COMPANY HISTORY

The company's history began in 1919. Retired sea captain Algernon Sydney Fitch was growing apples in Tasmania for a living when he read about a barge named the Southern Cross going aground in the Bass Strait. He decided to salvage it and travelled to Melbourne to raise 5,000 Pounds sterling and find a suitable ship for the salvage operations. He discovered a 90 ton coal burner, built in 1855, called the SS Queenscliffe. A group of businessmen backed Fitch and together formed a company which they appropriately called Steamships Limited. Fitch's plan has no connection with Papua and New Guinea as the country was then called. But what happens next was not in the scheme of things. The Southern Cross sank beneath the waves. To make matters worse the syndicate ran out of money whilst making the veteran Queenscliffe seaworthy. Fitch proposed that he sail the ship to Port Moresby and earn some money by trading along the Papuan coast. In 1924 the Public Company was formed.

The following information, though very brief, gives you the reader an idea as to how Steamships started as a public company in its early years. The major setbacks, recovery and rebuilding programs for the company, initiated and implemented by a number of people highlighted in the following information are immeasurable. It demonstrates the dedication and commitment of people who wanted to build the economy of this country. The various developments highlighted in this chronological history of the company reflect how and why Steamships is what it is today.

1926 First branch store opened on Samarai Island by Mr. Jackson who reached a turnover of 300 pounds per month. Mr. E. V. Crisp who in 1930 increased business to 4,000 pounds per month replaced him.

1928 - 1934 The international economic recession adversely affected the company's trading.

1935 Economic conditions improved, additional vessels added to the fleet, the Champion Parade Store enlarged, several stores opened in Port Moresby area and the company began to buy coconut plantations.

1942 All business activities ceased operations due to the outbreak of the Pacific War.

1945 Operations resumed and although re-establishing the business was difficult, the company pursued a policy of expansion. More ships added to the coastal fleet, additional land acquired in Champion Parade and the store rebuilt.

1952 A further issue of 50,000 ordinary shares made to assist in the company's reconstruction. In addition, in the same year, Captain Fitch retired after nearly 27 years as head of the company. Mr. E. V. Crisp who had already been with the company for 20 years, of which 15 been spent as a director, succeeded him.

1952 The Hong Kong based Swire Group through its shipping arm, the China Navigation Company, launched an Australia- Papua New Guinea Service with Steamships acting as its Papua Agent, thus beginning an association which was to lead to a major shareholding.

1962 Takeover of assets of Collier Watson (NG) Limited with acquisition of branch stores in Rabaul, Lae, Madang and Goroka and two plantations in New Britain. With Steamships, having previously confined is operations to Papua, the take over announced a major new era for the company. A substantial interest secured in the Lamington Hotel at Popondetta, which heralded the company's return to the hotel business after an absence of 20 years. The Cosmopolitan Hotel in Samarai owned by the company had been destroyed in 1942 in a scorched policy at the outbreak of the Pacific War.

1964 Further expansions include the purchase of the Brown River Timber Company and the establishment of a sheet metal and timber-moulding factory. Subscribed capital had risen to 1,000,481 pounds with profits at 340,387 pounds and divided at thirteen and one third percent. Mr. H. D. Underwood took over from Mr. Crisp.

1965 Korfena Coffee Plantations near Goroka acquired. In the same year, an industrial gas plant built.

1967 The Melanesian Hotel in Lae opened and a modern plant commenced bottling Coca- Cola products in Port Moresby.

1972 Half of the Retail Store in Port Moresby destroyed by fire and this section replaced with a reinforced concrete structure. The remaining timber framed building

1979 A new Retail Store opened in Boroko, two rubber plantations sold because they were not producing enough to pay the wages and best profit performers were stevedore and vehicles Division.

1980 Main store in full operation at the cost of K2 Million and the first building in the country to have an escalator between floors. In November, the Company acquired all of the capital of New Guinea Industries Ltd. in a merger, which brought Steamships into steel fabrication, and distribution, drum and nail manufacture and added a Coca-Cola bottling plant in Lae. Also in the same year, the Company acquired ANG Timbers and 74% of the Smugglers Inn in Madang. The Gateway and Boroko Hotels in Port Moresby, Melanesia Hotel and Huon Gulf in Lae, Highlander Hotel in Mt. Hagen and Lamington Hotel in Popondetta.

1981 The company announced that trading has passed the K100 Million mark for the first time and a record profit of K4 Million. The Company now consists of eight major divisions and a number of subsidiaries and staffing level of 5000, of which 550 are non-nationals.

1982 Contract signed to supply all the freight for OK Tedi mine project, the largest contract ever to be sign in Papua New Guinea.

1983 Announcement of yet again another record profit of K7, 312,000, two and a half percent up on the previous year. Mr. William McLellan took over as Managing Director.

1985 New retail department store opened in Tabubil, which despite its remote location was the biggest in the country.

1986 The Company's shareholding had a remarkable change. Collins and Leahy Investments Limited of Goroka acquired 33.3 percent interest and John Swire and Sons Investment Ltd increased its shareholding to 33.3 percent. The Chairman of Collins and Leahy appointed Chairman of Steamships in that year.

1987 The Company acquired shares in Papua New Guinea Shipping Corporation Ltd.

1989 Mr. David Copland was appointed Managing Director, only the sixth since the Company was formed, and Mr. McLellan and Director Bill Lawrence were awarded the OBE in the Queen's Birthday Honours list.

1990 The Panguna Copper Mine on Bougainville forced to close by the self-styled Bougainville Revolutionary Army, followed by a virtual collapse of the economy.

1991 The company sold its Coca-Cola operations in Port Moresby and Lae for K27 Million.

1992 Retail and Hardware Operations of major competitor, Burns Phillip bought. The company records a K8.5 Million profit, the highest in its history and Chairman, Sir Daniel Leahy Knighted for outstanding public and community services.

1993 One Hundred percent equity of New Guinea Motors Ltd purchased from the Japanese owners. This gave the company the Isuzu and Landrover dealership for PNG and Zorba Parts Limited. The company acquired the other 50% equity in Laurabada Shipping Ltd, purchased the Erima, Port Moresby Shopping Complex, including the supermarket business and stock of liquor supplier Territory Cellars, as well as the Coastwatchers Hotel in Madang. Captain Moremba Kepe gained the distinction of being the first Steamships Sea Cadet and the firstt PNG Trained seaman to qualify as a Master Mariner.

1995 Chris Pratt appointed as Managing Director.

1996 Trade Winds Beverage established, purchase of Highway Motors and Masurina Limited (Steamships Hardware- Alotau).

1997 National Provident Fund acquired shares from Steamships. The sale of the Smugglers Inn in Madang and building of Round House at Boroko.

1998 Purchase of Goada Chief.

1999 Kiunga Chief was purchased.

2000 G. J. Dunlop appointed as Managing Director of Steamships Limited. Chris D Pratt appointed as Chairman of Steamships Group and awarded a CBE.

2004 D.H. Cox appointed Managing Director of Steamships Limited. Sales of NGI Steel, Highway Automotive, and Nebiri Quarry. Amalgamation of Hardware and Merchandise under the Trading Division. Amalgamation of Territory Cellars and TradeWinds.