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In response to a request from the Fiji Sugar Cane Shippers Association, the Fiji Sugar Corporation (FSC) has reiterated its commitment to supporting the sugar industry during these difficult times.
FSC chief executive Bhan Singh responded to the association’s recent demand for an increase in transportation rates and exemption of overweight sugarcane.
Transferring sugarcane is essential to maintain sugar production efficiency since the Penang sugar refinery closed in 2016.
FSC has shipped 130,000 to 150,000 tonnes of sugarcane from Penang to the Ralawi mill, with some shipped to the Lautoka mill, which was also shipped to the Lautoka mill after the railway bridge at the Ralawi mill was damaged by floods in 2016.
This includes sugarcane from Varoko, Rarawai, Mota, Naloto, Koronubu, Varavu and Veisaru districts.
“Having sugarcane transported from Ralawi to the Lautoka mill will benefit both truck operators and growers in Penang and Ralawi mills,” Mr Singh said.
“The system has improved operational efficiency by reducing truck turnaround time at the Laravai plant and increasing the availability of truck quota.”
FSC management recently met with the Laraway Trucking Association to discuss their opinions and request for increased freight rates.
The association is asking for a price increase of nearly $5 per ton, which the FSC says will cost the company $650,000 to $750,000 and is unsustainable given the company’s financial situation.
“After discussion, management agreed to increase the price from $13.90 per tonne to $15, representing an increase of $1.10 per tonne.
“It is noteworthy that the association claims that prices have increased by nearly $5 per tonne, which is about 36 per cent.
“This price increase will cost the company between $650,000 and $750,000, which is completely unsustainable given the company’s current financial situation.”
FSC has been assisting the Ba Association in requesting the authorities to allow the transportation of heavier sugarcane without violating road regulations.
“FSC has been actively advocating the association’s request to seek some leniency from the authorities to allow restrictions on overweight vehicles on the roads that transport sugarcane to the mills.”
Additionally, FSC is supplying diesel at a discount of $0.10 per litre (compared to the retail price), providing cost savings to truck operators and reducing operating expenses.
The Forest Service Board is optimistic that the revised rates will encourage truck operators to continue to transport sugarcane efficiently and collaboratively.
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