Port Moresby, 24 February 2025 – The Independent State of Papua New Guinea and the RD Group are in the final stages of negotiating a major joint venture to establish a 300-metric-ton fish cannery in Vidar, Madang Province. The proposed project, valued at K160 million, is set to become the anchor development of the long-delayed Pacific Marine Industrial Zone (PMIZ).
The negotiations, led by the State Negotiating Team and RD representatives, mark a turning point in efforts to finally operationalise the PMIZ—a flagship initiative that has remained dormant for over a decade.
Government Determined to Fast-Track Cannery Launch
Minister for International Trade and Investment, Hon. Richard Maru, opened the session with a strong directive to fast-track the deal.
“The PMIZ was conceived 15 years ago under the leadership of Grand Chief Sir Michael Somare. Every government since has made it a priority, but we have seen little action,” said Minister Maru. “This Government is determined to change that. By next month, we must break ground on this cannery.”
Minister Maru called for the new Joint Venture Agreement to be finalised immediately, with State Solicitor review and Cabinet approval to follow. Funds for the project are already allocated and will be released upon execution of the agreement.
Shift in Scope: From Fishing to Cannery First
Initially envisioned as a fishing JV, the scope of the project has now shifted to focus solely on cannery development. RD, which already operates wharf facilities and cold storage in Madang, has agreed to partner with the State—through its commercial arm Kumul Consolidated Holdings (KCH)—to establish the new company, which will be known as Kumul Fishing Limited.
Ownership will be split evenly, with 50% held by RD, and 50% by the State, Madang Provincial Government, and the Madang and Sumkar District Development Authorities.
Job Creation and Economic Impact
The new cannery is expected to create up to 10,000 jobs and stimulate extensive spin-off economic activities across Madang Province. Minister Maru emphasised the long-term vision of developing the region into a fully-fledged Special Economic Zone (SEZ).
“This is about more than one project. We want ten canneries here in the long run. We want fuel depots, slipways, retail services, and staff accommodation. We are aiming to work with RD and global experts on a comprehensive master plan for the Madang Integrated SEZ,” he said.
Domestication Policy to Boost Local Processing
The announcement comes ahead of the official unveiling of the National Fisheries Authority’s Domestication Policy, expected in March. The policy will mandate all fishing companies operating in PNG to land 25% to 40% of their catch locally.
“Currently, only 20% of the 550,000MT of fish caught in PNG waters is processed here. The rest is exported, along with jobs and economic value. That’s about to change,” said Maru.
The RD partnership, in alignment with this policy, is a cornerstone of the Government’s strategy to transform PNG from a raw resource exporter into a value-adding economy.
Kumul Fishing Limited to Drive National Growth
Minister Maru reiterated that Kumul Fishing Limited would be the implementing vehicle for this investment, driving job creation, boosting exports, and growing the local tax base through income tax and GST.
“This is about national empowerment. We’ve been spectators in our own fisheries sector for too long. With this partnership and policy shift, we’re stepping up to become real players in the global seafood market.”