Q1. Fiji is negotiating
a loan from the Asian Development Bank for the Fiji
Ports Development Project. How is this project going
to change the existing facilities and what is the
next step to start the development of the project?
A1. There was a meeting yesterday and I was
hoping we would have come to an agreement as I am
really looking forward to this loan. From our point
of view, we are constrained in physical structure
of the Port of Suva. It was built around 50 years
ago to meet the needs around that time, cargos coming
with bags and things like that, so the Port was
designed that way. If you go around the Port you
will see that some buildings are still there. As
time changed we shifted first to the 20 feet containers.
At first, we could not imagine how the first container
would get off the boat onto the wharf. Ten years
later, we shifted to 40 feet container. We changed
the machinery and trained our workers for that progress.
Now we need to comfortably handle the existing and
coming global changes in Ports operations. The loan
for the development project is crucial because it
will strengthen the structure of the wharf so that,
from an engineering perception, it will be able
to support the appropriate equipment, it will be
able to unload the present heavy containers and
it will allow us to fully utilize the wharf infrastructure.
About 1/3 of the Port is not properly supported
from a engineering point of view. Part of this loan
is to be used to redesign the actual surface of
the Port, which it was planned for handling loose
cargoes. Today, due to our constrained space in
our ports, we cannot move 40 ft or 20 ft containers
around the congested wharf so efficiency is very
low and we move containers slowly to prevent accidents.
To address these issues we have to knock down the
buildings and to create a good operational system.
We will have enough surface if the buildings are
removed and than we will meet the efficiency rating
the customers want. The Maritime Ports Authority
of Fiji owns the assets and they are responsible
for restructuring the Port. We are hoping that they
speed up with this process to get the loan so that
we can get the expansion done and Ports Terminal
Ltd. can operate efficiently on the wharf and make
our customers happy.
Q2. In order to be competitive in the global
trading you managed to import technical and professional
knowledge from Singapore. How did this improve
your activities and how does it help to increase
Fiji's international trade?
A2. We watch a lot the Singaporean model in
terms of developing Ports Terminal Ltd. When I moved
in as the first Chairman of PTL, the most important
resource I saw was our people. The people working
at a wharf is not simple to handle, they are a kind
of people that live on their own but they are humans
and you have to treat them as humans. The biggest
challenge for me was a fairly simple and appropriate
education and training process as we needed to change
these people to be more commercial minded. We spent
a lot of money on training officers two years ago
and we improved their skills. Once the efficiency
is also improved up to the level that most shipping
companies require and demand we would be able to
market our Ports better. We are fortunate to be
located centrally in the Pacific and we have the
biggest economy in the region. We tend to be seen
from our global trading partners as the Port to
come to but some are still worried about our efficiency.
An overall efficiency improvement will open the
door to more opportunities for the big shippers
to come here. Efficiency will come after the reconstruction
of the Port.
Q3. Ports Terminal operates Lautoka and Suva
International Ports. Are both ports going to be
restructured? How are you going to make sure that
your clients are aware of this future project?
A3. We operate both ports, Suva and Lautoka,
the improvement of the efficiency is going to be
applied to both Ports. There has to be an awareness
programme carried out by Ports Terminal Limited
to ensure that our key stakeholders, ship owners
& shipping agents, are informed about our project.
We must understand where we are going with this
programme. The cost of business in a country starts
the moment a container is unloaded in the Port.
From an investor point of view, we are known as
an expensive Port. Initially, our promise was to
reduce the cost by 10% when we had the first meeting
with the key stakeholders because I had confidence
in our people. Once we increased their skills they
started to do things better, we saw that efficiency
should improve and cost would come down. But it
was an unfortunate promise as later on I fully understood
the actual physical restructure needed but for me
the challenge is still there and I am looking for
ways to deliver this promise I made. From a commercial
perception this should be the result of the whole
restructure. Delivering that 10% is achievable,
if not even more, if we move in the right direction,
which means, to improve the structure of the Port
and to apply the latest technological changes of
unloading containers. This is something I am personally
seriously looking at right now. Next month I will
be in Singapore to look at the machines they are
using there. We are using two technologies behind
the current existing equipment there, a mobile crane.
