Source document: https://docs-lawep.s3.us-east-2.amazonaws.com/1697792483647.pdf (Fiji)
Fiji Ports Corporation Limited 2019 ANNUAL REPORT Fiji Ports Corporation Limited Our VISIOn To be the Smart Green Gateway for trade in the Pacific region.

Our MISSIOn To invest significantly in new and upgraded seaport and ship repair facilities to support and enhance the economic growth and prosperity of Fiji, as well as providing key economic and lifestyle linkages throughout Fiji and our Pacific region.
We will provide expertise to drive regional safety and capacity in respect of maritime infrastructure.

COrPOraTE CuLTurE Our working environment is defined by openness and maximising the benefits - often unrecorded and unseen - that flow from having a positive workplace.
VaLuES Professionalism Progressive Leadership Commercial Stewardship Corporate Citizenship Strategic Innovation Employees Wellbeing/Diversity COVER Each blade of the propeller is embossed with a symbol showing one of FPCL’s 6 Strategic Goals, which will propel the Company into the future as a green, smart port in the Pacific.

Cover concept by FPCL.


Fiji PORts: Smart, Green Gateway for Trade Carbon Footprint It is Fiji Ports’ commitment to reduce GHG emissions, with respect to use of electricity as reflected in the use of this international symbol.

New incinerator FPCL took the initiative to install a new electric powered incinerator at Port of Suva to replace the old diesel powered incinerator.

This is an achievement towards technological advancement and commitment to reducing the carbon footprint.
Clean Wharves By 2023, a 30% reduction of landfill waste being produced by port areas, with an increased perception of a cleaner Fiji Ports.

Green Port Master Plan, timeline and Port sustainability Guidelines FPCL has developed and launched the Green Port Master Plan, Timeline and Port Sustainability Guidelines which provides a high level road map in becoming The Green Port of the South Pacific.
Energy Efficiency Upgrades at Muaiwalu House The replacement of standard fluorescent tube lighting with LED has reduced energy consumption by 42%, representing an annual reduction of 62 tonnes of GHG emissions.

The office air-conditioning upgrade has contributed to the increase in savings for power consumption and the overall reduction of energy consumption and GHG emissions.
New Water Filter Recycling tanks Water tanks have been installed to complement the Company’s water blasting operation that often resulted in chemical–laden wastewater discharged into the surrounding marine environment.

The waste is now recycled through the tanks resulting in a clean water source.

smart Monitoring technology Fiji Ports will soon introduce its Vessel Traffic Management System (VTMS) to improve the safety and efficiency of navigation, and to safeguard the marine environment.
solar Power supply FPCL is investigating the feasibility of installing solar photo-voltaic systems on roofs with minimal year-round shading.

Onshore power supply to reduce GHG emissions FPCL is exploring the development of a feasibility study for use of onshore power sources for domestic and small international vessels, to reduce GHG emissions, and air and noise pollution.
Green space initiative Gardens have been introduced into the Port complex as a part of an ongoing initiative to promote healthy green spaces within Port borders.
1 2019 Annual ReportFiji Ports Corporation Limited Table of Contents 03 Our History 05 Corporate Profile 06 Highlights - Key Events in 2019 07 Chairman’s Message 11 Chief Executive Officer’s Report 15 Approach to Reporting 16 5-Year Strategic Plan 17 FPCL Organisational Structure & Strategy Execution Team 32 Organisational Capacity 18 Board of Directors 38 Operational Efficiency 44 Safety, Security & Technology Smart Port Initiative 48 Environment & Sustainability Green Port Initiative 50 Fiji Ships & Heavy Industries Limited 54 Financial Statements 19 Executive Management Team 20 Governance 23 Obligations 24 Infrastructure 27 Financial Performance 2 2019 Annual ReportFiji Ports Corporation Limited Our History Declared fully owned Government Commercial Company 41% Fijian Government owned 39% Fiji National Provident Fund owned 20% held by Aitken Spence PLC Run by Government Departments Established by Act of Parliament Commercial Statutory Authority Reform created 2 entities Registered under Companies Act FPCL takes over FSHIL Management and Operations Divestment of Shares Agreement Port Operation Ports Authority of Fiji (PAF) Maritime & Ports Authority of Fiji (MPAF) Fiji Ports Corporation Limited Fiji Ships & Heavy Industries Limied (FSHIL) FPCL 1975 Before 1975 Cargo Handling & Stevedoring 1998 Ports Terminal Limited 2004 (August 18th) With subsidiary Ports Terminal Limited (PTL) 2009 (June) 2013 2015 Controlled by Overseas Companies with Agents in Fiji Government Commercial Company Government Commercial Company Ports Terminal Limited associate company FPCL & AITKEN SPENCE PCL Public Private Partnership 3 2019 Annual ReportFiji Ports Corporation Limited 2019 Annual Report Fiji Ports Corporation Limited 4 4 2019 Annual ReportFiji Ports Corporation Limited Corporate Profile FPCL is the Port Management Company in Fiji and also plays a regulatory role in maintaining standards relating to Ports of Entry and other local ports throughout Fiji.
as such, growing trade through Fiji’s Ports in a sustainable manner that will optimise returns remains vital to FPCL.

FPCL provides primary regulatory oversight for: Ports of Suva, Lautoka, Levuka, Vuda, Malau, rotuma and Wairiki, and at most of these, supplies operational and/or service provision through sub-contractors.

