FPCL shares agreement signed

VOLUME 27
THE OFFICIAL NEWSLETTER OF FIJI PORTS CORPORATION LIMITED
FPCL shares agreement signed On the 5th November 2015,
the Fijian Government
divested 59% of the shares in
Fiji Ports Corporation Limited
(FPCL) at a value of more than
FJ$100 million.
The legal agreements were
signed by the Prime Minister
of Fiji, Honourable Josaia
Voreqe Bainimarama, and
the consortium comprising
representatives of FNPF and
Sri Lankan company Aitken
Spence PLC, for the partial
divestiture.
The Hon. Prime Minister
said that the transaction is
a great step forward in the
Government’s asset sale
divestments.
Government will maintain
41% of the shares in FPCL,
J anuar y - M A R C H 2 0 1 6
80% Fijian owned
(L - r) FNPF Directors, Mr Sashi Singh and Mr Tom Ricketts; the Prime Minister, Hon.
Voreqe Bainimarama; Acting Permanent Secretary, Ministry of Public Enterprises, Mr
Shaheen Ali and Senior Legal Official, Ms Tracey Wong at the signing of the shares
agreement.
while FNPF will own 39%
and Aitken Spence PLC 20%.
Following the divestment,
80% of the shares in FPCL will
remain Fijian owned.
Under the agreements,
Government will receive more
than FJ$100 million for 59%
of the shares in FPCL. The
consortium of FNPF and Aitken
Spence will pay FJ$99,112,330,
and the Government will also
receive approximately FJ$3.3
million from the sale of land
to Fiji Roads Authority for the
realignment of the road and
bridge at Stinson Parade, Suva.
Minister for Public Enterprises
Hon. Aiyaz Sayed-Khaiyum
said the Government’s
objective for the divestiture is
to secure the partnership of
a long term investor in FPCL
that would contribute to the
development and growth
of FPCL’s asset base and
continue the improvement of
Fiji’s sea ports, including their
expansion, modernisation and
development of specialised
facilities.
“This divestiture promises
to make FPCL more profitable
and efficient, and will ensure
that international best
Continued on page 2
Timely bonus for
Cyclone Winston damage report FPCL/FSHIL teams
With winds reportedly
reaching more than 300
kilometres an hour,
the Category 5 Tropical
Cyclone Winston struck
Fiji on Saturday 20th
February.
By the end of the
following week, all
reports were in regarding
damage to Fiji Ports
Corporation Ltd (FPCL)
property.
The worst hit facility
was the Port of Levuka.
Here, a local inter-island
roro vessel capsized at
the wharf, while the walls
and roof of half of the
customs shed collapsed.
There is the possibility
that this weight will pull
down the remaining half.
FPCL and FSHIL staff show the Attorney General, Honourable
Aiyaz Sayed Khaiyum, their appreciation for their bonus
payments.
An aerial view of Levuka Port showing the capsized vessel.
(Photo: The Japan Times.)
A designated team is working to prevent this
happening.
At the Port of Lautoka, some roof cladding
came away, some roller doors were damaged
and the canopied area on a shed was damaged.
In comparison, there was very little damage at
the FPCL Suva facilities where some skylights on
older buildings gave way at Muaiwalu I wharf.
Coming two days before Christmas, the
announcement by the Attorney General,
Honourable Aiyaz Sayed Khaiyum, of the
$256,0084.80 bonus payment to employees
of Fiji Ports Corporation Ltd (FPCL) and
subsidiary Fiji Ships & Heavy Industries
Ltd (FSHIL) was greeted with gratitude and
appreciation by the 206 recipients. Registered
Relief Workers (RRWs) as well as contract
staff benefitted from the bonus payout.
The bonus is in recognition of the hard work
carried out by employees that saw the two
companies performing above expectations.
F I J I P O R T S C O R P O R AT I O N L I M I T E D
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Improving efficiency at FPCL
The ongoing transition away from being
paper based to digitisation by Fiji Ports
Corporation Ltd (FPCL) is part of the
Corporation’s drive to improve efficiency
and productivity through adoption of
technology
FPCL Chief Operating Officer, Mr
Kotelawala, said that plans are underway
for a vessel traffic management system
for FPCL for better control of all vessels
maneuvering in the port of Suva.
The collection and analysis of port
user data has now been made possible
by the issuing of new ID security passes
by FPCL to licensed port users and their
designated employees. These ID passes
contain a bar code that can be scanned, a
new security feature that allows for data
collection and information analysis.
Scanning will soon be extended to all
vehicles entering the ports through a
Scanning will be extended to all vehicles entering the port.
state of the art scanning facility. Security
will also be enhanced by the extended
CCTV system that is being put in place.
“These changes and improvements
all contribute to improving our efficiency
levels as the analysis of accurate,
real-time data is essential to take well
informed decision making and accurate
planning,” said Mr Kotelawala.
