FIJI SHIPPING FRANCHISE SCHEME

PRESENTATION OUTLINEPRESENTATION OUTLINE

BackgroundShipping RoutesFiji Shipping FranchiseConclusion

POPULATION – 830,000100/332 ISLANDS POPULATEDMARITIME AREA [EEZ] – 1.3MILLION SQKM REGISTERED VESSELS – 587 [April

2012]28 GOVT WHARVES AND JETTIES

BACKGROUND

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SHIPPING ROUTESSHIPPING ROUTES

Classification of Shipping Routes:Classification of Shipping Routes:

i.i. Economical RoutesEconomical Routes

••Involve with High Capacity and Volume of Cargos Involve with High Capacity and Volume of Cargos and Passengersand Passengers

ii.ii. Uneconomical RoutesUneconomical Routes

••Less Cargo and PassengersLess Cargo and Passengers

ECONOMICAL ROUTES

MV Lomaiviti Princess 1 & IIMV WesterlandMV Spirit of HarmonyMV Sinu I Wasa

Route Vessel Vessel Type

Levuka/ Natovi/ Nabouwalu

Spirit of Harmony

RORO

Suva /Levuka Sinu I Wasa ROROSuva/Koro/ Savusavu/Taveuni

Lomaiviti Princess I & II

RORO

Natovi/ Savusavu Westerland ROROSuva/ Kadavu Sinu I Wasa RORO

Lomaiviti Princess II

RORO

UNECONOMICAL ROUTES

MV Lau TraderMV UluinabukelevuMV Lady SandyMV YIIGSS Iloilovatu

ROUTE ISLAND PORTS VESSELNorthern Lau I Suva – Vanuabalavu – Cicia – Suva.

Northern Lau II Suva ‐ Lakeba – Nayau – Tuvuca ‐ Cikobia ‐Yacata – Suva.

MV Lau Trader

Upper Southern Lau

Suva ‐ Lakeba – Oneata – Moce ‐ Komo –Namuka i Lau and Vanua Vatu – Suva.

MV Lady Sandy

Lower Southern Lau

Suva ‐ Kabara – Fulaga – Ogea ‐ Vatoa –Ono –i‐ Lau – Suva.

MV Lau Trader

Kadavu Suva ‐ Kadavu ‐ Baba Tokalau , Kadavu.  MV Uluinabukelevu (3months)

Rotuma Suva ‐ O’inafa Port – Suva.

Yasawa Malolo Lautoka – Yasawa‐ i‐ rara – Waya & Viwa ‐Lautoka

MV YII

Yasayasa Moala

Suva ‐Moala – Matuku and Totoya –Suva.

MV Lady Sandy

Lomaiviti  1 Suva ‐ Gau – Nairai – Batiki ‐ Suva MV Lady Sandy

Lomaiviti 2 Suva – Gau – Suva.

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FIJI SHIPPING FRANCHISE SCHEME

A shipping assistance provided by Government for shipping services in uneconomical shipping routes in the Maritime province.Total Assistance Allocated by Government in the 2013 Budget is $1.5MCabinet Decision 23 of Jan 2013 - the administration of the Franchise Scheme be transferred to the Ministry of Works, Transport and Public Utilities

FRANCHISE OBJECTIVES

maximum island port outreachONE TRIP PER MONTH PER ROUTEMAXIMUM OF THREE ROUTES PER VESSEL48 HOUR SETTLEMENT OF FRANCHISE ACCOUNTS UPON RECIEPT OF RELEVANT DOCUMENTSMONTHLY APPROVALS OF

FRANCHISE TRIPS

CHALLENGESLack of readily MSAF approved vesselsCompetency of vessel crew and vessel management Settlement of Financial Accounts – document verification [sailing plan, manifests etc]Current franchise rates compared to introduction of new vesselsLack of substitute vessels to be engaged when vessels undergo a maintenance programmes Public response to maximise the usage of franchise schemeSynergy of resourcesPenalty clause for rogue contract operators

GOVERNMENT INTERVENTIONS

Contract provision for Franchise contractor to recommend supplementary vessel.Recruitment of Franchise ObserversReview of Freight Rates and Passenger Fares [examine current routes & practicesRegular formal and informal consultations with Local Ship Operators [negate the them and us]

RESULTS

CARGOES [tons] PASSENGERS

Franchise PaidDistance TravelledOUT IN OUT IN

April 47 46 163 85 23,300.00 2071

May 87 80 296 378 59,000.00 1492

June 81 55 287 210 68,285.00 1821

215 181 746 673 150,585.00 5384

FORECASTED ACTIVITES

Consultations Government Departments /Provincial CouncilsRegular roundtable consultations with Franchise Contractors /

passengersCabinet decision on recommendations in regards to the outcomes of

the review

VINAKA