In a move to address the demands of the Ba Cane Lorry Association, the Fiji Sugar Corporation (FSC) has reaffirmed its commitment to supporting the sugar industry amidst challenging circumstances.
FSC chief executive officer Bhan Singh responded to recent demands by the association regarding increased transport rates and exemptions from weighing extra tonnes of cane.
Following the closure of Penang Mill in 2016, transferring cane has been essential for maintaining sugar production efficiency.
The FSC has been transferring 130,000 to 150,000 tonnes of Penang cane to Rarawai Mill, with some redirected to Lautoka Mill. Cane from Rarawai Mill, affected by flood damage to the rail bridge in 2016, is also being transferred to Lautoka Mill.
This includes cane from the Varoko, Rarawai, Mota, Naloto, Koronubu, Varavu, and Veisaru sectors.
“The transfer of cane from Rarawai to Lautoka Mill benefits both Penang and Rarawai mill lorry operators and growers,” Mr Singh said.
“This system facilitates faster turnaround times for lorries at Rarawai Mill and increases the availability of lorry quotas, enhancing operational efficiency.”
The FSC management recently met with the Rarawai Lorry Transport Association to discuss their submission and the request to increase the cartage rate.
The association has requested an increase of nearly $5 per tonne, which FSC said would cost between $650,000 and $750,000 and was unsustainable, given the company’s financial situation.
“Following these discussions, the management agreed to increase the rate from $13.90 to $15 per tonne, representing an increase of $1.10 per tonne.
“It is important to note that the association is claiming an increase of nearly $5 per tonne, which represents an increase of about 36 per cent.
“This increase will cost the corporation between $650,000 and $750,000, which is totally unsustainable given the current financial situation of the company.”
The FSC has been assisting the Ba association in requesting authorities to permit heavier loads of cane for transportation without violating road regulations.
“FSC has been actively advocating requests by the association to seek some reprieve from the authorities in permitting excess weight limits on the roads when carting cane to the mills.”
Furthermore, FSC supplies diesel fuel on account at a $0.10 per litre rebate compared with the retail price, providing lorry operators with cost savings and reducing their operational expenses.
The FSC is optimistic that the revised rate will encourage lorry operators to continue transferring cane efficiently and collaboratively.