Digital data developments at FSHIL
The move by Fiji Ships & Heavy
Industries Ltd (FSHIL) towards greater
reliance on data entry rather than paper
records has made it possible to correctly
capture the true cost of any job, with
any item of inventory issued by Stores
charged to the relevant, unique job
number.
The fine-tuning of a system to correctly
record and charge labour costs to a
specific job number will soon be rolled
out by the FSHIL Accounts Department.
The biometric system introduced in
2015 is used to record work attendance
is linked to the payroll facility, reducing
paperwork and ensuring employees
receive the correct allowances. A daily or
weekly report can be generated to assist
Heads of Department monitor their staff.
The FSHIL Human Resources
Continued from page 1
practices, processes and
systems will be introduced
that will position Fiji’s ports
as regional and international
hubs,” Minister SayedKhaiyum said.
The Minister described
Aitken Spence as a credible
investor with a stellar
international reputation. Not
only does the organisation
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Department has introduced
software that makes
recruitment decisions
objectively measurable,
with job descriptions and
minimal qualifications
entered into the matrix.
Individual additional
competencies and
Exploring a development framework for a Performance Management
System: (l – r) FPCL COO, Mr Eranda Kotelawala, FSHIL Operations
qualifications are also
Manager, Mr Lopeti Ravai, FSHIL Human Resources Officer, Ms Makereta
entered. It is then possible Taoi, Mr Saiyad Raiyum, Business Development Manager, Maxumise,
FSHIL Works Manager, Mr Rajnesh Kumar, FSHIL Senior Estimator, Mr
to rank candidates
Navitalai Ratukalou and FSHIL Accountant, Mr Ashneel Chand.
according to their strengths
and suitability for any advertised position. understand in advance what aspects
Following the recent completion of
of his or her performance will be
the Job Evaluation exercise, FSHIL is
measured and how this measurement
exploring a development framework for a
will be monitored.
performance management system that is
All of these innovations allow for more
aligned with FSHIL’s strategic direction.
detailed analysis of data, an invaluable
The goal is to have each employee
planning tool.
have experience in port
management, they also
have a proven track record
in Fiji where they have
already helped improve the
performance of Fiji Ports
Terminal Limited.
FPCL will transfer all
real estate to a government
holding company, which in
turn will lease the assets
necessary for port operations
back to FPCL. Ownership of
F I J I P O R T S C O R P O R AT I O N L I M I T E D
all land interests will remain
with the Fijian Government.
Aitken Spence has
been recognised for three
consecutive years by Forbes
as one of the most successful
publicly-traded companies
with annual sales under
US$1 billion outside of the
United States. It has been a
partner in Fiji Ports Terminal
Limited since August 2013.
In that time, it has increased
productivity by 60%, improved
vessel turnaround time by
33% and increased net profit
by 49.5%, amounting to an
increase in net profits to
FJ$2,773,235, in its first year
of operations.
FNPF is Fiji’s largest
financial institution, with total
assets valued at FJ$4.9 billion.
The FSHIL ISO journey
FSHIL Assistant Storeman, Mr Luke Nasetava, checks stock in the reorganised,
colour-coded storeroom.
The three-day evaluation
of Fiji Ships & Heavy
Industries by senior auditors
from Sri Lanka Standard
Institute (SLSI) was ”eagerly
anticipated” by management
and staff alike.
“This evaluation was the
culmination of three years
hard work getting FSHIL ready
for ISO implementation,” said
FSHIL Operations Manager,
Mr Lopeti Radravu.
The journey began mid2012, when FPCL CEO, Mr
Vajira Piyasena established
a steering committee and
training in the first phase in
the process, the 5S Concept,
took place. This saw a change
in attitudes to ‘housekeeping’,
with work sites being kept
FPCL tariffs clarified
Fiji Ports Corporation Ltd (FPCL) Chief Financial Officer, Mr
Shyman Reddy, has met with customers and maritime industry
stakeholders to clarify FPCL tariffs.
Mr Reddy said that his presentation, ‘Know Your Import and
Export Charges’, at the workshop hosted by the Fiji Commerce
Commission (FCC), was an opportunity for all concerned to gain
an understanding of why tariffs have increased and what exactly
are the FPCL charges.
“This workshop follows the August 2015 FCC approval of
FPCL tariff increases. We felt it was necessary to explain to our
customers that these increases are long overdue. The most
recent FPCL tariff determination was in 2009 (where only some
FPCL charges were revised), with the one before that taking
clean and better organisation
of stores.
By the time the audit took
place, the stores department
had been completely
reorganised, labeled and
colour-coded. This has made
it easier for the store-men to
access parts in a shorter time
period.
Another major development
resulting from the ISO journey
has been the reduction of
OHS incidents since the
introduction of the Risk
Assessment process prior to
beginning any scope of works.
“The data bears this
out. Twelve incidents were
reported in 2013, seven in
2014 and three in 2015,” said
Mr Radravu.
