Pan-Pacific Conference XXXIV. Designing New Business Models in Developing Economies

which was previously done by FIMSA officers. This
process ensured that there are no employee losses
after a long consultation with stakeholders. FPCL
head office was moved to Suva Port to have more
visibility on port operations and work as a team
(FPCL, 2008).
Projects and Other Changes
Fiji Ports Development Project funded by a loan
from ADB for special engineering with climateadaptation
facilities completed in 2006. Suva Port
was upgraded with seismic protection against
earthquakes. The extension project of Suva and
Lautoka Port has increased productivity and
capacity with faster turnaround times. Investment of
FJ$20 million in mobile harbour cranes facilitated
mechanised stevedoring, reduced waiting periods,
low operational costs and reduced ship lay-up times.
Surveillance cameras were installed at Suva and
Lautoka Ports in October 2006 to strengthen
security with twenty-four hours monitoring. Suva
Port also operates a power generator. Port
operations software was upgraded in March 2007.
This improved the control of container layout
electronically, direct traffic, dock workers and
operators into organised logistical operation.
Twenty-eight acre land was reclaimed near Lautoka
Port worth FJ$9.0 million for future development
which FPCL now plans to subdivide into lots and
sell with seventy-five year lease (Narayan, 2013).
Radio Data Telegraphic (RDT) system was
installed. More marketing awareness was done,
trademark name changed, specialised advertising
and upgrade on FPCL website.
Financial Performance and Changes
FPCL is one of better performing public sector
enterprises, financially independent, continuously
making profits and paying dividends to the
government. FPCL recorded increase in
import/exports, vessel numbers, vessel tonnage, and
cargo carrying vessels, foreign vessel calls
including increased expenditure and exchange
losses in 2008. FPCL and PTL’s performance was
also affected by fluctuating exchange rate,
devaluation and global economic crisis. The tariff
increase resulted in increase in revenue and profits
in years 2009-2014. It achieved highest revenue in
2013 with highest dividend payout in 2014.
Financial ratios have improved. Continuous profits
and dividend payouts from 2006 till 2016. These
positive financial results have enabled FPCL to
undertake further long-term projects.
respective ports to cater for more demand. Also new
equipment and machinery has been purchased to
improve efficiency. Through the loans from ADB
(Asian Development Bank), a number of projects
were undertaken to develop the ports, improve
efficiency and faster the operations. More emphasis
has been put on workforce by organising company
social functions to improve worker and management
relationship. Redundancy programs are in place to
maintain the sizable workforce which avoids legal
issues. Staff are continuously trained to upskill with
new practices and technology. FPCL is a member of
many international port affiliated bodies like Pacific
Countries Ports Association, International
Association of Ports and Harbours, International
Cargo Handling Co-ordination Association,
Association of Australian Ports and Marine
Authorities, Fiji Business Councils, Fiji Employers
Federation and the Cruise Liner Task Force and
sends its staff to attend meeting and conferences.
The realignment of its organisational structure in
October 2008 improved operational efficiency and
financial returns. Work processes were streamlined
to remove duplicate functions and this improved
management responsibility, accountability and
transparency. Change realigned the marine and
stevedoring in single Ports Operations Division.
FPCL manages and controls all the commercial
marine operations of the ports in Fiji.
Conclusion
This research study has examined the reform
process of the port sector in Fiji. FPCL has gone
through major restructuring program to iron out the
inefficiencies in its operations. There have been
major changes to the organisational structure,
working style, human resources, corporate culture,
and board of directors, infrastructure development
and company ownership to bring the business in a
position for future sustainability with international
standards. FPCL has been performing well except
for some financial struggle which triggered the
reform process. It has been financially independent
when PAF was formed. Ports and equipment has
been continuously upgraded, staff training and
development has been a major focus of FPCL. The
board members and management have been
recruited with qualification, experience and with
proven track record in the port industry.
(References will be supplied upon request.).
Impacts of Reforms
Reforms have improved the performance of FPCL.
It has set criteria in appointing board members and
management staff, thus, well qualified and
experienced people were recruited in the board and
management to lead the business. FPCL has been
continuously upgrading and renovating the
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