Government Divestment Plan Generates $3 Million for Fiji Ports

A divestment initiative by the Fiji government has yielded $3 million over four years, as reported by Assets Fiji Limited, a special purpose vehicle established to oversee the plan.

This initiative primarily involves leasing back essential port operation assets to Fiji Ports Corporation and Fiji Ships and Heavy Industries Limited.

In its inaugural annual report covering 2016 to 2019, Assets Fiji highlighted that rental income from lease agreements on land areas not integral to the core operations of these companies was the primary source of revenue.

Established in 2015, Assets Fiji has been responsible for managing the transfer of all land asset interests from Fiji Ports Corporation.

While only port operations were divested under Assets Fiji, the report noted that land assets were excluded from the core business.

A significant land title transfer and leaseback agreement commenced on November 13, 2015, for a 50-year term.

Chairman Shaheen Ali, who also serves as the Permanent Secretary for Trade, revealed that most tenants of Assets Fiji are located in the Rokobili Subdivision at Walu Bay.

He stated, “Assets Fiji recorded an accumulated net profit after tax of $3.39 million for the years 2016 to 2019.”

The company boasts a robust balance sheet with strategic properties valued at approximately $57.38 million, zero external borrowings, and a current liquidity ratio of 2.9 as of the end of 2019.

Assets Fiji oversees 35 land titles situated near the Lautoka, Levuka, and Suva port areas.

The government’s divestment plan aimed to facilitate the continued improvement, expansion, and modernization of Fiji’s port facilities.

As part of this privatization effort, a partnership was formed among three entities: the Ministry of Public Enterprises with a 41 percent stake, the Fiji National Provident Fund holding 39 percent, and Sri Lankan conglomerate Aitken Spence PLC controlling the remaining 20 percent.

The transferred properties mainly include strategic seaport areas in Lautoka, Levuka, and Suva, comprising both freehold and crown leasehold lands.

In 2018, during the sale of the former Government Printing and Stationery Department, the government approved the transfer of land and buildings at Viria East Road, Vatuwaqa, to Assets Fiji, designating it as the property management entity on behalf of the government.

As a state entity, Assets Fiji leases the land from the Ministry of Lands to facilitate subleasing arrangements, further enhancing the operational capabilities of Fiji's vital port infrastructure.