Ownership Structure Effectively, FPCL is a Public Private Partnership (PPP).
FPCL’s subsidiary company, Fiji Ships & Heavy Industries Limited (FSHIL) and Group’s associate company, Fiji Ports Terminal Limited (FPTL), also have varying shareholdings.
Principles upon which this Report is based Obligations Under Law Public Enterprises act 2019 Health and Safety at Work act (HaSaWa) 1996 Sea Ports Management act 2005 Fiji Environment Management act 2005 Fiji Companies act 2015 Income Taxation act 2015 International Ship & Port Facility Security (ISPS) Code International Maritime Organisation, - including Ports State Control, - ILO/IMO Port reception facilities International Financial reporting Standards (IFrS) Fijian Competition & Consumer Commission tariff rates Elective ISO 9001:2015 Quality Management System FPCL FSHIL ISO 9001:2015 Quality Management System Fiji Ports Corporation Limited (FPCL) GOVT 41% FNPF 39% ASPLC 20% Fiji Ports Terminal Limited (FPTL) An Associate Company of FPCL that manages the Cargo Terminals in Suva and Lautoka ports.
ASPLC 51% FPCL 49% Fiji Ships & Heavy Industries Limited (FSHIL) A Subsidiary of FPCL providing Slipway and Ship Repair Services and Heavy Industry work.

FPCL 100% 5 2019 Annual ReportFiji Ports Corporation Limited Highlights - Key Events in 2019 Dividend totaling more than FJ$16million paid to our three Shareholders Completion of Phase 3 of Job Evaluation Exercise Successful removal and scuttling of m.v.
“Southern Phoenix” Compilation of updated FPCL risk register Port Mua-i-Walu II deck overlay successfully completed Introduction of Vehicle access Control System at Port Mua-i-Walu II FSHIL Green Space initiative expanded using filtered recycled water Installation of electric powered incinerator at Port of Suva Launching of 2019-2023 Green Port Masterplan and Sustainability Guidelines for Procurement new Vessel Traffic Management System planned for 2020 with initial demonstration by contractor Launch of FPCL 5-Year Strategic Plan 2019-2023 MAjOR ACHiEVEMENt: isO 9001:2015 CERtiFiCAtiON FPCL achieved ISO 9001:2015 Certification in Quality Management System for Ports of Suva and Lautoka.
ISO 9001:2015 focuses on reducing risk and enhancing opportunities within the organisation, enabling staff to make a greater contribution towards continuous improvement and meeting stakeholder and customer expectations.

as part of the ISO 9001:2015 implementation involved staff engagement in business processes, improvements and conducting internal audits.

The certification clearly highlights our full commitment to continuous improvement within our Organisation’s processes and activities.
Port Operations Highlights 6 2019 Annual ReportFiji Ports Corporation Limited Chairman’s Message It gives me great pleasure to present the 2019 annual report for the Fiji Ports Corporation Limited (FPCL) and its subsidiary company, Fiji Ships & Heavy Industries Limited (FSHIL).

as we embark on the journey into another Financial Year, we are aware that these are unprecedented times, with the full global impact of the COVID-19 pandemic still to be realised.
It is within this altered landscape that we take stock of our achievements and look forward to new horizons.

Strong Financial Performance I am pleased to report that the Company Group performance for the 2019 Financial Year represents a consistently resilient outcome with a net Profit after Tax (nPaT) of FJ$26.5million.

For 2019, net finance (interest) income shows a significant 71% increase over 2018, due to prudent cash management processes implemented by Management.
The Group operating revenue also showed an increase of 3.2% over 2018.

The Group recorded 36.23% profitability on invested capital, and an 18.86% return on equity, declaring a record dividend to shareholders of an impressive FJ$16.8million being a 3.5% increase over 2018.

Furthermore, the Group retained Earnings increased by 18% in 2019 in comparison with 2018 and Liquidity ratio increased from 8.0 to 8.9.
Profit Sharing Income The share of profits from the Group’s associate company, Fiji Ports Terminal Limited (FPTL) shows an 8% decrease compared to 2018.

This is attributed to the increased depreciation charges the necessary procurement of major assets, as well as the reduced cargo volume.
incurred with Strategic Planning I commend the Executive Management for the formalisation of the 5-Year Strategic Plan, 2019-2023, which recognises the importance of long-term, integrated planning to identify opportunities and possible constraints in expediting the potential for private and public investment in the ports and logistics sectors.
We strongly believe that by proactively planning for a future that provides the best for the whole of Fiji and its citizens, FPCL will continue building a resilient and adaptable Company that will benefit our shareholders, staff, key stakeholders and our customers.
Shaheen Ali Chairman FPCL Profitability 3.6% Retained Earnings in 2019 18% Liquidity Ratio 8.0 to 8.9 7 2019 Annual ReportFiji Ports Corporation Limited Global Logistic Networks The Board and Management of FPCL are aware that while our concerns and challenges may be perceived as national, our decisions and performance contribute significantly to the global maritime and port networks and are of international significance.
The Board recognises that global economic and societal trends will always be a challenge for FPCL, as evidenced by the impact of COVID-19 on the cruise vessel tourism industry, as too are changes that require technological and operational innovations for greater energy efficiency and economic competitiveness.
The decision by the FPCL Board and Management to engage a reputable overseas supplier for a Vessel Traffic Management System (VTMS) to be installed at the Habour Master’s Office in 2020 demonstrates the Company’s proactive commitment to fulfilling our Vision, ‘To be the Smart Green Gateway for trade in the Pacific region’.

The importance of reliable logistics remains vital to the nation’s continued economic development.
Key to this is our ability to embrace the technological advances impacting the development of Smart Ports.

