Port Moresby, January 23, 2026- The National Executive Council (NEC) has approved, in principle, two more Special Economic Zones (SEZs). Hon. Richard Maru, the Minister for International Trade and Investment, announced today that the approved SEZs were Lae Port SEZ in Morobe Province and Portside Gardens Development Project in the National Capital District.

Minister Maru said the approval of Lae Port SEZ marked a significant milestone in Papua New Guinea’s drive to industrialise and diversify its economy. He described the approval as a strategic and transformative decision that aligns with the Government’s long-term vision to make Papua New Guinea (PNG) the economic hub of the Pacific and a competitive manufacturing base in the region.

“The NEC’s endorsement of the Lae Industrial Park as an SEZ reflects the Government’s firm commitment to growing our economy, creating jobs, and empowering our people through targeted industrial and export-oriented development. Lae, already the country’s industrial capital and home to the busiest port in the Pacific Islands, was identified as a priority location under the Government’s SEZ master plan. The newly declared SEZ will focus on manufacturing, agro-processing, logistics, and export-driven industries. The Lae Port SEZ will attract both domestic and international investors by offering world-class infrastructure, streamlined regulatory processes, and targeted incentives. It will be a catalyst for economic growth not just in Morobe Province but for the entire nation,” said Minister Maru.

The NEC decision mandated the Department of International Trade and Investment, in collaboration with key agencies including PNG Ports Corporation, Kumul Consolidated Holdings (KCH), and the Morobe Provincial Government, to immediately commence implementation, including land mobilization, infrastructure development, and investor promotion.

The Minister emphasized that for the SEZ concept to thrive in the country all agencies and State-owned enterprises must work in unison to create a conducive environment for investment including reliable power supply, water and sanitation, telecommunication and supporting infrastructure such as roads.

“Collaboration is key. Initiatives like the Lae Port SEZ reflect the progress we are making toward economic independence, industrialisation, and inclusive development for all Papua New Guineans,” he said.

Furthermore, for the Portside Gardens Development, the KCH had proposed two waterfront sites in downtown Port Moresby to be designated as an SEZ - the existing T-wharf and the former Steamships Container wharf. They intend to invite local and international investors to develop this site, in particular to develop the site to build cruise ship terminal, hotels, residential and office complexes, and entertainment facilities. Major works had been completed to prepare the land for development, including upgrading the stormwater infrastructure, levelling the site, additional sea reclamation, as well as construction of sea wall and waterfront promenade.

Minister Maru said: “Portside Gardens is forecast to cost more than K4.7 billion to build and landscape. This is expected to translate into 16,000 jobs during construction, who will in turn spend K430.3 million into the local economy. The construction activity will also create a boom for local suppliers, with the development forecast to correlate to K1.4 billion spent on construction-related materials and supplies.”

He further added: “Should the Portside Gardens T-wharf be upgraded to incorporate a cruise terminal, we forecast an additional sixty cruise liners would dock in Port Moresby per annum, with an average capacity of 1,800 passengers, 60 percent of whom would disembark. This would correspond to increased tourism visitation of 108,000 per annum and make for a K97.2 million injection into the local economy. In addition to the amounts quantified, the increased visitor activity in Port Moresby will create significant spinoff business and job opportunities for associated businesses. With respect to the operation of the cruise terminal itself, increased cruise dockings will make for increased demand for fuel, as well as food and other supplies for ship replenishment. The additional 108,000 visitors per annum will also underpin the viability of a range of tourism-related products and services, such as dancing and entertainment groups, day trips and excursions, as well as cultural experiences.”

The SEZ licenses will be issued to these two approved SEZs subject to meeting all requirements of the Special Economic Zones Authority. Other approved SEZs pending licensing include the Sepik Plains SEZ, Siar SEZ, Madang Integrated SEZ and Finschhafen SEZ.