The newly upgraded tramlines in Rarawai and Lautoka mills will officially be closed because of the declining volume of sugar cane transported by rail and the high cost of maintaining the rail system.
This was confirmed by Minister for Agriculture and Sugar Tomasi Tunabuna after Opposition MP Viam Pillay accused the Fiji Sugar Corporation of creating confusion and uncertainty in the sugar industry by attempting to shut down tramlines.
Mr Tunabuna said the decision was made by FSC management and was based on the “economics of operating the rail system”.
He said FSC had indicated there would be analysis on the cost of transporting cane, with only about 7 per cent of all sugar cane transported to the mill by rail last year.
“Now the whole cane that was transported to the mill last year was only, I think around 7 per cent of all the sugar cane,” he said.
“More cane on flat land is now being harvested mechanically, reducing the volume that would have previously been cut manually and transported by rail. So the volume of sugar cane every year is declining, including even the volume that’s been supplied to the mill through rail.”
Mr Tunabuna said it was becoming expensive for FSC to continue transporting cane by rail.
He said a full feasibility study on the sugar industry would be carried out and would include the efficiency of cane transportation, whether by rail or other means.
When asked whether Government intended to recover the $1.7million spent on upgrading the tramlines in September last year, Mr Tunabuna said farmers needed to increase cane production.
