deugro is increasing its logistics capacity in Papua New Guinea ahead of the Papua LNG project long-term requirements through additional project resources, strategic local partnerships and investment in specialist equipment and workforce development.
The expansion is based on almost 20 years of experience in the country. Since setting up a local presence in Papua New Guinea in 2007, deugro has developed strong local expertise, built relationships with suppliers and partners and delivered complex logistics solutions in some of the country’s most remote and challenging environments.
One of the company’s major milestones was during the ExxonMobil PNG LNG project. deugro organized an extraordinary air logistics operation with more than 100 Antonov AN-124 flights in around 105 days to deliver critical equipment to the remote project area. The company says it is an untouchable world record that still is a record.
The operation also required the mobilization of specialized heavy-haul equipment such as hydraulic axle lines, trucks, trailers and handling assets. deugro was the only logistics provider to mobilize this type of specialized heavy-lift equipment and dedicated personnel into Papua New Guinea. This capability allowed the safe transport of oversized and heavy-lift cargo in the most demanding operating conditions.
In the course of the project, deugro managed and transported more than 3,000 purchase orders from locations around the world to Papua New Guinea. The shipments accounted for some 300,000 FRT of project cargo.
“We have a strong understanding of the unique logistical, operational and stakeholder requirements associated with the delivery of major developments in Papua New Guinea, through our involvement with ExxonMobil’s PNG LNG Project and our award-winning project solution and performance in support of the Lombrum Infrastructure Project, a key development on Manus Island, Papua New Guinea,” said Mark van der Molen, Project Director PNG at deugro.
“The experience also includes the challenges of supporting extremely remote construction sites with limited and sensitive infrastructure, managing large volumes of highly diverse project cargo and coordinating and training on-site workforces of hundreds of personnel and subject matter experts,” he added. At the same time deugro has maintained the highest quality, health, safety, environment and security standards.
“These projects have shaped deugro’s approach and provided a solid foundation to support the Papua LNG project,” said Van der Molen.
Creating a local logistics platform
Now the company is building on that experience, adding Papua LNG-specific resources and operational capabilities.
deugro has already created three dedicated project entities to provide specialized project solutions and to support the long-term execution requirements of the project.
One of those is Purari Project Services Limited (PPSL), a strategic joint venture recently created by deugro and Jerilai Pujari Transport Limited (JPTL). The partnership is the local landowner interest in PRL 15.
PPSL will closely and actively work with landowners to facilitate safe marine transportation from Port Moresby to the project’s construction sites along the Purari River. The structure is designed to connect the project’s logistical needs with local engagement and benefits.
The Purari River itself provides difficult operational conditions. deugro and its partners will bring in a large fleet of specialized marine equipment specifically designed for safe river transportation operations on the Purari River system to support the expected logistics needs of Papua LNG.
Meanwhile the company is mobilizing and developing skilled workforce for a wide range of project activities. These include marine transport, yard management, project management and coordination.
The approach also seeks to offer opportunities for local participation and capacity building in Papua New Guinea.
Proven track record of delivering long-term value
For deugro CEO Klaus Strahmann, deugro’s long-standing presence in Papua New Guinea is an important advantage as the Papua LNG project progresses.
“Papua New Guinea has played an important part in deugro’s story for almost two decades,” said Strahmann. “The experience we have gained in supporting the PNG LNG project, along with our established local presence and strong partnerships across the country, puts us in a unique position to support the Papua LNG development.
“We’re using strategic alliances, investing in specialized equipment and developing local talent to build a foundation that can deliver long-term value,” he said.
The objective extends beyond the logistical requirements of the project itself, with deugro promoting its expanded local capabilities as a mechanism to assist the very communities that will also be involved in Papua LNG.
