State Declares Motukea Open For Business

Wednesday July 29, 2015 – The Prime Minister of Papua New Guinea Hon. Peter O’Neill today declared the Port of Motukea open for business as he unveiled a plaque celebrating a significant milestone in the development of the greater city of Port Moresby and the nation in general.

The existing port facility was acquired by Curtain Bros Ltd as a fully functioning port that will be developed over time to cope with the demands of the growing economy.

In the short term the Port of Motukea will be operated by PNG Ports Corporation.

The existing port facility located adjacent to the CBD in Port Moresby will be eventually decommissioned as Motukea is developed to full capacity.

Once the relocation is complete, redevelopment work will commence that will see an iconic landmark building erected at the site of the old port, adjacent to the CBD in Port Moresby.

BACKGROUND INFORMATION

  • In 1998 the PNG Government, through a National Executive Council (NEC) decision, established the initial framework for the Port Relocation concept by directing the then Harbours Board to conduct necessary studies and report its findings.
  • A number of sites were considered in these studies. Over time Motukea emerged as the most viable and preferred option given its relative low cost and readiness due to the fact that it was already an established port.
  • Motukea Port has been privately founded, owned and operated by Curtain Bros PNG since August 2010. The facility acquired by the State consists of three berths of 530 metres, 19 ha of reclamation hardstand, 14 ha of swing-basin and 27 ha of adjoining sea-bed lease with adequate space for development and expansion, which will include an additional two international berths.
  • The State, through the National Executive Council (NEC) appointed the IPBC to project-manage this important development in conjunction with PNG Ports Corporation. The IPBC is supported by a Project Steering Committee chaired by the IPBC and attended by representatives from the Department of Finance, Planning, Treasury, Transport, the Maritime Authority, the Department of the Environment and Conservation, the National Executive Council, PNG Ports Corporation and the National Capital District Commission (NCDC).
  • On Friday August 29, 2014 the Port Sale Letter of Intent (LOI) was signed between the Government, through IPBC, PNG Ports and Curtain Bros.
  • On Tuesday October 28, 2014 the Port Sale Agreement was signed between PNG Ports Corporation and Curtain Bros. In the Agreement the State agreed to pay Curtain Bros PNG Ltd K725 million for the acquisition of Motukea.
  • On Wednesday July 1, 2015 IPBC signed a loan agreement valued at K800m with BSP to facilitate the port relocation and relocation project. This allowed the finalisation of the sale of the Port of Motukea and the transfer of ownership from Curtain Bros to PNG Ports, as well as the redevelopment of the existing port site in Port Moresby.
  • Relocating the port and its associated operations will relieve congestion in the CBD of Port Moresby. The city will be free of container trucks and associated traffic that have been servicing the port. The aim is to have the Port relocation completed by 2018 to coincide with the 2018 APEC meeting.
  • Because Motukea is an existing site in operation there is limited risk and lessened impact to the physical and social environment. The future port will facilitate the efficient import and export of goods to underpin the economic growth of Papua New Guinea.