PACIFIC TUNA FORUM 2017
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1 PACIFIC TUNA FORUM th Regional Tuna Industry And Trade Conference THEME: FOSTERING GREATER SOCIAL, ECONOMIC AND FINANCIAL BENEFITS THROUGH SUSTAINABLE MANAGEMENT AND DEVELOPMENT OF TUNA RESOURCES Session II: PAPUA NEW GUINEA S Tuna Industry and It s Investment Opportunities September 2017, The Stanley Hotel and Apartments, Port Moresby Prepared by: National Fisheries Authority PO Box 2016, Port Moresby Papua New Guinea
2 OUTLINE OF PRESENTATION PART I: PNG s Fisheries Sector at a Glance: Scope and Value of PNG s Fisheries Sector Importance of the Fisheries Sector to PNG s Economy Fisheries Sector Contribution to the National Economy PART II: Regulatory Frameworks: Regional Policy Objectives National Government Domestic Policies PART III: Market Opportunities, Infrastructure Support and Investment Opportunities: International Market Access MSC/NPOA IUU Fishing Fisheries Sector Development Projects Fisheries Investment Programmes Other Fisheries Investment Opportunities PART IV: Investment Issues and Challenges
3 PART I PNG s Fisheries Sector at a Glance: Scope and Value of PNG s Fisheries Sector Importance of the Fisheries Sector to PNG s Economy Fisheries Sector Contribution to the National Economy
4 1.0 SCOPE OF PNG FISHERIES! Off Shore/Large Scale Fisheries - comprises of tuna. Purse-seine (PNG flag, Chartered, DWFN,) & Long line fishing (domestic and DWFN) in this fishery. Target species Skipjack and Yellowfin tuna.! Access Agreements - Bilateral Access Agreements signed between DWFNs (China, Japan, Korea, & Taiwan and US multi-lateral Treaty).! Inshore (Coastal) Fisheries - declared commercial fisheries which include: prawn, lobster, barramundi, varieties of reef and freshwater finfish, Shells & sea cucumber. These fisheries have Management Plans (11 Management Plans).! Non-Commercial Fisheries Coastal Artisanal, Game Fishing and Eco-Tourism - Black Bass Project. (Biai, WNBP & Galley Ridge (Central province)
5 Value of PNG S EEZ 25% of the World Skipjack Tuna Catch 50% of PNA Catch
6 2.0 IMPORTANCE OF THE FISHERIES SECTOR TO PNG S ECONOMY! Sustainable Resource Management & Development of our fisheries resource is crucial to long-term sustainability of food and revenue source for our future generations;! StARs has identified the renewable sectors (Agriculture, Fisheries & Forestry) as strategic assets and are expected to be the important economic drivers of our economy! Potentially one of the major employers in the non-agricultural sector in this country.! Tuna is the key raw material to our future economic prosperity in the fisheries sector, income from tuna funds to support the advancement and development in other fisheries sectors including coastal, inland and aquaculture fisheries, tuna provides jobs and spin-off economic development and tuna generates foreign remittance into our country.
7 3.0 FISHERIES CONTRIBUTION TO THE NATIONAL ECONOMY! Combined Aggregate investments declared by industry is approx. PGK915 million (USD 305m )- although many tuna vessels are foreign flag and chartered, so strictly not PNG investments.! Combined aggregated exports are on paper about US$570 million (PGK 1.7 billion) - based upon catch of about 285,000 mt, from highly concessional licences BUT only 23% is actually processed and exported from PNG, clearly most never comes in.! Combined contribution of the sector (Agriculture, Forestry and Fisheries) to Annual GDP since becoming an Authority has consistently risen to an approx. value of PGK2bn million (USD600 million] per annum (est. about 5% of the potential GDP)! Employment Generation about 9,000 workers are currently employed directly in the fish processing plants in Wewak, Madang and Lae, and at sea including crew and observers. About 10% expatriate workers.