Automation and Smart Ports By leveraging essential cooperation between the public and private sectors, smaller Ports of Entry can take advantage of technological advances to create ‘Smart’ systems, which are no longer the exclusive preserve of large, green-field ports.
For example, electronic systems can be used to track container and vehicle movements to remedy wharf congestion or adverse impacts upon normal processes at a reasonable cost.

With innovation and automation, the latest intelligent IT systems and the latest cargo handling equipment can be utilised to meet the growing needs of shipping lines.

FPCL is ready to address key challenges and take the optimum advantage of favourable circumstances.
The decision by the FPCL Board and Management to engage a reputable overseas supplier for a Vessel Traffic Management System (VTMS) to be installed at the Habour Master’s Office in 2020 demonstrates the Company’s proactive commitment to fulfilling our Vision, ‘To be the Smart Green Gateway for trade in the Pacific region’.
Our ability to connect to the global logistics network directly impacts our capacity to reap the benefits of opportunities for growth and poverty reduction that accrue as a result of integrating global value chains.

While FPCL’s core business centres on servicing national and regional business and public needs, Fiji is strongly positioned to provide transshipment to other Pacific Island States and Territories.
8 2019 Annual ReportFiji Ports Corporation Limited Our future ability to attract larger vessels more frequently, with a commensurate increase in import arrivals to facilitate increased transshipment services to other destinations, will require significant infrastructural advancement to enable the marketing and delivery of such services.
To achieve these goals, the FPCL Board and the Management team work assiduously to maintain the balance between our economic role, our social responsibilities and environmental stewardship.

We are well aware that there are physical, operational, economic and environmental needs that the Company must meet for ongoing efficient service delivery and effective utilisation of resources, into the future.
Green Port Concept Fiji is one of the first two nations to commit to reaching net zero emissions by mid-century and is the 11th nation to have submitted its Low Emission Development Strategy to the united nations, in line with article 4 of the Paris agreement.

a major area of focus of this comprehensive strategy is the energy sector and the reduction in carbon emissions in land, maritime and domestic aviation transport.
as such, the Board and Management remain committed to implementing ways to reduce our carbon footprint and reducing Green House Gas emissions in our operations.

The Board commends the Management and staff of FPCL for the concerted effort, that has not only reduced the Green House Gas emissions, but has also realised cost-effectiveness in its day-to-day activities.
Strengthened Relationships Continued cooperation and communication with our key stakeholders such as the Maritime Safety authority of Fiji (MSaF), Fiji revenue and Customs Services (FrCS), and Biosecurity authority of Fiji (BaF), are vital if we are to provide the best service possible to our international, regional and local customers.
In the spirit of forging and strengthening partnership, FPCL continues to disseminate information and exchange knowledge with other essential stakeholders, such as shipping lines and their agents, importers and exporters and cruise line operators.

The FPCL Board is cognizant of the physical constraints at the Ports of Entry, Suva and Lautoka.

Since the Port of Suva is a multi-commodity port on a single footprint, there are the added challenges of yard, storage and handling space allocations.
as a multi-purpose port accommodating cruise vessels, FPCL also strives to provide the best possible service to our overseas visitors.

In this regard, we were pleased to see the official opening of the newly constructed cruise liner passenger lounge at the Port of Suva.
9 2019 Annual ReportFiji Ports Corporation Limited It is incumbent upon us, as Directors, to act in the best interests of the Company, with full regard for FPCL as both a commercial maritime entity of national significance, and one that functions as an essential link within the regional and global supply chains at a high level.
The Board supports FPCL as the Company seeks to forecast as accurately as possible, future requirements of FPCL’s infrastructure, yard and equipment, as well as linkages and shipping arrangements, and the staffing and investments that will be required to achieve the desired results.

The FPCL Board appreciates that the successful transition to Public Private Partnership (PPP) by FPCL in 2013 is testament to the stability and respect for law and order, an integral part of Fiji’s social and economic fabric.
Crucial Role The Board is also cognizant of the crucial role played by FPCL in promoting and facilitating international trade.

The successful transaction of our core business is essential to ensuring that Fiji’s journey into the future is one of sustainable growth and development.
In this regard, FPCL continues to support the continued development of the economic health of Fiji and contributes to the resulting social and material benefits that accrue for local and regional ship owners and operators, and for the populace at large.

The Company is responsible for the maintenance of basic port infrastructure and aids to navigation.

FPCL properties have been transferred to assets Fiji Limited (aFL) to be leased back to FPCL, with some processes still to be completed.
The Board supports FPCL in its drive to continue to mature as an effective, efficient Port Landlord, responsible for port planning, with services and facilities that can be benchmarked against the world’s best.

Appreciation I express my gratitude and acknowledge the leadership of the Chief Executive Officer and the Executive Management Team of the Group.
Thank you to all the staff of FPCL, subsidiary company FSHIL and Group’s associate company FPTL, for your hard work and commendable commitment throughout the 2019 Financial Year.

The continued support of my fellow Directors throughout the year has been invaluable, and I greatly appreciate their combined experience and business acumen as we navigate the challenges and opportunities presented by the industry.
It is incumbent upon us, as Directors, to act in the best interests of the Company, with full regard for FPCL as both a commercial maritime entity of national significance, and one that functions as an essential link within the regional and global supply chains at a high level.

I also take this opportunity to thank the Fijian Government, and specifically, the Honourable attorney-General and Minister for Economy for the continued support.
I look forward to the continued partnership and support of our stakeholders, as we embark on a new journey.

shaheen Ali Chairman 10 2019 Annual ReportFiji Ports Corporation Limited CEO’s Report Strong Performance Gateway for trade in the Pacific region.

