PNG, RD Seal Deal to Build New Madang Cannery

The State’s partnership with RD Tuna Canners took a major leap yesterday with the signing of a Project Development Agreement for a new cannery that will anchor the proposed Madang Integrated Special Economic Zone.

The signing occurred in Sydney during PNG Investment Week, where International Trade and Investment Minister Richard Maru witnessed the exchange of documents between the State, RD Tuna Canners and RD Corporation.

 PNG, RD Seal Deal to Build New Madang Cannery

According to Mr Maru, the joint venture will be split evenly between the State and RD, with each contributing K80 million. RD will also bring its industry experience to support operations throughout an initial 10-year management period.

“The investment is subject to final NEC and RD Board Approval… This new cannery will be developed under a new joint venture company… The project will create well over 5,000 direct and indirect jobs for the Madang Province,” he said.

The Minister said the Government had ensured a funding commitment of K80 million and reaffirmed its determination to drive downstream processing rather than exporting raw fish.

“I personally take this opportunity to thank the Marape-Rosso Government… This is the start of a deliberate attempt by our Government to invest in downstream processing so we can replace all canned fish imports from other countries,” he said.

He added that the 300-metric-tonne plant is part of a wider plan for up to eight additional canneries to be established within the economic zone.

Mr Maru said the ultimate vision is to make Kumul Fisheries Limited a public company once it becomes profitable. “The initial shareholders are the State through KCH, Madang Provincial Government, and RD… If we can own a mine, we can own a fish canning company. We cannot be rent collectors all our lives,” he said.