EAP - The Pacific Infrastructure Challenge - World Bank (2006).pdf
EAP - The Pacific Infrastructure Challenge - World Bank (2006).pdf
EAP - The Pacific Infrastructure Challenge - World Bank (2006).pdf
You also want an ePaper? Increase the reach of your titles
YUMPU automatically turns print PDFs into web optimized ePapers that Google loves.
Fiji 84<br />
Ports<br />
<strong>The</strong> Maritime and Ports Authority of Fiji (MPAF) is responsible for the administration of<br />
the country’s main ports, Suva, Lautoka and Levuka. MPAF is a commercial statutory<br />
authority. Its responsibilities include port management, development, port and maritime<br />
regulation, and licensing.<br />
A government-owned company Ports Terminal Limited (PTL) manages the stevedoring,<br />
cargo handling, pilotage and warehousing activities on behalf of the Government under a<br />
five year non-exclusive license agreement, for which it pays MPAF an annual rental fee. PTL<br />
was created to facilitate commercialization and privatization of port operations and to enable<br />
it to compete with private businesses. This dilutes the effectiveness of the outsourcing model<br />
as there are fewer incentives to operate efficiently and cost effectively when there is no<br />
competition for these services. This is one possible explanation for the highest port charges<br />
in Fiji. Plans were developed in the 1990s to sell PTL to private investors, but as a result of<br />
political upheavals, the sale did not take place.<br />
It was envisaged that MPAF would regulate the ports industry and PTL would focus on<br />
commercial operations, but in practice separation of function did not occur and the two<br />
entities had overlapping roles. <strong>The</strong> Fijian Government has recently approved a restructure of<br />
the Maritime Authority of Fiji and Ports Terminal Limited. A new company, Ports Terminal<br />
Corporation Limited (PTCL) will take on all commercial functions and the existing Fiji<br />
Islands Maritime Services Authority will be responsible for all regulatory functions 85 . Only<br />
half of the existing 172 staff will be required to run the new company. Extension work on<br />
the new Suva port will begin once the new company is established.<br />
Shipping<br />
<strong>The</strong> Government also has a 49% shareholding in Shipbuilding Fiji Limited which operates<br />
shipyards and slipways at Suva. Some private wharves exist at Savusavu and Malau.<br />
Fiji is served by a mixture of public and private shipping services. Private companies serve<br />
inter-island routes and the government fleet provides services to all government departments<br />
e.g. transporting machinery, materials, supplies, officials and vehicles. <strong>The</strong> Marine<br />
Department is responsible for regulation in accordance with the Marine Act (1986). <strong>The</strong><br />
Prices and Incomes Board within the Ministry of Finance sets inter-island freight rates.<br />
Passenger fares are not subject to price controls.<br />
<strong>The</strong> main island routes are open to competition and in 1997 a franchising scheme was<br />
introduced for outer islands shipping where competition is limited. Under this scheme, the<br />
Government defined a minimum service level for shipping to inadequately served areas and<br />
specified maximum freight rates in the franchise tender documents. Operators submitted<br />
tenders on the basis of the subsidy they required to operate these services. <strong>The</strong> service<br />
provider requiring the least subsidy got the contract.<br />
84 Republic of the Fiji Islands 1999 Economic Report, ADB <strong>Pacific</strong> Studies Series, 1999 and “Report and<br />
Recommendation of the President to the Board of Directors on a Proposed Loan to the Maritime and Ports<br />
Authority of Fiji for the Fiji Ports Development Project in the Republic of the Fiji Islands”, ADB, January<br />
2002<br />
85 “Major staff cut part of Ports’ restructure” Fiji Islands Business, July 2004<br />
134