The signing of the K260-million Kimbe Rehabilitation and Upgrade Marine Package contract, awarded to Pacific Marine Group (PMG), was made official on January 16 at the Kumul Consolidated Holdings (KCH) Boardroom in Port Moresby.
Work on the Kimbe Port is expected to commence at the end of the first quarter of 2025 and would be completed within 16 months. The Land Package component of the project is currently under evaluation and will follow soon, proponents said.
Kimbe Port is the first of several ports slated for upgrades under the K1.5-billion blended financial package provided to PNG Ports by the Australian Government through the Australian Infrastructure Financing Facility for the Pacific (AIFFP) in 2022.
The package contract is part of a larger initiative under PNG Ports’ 30-year Master Plan, launched in June 2021, and supported by Australia through a AU$435-million (1.5 billion kina) infrastructure funding package.
PNG Ports Chief Executive Officer, Mr Neil Papenfus, hailed the project as a significant milestone, highlighting its importance for enhancing trade, connectivity, and commercial opportunities for West New Britain Province and Papua New Guinea as a whole.
“We sincerely thank the Australian Government for its financial support, which has made this development possible. We also acknowledge the West New Britain Provincial Government for their partnership in advancing this initiative,” said Mr. Papenfus.
“Kimbe Port is our third-largest port and a priority in our 30-Year Port Infrastructure Master Plan. Located in PNG's largest producer and exporter of crude palm oil, the port is critical to our economy. This project will bring key benefits, including local job creation and economic engagement.”
“Our ports must remain fit-for-purpose, capable of meeting future business demands, and resilient to climate challenges. This project is an important step in achieving those goals”, he added.
Mr. Papenfus also expressed excitement about collaborating with Pacific Marine Group, a leader in marine contracting and commercial diving with over three decades of experience across Northern Australia, PNG, and the Pacific region.
“Pacific Marine Group’s expertise will be vital in building reliable and sustainable infrastructure for the province and the nation,” he said.
Mr Papenfus added that the rehabilitation of the port would lead to increased economic activity for Kimbe based businesses over the construction period.
Contractor Assures Project Completion
Speaking at the project’s signing, the Managing Director of the Pacific Marine Group, Mr. Terry Dodd, reflected on PMG’s extensive history in PNG, with over 30 years of successful collaboration on infrastructure and maritime projects with major organizations such as Chevron, Oil Search, and Kumul Holdings.
“We’ve worked on a range of projects in PNG, including the sewage outflow in Port Moresby, the Palatau Wharf rebuild, and the Manus Island Wharf and barge ramp rebuild. We’re bringing the same experienced team who completed those projects to lead the Kimberley Wharf rehabilitation,” Mr. Dodd said.
Mr. Dodd emphasized PMG’s commitment to utilizing local talent and resources for their projects in PNG.
“Our focus when working in PNG is to engage as many local contractors and national staff as possible,” he said. “We also prioritize upskilling and training. The people of PNG are great workers, and we’ve built a strong cohort of employees over the years.”
The company’s approach extends to partnerships with local educational institutions. Mr. Dodd highlighted an ongoing collaboration with the University of Technology (UniTech) in Kimbe, where the company will provide equipment and training.
“In return, UniTech will send trainees to work with us on a rotating basis, allowing us to upskill them directly on the project,” Mr. Dodd noted.
“We’re also proud to have PNG graduate female engineers who have worked with us on past projects. They’ll lead the Kimberley Wharf project as some of the first personnel on-site.”
As the project gears up, Pacific Marine Group has already received overwhelming interest from local workers eager to join the effort.
Mr. Dodd said, “Our interactions with everyone at PNG Ports have been outstanding. We are open to addressing any challenges that may arise to ensure we deliver a high-quality outcome for the Kimberley Port Rehabilitation.”
He acknowledged the weight of expectations but remained confident in the company’s ability to deliver exceptional results.
“We’re excited and ready to meet the challenge. This is a major project for us, and we look forward to working with all stakeholders to achieve a successful outcome.”
Duma Commends Stakeholders’ Collaboration
Minister for State Enterprises, Hon. William Duma, acknowledged the collaborative effort behind the project, highlighting the enduring relationship between Papua New Guinea and Australia.
He witnessed the signing of the project along with the Management of KCHL and the Australian High Commissioner, His Excellency John Feakes, Kimbe Provincial Government, and Project Location Administrative Leaders.
Minister Duma stated: “This for me also demonstrates the never-ending special, very special relationship, mainly based on personal relationships, political considerations of course, and economic relations between our closest neighbour, Australia.”
He lauded the establishment of the Project Management Unit under the AIFLEAD programme, and its role in ensuring transparency and effective utilization of Australian aid.
“We felt that to be able to demonstrate to everyone involved... that we were quite determined and serious about making sure that all those processes that we're involved in, tendering and selection of successful tenders... were used and utilised properly.”
The rehabilitation of Kimbe Port is poised to unlock economic potential in Western New Britain, a province the Minister described as a “sleeping giant” with opportunities in agriculture, fisheries, timber, oil palm, and tourism.
He expressed confidence in Pacific Marine Group, stating: “Your company is not new to power, and you've got to establish a track record. I do not for one minute doubt that the people who are behind this made a mistake in selecting this group.”
Minister Duma also emphasized the importance of this project as a foundation for future developments in the region, noting that Kimbe Port’s upgrade is part of a broader strategy to enhance PNG’s economic infrastructure.
“Once again, I want to thank the people and Government of Australia for their never-ending help.”
Australia-PNG Partnership in Project Development
The Australia and PNG Partnership is now bonded with more projects as Australian High Commissioner Feakes announced the AIFFP support for the Kimbe Port upgrade. He said it aligns with PNG’s upcoming 50th anniversary of independence and its vision for long-term resilience.
"I'm delighted to be here to support this contract signing, the starting point for significant upgrades to Kimbe Port. As Papua New Guinea approaches its 50th anniversary, it's fitting that critical works will be well underway, with designs tailored to withstand climate challenges for the next 50 years," he said.
The Kimbe Port initiative marks the first of five major port upgrades in the country backed by Australia. Acknowledging PNG Ports Corporation Limited and its leadership, including Minister Neil, Mr. Feakes expressed gratitude for the collaborative efforts that brought the project to commence.
The project is expected to generate significant local economic benefits, with up to 300 local jobs created during the construction phase.
"Marine works at Kimbe will involve a workforce made up of 70% locals, and over 30% of project spending will go through Papua New Guinea companies," Mr. Feakes emphasized.
Landside works will also prioritize local firms, with contracts to be awarded in the coming weeks. Mr. Feakes contrasted this approach with other international development models that often rely on foreign state-owned firms, bypassing local labor and suppliers.
"These outcomes for Papua New Guinea are only possible when high-quality contractors with proven track records, like Pacific Marine Group, deliver works that put Papua New Guinea first," he said.
The upgrades to Kimbe Port are set to improve maritime connectivity, enhance regional economic integration, and provide skills development opportunities for local workers. This partnership underscores Australia’s dedication to building infrastructure that directly benefits the people of PNG, he said.
