The expansion of Papua New Guinea’s Lombrum naval base on Manus Island — now officially handed over — represents both the largest infrastructure project Australia has ever undertaken in the Pacific and a significant case study in the complexities of regional defence cooperation.
Initially costed at $175 million in 2021, the project’s price has ballooned to around $500 million. COVID-19 delays, protracted negotiations with local landowners, and extended timelines contributed to the blowout. Yet Defence Minister Richard Marles has positioned the development as a “tangible expression” of deepening Australia–PNG defence ties.
Strategic positioning
Manus Island has long been recognised for its geostrategic value — a WWII-era US naval hub, now viewed as a forward operating point in the Western Pacific. The base’s redevelopment, coupled with a soon-to-be-signed PNG–Australia defence treaty, will allow reciprocal access to each other’s military facilities. The US, which has invested $25 million in related upgrades, is also expected to gain access under its 2023 defence pact with Port Moresby.
Dual utility
While Australian naval vessels will be able to operate from Lombrum, the facility remains a sovereign PNG asset. For PNG, the expansion will enable its Defence Force to double personnel stationed there, from 200 to around 400, while creating hundreds of jobs in Manus. For Australia, the base provides a forward presence in a strategically contested maritime corridor, bolstering its capacity to project influence and counterbalance China’s growing Pacific footprint.
The investment question
The blowout raises questions about cost efficiency and delivery management in Australia’s Pacific security investments. Although the extended wharf cannot berth larger Australian vessels, deep-water anchorage provides an operational workaround. The key test will be whether the strategic dividends — enhanced interoperability, faster maritime response, and greater deterrence — justify the outlay.
In the context of intensifying great-power competition in the Pacific, Lombrum’s redevelopment is less about the dollar figure and more about securing Australia’s role as PNG’s principal defence partner. Yet, as with all major strategic infrastructure in the Pacific, its success will hinge on sustained political trust, careful local engagement, and demonstrable benefits for the host nation.