importance of Western Province. He said we have a developed tuna market but we need to develop the market for other coastal fish, crustaceans, mollusks and aquatic invertebrates. Inland fishing is another untapped sector including aquaculture. Apart from fish and crustaceans like prawns, aquatic invertebrates like squid and octopus will increase in their monetary value once the fisheries park is in operation.     

Small-scale coastal fishing is not a big industry in PNG. Demand for fish in the domestic market is less due to transportation issues. Furthermore, there are no opportunities to export to overseas markets. Fishermen go out to the sea in their small outboard motor boats to catch a few fish to sell at the markets in maritime towns. They do not have the capacity to transport their fish to sell in the different towns in the densely populated highlands region.

If the 35 seafood companies that will be operating in the fisheries industrial park can use their 31 cold storage facilities to help freeze, pack and transport fish to the domestic market then it will help with food security and nutrition. Consumers from the highlands region in the middle or low income earning groups will have affordable protein in constant supply. The competition will help reduce the price of tinned fish which is consumed frequently by this particular socioeconomic groups.   

Inland fishing and aquaculture is growing slowly up in the highlands region. The Mount Wilhelm and Mount Giluwe trout farms are good examples. The Mount Giluwe Rainbow Trout Farm is the largest inland hatchery and farm at a commercial level in PNG. On the other hand, the Mount Wilhelm Trout Farm was formerly the largest fingerling distribution hub in PNG. 

Furthermore, the Wesan prawn and fish project shows that there is potential to venture into prawn farming. NFA has already done research on prawn farming and is supporting prawn farmers. It started in 2010 after an understanding was reached between NFA, the Secretariat of South Pacific Community and the University of Papua New Guinea.    

If the Government with the help of the Chinese Government can find markets in China for them to sell their freshwater marine products then it will help with the growth of their businesses. NFA has done well by assisting the farmers to set up their farms. The the farmers need to manage their farms and make sure they constantly supply to the domestic market in order to keep their business going, 

The new opportunity provided by China opens the door for entrepreneurs in all provinces to access the SME loans provided by the Government to venture into small-scale coastal and inland fishing businesses. The loan will complement the funding facility offered by NFA. The ripple effect will be the growth of boat making businesses and other businesses who specializes in producing food for fresh water fish and prawns. 

It is imperative that this investment project materializes in comparison to the much talked about Pacific Marine Industrial Zone in Madang. The onus is now on the Minister to make it happen and not follow the precedent set by his predecessors.