"This is free money generated into the national economy," he told The National newspaper.
"Jomard Passage is just a natural passage about three miles wide.
The passage is the international shipping route for Australia, Southern Pacific and northward to Asia.
"And I would like to thank the government for declaring the Jomard a mandatory pilotage passage.
"This is a milestone for my electorate, Milne Bay and the country as a whole to embrace economic opportunities through the provision of pilotage services and other economic spinoffs generated from the passage.
"About 45 ships like super fuel tankers, bulk carriers, container ships and other ocean-going ships that ply the international trade pass through that passage in the Louisiade local level government daily in my electorate to travel to and fro Australia, New Zealand, China, Japan and other developed countries in the Asia-Pacific.
"These ships will now pay pilotage fees to use the passage."
Leonard allocated K300,000 from his district development authority funds to the Jomard Passage technical team to work on the passage mandatory pilotage programme.
The team will be tasked to set up a pilotage company to employ locals to pilot ships through this passage.
Locals will also be employed as rangers to ensure that the passing ships do not damage the natural environment.