In 2019, Fiji Ports Corporation Limited (FPCL) delivered exceptional value to our customers as a Port Management Company.
We responded to emerging trade patterns and supply chain changes in the region by embracing new technologies and implementing a range of innovative solutions.

as an aspiring gateway for trade in the Pacific we are constantly looking forward to delivering cost-effective, high value services as an emerging Smart and Green Port in the region.

I am pleased to report that in fiscal year 2019 the financial performance of FPCL continued to be strong delivering consistently high returns to our shareholders.
increased Operating revenue has from FJ$55.8million to FJ$57.6million and the net Interest Income has increased by 71%.

The Debtors Turnover Days also show a positive result, with a decrease from 20 days to 17 days.

Growth Strategies This being the sixth year in which FPCL has fulfilled its role as a port management company and provider of specialised port services, the 2019 Financial Year has been one of building on the consolidated foundation in preparation for future growth and development.
The foundation has enabled the Company to drive in our future direction as the Smart Green Vajira Piyasena Chief Executive Officer Operating Revenue to 57.6M 55.8M Net Interest Income 71% Debtors Turnover Days to 20days 17days The Company continues to function in this facilitating the economic important role, development Fiji, while handling approximately 95% of the nation’s imports and exports.
of FPCL Management is fully aware that to continue this facilitation, we need to meet the demands of evolving and increasingly challenging supply chain requirements.

In 2019, the Company implemented a robust planning process.

This addressed challenges faced by our ports and logistics chains, while meeting the needs of our shareholders and our customers in the wider industry sector.
to issues, to growth international the trade Due faced considerable challenges Company relating in vessel numbers, mainly cargo vessels, as the consequences of spreading urbanisation and the expansion of traffic in general.
Ensuring adequate future capacity and reconciling the interests of our key stakeholders was at the forefront of our discussions in 2019. as a good corporate citizen, we are also aware that these compelling concerns must be addressed within the context of the global demand to reduce carbon emissions.

Therefore, it was also timely to review and refresh our Vision and Mission Statements, in order to reflect our commitment to the FPCL Green Port Master Plan and our Smart Port Initiative.
The renewed vision of FPCL has been established to be the Smart Green Gateway for trade in the Pacific region.

Our new statements are in alignment with the launch of the FPCL’s 5-Year Strategic Plan 2019 -2023, which incorporates a comprehensive delineation of objectives to be achieved, cascaded down and reflected in the KPIs of Management, Department Heads and rest of our staff.
11 11 2019 Annual ReportFiji Ports Corporation Limited Sustainability Goals FPCL has been responding to the pressing need environmental for sustainability since 2011, after attending a Green Ports conference in Japan.

The Company has responded with a programme of well-structured changes following the Energy audit conducted in 2016, with funding support by the South Pacific Community (SPC).
in FPCL as a result of the audit, and with the support for energy management provided by the Maritime Technology the Pacific Cooperation Centre (MTCC-Pacific), been has proactive in its commitment to meeting the challenge of reducing Green House Gas (GHG) emissions.
The Company began this process and the emphasis on the management of both hazardous and non-hazardous waste generated by activities at Fiji’s ports saw the installation of the electric incinerator at a cost of FJ$628,618 replacing the oil fired incinerator that had harmful emissions.
Green House Gas Reduction in I am pleased to report that FPCL’s dynamic pursuit of these goals has reduction of energy resulted consumption by an estimated 40%, representing an annual reduction of 62 tonnes of GHG emissions since the implementation of various energy saving measures in 2016, including the changeover to LED lighting.
FPCL and Group’s associate company, Fiji Ports Terminal Limited (FPTL), together savings have made considerable 12 I am pleased to report that FPCL’s dynamic pursuit of these goals has resulted in reduction of energy consumption by an estimated 40%, representing an annual reduction of 62 tonnes of GHG emissions since the implementation of various energy saving measures in 2016... annually on energy costs, assisted also by the 2017 introduction of data tracking for electricity consumption, the 2018 implementation of the power factor correction and the upgrade to energy efficient air conditioning.
Infrastructure Development The FPCL Board and Management have allocated FJ$9.6million for the rehabilitation of high-risk areas that were highlighted by the Port Engineer in Consultancy company engaged early 2019 to undertake a Condition assessment of the Suva and Lautoka wharves.

The rehabilitation work will be carried out over the 2020 to 2021 period.
FPCL also progressed on development plans for Lautoka Port during the year under review, the appropriate development approvals were granted by the Lautoka City Council for the development and upgrading of two container yards at the Lautoka Port.

FPCL looks forward to the increased capacity and improved operational activities that will accrue from the FJ$11million these developments, planned to take place in investment in phases throughout 2020 and 2022.
The Company has also invested FJ$194,837 in establishing a lounge at the Port of Suva, to provide enhanced facility for the increasing number of cruise liner passengers visiting our shores.

at Mua-i-Walu II Jetty, Engineering Consultants and Contractors were engaged to undertake the repairs of a section of the wharf to reinstate loading capacity and ensure safety compliance at a cost of FJ$388,478.
Long Term Solutions FPCL recognises that these projects are part of the first phase of short-term solutions to extend the usability of the wharves for a conservative estimate of five to ten years, while long-term measures would provide solutions for the next twenty-five years.
issues FPCL has achieved significant progress in the in addressing these most cost-effective manner, while maintaining all necessary safety and security requirements for all port users and our employees in line with the international standards.

2019 Annual ReportFiji Ports Corporation Limited At Mua-i-Walu II Jetty, Engineering Consultants and Contractors were engaged to undertake the repairs of a section of the wharf to reinstate loading capacity and ensure safety compliance at a cost of FJ$388,478.
13 2019 Annual ReportFiji Ports Corporation Limited to partner with In 2019, FPCL supported the Ministry of Economy the asian Development Bank to conduct a feasibility study of a new port development.

