The lifelines that course through the veins of any successful economy are oil and fuel.
Oil makes the wheels turn and the gears shift, resulting in production, consumption and, most importantly, profit.
Back in Fiji’s early years of development, while under the Crown, it was just being introduced to industry and manufacturing.
In 1928, Fiji was a world of contrasting advances and enduring traditions, where the arrival of the Shell Company marked a notable moment in the island nation’s economic history.
A book titled Fifty Years in Fiji written by L. G Usher, detailed the inception of oil and fuel through the journey of one company, Shell (Pacific Islands) Ltd.
It all began on Monday, May 28, 1928, when Shell’s entry into Fiji came just two weeks before Charles Kingsford Smith’s pioneering flight.
A brief background shows Charles Kingsford Smith (1897–1935) was an Australian aviation pioneer known for his ground breaking long-distance flights.
According to the National Museum of Australia, he became famous for his historic trans-Pacific flight from the United States to Australia in 1928, aboard the Southern Cross, a three-engine Fokker aircraft.
This achievement made him an international hero and a symbol of aviation innovation.
Mr Kingsford Smith’s adventurous spirit and contributions to early aviation were instrumental in advancing long-haul flights and inspiring future generations of pilots.
So, Mr Kingsford Smith’s Southern Cross made history by landing in Albert Park in Suva on its journey from North America to Australia.
This landmark achievement in aviation captured widespread attention, reflecting a period of significant progress and change for Fiji.
Shell’s initial foray into the Fijian market came as part of the Burns Philp (South Sea) Company organisation.
Early operations were modest, with kerosene and benzene distributed in four-gallon tins. However, as the demand for fuel grew, Shell upgraded its distribution to include drums and bulk handling.
This was indicative of a broader trend toward industrialisation and modernity in Fiji, which Shell was poised to support and benefit from.
The period from 1934 to 1938 saw Shell solidify its presence in Fiji. The company undertook significant infrastructure projects, constructing bulk depots at Walu Bay, Suva, and Lautoka.
These depots were crucial for expanding Shell’s product distribution network across virtually all islands in Fiji.
This expansion reflected Shell’s strategic response to the growing industrial and economic activities in the region, providing reliable fuel supply to support various sectors.
Despite these advancements, the global economic landscape posed challenges.
The Great Depression had a profound impact on Fiji’s economy, with plummeting commodity prices and severe disruptions in industries such as copra, sugar, rubber and cotton.
The economic downturn affected many sectors, including fuel distribution.
Nevertheless, Shell’s establishment of bulk depots and an extended distribution network demonstrated its resilience and commitment to maintaining its operations during a period of significant economic hardship.
As World War II unfolded, Fiji’s strategic importance increased, influencing Shell’s operations significantly.
The expansion of infrastructure, such as the construction of the airstrip at Namaka and the Rewa River Bridge was vital for wartime logistics.
Shell’s role in fuelling flying boats at Laucala Bay and naval ships underscored the company’s crucial contribution to the war effort.
The Rewa River Bridge facilitated transportation and military logistics, while the enlarged airstrip enabled greater air traffic, heightening the need for Shell’s aviation gasoline.
During the war, Shell faced logistical challenges that necessitated a strategic relocation of its depot.
The company’s Suva depot was moved to Sealark Hill, where large underground storage tanks were built by the New Zealand Armed Forces.
This relocation was a direct response to the increased demand for fuel and the need for secure storage amidst the wartime context.
Shell’s ability to adapt to these demands was a testament to its critical role in supporting both military and civilian needs in Fiji during this period.
As the war drew to a close in 1944, the Pacific war centre shifted away from Fiji towards Japan.
The presence of American troops in Fiji decreased, and the region began transitioning from wartime to peacetime conditions. This shift brought both challenges and opportunities for Shell.
The company faced supply shortages due to wartime disruptions, which impacted its development and expansion efforts.
However, as Fiji rebuilt and expanded its infrastructure, Shell’s operations began to recover. The establishment of new airfields and the growth of aviation services created a more stable market for fuel.
The increase in passenger air traffic and the debate over the future international airport site highlighted the region’s growing connectivity and modernisation, which directly influenced Shell’s operations.
In 1949, Shell began developing a retail network, significantly benefiting motorists.
Additional bulk storage was acquired in Suva to hold strategic fuel supplies for the Royal New Zealand Navy, reflecting the ongoing importance of Shell’s operations in the region.
The period from 1954 to 1958 marked a phase of significant growth and modernisation for Shell in Fiji.
The company opened a new terminal at Vuda Point in 1957, replacing the older bulk depot at Lautoka. This strategic move indicated Shell’s commitment to modernising its distribution infrastructure.
The commencement of direct pumping to Nadi Airport by underground pipeline and the initiation of bulk kerosene deliveries to village stores represented a substantial upgrade in Shell’s logistical capabilities.
This era of Shell’s expansion occurred against the backdrop of broader economic and infrastructural changes in Fiji.
The end of the contract with the British Ministry of Food and the rise of local industries, such as cigarette manufacturing and brewing, reflected a period of industrial diversification.
Although some ventures, such as copra milling and pineapple canning, faced commercial challenges, the overall economic context supported Shell’s growth.
Infrastructure development, including the upgrade of Nadi Airport to accommodate the jet age and the expansion of broadcasting and telecommunication services, contributed to a more interconnected and modern environment.
These advancements provided a stable foundation for Shell’s continued expansion and adaptation to the changing needs of the Fijian market.
From its initial establishment and early expansion to its strategic adjustments during wartime and subsequent modernisation, Shell played a crucial role in supporting Fiji’s economic and infrastructural development for the first 30 years of its establishment.
- Next week’s edition of The Fiji Times will feature the final 20 years of Shells history and where they are today.
