FIJI SHIPPING FRANCHISE SCHEME PRESENTATIONPRESENTATION OUTLINEOUTLINE

¾ Background ¾ Shipping Routes ¾ Shipping Franchise ¾ Conclusion BACKGROUND

¾POPULATION – 830,000 ¾100/332 ISLANDS POPULATED ¾MARITIME AREA [EEZ] – 1.3MILLION SQKM ¾ REGISTERED VESSELS – 587 [April 2012] ¾28 GOVT WHARVES AND JETTIES SHIPPINGSHIPPING ROUTESROUTES

ClassificationClassification ofof ShippingShipping Routes:Routes: i.i. EconomicalEconomical RoutesRoutes

••InvolveInvolve withwith HighHigh CapacityCapacity andand VolumeVolume ofof CargosCargos andand PassengersPassengers ii.ii. UneconomicalUneconomical RoutesRoutes

••LessLess CargoCargo andand PassengersPassengers 4 ECONOMICAL ROUTES

MV Lomaiviti Princess 1 & II MV Westerland MV Spirit of Harmony MV Sinu I Wasa Route Vessel Vessel Type / Natovi/ Spirit of RORO Nabouwalu Harmony /Levuka Sinu I Wasa RORO Suva/Koro/ Lomaiviti RORO / Princess I & II Natovi/ Savusavu Westerland RORO Suva/ Kadavu Sinu I Wasa RORO

Lomaiviti RORO Princess II UNECONOMICAL ROUTES

MV Lau Trader MV Uluinabukelevu MV Lady Sandy MV YII GSS Iloilovatu ROUTE ISLAND PORTS VESSEL Northern Lau I Suva – Vanuabalavu – – Suva. Northern Lau II Suva ‐ – – ‐ Cikobia ‐ MV Lau Trader Yacata – Suva. Upper Suva ‐ Lakeba –Oneata –Moce ‐ Komo – MV Lady Sandy Southern Lau Namuka i Lau and Vanua Vatu – Suva. Lower Suva ‐ – –Ogea ‐ – MV Lau Trader Southern Lau Ono –i‐ Lau – Suva. Kadavu Suva ‐ Kadavu ‐ Baba Tokalau , Kadavu. MV Uluinabukelevu (3months) Suva ‐ O’inafa Port – Suva. Lautoka – Yasawa‐ i‐ rara –Waya & Viwa ‐ MV YII Lautoka Yasayasa Suva ‐ Moala –Matuku and – MV Lady Sandy MoalaLomaiviti 1 SuvaSuva. ‐ Gau – – ‐ Suva MV Lady Sandy Lomaiviti 2 Suva –Gau – Suva. FIJI SHIPPING FRANCHISE SCHEME

¾ A shipping assistance provided by Government for shipping services in uneconomical shipping routes in the Maritime province. ¾ Total Assistance Allocated by Government in the 2013 Budget is $1.5M ¾ Cabinet Decision 23 of Jan 2013 - the administration of the Franchise Scheme be transferred to the Ministry of Works, Transport and Public Utilities

9 FRANCHISE OBJECTIVES

¾ maximum island port outreach ¾ONE TRIP PER MONTH PER ROUTE ¾MAXIMUM OF THREE ROUTES PER VESSEL ¾48 HOUR SETTLEMENT OF FRANCHISE ACCOUNTS UPON RECIEPT OF RELEVANT DOCUMENTS ¾ MONTHLY APPROVALS OF FRANCHISE TRIPS CHALLENGES

¾ Lack of readily MSAF approved vessels ¾ Competency of vessel crew and vessel management ¾ Settlement of Financial Accounts – document verification [sailing plan, manifests etc] ¾ Current franchise rates compared to introduction of new vessels ¾ Lack of substitute vessels to be engaged when vessels undergo a maintenance programmes ¾ Public response to maximise the usage of franchise scheme ¾ Synergy of resources ¾ Penalty clause for rogue contract operators GOVERNMENT INTERVENTIONS

¾Contract provision for Franchise contractor to recommend supplementary vessel. ¾Recruitment of Franchise Observers ¾Review of Freight Rates and Passenger Fares [examine current routes & practices ¾Regular formal and informal consultations with Local Ship Operators [negate the them and us] RESULTS

CARGOES [tons] PASSENGERS Distance OUT IN OUT IN Franchise Paid Travelled

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

¾ Consultations Government Departments /Provincial Councils ¾Regular roundtable consultations with Franchise Contractors / passengers ¾Cabinet decision on recommendations in regards to the outcomes of the review VINAKA