8 Regulatory Frameworks: Regional Policy Objectives National Government Domestic Policies PART II
9 4.0 REGIONAL FISHERIES POLICY OBJECTIVES The Fisheries Sector Priority Programs & Projects are guided by our Regional Policy Declarations & the National Government s Policies & Development Plans The Pacific Islands Forum Leaders Declaration,! 2015 calls for Sustainable Fisheries Management, MCS/IUU and increased Economic Returns of our Tuna Fishery, of which PNG is already doing a lot of work in these areas thus far by developing relevant Bridging CMMs under the leadership of the Fisheries Taskforce and concerned CCMs of the WCPFC.! Recognising the ongoing importance of increasing economic returns & the sustainable management of fisheries, Leaders agreed that Fisheries should be featured as an important item and remain on their agenda, and on the need for ongoing Cooperation between members of the Taskforce to implement the Work Programme.! Leaders endorsed Review of the Regional Monitoring Control and Surveillance (MCS) Arrangements, and concurred that the combination of MCS tools, programmes, assets and activities at the national and regional level represent a world class MCS Framework that has achieved positive results for FFA members.! 2016 Leaders called for Action to end Illegal Unregulated Unreported fishing and Associated Activities, including high seas bunkering, human trafficking, and illicit trade.
10 5.0 NATIONAL/DOMESTIC POLICY OBJECTIVES! Delivering Fisheries Developments targets which are consistent with the National Government s broader policy objectives enshrined in the Vision 2050, DSP , StARs, MTDP II and the Alotau Accord.! MTDP II Goal: to ban fishing and transshipment of tuna in the high seas and build an onshore sustainable fisheries and marine resource industry.! State Agreements Since 1995 the State has supported foreign processors and fleets onshore processing through State agreements The States obligations are to ensure fish for processing on shore. in developing The investor undertaking capability of processing 75% of the designed production facility is a subjective requirement for issuance of fishing licenses. The processors were also obliged to provide spin-off socio-economic, environmental and infrastructural development benefits to those communities.
11 ! Policy Reforms 5.0 NATIONAL/DOMESTIC POLICY OBJECTIVES Sector plan to build govt and regional priorities in the sector New Coastal Fisheries and Marine Aquaculture Roadmap developed and will be launched soon Tuna (Management &) Development Plan Review Continuous work on IUU Access Agreements aligned to VDS requirements State Agreements efforts to enhance monitoring of the implementation of Agreements and improve compliance! Structural Reforms New NFA structure to give more focus and attention on urgent areas to address government priorities for effective service delivery by timely implementing needed regulatory functions. Outreach and proactive approach in facilitating investment in the sector such as trade lobby program and urgent technical assistance to targeted foreign missions.
12 Other Fisheries Investment Opportunities PART III Market Opportunities, Infrastructure Support and Investment Opportunities: International Market Access MSC/NPOA Fisheries Sector Development Projects Fisheries Investment Programmes
13 6.0 INTERNATIONAL MARKET ACCESS Trade & Market Access (Domestic & International)! EU Yellow Card which was issued in June 14 th, 2014 and uplifted in October 01 st 2015, saw NFA under take legislative reforms giving more power to enforcement to undertake compliance activities (for e.g. setting higher penalties e.t.c). NFA has invested heavily in improved compliance and monitoring of EU exports.! EU Market Compliance On Health regulatory requirements, NFA is committed in maintaining its Competent Authority (CA) status since With IUU regulations it requires ongoing multi sectoral support e.g Customs, defense, etc. Recent workshops on NPOA & PSM in Rabual which has been our priority since 2010.! EU Market & Global Sourcing Provisions - gives PNG processors a 24% tariff advantage over Thailand for all catch. However Philippines remains the lowest cost processor, but relies heavily on PNG industry for supply of ROO catch.! Alternative Markets - NFA also continues to seek alternative markets (apart from EU) for our fish products such as the Middle East, Asia, China (new interest by China to cooperate with PICs to enter into new market access opportunities), Latin America e.g. Equador and Brazil etc.! Australia and NZ Mkts - thru AusAID PHARMA Programme for coastal fisheries and crustaceans suhc as mud crabs and prawns.
14 7.0 MCS/NPOA-IUU FISHING! Establishment of the Vessel Monitoring Control and Command Centre in 2016 to provide a critical surveillance platform to assist in the implementation of the Illegal Unregulated Unreported (IUU) Activities, National plan of Action (NPOA).! Compliance offices setup in Vanimo, Daru and Wewak to facilitate mobility to support short, medium, long term joint national enforcement activities.! Continuous implementation of the NPOA and Facilitation of EU Audits to avoid yellow card by the EU.! PNG is leading the development of ecds capability for EU CDS, and assisting other flag states with EU compliance through FIMS! NFA Fishery Information Management Systems [FIMS] remains world class and rolled out regionally! NFA EOI to purchase the IP Address of FIMS via PNA (US$18m)! IUU Fishing - new data sharing MOU interests with Vietnam, Thailand and Indonesia.
