PNG & PACIFIC ISLANDS: A path to prosperity

Pacific ports are driving trade growth through digital innovation, terminal investment and stronger shipping links, as PNG and Solomon Islands operators lift capacity, improve cargo flows and prepare for a lower-carbon maritime future.

A gathering of regional foreign ministers not so long ago highlighted the key trade and shipping connections between the South Pacific region and Australia.

As noted by the Australian Department of Foreign Affairs and Trade, as the Pacific’s largest economic partner, “we are supporting growing markets by helping goods and services move across the region and beyond in aviation, seaports, road infrastructure and banking”.

Clearly there is much going on in a region that presents opportunities in the form of trade growth, as well as challenges in the form of changing climate.

The crucial role of ports and maritime was recognised recently by PNG Ports Corporation chief executive Neil Papenfus, noting that in 2025 their 15 ports handled 10.8 million tonnes of cargo across 4838 vessel calls.

In a statement, he noted the 2025 final dividend to shareholders of PGK22.5 million (drawn from an estimated net operating profit after tax (NOPAT) of PGK90 million) reflected PNG Ports' standing as a stable and resilient state-owned enterprise.

"Our success is driven by efficiency gains, growth in core revenue streams — wharfage, berthage, storage, pilotage and terminal leasing — and strategic investments in modernising facilities at Motukea, Lae and Kimbe," Mr Papenfus said.

Terminal operators and trade trends

International Container Terminal Services (ICTSI) manages two of Papua New Guinea's (PNG) key international container terminals under 25-year concession agreements with PNG Ports Corporation — South Pacific International Container Terminal (SPICT) at the Port of Lae on the north coast, PNG's largest container-handling facility and Motukea International Terminal (MIT), located near Port Moresby, which handles international shipping and container traffic for the nation’s capital.

According to ICTSI, trade for the first half of 2026 saw import laden volumes up by 14% and 36% in SPICT and MIT respectively. This was driven by stronger purchasing power for consumer goods (F&B, FMCG, household appliances) following strong commodity prices for PNG's top exports (coffee, cocoa) since 2024 compounded by consumption tax waivers on 13 essential goods (food staples, household essentials, hygiene products).

“At MIT, import growth was further supported by increased imports of construction materials for developments within the country's special economic zones, as well as several new hotel projects in Port Moresby,” an ICTSI spokesperson said.

Meanwhile, export laden volumes at SPICT declined 6%, primarily due to weaker fishing activity during the first half of 2026, resulting in lower exports of yellowfin tuna, one of PNG's key reefer commodities.

“Export volumes were also impacted by the ongoing global nickel surplus, which has reduced demand and production, impacting PNG's nickel exports,” a spokesperson said.

“While international coffee and cocoa prices remain above their long-term averages, Papua New Guinea's production and export volumes have continued to trail last year's levels.”

SPICT is also said to be continuing to strengthen its position as a key transhipment hub in the South Pacific, recording a 50% increase in transhipment volumes destined for the Solomon Islands and Vanuatu.

According to ICTSI, this growth was enabled by “the superior productivity of SPICT's ship-to-shore cranes, delivering faster vessel turnaround times, and supporting more efficient regional connectivity”.

New investments in productivity

ICTSI has sought to bring about productivity through innovation, for example introducing the ICTSI Radar App at both SPICT and MIT.

The ICTSI Radar App provides around the clock access to essential terminal data at both terminals.

Via the app, stakeholders can track vessels, containers and trucks in real time, enabling better planning of cargo movements through Lae and Port Moresby.

These capabilities help businesses optimise supply chains, reduce delays and lower logistics costs.

As key gateways for PNG's global trade, our terminals require the highest standard of emergency readiness
ICTSI

“Having pioneered the digitalisation of port operations in Papua New Guinea, ICTSI South Pacific continues to invest in digital innovation to drive the transformation of port operations across the country,” said Robert Maxwell, ICTSI South Pacific chief executive.

“The ICTSI Radar App delivers a new level of transparency and visibility for stakeholders across the supply chain, from shipper to vessel and vessel to consignee.”

SPICT and MIT also recently bought fire trucks to strengthen the safety and security of PNG's international terminals, aimed at securing the free flow of goods in and out of the country.

“As key gateways for PNG's global trade, our terminals require the highest standard of emergency readiness,” the company said in a statement.

“Each unit is a multi-purpose firefighting system equipped with up to 16,000 litres of water capacity, including a 14,000-litre water tank and a 2450-litre foam tank, enabling sustained response to both Class A (ordinary combustibles) and Class B (flammable liquids) fires.”