This crane moves along the edges of the wharf and
reaches into the ships, takes the containers and
drops them fast. Mobile and flexible Ports use it
and this is why they are efficient, they can do
from ten to twenty containers per hour and we are
struggling with ten to twelve containers. This technology
improvement will be in our Ports by the end of 2003.
I am actually not waiting for the loan from ADB,
I am doing what I can because the ADB has always
been complaining about our efficiency and while
we wait for the loan to happen we should step up
to change our equipment to mobile cranes. It costs
a little bit more but you spend money to make money.
We better invest into the future now.
Q4. After the events of May 2000 Fiji has earned
a very negative image amongst foreign investors.
Relations with the international institutions like
the ADB got worsen after May 2000. How have you
seen these relations changing since the coup?
A4. The relations have changed a lot in fact
it's much warmer now than after the coup of May
2000 I think rightly so they sort of stood back
& said what's happening there & must have
been t….. on there part because they already
have commitments here in all areas of the economy,
ppl like ADB. ADB for e.g. has been around this
Pacific & in Fiji mainly. It survived the 1987
Coup & I think it's just a matter of time before
things start picking again and now I see the relations
getting much warmer. |
Q5. Year 2001 was
not a good year in Fiji. Here tonnages decreased
19%, revenue decreased almost 5%, but profits increased
by almost 5%. How did you manage to achieve this?
what can you tell us about the results in 2002 and
expectations for 2003?
A5. Interestingly we have budgeted for lower
revenue & lower profits 2001 we saw a surge
in the activities around the Ports, ships calling
in, cargoes unloading & loaded at the Port &
to what was a clear sign that things were starting
to pickup I tend to see the Ports as one of the
message for how the economy is cranking because
at the end of the month when I look at my cargoes
etc. with classification I know which sector of
the economy is really going. Economists may have
their measures but I see things physically of the
Wharf. 90% of cargo coming into Fiji or most countries
come by see so it has to be a good measure on how
the economy is performing. When we have a quite
month I know & think what's happening which
was like in 2000 - 2001 Post Terminal Ltd. has continued
to increase. Revenue for 2000, we operated only
on 9 months our revenue is around 10 million in
2002, 2001 was 9 & 2000 it was 8 (roughly).
Apart from tourism, agriculture, garment & general
consumer items are all increasing just looking of
the activities across the port. I'm confident Fiji
will achieve the 5.7% of growth. If anything will
drag it down it will the sugar industry if they're
able to plug it than 5.7 would be better.
Q6. Ports Terminal Ltd. vision is to develop,
promote and manage its ports efficiently and in
a profitable way. How do you promote this ports
in the global markets?
A6. As the chairman of PTL, my vision is to
first promote this Port regionally, around the Pacific,
after we have done all the right things, the restructure
of the Port, the improvement of our technology,
etc. My dream is to have Fiji Ports as the hub for
the Pacific. When you operate a Port you depend
on the ship builders and ship designers. Your technology
and design is determined by how ships designers
design their ships, the ship generation. Today,
we can deal with the existing ship generation. The
gears onboard are compatible to what we have on
the wharf, etc. The coming generation from Europe
is frightening. They are bigger, faster and with
a state of the art technology. Countries like Fiji,
with a small economy, could be left aside if this
ships if we do not improve our Ports fast. Ships
want to come in the dock, unload and take off, they
do not to mess around any more. We have not been
able to meet those expectations as we are holding
the ships longer than they want to. Regional countries
as Tonga or Samoa are small islands with very small
economies so there are six or ten containers waiting
in the wharf and a big ship would not sail there
to pick them up. That is why a hub port is needed
in the Pacific. We will have smaller ships operating
around the region to pick up those containers so
we will have the bigger ships coming here. That
is why our slogan says "we handle the world".
