Introduction:
Bula Vinaka and a very good morning to you all.
I would like to begin by expressing my and of Government’s sincere gratitude to the Chairperson, the Board of Directors, and the Management of FPCL, for your continued dedication in progressing the port sector, which is a vital conduit of our maritime sector and our national economy overall.
As a result of FPCL’s resilience, your commitment to growth, and the forward-thinking strategies you deployed, the company marks another significant milestone today. Congratulations on yet another successful past financial year!
Acknowledgment of Financial Results:
At the onset, it is pleasing to note that for the past three years, FPCL’s Net Profit After Tax (NPAT) has been on an upward trend. For the 2024 financial year, FPCL is commended for achieving a NPAT of $28.4 million, which represents a 2.4% increase from the previous year, whereby a $27.7 million NPAT was achieved. This result not only reflects the resolve and hard work by the staff and management of FPCL, but also reflects the company’s ongoing commitment to value creation and prudent financial management.
The dividend payout of $17.05 million to the three shareholders is a testament to the company’s strengthened balance sheet as FPCL continues to implement effective strategies and impactful initiatives.
In spite of the challenges FPCL has faced, I am pleased to acknowledge such positive results which will benefit not only the government but our people thus improving overall societal gain and welfare.
In 2015, FNPF acquired 39% shareholding in FPCL at the value of $65.5million while our Sri Lankan partners Aitken Spence acquired 20% of shares for $36.1 million, a total investment of $99.1 million.
Since then, the company revenue base and net profit has significantly grown. Prior to the sale of shares, Government had been receiving around $3.6 to $3.7 million in dividends over the 2012 to 2014 period.
Notwithstanding, with only 41% shares held today, Government will receive a dividend payment of $6.9 million, which is an 85% increase compared to the 2014 (pre-divestment) dividend of $3.7 million.
Infrastructure and Strategic Initiatives:
FPCL has been facing many issues with aging infrastructure, congestion, and limited space to expand operations and unwarranted delays of turnaround time of cargo deliveries. Suva Port needs to complete key CAPEX projects to extend its life for 20 more years and increase capacity while we wait for the new port:
Therefore, the strategic initiatives currently underway at FPCL, the continued investment in infrastructure development, including the Wharf Rehabilitation projects in Suva and Lautoka, will improve the efficiencies of port operations including enhancing the capacity to handle larger cargo volumes.
This year also saw the development works commencing at Lautoka Wharf to increase the handling capability as well as significant progress in the wharf rehabilitation works. The commissioning of a new pilot boat in Lautoka marked another operational milestone, further supporting safe and efficient marine operations. It is also noteworthy that FPCL has initiated the Lautoka Port Masterplan, which will guide infrastructure growth and capital projects in the coming years for Lautoka Wharf.
FPCL is also focusing on modernising its subsidiary Fiji Ships and Heavy Industries Limited by undertaking the Slipway Rehabilitation project which will set a future where larger vessels from our neighbouring countries coming to Suva wharf for slipping and maintenance services.
I also acknowledge the company’s focus on innovation and sustainability, with continued progress toward its Smart Green Gateway vision, the adoption of digital systems, and the development of a Green Port Master Plan. It is crucial that we continue to adapt, innovate, and align our operations with global best practices, placing a strong emphasis on environmentally responsible development and operations
Acknowledgment of Challenges and Future Focus:
While we celebrate the growth and progress of FPCL, it is important to also recognize the challenges that lie ahead. The current global geopolitical environment and its impacts on the global supply chain are indeed a concern. However, I am confident that FPCL will mitigate these issues by strengthening their services deliveries, by implementing strategic protocols, and by enhancing their overall efficiencies and capabilities.
FPCL’s commitment to modernizing port facilities and enhancing digital capabilities will strengthen Fiji’s competitiveness and thus attractive for international trade.
On this note, let me stress the need to pursue the Mega Port concept introduced in 2024. This national project alone will make Suva as the ideal transhipment hub rather than NZ or PNG, and with concurrent supportive global logistics backstopping services in place, it should ease container movements taking Suva capacity from 150k TEU to 250k TEU, meeting growth targets beyond 2035.
It is time to bring this project to reality, and I thank FPCL for being consistent in the opinion that Rokobili is the ideal location.
On this note, Cabinet will receive a revised version of the Cabinet Paper on the mega port initiative that I withdrew in the May sitting of Cabinet. Evidently, the revised CP should become the primary output of a multistakeholder process, the engagement of all relevant stakeholders- both government and private, including shipping services and logistics support.
The process are all critical to the 10-Year Development Plan and the establishment of Fiji, as the hub for the Asia Pacific region- through a mega port and logistics facility.
This is an exciting project worth all our commitment and support to ensure its successful delivery.
Conclusion:
In closing, I would like to express my sincere thanks to the Board, the Management, and the staff of FPCL for the dividend paid today and for your unwavering commitment to excellence and the development of our maritime sector.
I also want to extend my gratitude to all our stakeholders, particularly the Fiji National Provident Fund, Aitken Spence PLC, and other key partners, for your continued collaboration and support.
Vinaka vakalevu, and thank you.