Location: Level 5, Mua-i-Walu House, Suva
CEO Fiji Ports Corporation Ltd, Vajira Piyasena,
CEO Fiji Ports Terminal Limited, Hasthika Dela,
Staff and Management of FPCL, and staff joining from Lautoka,
Officials of the Ministry of Economy,
Representatives of Fiji National Provident Fund,
Invited Guests,
Members of the Media
Bula Vinaka and a very good morning to you all.
It’s pleasure to be here today to recognise and acknowledge the achievements of Fiji Ports Corporation Limited (FPCL) and Fiji Shipbuilding and Heavy Industries Limited (FSHIL) staff, for their contribution to the financial achievements of the Company.
Each and every employee of FPCL has contributed one way or another to the achievements of the Company and are the pillars that have made FPCL the strong organisation it is today. You may not realise it, but the work you do, your contribution – in whatsoever role – the minute you enter our gates, or doors, makes a huge difference. And it is your commitment that has brought us here today.
Ladies and Gentlemen,
The decision of the Fijian Government four years ago, to enter into a Public Private Partnership (PPP) by divesting shares to FNPF and to an overseas specialised port operator, Aitken Spence, is giving results.
The divestment secured the partnership of long-term investors in FPCL that has contributed to the development of FPCL’s asset base and continues the improvement of Fiji’s sea ports, including its expansion, modernisation and development of specialised facilities.
The improved position of FPCL ties in with the Fijian Government’s vision to strengthen Fiji’s position as the trade, transportation, logistics and communications hub of the Pacific. Ports, whether sea or air, play a crucial role in realising this vision.
Since the divestment in 2015, the profits of FPCL have increased by over 200%, which means bigger returns for shareholders. This also means returns to Fijians, as the dividends paid to the Fijian Government and Fiji National Provident Fund (FNPF) is going back to the taxpayers and members of FNPF.
Ladies and Gentlemen,
In the year 2019 (last year), FPCL has again done exceptionally well in terms of revenue generation and profits. The Company recorded Net Profit after Tax of $28.04 million, an increase of 4%, compared to 2018. This has also led to an increase of shareholding dividends from $16.24 million in 2018, to $16.82 million for 2019.
Again, this translates to a 4% increase in the dividend that will be paid to all shareholders this year. So, in terms of figures, the Fijian Government will receive, $6.89 million payment, from the $6.65 million paid out last year. Similarly, FNPF will receive $6.56 million, from $6.33 million last year and the dividend paid to Aitken Spence is $3.3 million, from $3.25 million last year. The record dividend payment this year comes at the back of phenomenal performance by the Company in 2019.
Despite the number of vessels berthing in Fiji, remaining steady from 2018, the 2019 performance of FPCL was robust, due to the prudent cash management and cost saving initiatives.
The year twenty-nineteen (2019), has laid a strong foundation for FPCL’s 5-Year Strategic Plan (which commenced in 2019-2023) and the achievement of its 6 strategic goals, which are:
- Governance – protecting shareholder integrity and transparency while achieving a balance between commercial and social deliverables.
- Infrastructure – investing strategically to ensure necessary availability of fit to purpose facilities while investigating in future asset options for long term efficiency and productivity.
- Financial Performance – spearheading the commercial and financial stewardship of FPCL and to ensuring shareholder value is enhanced, in the midst of implementing capital intensive projects.
- Organisation/Capacity – aligning organisational structure to objectives and capacity requirements, while promoting gender equality and retention.
- Environment – implement port sustainability guidelines and energy management initiatives to become Green Port in the Pacific; and
- Safety, Security and Technology – adopt Smart Port initiatives to achieve best practice in international port security and safe working environment.
These goals most certainly can’t be achieved on their own. The year twenty-twenty (2020) has been one, if not the, most challenging years we’ve had. And we are reminded of the important role we play in not just safety and security, but in our recovery by creating a modern and vibrant trading port.
So, I urge you to continue working with dedication, gratitude and determination to ensure we meet these goals – despite the pandemic.
Ladies and Gentlemen,
One of the key deliverables of our Strategic Plan is the reallocation of the existing Suva Port. The Fijian Government and Asian Development Bank are working with FPCL on a feasibility study. This is a critical project, to build confidence in the Fijian economy that is working towards recovery in the post-COVID period. This project is also critical to fulfill the FPCL’s vision of becoming a Smart Green Gateway for trade in the Pacific Region
FPCL has also launched the 2019-2023 Green Port Masterplan and Sustainability Guidelines for Procurement which contributes to a blue and sustainable recovery.
Ladies and Gentlemen,
The basis of excellent performance of our organisation in 2019 is your hard work. Thus, I’m pleased to announce a bonus of $203,210.16. The bonus will be paid to 159 employees for their good performance in 2019. This is why we’re here today. We’re here because of all of you. You’ve continued to support the Company to achieve the goals set in the year.
Having in place a robust platform for Performance Management System (PMS) assessment, which is done by an independent assessor, portrays the transparency of FPCL. It also shows the confidence the Board and Management have in the ability of the staff to reward the efforts and hard work. The strategy the Management has executed towards this bonus achievement is commendable. But even more commendable, is the commitment of all of you.
Ladies and Gentlemen,
To the employees, it’s your dedication and hard work, coupled with strategic leadership, that has enabled FPCL to achieve unprecedented levels of success.
The effective leadership of the Board of Directors and Management has ensured the consistent improvement of return on investment, income optimising, and prudent cost management.
I thank every employee for FPCL’s success – it is your hard work that is being rewarded today.
To management and staff, I urge you to continue moving forward, review operations with the long-term aim of maximising the value of FPCL, by investing in modern infrastructure. This will also ensure that FPCL becomes more profitable and efficient, and is further aligned with international best practice standards, processes and protocols.
I look forward to your continued commitment towards achieving the vision set for the next 5 years.
Finally, ladies and gentlemen, I take this opportunity to sincerely thank our line Minister, the Hon Attorney-General and Minister for Economy and the Fijian Government for the unwavering leadership and guidance over the years. Our achievements will not be possible without the Fijian Government’s support and broader strategic guidance.
With those few words, I once again thank you all.
Vinaka Vakalevu