This is essential to fulfil the future demands on operational capacity and container storage space in the multi-purpose Ports of Entry, and essential for the on-going economic and social wellbeing of the nation.
accept the invitation to attend the 2019 International association of Ports and Harbors (IaPH) Conference held in Guangzhou from 6th – 10th May in China, with the theme, ‘Collaborate Now, Create Future’.

amongst the many topics, discussions were centered on the strategic aspects of Ports and Maritime business, within a global perspective.
Similarly, the invitation to participate in the aDB regional Maritime Transport ‘Smart and Green’ Workshop, 28th – 30th May, in Singapore, reflects FPCL’s reputation and an opportune time to investigate potential smart and green options for FPCL to move forward in the direction of Smart Green Gateway for Trade in the Pacific.
Both CFO and I were also in attendance representing FPCL at the asia-Pacific Business Forum held in June at Port Moresby PnG, themed ‘Global Goals, Local Opportunities; and sustainable development for the non-urban Asia Pacific’.

inclusive at the forum, I was privileged to participate as a panelist in a session, Infrastructure and topic on Connectivity Game Changers.
the Fiji Ships & Heavy Industries Limited although Fiji Ships & Heavy Industries Limited, (FSHIL) a subsidiary company of FPCL, recorded a profit of FJ$112k for the 2019 Financial Year, the total income exhibited a decrease of FJ$819k, which is about 12.5% in comparison with 2018.

This is attributed to the impact from ageing infrastructure, especially the underwater section of the slipways.
Despite this, the FSHIL balance sheet for 2019 has remained strong, with a healthy cash balance of FJ$2.4million, term deposit of FJ$1million and a low gearing of 0.10.

In 2019, Management has invested FJ$813k to fabricate the new cradle for the 500T slipway and to develop a robust plan to repair the aging infrastructure.
Port Security FPCL is pleased to report that two separate independent assessments were conducted by the uS Coast Guard and by the Maritime Safety authority of Fiji (MSaF) at Ports of Suva and Lautoka on International Ships and Port Security (ISPS) Code.

The Company continues to meet the ISPS Code requirements successfully demonstrating our ability to facilitate international trade through our Ports of Entry while maintaining high level of port security.
facilitation of Port The successful Security Exercises throughout the year vigorously tested the robustness of the FPCL Emergency response Plan.

at the invitation of FPCL, key stakeholders who participated in these exercises included the Ministry of Defense; MSaF; the republic of Fiji Military Forces; Fiji revenue and Customs Service; Fiji navy; Fiji Police Force, the national Fire authority and the Ministry of Health and Medical Services.
Border FPCL is also represented at important Security Government Committees such as the Counter Terrorism Officers Group, the national Maritime Security Strategy Committee and the national Security and Defense Council for Border Security.

World Port Conference Participation international at conferences ensured that FPCL remains abreast developments within the maritime sector, while forging and international relationships.
strengthening of In this aspect FPCL was pleased to 14 Milestone Achievement I am very pleased to record that during the year, FPCL achieved the ISO 9001:2015 Quality Management Systems certification.

This prestigious status is another testimony of our commitment to provide services to our valued customers to the highest standards.
I wish to congratulate the FPCL team for this milestone achievement, as it serves to strengthen the Company’s internal processes towards world-class standards for doing business and maintaining operational excellence.

FSHIL’s follows successful This certification in 2018 of ISO 9001:2015 for the Provision of Services, related to ship repair works, ship repair services, slipway facilities and heavy industry services.
Acknowledgements to express my sincere I wish appreciation to our Chairman and the Board of Directors.

Their abiding commitment to FPCL and its staff, their incomparable leadership and guidance has been invaluable during 2019, as we conclude what has been another challenging and inspiring year.

To my colleagues at the Executive Management Team and all our employees, I wish to convey my appreciation.

Thank you all for your continued efforts contributing to the success of the Company.
I am extremely grateful for your dedication and hard work.

I wish to take this opportunity to express my gratitude to our colleagues at the Ministry of Economy for their continuing support.

With your continuing support, FPCL looks forward to implementing the plans to take the Company though the difficult times that we are experiencing now in 2020 and into the future, for the benefit of our key stakeholders, our valued customers, and the people of Fiji.
Vajira Piyasena Chief Executive Officer 2019 Annual ReportFiji Ports Corporation Limited Approach to Reporting Progress in Achieving Our Six Strategic Goals strategic Goal 1 - Governance To enhance our governance processes by aligning external/regulatory functions to effectively facilitate the governance framework, ensuring the organisation achieves a balance between commercial and social deliverables required by shareholders.
strategic Goal 2 - infrastructure This is focused on monitoring the state of critical infrastructure by implementing rehabilitation measures to maintain FPCL assets in an optimum level of condition.

FPCL will ensure that the new port development project is implemented to improve efficiency by benchmarking against world- class international operational standards.

FPCL will collaborate with key stakeholders/agencies in all aspects of port development on the relocation plan for Suva Port.
strategic Goal 3 - Financial Performance To spearhead the Commercial and Financial Stewardship of FPCL to ensure that shareholder value is retained, in the midst of implementing strategic development initiatives, such as the Suva Cargo Port relocation.