During their visit last
November, the auditors
undertook a thorough scrutiny
of all documentation, such as
manuals, policies, objectives
and departmental work
procedures, to ensure all such
documents were aligned with
the ISO 9001: 2008 Standard.
The auditors inspected
all FSHIL departments to
ensure that the documented
procedures were being
followed and evidence of
procedures documented
were followed and evidence
of complete works verified,
signed and filed.
The facilities have also
received attention, with a
programme underway to
improve all changing rooms,
the re-concreting of the
driveway has been completed
and a water catchment for
recycling water has been
installed.
To ensure the safety of
clients and stakeholders using
FSHIL facilities, new OHS &
Environment signboards have
been installed.
“We are now keen to see the
results of the audit, which will
be released very soon,” said
Mr Radravu.
place in 2001.
“We also wanted greater transparency; for stakeholders to be
aware of FPCL tariffs and to question and seek clarity if other
charges seem excessive.”
An analysis of the tariff increases shows that had FPCL
increased charges by 6% every two years, the resulting tariffs
would be well in excess of the tariff applicable now.
“It was also an opportunity to inform participants that the only
FPCL charge having a direct impact on traders is the Wharfage
charge, and only 35% of the total wharfage charge. For a 20FT
container, the only component of the Terminal Handling Charge
attributed to FPCL’s tariff is Wharfage of $24.50.
“All other charges are levied against the ship. Whilst these
may eventually be passed onto the importers and exporters, it
has to be done via adjustment to freight, which is something
that is subject to competitive market forces,” said Mr Reddy.
Note:
Dockage and Wharfage Charges: Projected at 6% every 2 years
F I J I P O R T S C O R P O R AT I O N L I M I T E D
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FPCL thanks customers
Staff supports cyclone victims
When Fiji Ports Corporation Limited (FPCL) customers
responded to the FPCL Online Customer Survey conducted
towards the end of 2015, each company was entered in a draw
as an appreciation for their participation.
The three winning companies, Venu Shipping Ltd, Sea Pilots
Ltd and Goundar Shipping Ltd, each received a $100 gift
voucher.
The customer survey not only gives clients the opportunity to
voice their opinions, it also makes it possible for FPCL to build
on strengths, implement changes and develop strategies to
address customers’ comments and suggestions.
FPCL staff organise the donations to cyclone victims for distribution by DISMAC.
FPCL CEO, Mr Vajira Piyasena draws the three winners, while (left) FPCL COO, Mr
Eranda Kotelawala and (right) Business Manager, Maximise, Fiji, Mr Saiyad Raiyum
look on.
We are pleased that we have had no reports of bodily harm
to any of our staff or their families, but our thoughts and
prayers are with those who are suffering from the impact of
Tropical Cyclone Winston.
In the aftermath of TC Winston, the staff of Fiji Ports
Corporation Ltd (FPCL) rallied in support of the thousands
of Fijians left homeless, collecting food and other useful
household items.
Mr Anare Leweniqila, FPCL Human Capital Services Office,
said that these donations have been given to DISMAC for
distribution where they will be of most use.
Environmental discussion forum
The practice of good environmental
management is a corporate responsibility
that also has implications for the
occupational health and safety of Fiji Ports
Corporation Ltd (FPCL) and Fiji Ports
Terminal Ltd (FPTL) employees.
Thirty FPCL and FPTL employees
participated in a one-day discussion
forum, facilitated by Dr Dick Watling,
Principal, Environmental Consultants,
Fiji, as part of the ongoing improvements
by FPCL and FPTL to environmental
management.
Although many of the issues discussed
are already included in the FPCL
Environmental Policy, the participants
raised and prioritised the issues they
consider important.
These included the environmental
impact of daily activities at the Ports of
Suva and Lautoka, the need to clarify
the environmental responsibilities of all
port users and ways in which current
practices could be improved.
As a result of the forum, an Action Plan
is being developed to address areas that
were seen to need improvement.
Dredging Lautoka harbour
Vanuatu Ferry in for repairs
Fresh start for Zhong Rong
With 42% of Fiji’s imports and exports
passing through the Port of Lautoka,
maintaining access for international
cargo vessels is a necessity. Dredging
built up silt from the harbour floor is an
essential part of this.
Dr Dick Watling, Principal, Environmental Consultants,
Fiji (standing) takes note of comments by FPCL Senior
Port Facility Security Officer, Capt Jeke Vakarawara
(left) at the forum.
The fishing vessel Zhong Rong reverses
off the slipway after three days of
intensive water blasting and painting
work by Fiji Ships and Heavy Industries
Ltd.
The Vanuatu Ferry.
The Vanuatu Ferry on the Fiji Ships &
Heavy Industry Ltd (FSHIL) slipway for
nine days of repair and refurbishment
work.
In the foreground can be seen the
FSHIL newly concreted yard.
A dredge at work in Lautoka Harbour earlier this year.
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F I J I P O R T S C O R P O R AT I O N L I M I T E D
Fishing vessel, Zhong Rong.