By FARISHA AHMED
One of the major challenges faced the shortage of ships, says Lui Naisara, director Transport Planning for the Ministry of Works, Transport and Public Utilities.
He made the comments yesterday during the three-day high-level meeting on Strengthening Inter-Island Shipping and Logistics in the Pacific Countries at the Secretariat of the Pacific Community in Nabua, Suva.
One of the key reasons for shortage of shipping vessels pointed out was that there is financial risk in terms of shipping operators obtaining loans.
“When operators fail to get loan, they opt to buy second hand vessels that has been in use for almost 25 years and is only left to serve another five years,” Mr Naisara said.
“After servicing for five years, it needs maintenance works that adds to the operation costs, and when they go for maintenance, the Ministry finds it challenging to organise for vessels to service the routes.
“We have shortage of vessels because of high cost, in terms of demands we do not have enough vessels.
“Most of the vessels have been fishing vessels that have been modified to serve as passenger and cargo vessels.”
Supplementary vessels
Under the shipping operator’s contract, a provision to recommend supplementary ships is provided to cater for services during maintenance of any vessels.
Mr Naisara said despite the provision, the ministry still finds it challenging to organise for supplementary vessels when the contracted vessels under the franchise scheme goes for maintenance programme.
“The lack of substitute vessels when they go for maintenance program is a challenge which is also contributing towards shortages,” he said.
“The contractor is to recommend to Government or the ministry, a supplementary vessel but the payment will be made to the vessels that do the job and not the contractor.
“Also if the contractor fails to do that, the Government and the director for the major tender boards look for other vessels with the intention to provide service to the islands.”