SODELPA disapproves Fiji Ports proposed increase in International Port Fees and Charges

SODELPA Leader Viliame Gavoka says they strongly disapprove the intent of the Fiji Ports Corporation Limited to increase their marine charges by 10 percent, and wharfage and utilities charges by 30 percent.

Gavoka says the people of Fiji are co-owners of the company and should rebuke the management for these increases when the country is struggling through unprecedented hardship.

Gavoka further says the company has been very profitable recording profits in 2017, 2018, 2019 and 2020 and with all these record profits, they were paying bonuses to its 160 employees each year.

The SODELPA Leader adds for a company trading profitably and paying bonuses, increasing rates in the midst of an unprecedented economic meltdown is very callous and in bad taste.

He also says the supply chains worldwide are under great strain with prices of goods increasing at source; coupled with the increases in international freight charges, goods are already costly before they land and increasing various port charges adds to the cost, compounding the hardship faced by those living in poverty.

Gavoka further says SODELPA implores corporate leaders in the monopolies to exercise care and play their civic duty; managing expectations on profitability; reining in exorbitant salaries, allowances, and bonuses; failing which, prices will increase, affecting our long-suffering people.

In their submission to Review International Port Tariffs, the Fiji Ports Corporation Limited says they have embarked on a vision to make Fiji Ports a Smart and Green Gateway for trade in the Pacific region and as part of its efforts, the company had developed and deployed a 5 year strategic plan 2019-2023, that is aimed at increasing the port capacity as well as modernizing their port operations.

They say they had already started its work in implementing its 5-year strategic plan deliverables and the company is estimated to invest over $17 million in container yard developments, over $40 million in multiple wharf rehabilitation projects, over $3 million in the Vessel Traffic Management System, and many other capital expenditure in the coming years.

It further states given the current tariffs, they will not be able to invest into such projects, hence the company has submitted a proposal to review the tariffs.

However, they say the company is conscious of the COVID-19 pandemic, and benchmarked their tariffs with other competing ports in the Pacific to ensure that Fiji does not lose its competitive edge in the region.

It adds to justify the increase in tariff rates, an analysis of return on investment for the company is considered against benchmarks and an analysis of tariff rates against other ports in the Pacific including New Zealand was also considered as a correlation with an acceptable return on investment.

People have time until 5pm 11th October to make submissions to the Fijian Competition and Consumer Commission on the proposed increase in International Port Fees and Charges.