The foundation of any thriving economy rests heavily on oil and fuel. These resources drive production, consumption, and ultimately, profit.
In its early development years under British rule, Fiji was just beginning to explore industry and manufacturing. The introduction of the Shell Company in 1928 marked a significant milestone in the economic history of this island nation. L. G. Usher’s book, “Fifty Years in Fiji,” highlights how one company’s journey, Shell (Pacific Islands) Ltd., began to shape the Fijian landscape.
Shell entered the Fijian market on May 28, 1928, just weeks before Charles Kingsford Smith’s historic flight. Known for his groundbreaking long-distance flights, Kingsford Smith became an aviation icon, particularly noted for his trans-Pacific journey from the United States to Australia in 1928 aboard a Fokker aircraft named Southern Cross. His accomplishments symbolized aviation innovation and inspired future generations of pilots.
The landing of Southern Cross in Albert Park, Suva, during its North America to Australia trip garnered significant attention, reflecting the era’s changes and advancements in Fiji. Shell’s operations initially focused on modest distribution of kerosene and benzene in four-gallon tins. However, as fuel demand surged, the company enhanced its logistics by moving to drum and bulk handling, aligning with a broader trend of modernization in Fiji.
From 1934 to 1938, Shell firmly established itself in Fiji by building crucial infrastructure, such as bulk depots in Walu Bay, Suva, and Lautoka, which expanded its distribution network across the islands. This expansion was a strategic response to Fiji’s growing industrial activities, ensuring a stable fuel supply for various sectors.
However, Fiji’s economy faced challenges during the Great Depression, leading to substantial declines in commodity prices and disruptions across industries like copra and sugar. Despite these hardships, Shell demonstrated resilience by establishing bulk depots and an extensive distribution network, maintaining operations during tough economic times.
World War II brought about further significance to Fiji’s strategic location, impacting Shell’s operations. The construction of infrastructure, such as the Namaka airstrip and Rewa River Bridge, was crucial for wartime logistics. Shell supported the war effort by fueling aircraft and naval ships and adapted to wartime demands by relocating its Suva depot to Sealark Hill, where reinforced storage facilities were crafted by the New Zealand Armed Forces.
As the war concluded in 1944, developments shifted, and the American military presence subsided, presenting new challenges and prospects for Shell. Supply shortages emerged due to prior disruptions, yet as Fiji began its post-war recovery, new airfields and enhanced aviation services fostered a more stable fuel market.
In 1949, Shell initiated the development of a retail network, benefiting local motorists and securing additional storage for strategic fuel supplies, reflecting its ongoing significance in the region. The years between 1954 and 1958 brought notable growth for Shell, including the opening of a new terminal at Vuda Point and improved logistics capabilities to meet increasing market demands.
During this period, Fiji also experienced broader changes, such as the end of contracts with the British Ministry of Food and the emergence of local industries, further supporting Shell’s expansion. The modernization of vital infrastructure, including the upgrade of Nadi Airport, facilitated Shell’s continual adaptation to the evolving needs of the Fijian market.
Throughout its initial stages, from establishment to wartime adjustments and modernization, Shell has played a critical role in supporting Fiji’s economic and infrastructural growth over its first three decades.
Next week, The Fiji Times will delve into the final 20 years of Shell’s history and its current standing.