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Fiji’s Three Ports Make $0.93 Million From Rents

Fiji’s Three Ports Make $0.93 Million From Rents
May 09
11:05 2018

Fiji Ports Corporation Limited (FPCL) received $927,472 from rental income in 2016, from the three main ports of Suva, Lautoka and Levuka including 71 tenancies.

However, this figure shows a decrease in rental income when compared to 2015 where properties returned was $2,048,931.

From the 2016 annual report, then chair­man Shaheen Ali said the decrease in revenue could be attributed to the recent part privati­sation arrangement where all land interests in FPCL were vested in Assets Fiji Limited (AFL), a government-owned commercial en­tity established under the Public Enterprise Act 1996.

“Under the agreement, AFL is to retain these assets and lease back to FPCL those assets only required by FPCL for port operations,” Mr Ali stated.

“A significant number of the major proper­ties were retained by AFL including the entire Rokobili site, the Mobil Service Station and surrounding area in Walu Bay and most of the properties located in Lautoka,” he said.

Levuka port recorded a decrease in rental in­come due to damage caused by serve Tropical Cyclone Winston in February which resulted in the relinquishing two key tenancies and tenancies at the Kings wharf, at the Port of Suva, were not re-leased as they were reallo­cated to accommodate FPCL operations,” he said.

He said Fiji Ships and Heavy Industries Limited (FSHIL) recorded a profit of $1.02 mil­lion for the 2016 financial year.

“The company’s operating income exhibited a decline by 14 per cent largely due to the re­duction in the value of project based works recording $1.3 million for the year,” he said.

“Significantly down from 2015 the decline in overall income is due largely to the before and after effects of TC Winston. However, FSHIL recorded a net profit after tax of $1.02 million for the year 2016 which is a slight reduction of 0.08 per cent from the 2016 budget of $1.10m.

Importantly for growth and reputation build­ing, he said the company continued to develop its profile as a key ship repair provider.

“With the support of parent company FPCL, FSHIL continues to cultivate new partner­ships with similar organisations such as ship repair facilities, suppliers of goods and servic­es, and with ship-owners and other companies in the ship building industry,” he said.

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