The government has disbursed a total of $1.12 million to ship operators under the Shipping Franchise Scheme. This announcement came from Minister for Public Works, Meteorological Services and Transport, Ro Filipe Tuisawau, during a recent address on his ministry’s budget deliverables for the financial year 2023-2024.
Between August 2023 and May 2024, a total of 150 franchise trips were conducted, transporting 6,628 inbound and 6,928 outbound passengers. Ro Filipe also highlighted that the scheme facilitated significant cargo movement, with 1,996 tonnes of outbound and 2,041 tonnes of inbound cargo being recorded.
Additionally, Ro Filipe mentioned that local maritime shipping costs are currently under review by the Fiji Competition and Consumer Commission, which acts as the regulatory pricing authority.
The Government Shipping Franchise Scheme is a government-funded initiative designed to ensure the transportation of cargo and passengers between the maritime islands. The scheme aims to enhance connectivity and accessibility for Fiji’s maritime island communities and uneconomical routes, improving economic connectivity and market access for development.
As of 2022, there were 10 routes operated under the scheme by six shipping service providers. In addition to the direct subsidies paid to private vessel operators, the Government Shipping Services (GSS) also services uneconomical routes such as Yasawa, North East Vanua Levu, Beqa, Yanuca, Vatulele, and Lower Southern Lau, which the private sector finds challenging due to high maintenance and operating costs.
In the national 2024-2025 budget announced last Friday, GSS was allocated $9.9 million out of the $721.4 million designated for Ro Filipe’s ministry. The Maritime Safety Authority of Fiji, responsible for ensuring the safety of seafarers and vessels, received a total budget of $9.4 million for both its operating and capital grants.
The Ministry of Public Works, Meteorological Services and Transport includes the Fiji Meteorological Services, Department of Works, Department of Energy, Department of Water and Sewerage, Department of Transport, and Government Shipping Services.