Economic and Commercial Counsellor, Embassy of The People’s Republic of China to Fiji, Madam Li Zhi,
Board of Directors, Management and Staff of Fiji Ports Corporation Limited and Fiji Ports Terminal Limited,
Respected CEOs,
CEO China Railway First Group Limited, Mr Song Tianpeng and Staff,
Ladies and Gentlemen,
Bula Vinaka and a very good morning to you all.
Today marks a happy occasion, where we renew the optimism of our capabilities as we participate in the ground-breaking of Yard 3– right here at Fiji’s second largest, and busiest multi-purpose port.
Ladies and Gentlemen,
The Lautoka Port has been a maritime gateway to the Pacific for years. And today, with this new container yard, we’re broadening that gateway and the opportunities that come with it.
As a maritime economy, our geographical position places a heavy reliance on ports infrastructure. We depend on the Ports for the transportation of goods and services to all Fijians, including passenger services to our maritime islands. Ports also connects Fijian Made goods and Fijians to the region and the global market place.
Ladies and Gentlemen, whilst movement of natural persons may have temporarily seized, owing to the pandemic, it is paramount movement of goods and services must continue.
Small Island Developing States are already burdened by disproportionately higher transport costs and lower connectivity – making trade more challenging for us. This is where our ports play a crucial role.
For Fiji to enhance its hub status, investment in infrastructure that is sustainable, modern and adaptable is critical. We need to invest in increasing cargo volumes, ‘cleaner’ and ‘greener’ services, digital transformation – in order to keep our supply chains and maritime trade open and thriving. Our economic recovery relies on this.
Ladies and Gentlemen,
We are all aware of the many challenges our men and women that work at the Ports go through to ensure our trade continues. This is why the International Maritime Organisation has dedicated this year to seafarers. The theme “Seafarers: at the core of shipping’s future” seeks to increase the visibility and the invaluable role our seafarers play. Our seafarers, some of you here, are our nation’s frontliners. Meaning you are amongst the most valuable and vulnerable – especially in the wake of this health crisis.
Ladies and Gentlemen,
According to a UNESCAP, UNCTAD and Pacific Community Report, for most countries in Asia and the Pacific, shipping represents a doorway to the global economy and for some, it is the key contributor to socio-economic development.
The on-going contraction of production and consumption due to the pandemic, has led to reduction in maritime trade, causing disruption in shipping demand and port traffic. And we can see this in the reduction of Fiji’s re-exports in 2020, by 38%, as well as reduced imports by 34% compared to the same period in 2019. The silver lining is, our balance of trade deficit has narrowed by 44%. We hope our domestic exports continues to remain stable and increase.
Ladies and Gentlemen,
The 8.2-million-dollar investment in this container yard (Yard 3) could not be timelier. It will increase the ability of Lautoka Port to store up to approximately 1,260 containers in this new facility. Lautoka Port capacity is approximately 40,000 TEUs (twenty-foot equivalent unit). This will therefore significantly boost our ability and ambition to trade and be the transshipment hub in the Pacific.
Ladies and Gentlemen,
Even though maritime trade has been affected due to this pandemic, our ocean has been the pathway between Fiji and the world. As I mentioned, whilst flying is restricted for international passengers and tourists due to the pandemic, our seaports remain open providing us that vital link to the rest of the world.
This is where Fiji Ports Corporation Limited (FPCL) has an enormous responsibility to achieving the goals set in our 5-year Strategic Plan. Key to this investing in sustainable infrastructure development to set the foundation for Fiji to be a Smart Green Gateway for trade in the Pacific.
Ladies and Gentlemen,
The Yard 3 development we’re witnessing today will improve condition of the running surface of the Yard. It will be elevated so that operations are not affected during high tide and heavy rain. When the project is complete, it will not only increase our container storage capacity, but extend Yard’s service life to 30 years.
This development will also help us meet health and biosecurity standards of our trading partners such as Australia and New Zealand. Having a container yard of high standards will mean containers exported from Fiji will be cleaner, void of soil and dirt. This also ensures our containers are not intercepted in Australia and New Zealand and will be cleared quicker, saving a lot of cost and hassle for our private sector.
The new development will cater for current trade and transportation needs with ample room for expansion. This will build investor confidence in the Fijian economy, and in our trade-related infrastructure.
Ladies and Gentlemen,
I take this opportunity to congratulate China Railway First Group Limited, for being awarded this project contract. I’m sure you’ll appreciate how important this project is. Thus, this project needs to be delivered in a timely manner, without compromise to quality and standards. I am sure China Railway First Group Ltd is up to the task.
Ladies and gentlemen, with those few words, I welcome you in joining me in breaking ground on what we hope will soon be a fully-fledged Lautoka Yard 3.
Vinaka vakalevu. Thank you.