Business

Deteriorating rail system sparks urgency for FSC

October 30, 2023 12:36 pm

Fiji’s once-dominant rail cartage, which was 80 per cent of cane transported to the mills now hangs by a thread at 20 per cent.

Permanent Secretary for Sugar Yogesh Karan highlighted this today while presenting the ministry’s annual reports to the Parliamentary Standing Committee on Economic Affairs.

Karan states this shift to road transport has brought on a slew of issues including carbon emissions, road damage, and traffic congestion.

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A 2018 report, he says although comprehensive was shelved due to its $33 million price tag, leaving the rail system deteriorating since its 1882 heyday.

Karan says with overhead costs straining farmer profits, there’s a pressing need for rail revival.

“It’s been there for many years and if we have to look at it, it means that there needs to be change. You know it needs change, it’s been there is 1882 so it’s during the good days but it’s my argument, that it was during the good days of the industry when these things must have been looked at-30 years ago or so during the preferential price but unfortunately if you want to reduce cost, I mean these are the infrastructure costs that has to be put into the industry and later we can talk about how world price is going up.”

The team also notes the decision to move from rail to road was driven by changes in cane harvesting methods and exacerbated by natural disasters.

Fiji Sugar Corporation now faces the challenge of reviving its rail cartage system amidst rising fuel costs and highway congestion, all while environmental and economic concerns loom large.