Designed for rapid and effective intervention, the trucks deliver a low-pressure flow of 50 litres per second and a high-pressure flow of seven litres per second, supported by a fire monitor capable of up to 48 litres per second with a reach of up to 65 meters (water) and 60 meters (foam).

An automatic foam mixing system, adjustable from 1% to 10%, ensures adaptability across a range of fire scenarios.

They are equipped with high- and low-pressure pumps, electric water/foam monitors and automated control systems, the units can be operated efficiently by both driver and fire crew depending on need.

Overflow at Lae

At SPICT, increase in year-to-date vessel calls in Lae has prompted the activation of the overflow berth at Lae Main Wharf to accommodate the growing volume of vessels and cargo moving through the terminal.

To further support these expanded operations, SPICT is expecting the arrival in the 2026 third quarter of additional brand-new equipment, including one reach stacker (RS), two empty container handlers, five prime movers and tractor trailers and one 10-tonne forklift, to enhance capacity and operational efficiency at the overflow facility. This investment is worth USD $1.8 million.

Also planned as part of the 2027 onwards investment program are several key initiatives to further enhance terminal capacity and service reliability:

• The conversion of yard operations at MIT from reach stackers (RS) to rubber-tyred gantries (RTGs), together with the expansion of the RTG fleet at SPICT. RTGs provide significantly more efficient yard operations by minimising container reshuffling, increasing storage density and improving truck turnaround times.
• The installation of gate camera systems to enhance transparency by capturing the condition and status of containers upon entry to and exit from the terminals, providing greater visibility for port users.
• The deployment of an additional mobile harbour crane (MHC) at the Lae Main Wharf (LMW) overflow berth. This investment is to increase the number of quay cranes at LMW to two, strengthening the terminal's ability to support higher vessel volumes and overflow operations.

Shipping line expansion

During the 2025 final quarter, two of PNG's largest shipping lines expanded their service offerings at both SPICT and MIT, further strengthening the country's international connectivity.

Swire Shipping and Marine Express Lines Ltd (MELL), via their joint NAX/ANA service, increased their Lae port calls from fortnightly to weekly, enhancing direct connectivity between PNG, China, Hong Kong and Australia. Meanwhile, ANL launched its new APR2 service, further expanding connections to China and Australia and providing customers with greater service frequency and supply chain flexibility.

These service expansions were enabled by improved vessel productivity and more reliable operations at both SPICT and MIT, giving shipping lines greater confidence to increase their call frequency in PNG.

An ANL spokesperson said cargo volumes were continuing to grow, particularly on the Asia-to-PNG regional trade lanes.

Economic factors affecting cargo volumes included:

• Sustained consumer spending growth in PNG.
• Improved foreign exchange availability.
• Strong agricultural commodity prices.
• These factors appear to be helping maintain positive trade momentum.
• Technological innovation.

Also driving innovation has been the Solomon Islands Ports Authority which recently launched its first Shipping Schedule Hub App, a digital platform designed to provide the public with real-time information on domestic shipping vessel movements across Solomon Islands.

The launch is said to represent a key milestone in Solomon Ports' digital transformation journey and reinforces the authority's focus on modernising maritime services and enhancing connectivity between Honiara and the provinces.

With the introduction of the Shipping Schedule Hub App, Solomon Ports becomes just the second port authority in the Pacific region, after the Port Authority of Guam, to develop and launch a dedicated domestic shipping mobile application.

Development of the app began in 2025 after many consultations with domestic shipping operators and key stakeholders to ensure the platform would meet the needs of everyone's passengers.

A soft launch and press conference were held recently at the Solomon Ports Auditorium at the Authority's headquarters in Honiara.

Speaking during the launch, Solomon Ports chief information officer Ellison Pade said the application reflected the authority's continued investment in digital innovation.

Mr Pade said the app was a practical solution to one of the long-standing challenges faced by travellers; accessing reliable and timely shipping information.

"For many years, passengers have relied on word of mouth or multiple enquiries to obtain vessel schedules,” he said.

“This app provides a single, reliable source of information, making it easier for people to plan their travel and stay informed about schedule changes."

The Shipping Schedule Hub App forms part of Solomon Ports' broader vision of embracing technology to improve operational efficiency and customer service.

The launch of the Shipping Schedule Hub App was said to have marked the start of a new chapter in the digital transformation of Solomon Islands' maritime sector, showing Solomon Ports' continued commitment to delivering safe, efficient and innovative services for the nation.

Climate adaptation

The Solomon Islands launched a National Action Plan (NAP) late last year to modernise domestic shipping and port systems while advancing climate and development goals.

The plan for a Sustainable Maritime Future: Charting the Course Towards Greener Shipping and Ports was unveiled in Honiara during the Sixth Ship Operators’ Workshop.