Facilitate long term funding options, and provide financial insights to ensure agreed annual outcomes are achieved, while evaluating and supporting options to finance all the projects outlined in the 5-Year Strategic Plan.
Develop and introduce customer-centric systems and processes to optimise customer experience and be a catalyst to progress towards earning recognition as the Smart and Green Port of the Pacific.

strategic Goal 4 - Organisation/Capacity To optimise the new organisational structure in alignment with the strategic objectives through rigorous requirements processes.
FPCL is committed to providing capacity building and development, supporting staff retention strategies, promoting gender equality and maintaining integrity through a professional workforce.

strategic Goal 5 - Environment and sustainability FPCL is committed to assessing and implementing Port Sustainability Guidelines and Green Port Initiatives.
strategic Goal 6 - safety, security & technology Continue to enhance the review of safety and security procedures to meet and exceed the required International Ship and Port Facility Security (ISPS) Code and adopt a safe workplace culture.

FPCL is focused to implement advanced technology systems to enhance its operational capabilities to be a leading Smart port in the region.
15 2019 Annual ReportFiji Ports Corporation Limited 5-Year Strategic Plan- Programme Summary The greening of FSHIL; a staff member tends to a Company garden.
16 2019 Annual ReportFiji Ports Corporation Limited2019 ― PAGE 21������� � - Yearly Summation PAGE 19 Yearly Summation continued... 2021 Infrastructure • Detailed design and tender for new Suva Port wharf and terminal • Preliminary design / financing of adjacent Suva facilities (turn key developments) • Local / Provincial wharf design and construction (as required) Infrastructure • New Suva Port Construction progression • Provincial infrastructure • Dredging and / Port maintenance Infrastructure • Ancillary development (Suva) • Acquisition / Integration of services Financial • Cruise terminal / wharf construction Financial • Annual reviews • Annual reviews • Economic Impact Study (refresh) Financial • Annual Pricing Review • Annual KPI/ROI and investment review • Annual Trade review Organisation • Organisation review / structure review • Employee survey Environment • Dredge / Construction monitoring • Waste audits and Suva preparations NOTE: Governance & finance reviews are critical upfront, particularly with significant investment development anticipated, similarly organisational structure & capacity will be critical.
Whilst these elements are shown as completed early, realistically many of these must continue to be reviewed throughout the strategic plan period.Program SummarySECTION 3 ― Program Summary ― PAGE 21������� � - Yearly Summation PAGE 19 Yearly Summation continued... 2021 Infrastructure • Detailed design and tender for new Suva Port wharf and terminal • Preliminary design / financing of adjacent Suva facilities (turn key developments) • Local / Provincial wharf design and construction (as required) Infrastructure • New Suva Port Construction progression • Provincial infrastructure • Dredging and / Port maintenance Infrastructure • Ancillary development (Suva) • Acquisition / Integration of services Financial • Cruise terminal / wharf construction Financial • Annual reviews • Annual reviews • Economic Impact Study (refresh) Financial • Annual Pricing Review • Annual KPI/ROI and investment review • Annual Trade review Organisation • Organisation review / structure review • Employee survey Environment • Dredge / Construction monitoring • Waste audits and Suva preparations NOTE: Governance & finance reviews are critical upfront, particularly with significant investment development anticipated, similarly organisational structure & capacity will be critical.
Whilst these elements are shown as completed early, realistically many of these must continue to be reviewed throughout the strategic plan period.Program SummarySECTION 3 ― Program Summary ― PAGE 21������� � - Yearly Summation PAGE 19 Yearly Summation continued... 2021 Infrastructure • Detailed design and tender for new Suva Port wharf and terminal • Preliminary design / financing of adjacent Suva facilities (turn key developments) • Local / Provincial wharf design and construction (as required) Infrastructure • New Suva Port Construction progression • Provincial infrastructure • Dredging and / Port maintenance Infrastructure • Ancillary development (Suva) • Acquisition / Integration of services Financial • Cruise terminal / wharf construction Financial • Annual reviews • Annual reviews • Economic Impact Study (refresh) Financial • Annual Pricing Review • Annual KPI/ROI and investment review • Annual Trade review Organisation • Organisation review / structure review • Employee survey Environment • Dredge / Construction monitoring • Waste audits and Suva preparations NOTE: Governance & finance reviews are critical upfront, particularly with significant investment development anticipated, similarly organisational structure & capacity will be critical.
Whilst these elements are shown as completed early, realistically many of these must continue to be reviewed throughout the strategic plan period.Program SummarySECTION 3 ― Program SummaryDesign Adjacent Suva Facilities (Staged)Cruise Design &FSHIL DesignGovernance reviewsApprovals, Studies& ProcessesAssetInvestigationsSuva Construction(staged)OrganisationReviewEconomicsCruise ConstructionFeasibilityStudies /DevelopmentPlansOrganisation Capacity& FinanceFSHIL ConstructionEnvironmentSafety, Security& TechnologyCruise & Suvanew port site &options reviews20202021202220232024Q2Q2Q2Q2Q2Q3Q3Q3Q3Q3Q4Q4Q4Q4Q4 FPCL Organisational Structure & Strategy Execution Team Governance CEO Executive Management Board Secretary Legal Unit CFO Risk and Compliance Unit Financial CFO Finance Department - Suva Finance Department - Lautoka Procurement Unit Infrastructure CI&PO Port Engineering Department Maintenance Unit Asset Management Unit Projects Unit Planning & Strategic Implementation Unit Sustainability & Environment COO Environmental Management Unit Energy Management Unit COO OHS Unit Safety Port Operation COO HM Office/Port Administration Suva HM Office/Port Administration Lautoka Local Wharf Office - Suva Local Wharf Office - Lautoka Levuka Office Enforcement Unit Organisation CEO HR Department Talent Development & Training Unit Quality Assurance Unit PR Office Technology CFO ICT Department MICT Business Information Unit COO Port Security Port Security Department - Suva Port Security Department - Lautoka 17 17 2019 Annual ReportFiji Ports Corporation Limited Board of Directors Government Representatives Shaheen Ali Chairman Vijay Maharaj Director Vilash Chand Director Tupoutua’h Baravilala Director Fiji National Provident Fund Representatives Tevita Kuruvakadua Director Sashi Singh Director Aitken Spence PLC Representatives Dr Parakrama Dissanayake Director Iqram Cuttilan Director 18 2019 Annual ReportFiji Ports Corporation Limited Executive Management Team Following a multi-disciplined international career spanning over 30
 years as a maritime professional, an academic and a management consultant, Vajira Piyasena joined Fiji Ports Corporation Limited (FPCL) in 2011 as the CEO to head the then state-owned entity and its two subsidiary companies, Ports Terminal Limited (PTL) and Fiji Ships & Heavy Industries Limited (FSHIL).
With the privatisation of PTL in 2013, after a successful Public Private Partnership and subsequent divestment of FPCL in 2015, he was responsible for providing strategic and transformational leadership to the organisation at a time of unprecedented change.
consultancy company established to provide services primarily to the maritime industry, he has worked with over 100 companies in projects comprised of developing integrated management systems, policy development, corporate restructuring and international business development.
His research work includes developing a “Productivity-based Engineering Model for Port Development Policy analysis and Implications” focused on the government Port Development Policy and competitive effectiveness in productivity to develop Port of Colombo, Sri Lanka as Hub Port in the South asia region.

