The Queensland Government is forging stronger ties with a nearby oceanic neighbour; the nation of Papua New Guinea.

On his first visit to the north Queensland city of Townsville, the Papua New Guinean Prime Minister Peter O'Neill said he was keen to build strong ties with nearby businesses and locals on Australia's coast. First on the agenda would be consistent flights between the Australian mainland and PNG's capital, Mr O'Neill says, "We're looking at direct flights between Port Moresby and Townsville and we are going to encourage that with our own airline and hopefully the other regional airlines in Australia can take advantage of our open sky policy that we have."

He has also asked that businesses consider expanding their range and services to include the Papua New Guinean market, which would be of economic benefit to both sides of the Torres Strait.

The Queensland State Government has come through with some assistance for PNG's health services, with a commitment to help build a hospital at Daru. It will be paid for by the PNG Government with designs, materials, skills and workers brought over from Queensland.