Allan Lilia, permanent secretary of the Ministry of Infrastructure Development of Solomon Islands, said the plan reflected maritime transport as the nation’s lifeline.

“Our plan provides a practical roadmap to improve efficiency, reliability and sustainability while safeguarding our ocean environment for future generations,” Mr Lilia said.

The National Action Plan demonstrates how targeted support, local expertise and global partnerships can drive climate action in Small Island Developing States
Gyorgyi Gurban, IMO

Developed by the Solomon Islands Maritime Authority (SIMA) with technical support from the IMO GreenVoyage2050 Programme, the NAP outlines prioritised short, medium and long-term actions to modernise vessels and port infrastructure, improve operational and port energy efficiency, introducing low- and zero-carbon solutions, strengthen institutional capacity and data systems and mobilise money for pilot projects to improve maritime services.

Gyorgyi Gurban, IMO head of projects implementation, commended the Solomon Islands for its leadership.

“The National Action Plan demonstrates how targeted support, local expertise and global partnerships can drive climate action in Small Island Developing States,” Ms Gurban said.

The plan supports national commitments to achieve net-zero greenhouse gas emissions and aligns with the Solomon Islands’ climate policy framework and nationally determined contributions.

The need for climate action has been recognised across the South Pacific, with a group of nations in March this year urging the International Maritime Organization to tighten its Carbon Intensity Indicator (CII), warning delays to the Net-Zero Framework were creating a gap in shipping’s efforts towards decarbonisation.

In a proposal to the IMO’s Marine Environment Protection Committee, Fiji, Nauru, Tuvalu, Palau, Kiribati and the Solomon Islands described a year’s delay in adopting the IMO’s Marine Environment Protection Committee (MEPC) committee as “a key concern”.

Efforts towards decarbonisation in the Pacific have seen the deployment of an innovative cargo sailing vessel, the SV Juren Ae in the Marshall Islands.

The SV Juren Ae has been described as the “first modern low-carbon sailing cargo vessel in the Pacific”, representing an important move towards a sustainable, energy-efficient future for the region.

Building collaboration

“Building collaboration and cooperation across Oceania” is how Mike Gallacher talks of Ports Australia’s efforts in recent years to grow its membership in the South Pacific region.

Building South Pacific connections are (from left) Ports Australia chair Stewart Lammin, federal infrastructure minister
Catherine King, Kingdom of Tonga infrastructure minister Sevenitini Toumo’ua and Ports Australia chief executive
Mike Gallacher. Image: Ports Australia

Ports Australia’s members now include Cook Islands Port Authority, Fiji Ports Corporation, Papua New Guinea Ports Corporation, Port Authority of Nauru and Solomon Islands Port Authority.

Mr Gallacher said the Pacific Island focus had been there for “quite a few years”, however the COVID-19 pandemic gave it greater focus.

“It all started with me and my team years ago looking at UN Sustainability Goals with the goal of sharing information and knowledge sharing.

“I asked the question with the team, ‘if we are [just] sharing it with our members, is that truly in keeping with the UN sustainability goals?

“Should we be looking at sharing [information] with people who otherwise do not get access to it and can’t necessarily afford access? That started the conversation.”

With the approval of the PA board, the decision was made to approach Pacific Nations with the goal of sharing key information.

“The fruit of that relationship was borne out during COVID which occurred shortly after we started to make these inroads across the Pacific.

“[Pacific Island ports] weren’t receiving the same level of information through their governments that we were getting on safeguarding port workers and pilots and everybody else.

“I was disseminating that information, because, when it [COVID] broke, there was great panic.

“People were dying in large numbers in Europe, and we were unsure how to protect our people.

“The beauty of it is, all of the islands, like Australia, are drawbridge islands in the sense that, once you pull the drawbridges up, you could protect your people inside the compound.

“We needed to interact with vessels coming in and we started to disseminate that and that was really helpful to establish trust.”

Mr Gallacher said they worked on the basis of being one of the few member organisations with something of value across the region, that commodity being knowledge.

The challenge was, ‘how to share it’?

“How do we ensure that our ports in Fiji, in the Solomon Islands and other ports know who to ring and have a conversation?

“It is a slow burn, it is not something that you flick the switch and it happens, but the increasing participation of our Pacific neighbours and growth in our membership is really heartening.

“The cynic would say, ‘you are doing it for commercial reasons’.

“Not so. The money we charge for Pacific nations to join us is tiny,” he said.

“It is more important to have them sitting around the table with us, to share a communal backyard.”

This article appeared in the August | September 2026 edition of DCN Magazine