15 8.0 FISHERIES SECTOR DEVELOPMENT PROJECTS Infrastructure Projects Key Markets, Wharves & Jetties are being built to provide much needed infrastructure for our industry and local fisher folks over the last 5 years. Town Market Development Programme! Town Markets & Jetties: In partnership with JICA, the Wewak market & Jetty and the Madang Town Market and Landing facility were completed successfully & handed over to the respective Provincial Government. Madang was recently completed and handed over in 2016.! The Alotau Market and Jetty is commencing implementation in the third quarter of 2017 and to be completed in the last quarter of The program is providing state of the art market facilities (shower, toilet facilities including for PLWD) for our local people to sell marine products, local produce and local arts & crafts in a clean and safe environment.! The Lae town market is being rehabilitated to provide an improved market facility. A fish market is being built within the main Lae market through a partnership arrangement with the Japan Government through the Overseas Fishery Cooperation Foundation (OFCF) to establish cold storage & ice making machine facilities. So far nine projects have been funded through this arrangement.
16 8.0 FISHERIES SECTOR DEVELOPMENT PROJECTS Fish Port Development Programme! NFA is working on building dedicated fish port infrastructure facilities to cater for the growing tuna industry in the country. These includes; the Wagang Fish Port Project (USD200 million), PMIZ (USD156 million), Rabaul Tuna Terminal Project (PIP Funding of K5 million for Feasibility Study) Coastal Fisheries Development Agency Projects (CFDA)! These includes Fisheries Jetty Development Projects (more than 20 jetties built in rural areas)! Town Markets and Fisheries Facilities (3 completed projects)
17 9.0 FISHERIES INVESTMENT PROGRAMMES Foreign Direct Investments (FDIs)/ in processing over the last 21 years, Six (6) fish processing plants currently are in operation, as of this month.! Current stated production capacity is >1,000 mt/day per agreements. Average production ( ) reached is less than 30% (ranging from 0 to 50%)! Only 23% of the PNG associated catch is currently landed and processed.! Two more foreign companies have signed state agreements to commence construction of processing plants in Lae.! Looking ahead a up to nine (9) processing plants are expected to be in operation by 2018, with 6 in Lae, 1 in Madang, 1 in Wewak & 1 in Manus Province.
18 10.0 OTHER FISHERIES INVESTMENT OPPORTUNITES! Inland Fisheries in complementing coastal fisheries in food security and reducing pressure on capture fisheries;! Look at other forms of value adding in tuna resourcs Tuna ranching, apart from traditional cannery model for niche markets and operational models where SMEs and PNG ans can easily participate and one that can involve tuna and other fisheries;! Establishment of the PNG Fisheries Trade Lobbying Committee placement of fisheries technical officers in key PNG foreign missions due to demand from foreign missions for NFA to meaningfully engage with the market, including niche markets in order to inform on what kind of value adding we want to venture into apart from caning; and! Aligning our national investment programs to be inline with the Pacific regional priority of increasing economic benefits from fisheries, in particular, tuna, to the Pacific people through various programs, for example, Regional Processing Hub
19 Investment Issues and Challenges PART IV
20 11.0 ISSUES AND CHALLENGES! IUU Fishing a national issue & need to increase response capacity in Surveillance & Response to protect our borders. E.g Blue boat issues and increasing incidence of noncompliance by legally licensed boats;! Non-compliance - or exemption of certain activities in certain waters of certain fishing arrangements e.g. access to EHS by Kiribati and Non-PNA;! Cost of doing business- economies of scale, essential utilities like wharfs, power, water, labor etc remain our challenges! Policy Reforms - Shift in Government Policies & International Obligations! Institutional Reforms - requires institutional strengthening
21 Thank You PNG NATIONAL FISHERIES AUTHORITY Douglas Street, Level 11 Deloitte Tower P O Box 2016, Port Moresby 121, NCD Papua New Guinea Tel: (675) Fax: (675) nfa@fisheries.gov.pg Website:
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