How Can We Empower Communities by Investing With Purpose in Papua New Guinea?

Abundant natural resources, a growing economy, and a strategic location within the Asia-Pacific region, gives Papua New Guinea (PNG) a strong platform to realize its ambition to become an emerging developing country by 2050.

Good news then? Almost.

While PNG’s population of almost 12 million is young and growing, more than 80% of people live in rural areas and rely heavily on subsistence farming as well as the informal economy for employment. Limited access to quality education and vocational training for many of these people has created a skills gap.

According to the World Bank, PNG must focus on nurturing its human capital—through job creation, training and reskilling—to better meet the demands of a growing economy and to reduce reliance on resource-driven sectors such as agriculture and mining.

Investors are critical to PNG’s ambitions, especially when it comes to building capacity—whether that’s infrastructure or its workforce.

Philippines-headquartered International Container Terminal Services Inc. (ICTSI) operates PNG’s largest container port—South Pacific International Container Terminal (SPICT) at Lae City—the country’s second-largest city and industrial hub. ICTSI has invested significantly in modern port technology and management systems to enhance the efficiency of its operations. This includes automated cargo handling systems, advanced tracking technologies, and improved logistical planning to help reduce turnaround times for ships, increase cargo throughput, and enhance the overall competitiveness of PNG.

However, ICTSI’s impact is felt far beyond cranes and containers.

In addition to hiring from surrounding communities, ICTSI has invested in local schools and education programs to support future talent. It has also launched a number of initiatives to develop its existing workforce. For example, the Driving Performance program gives employees from different departments across SPICT training in areas like leadership and enhanced terminal operations. And these efforts are underpinned by ICTSI’s commitment to diversity and inclusivity, especially when it comes to enabling more women to take on key roles such as operating port handling equipment.

ICTSI has forged deeper connections with local communities by investing in their long-term welfare and security, from boosting healthcare services to contributing to police resources. However, ICTSI’s most impactful initiative has been to enable co-ownership of its port operating companies in PNG. For example, 30% of SPICT is held by local communities through two holding companies—Ahi Terminal Services Limited and Labu Investment Limited—giving local people greater investment in their future.

“Our role in Papua New Guinea extends beyond generating economic activity. Our equity partnerships with local communities are catalysts for positive change and sustainable growth. We also continue to invest in world-class port infrastructure, upskilling our people, and giving back to our host communities. We are committed to fostering an inclusive and sustainable future for Papua New Guinea,” says Christian Gonzalez, Executive Vice President, ICTSI.

ICTSI recognizes that people are essential to the company's success. And by focusing on workforce development and community engagement wherever it operates, ICTSI creates a more stable and prosperous environment for its businesses while contributing to the host country's broader development goals.

In this case, ICTSI’s efforts have not only improved operational outcomes but are also promoting long-term sustainability and social impact, ensuring that its investments generate a lasting and shared value for the company and the people of PNG.