Qualified in uK as a Marine Chief Engineer in 1987, Vajira had a seagoing career serving with major international shipping companies.
In the area of the maritime industry, his expertise extends to international shipping, marine engineering, maritime education and training, ship repairs and ship building and maritime safety.

as the co-founder of a He has received Executive Training from Harvard Business School and Goizueta Business School, uSa.
In addition, he is also a member of the Masters in Business administration (MBa) advisory Committee of the university of the South Pacific and a Member of the Panel of review for the Fiji Business Excellence award.

Vajira Piyasena MBA, MSc, PG Dip Management (Prod & Tec), PG Dip International Affairs, PG Dip Business (Quality & Ops Mgmt), CEng (MIE) (Ind)I Eng, FIMarEST (UK), FRINA (UK),FCILT (UK), CQP FCQI (UK), CMgr FCMI (UK), Marine Eng.
(Class 1) DoT UK Chief Executive Officer appointed as CFO in 2017, roshan abeyesundere is a strategic commercial finance leader who has significant international exposure.

He is passionate about enhancing value in organisations by focusing and improving key business processors and value drivers.

He is a former Group accountant of new Zealand Post Group.

at new Zealand Post, he worked as a Commercial Manager and implementing new revenue generating projects.
six years, designing for Roshan Abeyesundere MBA (NZ), FCMA (UK), FCPA (AU), MCIM (UK), CGMA Chief Finance Officer For four years he was CFO of Dispute resolution Services Limited, responsible for leading finance, IT, risk, property, commercial and administration functions in five major cities in new Zealand.
Mr. abeyesundere has extensive experience in commercial projects design, negotiation and implementation; he has provided leadership to change management and business strategy development initiatives in many organisations to enhance shareholder value.

He brings with him hands-on experience in business continuity planning, risk and knowledge management.
Captain Laisiasa Gonewai Master Mariner Class 2 FG COC (NZ) Acting Chief Operating Officer appointed as acting Chief Operating Officer, February 2017, Captain Gonewai has been the Harbour Master for the Port of Suva since 2014.

His qualifications include: Gazetted Marine Surveyor (MSaF); Certificate of Competency for Class 1 Mates and Class 2 Masters, FC COC (nZ Maritime College), and Certified Marine Deck Examiner.

He has more than 25 years’ experience in the domestic and international maritime industry.
19 2019 Annual ReportFiji Ports Corporation Limited Governance The Structure The Board of Directors, as the final decision-making body of the Company, has been responsible for setting in place an effective Corporate Governance Framework, which maintains balance between empowerment, accountability, and vision for sustainable growth.

The FPCL Board is also responsible for the strategic guidance and oversight of the Company as set out in the Board’s Terms of reference.
- review and adopt the overall Strategic Plan; - Oversee and evaluate the conduct of business of the Company and the Group; - Identify risks and ensure implementation of a proper risk management system; - Establish a succession plan; - review the adequacy and the integrity of the Management information and internal control systems of the Company and the Group.
BOARD COMMITTEES SHAREHOLDERS Finance/Audit & Risk Management Sub Committee Technical & Infrastructure Development Sub Committee Chairman & Board of Directors Provide policy direction to the Committee.

Chief Executive Officer Leads the Executive Management.

Is responsible for implementation of strategy and performance.

Human Resources Sub Committee Executive Management (CEO, CFO, COO & CIPO) Formulates and oversees the execution of strategies within the policy framework.
Senior Management Monitors and reviews operation at department level.
Meetings: The Board and Subcommittees are scheduled to meet three times during the Financial Year ended on 31st December 2019. attendance was as follows: Directors Board Meetings Board Finance, Audit & Risk Management Subcommittee Committees Board HR Subcommittee Board Technical & Infrastructure Development Subcommittee Held Attended A B A B A B Mr Shaheen ali Mr Vijay Maharaj Mr Vilash Chand Ms Tupou Baravilala Mr Tevita Kuruvakadua Mr Sashi Singh Mr Iqram Cuttilan Dr Parakrama Dissanayake Nt: A : number of meetings held while being a member.
B : number of meetings attended.

