Fiji Ports proposes higher international port charges to fund $393m upgrade

Fiji Ports Corporation Limited (FPCL) has proposed the first review of international port charges in 10 years, arguing the increase is needed to fund a $393 million investment programme to modernise Fiji's ageing port infrastructure and support future trade growth.

FPCL has formally submitted its proposal to the Fijian Competition and Consumer Commission (FCCC), seeking approval to adjust international port fees and charges. The last tariff review was conducted in 2015.

The proposal applies only to international port tariffs and does not affect domestic or inter-island shipping charges, meaning local shipping operators and domestic trade would remain unaffected.

FPCL said the proposed review covers marine service charges, anchorage and mooring, dockage, wharfage, marine support services, and security and ancillary services.

The corporation said Fiji's core port infrastructure, much of which was built in the 1950s, is operating well beyond its original design capacity and requires significant investment to meet growing trade volumes and larger vessels.

The proposed capital investment programme includes critical infrastructure upgrades, rehabilitation works, climate resilience initiatives and capacity expansion across Fiji's key ports. According to FPCL, the investment is intended to improve port efficiency, increase capacity, reduce congestion, strengthen climate resilience and support the long-term growth of Fiji's trade.

FPCL said the proposed tariff adjustments would increase its revenue by about 28 per cent over the 10-year regulatory period, with the additional income helping fund the infrastructure programme.

The corporation said the impact on importers and consumers was expected to be minimal.

"To put this into perspective, the adjustment amounts to approximately $70 per 20-foot container."

It said this would typically translate into only a one to three per cent increase in total import costs, amounting to only a few cents per item for consumers because port charges make up a small share of the overall cost of imported goods.

FPCL warned that failing to invest in the port network could lead to deteriorating infrastructure, increased congestion, vessel delays, reduced service reliability and higher long-term economic costs. It also noted that Fiji is currently ranked 119th out of 139 countries in the Logistics Performance Index, the lowest in the Pacific region.

As Fiji's principal port management company, FPCL manages the ports of Suva and Lautoka, which handle about 90 per cent of the country's international trade.

The proposal is now awaiting consideration by the FCCC.