Fiji Shipyard restructures

The Fiji Ships and Heavy Industries Limited shipyard (FSHIL) will be leased out and the slipway upgraded as part of plans to restructure the organisation. Amid calls for the state-owned entity to be closed down or sold, FSHIL said it would continue to be operational in view of its strategic importance to the nation as a maritime state and the potential benefits that came with its central location in the Pacific.

Public Enterprises chief executive Parmesh Chand said the Government had big plans for the company aimed at strengthening its operations and ultimately ensuring positive returns within the next two years. As part of its strategic initiatives, he said the company was being restructured with the objective of streamlining and rationalising its operations. He said the process involved consolidating administration functions of the shipyard and the slipway.

A number of interests had been received from both local and overseas yards abroad since January this year and they were being negotiated by FSHIL board. Chand said the leasing would ensure better utilisation of resources, most of which have been underutilised in the past two years. This would assist FSHIL in reducing its overheads, generating the necessary cash flow and undertake the much-needed investment to revamp its slipway operations.

Chand also said FSHIL was diversifying its scope of activities to take on heavy industries challenges like subcontracting in construction projects such as the Rewa bridge. He said the slipway would be upgraded from the current 1,000 tonnes to 4,000 tonnes by 2007 or 2008 in order to enhance Fiji’s strategic location as a “one-stop” shop for all ship repair and slipping needs.

As part of this initiative, FSHIL will gradually strengthen its capabilities with better, up-to-date equipment and skilled and productive workforce. This may include having strategic alliances with capable firms with proven record in this business, either local or foreign-based.

Chand said the Government was adamant it would continue to maintain its 100% shareholding interest in the company to ensure all the earmarked developments were being made.