A new $792 million shipbuilding and ship repair facility has been proposed for Lautoka as Fiji moves towards revitalising its maritime industry and positioning itself as a regional shipbuilding hub.
Cabinet has endorsed the outcomes of a feasibility study that identified Lautoka as the preferred location for the development because of its proximity to existing port infrastructure and the availability of land.
The study estimates capital costs at approximately $792 million, with projected revenue of $2.7 billion against operating costs of $2.4 billion over a 30-year period.
It recommends establishing the facility through a Public-Private Partnership (PPP) arrangement to attract private sector financing and expertise while reducing the Government’s financial exposure.
Under the proposed development plan, the facility would initially focus on ship repairs before gradually expanding into shipbuilding operations.
The phased approach is intended to allow operations to become established while developing the skills and technical capabilities of local workers.
The Australian Government has indicated its support for the next phase of the project through technical, legal and financial assistance for the procurement process.
Continued engagement with the Australian Infrastructure Financing Facility for the Pacific (AIFFP) is also expected to help facilitate the transaction process and identify a suitable private sector partner.
The proposed facility is expected to attract foreign investment, generate employment opportunities and strengthen local industries and supply chains.
It would also provide opportunities for skills development and technology transfer to Fijian workers and businesses.
In the longer term, the Government aims to strengthen Fiji’s maritime capabilities and establish the country as a regional centre for shipbuilding, vessel repairs and maritime services across the Pacific.
The feasibility study has been endorsed, but construction and financing arrangements have yet to be finalised.
