The Special Economic Zone (SEZ) of the Konebada Industrial Park project is underway with the establishment of a fabrication and training facility known as the Central Industrial Center, Portion 152.
This project is spearheaded by Kumul Petroleum Limited (KPL) and is expected to create thousands of jobs and significantly boost the country’s manufacturing capabilities in the oil, gas, and mining industries.
The Konebada park, seen as an exciting step into economic, business and human resource development for Papua New Guinea, will be officially announced once completed, KPL said in a statement.
During a recent project-site visit with PNG Business News, KPL Managing Director Wapu Sonk spoke of the project’s vision, emphasizing that PNG must take ownership of its industrial development.
“We saw in the PNG LNG project how foreign workers and prefabricated materials dominated the sector. This time, we are investing in a local fabrication facility to ensure that PNG workers and businesses play a meaningful role in major resource projects,” Sonk said.
The facility will include a steel fabrication plant, where components such as pipes, vessels, and other industrial materials will be manufactured locally.
“We want to fabricate what goes into an LNG plant right here in PNG. But to do that, we need highly skilled people, which is why we are also building a world-class training center,” he added.
Maru: SEZ Project a ‘Game Changer’
Trade and Investment Minister Richard Maru commended Kumul Petroleum’s initiative, describing it as a “game-changer” for PNG’s economic future. He stressed the importance of transitioning from reliance on foreign-made components to local manufacturing and workforce development.
“For too long, we have been exporting jobs and importing finished products. This project aligns with the government’s vision to create skilled employment, increase revenue, and position PNG as a competitive industrial hub in the region,” Maru said.
The government has endorsed the SEZ over the project site, providing tax and duty-free incentives to attract investors in manufacturing, energy, and resource-related industries. A National Executive Council (NEC) submission for the SEZ’s formal approval is currently underway, which Minister Maru has viewed and expressed confidence the project will change the country.
“This SEZ will be structured to make PNG competitive against regional players like Indonesia, the Philippines, and China. When investors come into PNG and we start fabricating steel, we will be producing for the big companies in the oil and gas industry, and we have to be competitive with our pricing,” he said.
“We are dealing with global companies who have been in the industry for a long time, which is why KPHL needs government support to be able to compete on a level playing field with other competitors and attract the business. Our biggest need is to generate revenue and create jobs for the local people which this project will provide,” Maru explained.
“We have a well-educated workforce with strong English proficiency and a lower labor cost, making us an attractive destination for industrial investment,” he added.
Minister Maru said the two declared SEZ include the Paga Hill SEZ in town and the Konebada Petroluem Park at Porebada in Central Province outside of Port Moresby. The project is set up similarly to SEZs in China, Dubai, Japan, and the Philippines.
Maru emphasized the long-term potential of the project, comparing it to industrial hubs in Dubai, China, and Malaysia.
“The vision here is to develop a full-fledged industrial park where companies can manufacture, assemble, and export goods. This is the beginning of a new era for PNG’s industrial sector,” he said, noting that it will consist of the two projects: a training facility and the fabrication factory.
The training facility aims to upskill workers in specialized construction, mining, and marine industry skills. According to Sonk, the center will initially support 1,000 direct jobs, with numbers expected to rise to 3,000 to 4,000 as the facility expands and operates in multiple shifts.
The broader industrial ecosystem could generate over 10,000 jobs, including indirect employment in supporting services like transport, catering, and logistics, he added.
The project site spans approximately 300 hectares, with 140 hectares reserved for further industrial development. Plans also include a cement batching plant, road upgrades, and a dedicated wharf to facilitate exports and reduce logistics costs.
“We are planning for large-scale manufacturing,” Sonk stated. “The road will be expanded to 14 meters to accommodate heavy loads, and we are considering a rail system to transport fabricated components directly to the wharf.”
Sonk and Maru invited investors to take advantage of the SEZ incentives and be part of PNG’s industrial transformation.
“This project is not just about Kumul Petroleum, it’s about creating an ecosystem where multiple industries can thrive,” Sonk said.
Maru urged PNG’s youth to seize the opportunities offered by the training facility. “We want to train Papua New Guineans to be globally competitive, just like Filipino workers who are sought after worldwide. This is our chance to equip our people with the skills to work on major projects both locally and internationally.”
Additionally, about 20 locations have been identified as potential SEZ in the country with only four expected to be free trade zones.
