Government has paid out a total of $1.12 million to ship operators under the Shipping Franchise Scheme.
This was revealed by Minister for Public Works, Meterorological Services and Transport, Ro Filipe Tuisawau, while making a public statement last week on his ministry’s budget deliverables for the financial year 2023-2024.
A total of 150 franchise trips were made between August 2023 and May 2024, providing transportation services to 6628 inbound and 6928 outbound passengers.
Ro Filipe added that the franchise scheme also attracted significant cargo movement, recording 1996 tonnes of outbound and 2041 tonnes of inbound cargo.
Meanwhile, he said local maritime shipping costs were under review by the Fiji Competition and Consumer Commission, as the regulatory pricing authority.
Government Shipping Franchise Scheme is a government funded initiative, established to ensure the movement of cargo and passengers between our maritime islands.
The franchise scheme is aimed at enhancing connectivity and accessibility of Fiji maritime island communities and uneconomical routes, ensuring that they are brought closer in terms of economic connectiveness and better access to markets and development.
As at 2022, there were 10 routes operated under the scheme run by six shipping service providers.
Apart from the direct subsidies paid by the Government to the private vessel operators, the Government Shipping Services (GSS) also provides services to uneconomical routes such as Yasawa, North East Vanua Levu, Beqa, Yanuca, Vatulele and Lower Southern Lau where the private sector is unable to service due to high maintenance and operating costs involved.
Meanwhile, GSS has been allocated $9.9m of the $721.4m allocated Ro Filipe’s ministry in the national 2024-2025 budget annouced last Friday.
The Maritime Safety Authority of Fiji, which is responsible for ensuring the safety of our seafarers and vessels,has been allocated a total budget of $9.4m for both its operating and capital grant.
The Ministry of Public Works, Meteorological Services and Transport consists of the Fiji Meteorological Services, Department of Works, Department of Energy, Department of Water and Sewerage, Department of Transport and Government Shipping Services.