Our opportunity is not to think small because one
day we will be handling the world here for the rest
of the region. That is why I am always mindful of
what is happening in the shipping industry. The
other day I read that the biggest container ship
carries 7,500 containers, that would load the whole
of Fiji!. Anyways, we knew that ship was not coming
to Fiji. But this is a sign of how things are changing
and sooner or later this generation of ships will
come here and if we still have the old equipment
our ports will be a hindrance to our economy.
Q7. Increasing FDI is a must for Fiji and a very
ambitious target of 25% of GDP. In the global
competitive economy we live in, What does the
country need to do in terms of rebuilding its
International image?
A7. Fiji should increase those levels as they
are a long way from where most of us think it should
be. I think we have not realized seriously the resources
we have. The major opportunity waiting for us is
our agro based industry, new crops. Our biggest
resource is our land and our people. There has been
a lack of focus previously and our leaders have
to look at those key areas, the land and the people.
All we need is the will and the skill as the world
market is there waiting for us.
Q8. Our readers like to know more about who
is behind a company or an institution, could you
tell us more about your professional background
in Fiji?
A8. Apart from who pays my bread and butter,
I am involved in the development committee of my
village and I am always ready and willing to help
in my province as well as at a government level.
This is the biggest challenge for me everyday, not
knowing where to start. I am chairman of Airports
Fiji Ltd., Chairman of Ports Terminal Ltd. and also
General Manager of Dulux and Orica Chemnet. I keep
a very strict timetable so planning ahead is very
important for me so that I do not drive into the
dark every day. Airports and Seaports are very important
to the country and the private companies are very
important to the people I look after here. Corporate
companies need good planning and I guess that one
area where I am strong is corporate management.
I finished my University with a degree in Tropical
Agriculture and I first worked five years for Fiji
Sugar Corporation as a junior field officer. Back
in those days, 1973, the sugar company was owned
by CSR from Australia and most of the managers were
Australians themselves. Your first job is one that
you do not forget and those are some of my good
years. In those days, the sugar industry was the
place to be as you had to be really good to be there
and discipline was a must in those days. After FSC,
I joined the Fiji Development Bank as I learnt a
lot about agriculture. I was in the lending division,
giving loans so I thought I could be useful. But
I last only a year and then lost the interest, I
was locked in a room treating data and I had actually
wanted to go and see the crops and talk to the farmers.
So I left and joined ICI, one of the three biggest
chemical companies in the world, a non governmental
company. Back in those days people believed that
if you were in the government you should not move
out because that was a safe job and security was
the name of the game. When I left, my friends told
me it was a mistake but I took it as a challenge.
I joined ICI in 1980 as a sales development officer
for agriculture, crops, fertility farming and a
things like that. I have experience in farming and
economy and I was there to make money. The only
thing I had to do was to be friendly with the farmers
and to give the right advice so that they like you
and they could see that things were growing well
so that they would buy more of your products. They
started a division in the Pacific region and I went
into that. Then I did more marketing studies in
New Zealand and five years later I was send to study
management in the head office in New Zealand. Where
I spent three more years. I came back to Fiji and
started managing the chemicals as part of the business.
I had moved on from agricultural to industrial because
of my science background and the organization kept
training me on financial courses. By 1989 I left
ICI as I wanted to know what manufacturing was like.
I worked for three years in Colgate-Palmolive as
a manufacturing director, tooth pastes, soaps, etc.,
about twelve products. It was quite an experience
plus as ICI was an English company and Colgate an
American company so the management concepts are
totally different. The Americans are more pushy
and really strive you. Then I came to Orica and
managed chemicals. By then, there were two managers
here, one for Dulux and myself, I was running the
chemicals. Then they decided to keep just one for
both businesses so I started to look after Dulux
as well.
Q9. Mr. Leqa, What would your final message
to our readers?
A9. I would like to say to investors that
they should really take the time to look at the
opportunities in Fiji because there are many.
Fiji has a strong resilient economy that will
continue to grow in the future.
Winne cannot be held responsible for unedited
transcription.
|
MR. VILIAME
LEQA
