The PNG National Fisheries Authority plans to draw up a new model aimed at energizing Papua New Guinea's domestic tuna fishing industry.
NFA is looking for consultants to undertake a study into reviewing the cost structure and building sustained competitive advantage in the fishing industry. NFA Acting Managing Director Sylvester Pokajam said yesterday NFA could ask the National Government for funding assistance but it should first identify the problems affecting the industry and how it will deal with those problems. “A major problem apart from high fuel cost is the aging fishing boats, resulting in high maintenance costs,†said Mr. Pokajam.
“High fuel cost is greatly affecting the industry and other businesses,†he said, adding the increasing world oil prices is not helping at all, while prices of fish exports don’t increase. He said these problems have forced a number of local tuna long line operators - most of them Papua New Guineans - to scale down their operations.
The study will review the cost of operating the domestic fishing industry and identify strategies to sustain profitability. The objectives of the study among others:
- To assess the current cost structure of the domestic tuna fishing companies and other members of the value chain,
- To draw comparative analysis of industry cost structures and level of subsidies required in improving financial performance of domestic fishing companies and processors from empirical evidence within the region;
- To identify appropriate models for improving the competitive advantage of the domestic tuna fishing industry and the level and types of government assistance required.
The study, which will include all fisheries and marine products being exported, will involve drafting a 20-year strategic plan for the domestic tuna fishing industry.