$792m shipbuilding project planned for Lautoka

Fiji is advancing plans for a major shipbuilding and ship repair facility in Lautoka.

This is part of a proposed investment of approximately $792 million aimed at reviving the country's shipbuilding industry and creating new economic opportunities.

Cabinet had endorsed the outcomes of a feasibility study for the proposed development, paving the way for the next phase of planning and efforts to secure private sector investment.

Lautoka has been identified as the preferred location because of its proximity to existing port infrastructure and the availability of land, positioning the city as a potential hub for the country's expanded maritime industry.

The feasibility study projects that the facility could generate $2.7 billion in revenue over 30 years, against estimated operating costs of $2.4 billion over the same period.

However, the proposed development's estimated $792 million price tag means securing the right investment model and private sector partner will be critical to advancing the project.

The study recommends a Public-Private Partnership (PPP) model to attract private capital and technical expertise while reducing the Government's financial exposure and supporting the facility's long-term sustainability.

Rather than launching full-scale shipbuilding immediately, the study recommends a phased development, beginning with ship repair services before expanding into shipbuilding.

The approach is intended to allow operations to become established, build technical capacity and develop the skilled workforce needed to support more complex maritime manufacturing activities.

The Australian Government has indicated its willingness to support the next phase through technical, legal and financial assistance.

Further engagement with the Australian Infrastructure Financing Facility for the Pacific (AIFFP) will also support the procurement process and the identification of a suitable private sector partner.

If realised, the project could open new opportunities for Fijian workers and businesses through employment, foreign investment, skills development and technology transfer.

Local industries and supply chains could also benefit from increased demand for goods and services associated with ship repair and shipbuilding.

The proposed facility represents a significant opportunity to strengthen Fiji's maritime industrial capacity. Its progress, however, will depend on securing a suitable investment partner and moving from feasibility planning to implementation.

For Lautoka, the project could mark a major expansion of its role in Fiji's maritime economy, while offering the country a pathway towards rebuilding its shipbuilding capabilities and capturing greater value from the regional maritime industry.