20 2019 Annual ReportFiji Ports Corporation Limited Key Initiatives Risk Register The year 2019 marks six full years after the divestment of shares of FPCL and a change of ownership structure to a Public Private Partnership (PPP).

With this corporate structure and FPCL’s Board and the Management’s close collaboration, the Company has further strengthened its governance framework and has laid a firm foundation for good governance at FPCL.
Quality Assurance FPCL takes pride in delivering services to its stakeholders.

In doing so, the Company uses its quality assurance processes to maintain standards and to increase customer confidence and Company’s credibility, while also improving work processes and efficiency.

after an independent entity assessed the quality standards, FPCL achieved an ISO 9001:2015 certification by DnV-GL.
This certification signifies that the policies, processes and FPCL’s operations are at par with international standards.

The aim for FPCL was to provide our customers with the highest level of service excellence in the Port Industry by promoting the following: • Customer focus; • Employees & Communities; • Application of Technology; • Service Innovation & Supplier Quality; • Change Management; • Business Processes, Tools & Indicators, and • Economic Value.
Risk Management an Enterprise risk register was developed and approved by the Board.

Through the risk Management Committee, the Company will continue to work in further developing/ reviewing the risk Management Framework and policy.

a risk management workshop was also held to educate staff on their understanding of risk, its association to their work and overall impact to FPCL.
Regulatory Matters This year saw FPCL adding an additional responsibility to its portfolio of marine services and heading towards increasing its market share in the marine industry, Fiji Ports of Entry.

FPCL obtained regulatory rights to manage the marine services for Port of Savusavu, which previously did not offically fall under FPCL’s jurisdiction.

Before then, FPCL had no regulatory authority to manage the marine services to international vessels operating from the Savusavu harbour.
Legal Requirements In consideration of the need to reduce potential legal risk and satisfy strategic objectives, the Management has engaged a Panel of Solicitors.

Currently, there are only two firms in the Panel of Solicitors.

Management is looking to expand its pool of legal service providers to match the increasing complexity and volume of legal issues faced by FPCL and its subsidiary company FSHIL, respectively.
Audit and Reporting The year 2019 also witnessed FPCL developing an Enterprise risk Management Framework concept as a key corporate governance requirement in the conduct of its business by ensuring that sound risk management practices are in place to protect the Company and its operations from any negative consequences of uncertain future events.
a structured enterprise wide risk management approach along the guidelines of the ISO 31000:2009 will enable Fiji Ports to achieve good business conduct, efficient controls, quality outcomes and sustainability.

The Board Finance, audit & risk Management (FarM) Subcommittee assists the Board in independently verifying and safeguarding the integrity of the internal control and financial reporting of the Company and Group.
Its primary role is to: • Ensure implementation of audit recommendation; • Review quarterly results and annual financial statements; • Review the internal audit programme and consider the findings made by the internal auditors, and • Review the Company’s internal control system.

Enterprise Risk Management Workshop August 2019.


21 2019 Annual ReportFiji Ports Corporation Limited External Audit Investigations as the requirements under the Companies act 2015, Section 420 (1), the Board FarM Subcommittee makes recommendation to the Board for an appointment of an External auditor.

Ernst & Young was appointed as the External auditor for the 2019 Financial Year review.
Internal Audit The Board and Management have overall responsibilities for internal control for FPCL and to ensure the organisation internal controls.

To maintain implements effective transparency and accountability within the organisation, FPCL has continued to engage an audit firm to conduct independent internal audits of key areas of the organisation.
Whilst there were no significant internal control issues identified, the Board and Management closely collaborated in implementing processes and procedures to address the audit findings.

Controls Monitoring The FarM Subcommittee reviewed and deliberated on six (6) audit reports for FPCL and the Group.

Information was disseminated to Management for the implementation of recommendations in improving internal procedures and processes.
a new audit tracker was developed by Management to keep track and monitor the implementation of audit recommendations.

Internal Audit Audit No.

of Findings Procurement Process revenue Process Human resource Job Costing Process Procurement Process II Property, Plant and Equipment 9 9 9 7 7 6 Compliance The Management is very hands-on in reviewing policies and processes of the Company and continues to ensure that the organisation is abreast with the changing regulations, processes and market expectations.
The Board and Management ensure that policies are up-to- date with the latest market trends and regulation changes.

The Management has plans to review its Governance Policy to ensure it is on par with international standards and requirements.

Through its robust investigative system in place, eight (8) internal reports were submitted to the Management.

upon Management’s endorsement, relevant actions were taken to rectify internal controls and to discipline responsible staff.

Investigations No.
Investigations No.

of Investigations Fraud Internal Controls Hr Inquiry 2 5 1 Communication with Stakeholders The Company’s ability to build a relationship of trust with its stakeholders was at the forefront of our Governance framework.

FPCL stakeholders its customers, Government, communities and its employees.
The Company continues to ensure that all dissemination of information is through the appropriate channels, and is transparent, so our stakeholders are well informed of the Company and the Group operations.

include For the year in review, each operational department was required to engage their external stakeholders for meetings, in order to discuss changes in processes, regulations and other miscellaneous matters.

Stakeholders Meeting Department No.


of Meetings Harbour Master Suva Harbour Master Lautoka Local Wharf Suva Levuka Wharf Culture & Values 7 12 7 11 FPCL’s future is driven by our vision and mission, which is embedded in our corporate culture.
Management continues to enhance the culture of the organisation with initiatives drawn from the staff to improve FPCL operations with our values in: Professionalism, Progressive Leadership, Commercial Stewardship, Corporate Citizenship, Strategic Innovation and Employee Wellbeing & Diversity.

Strategic Outlook: The 2019 – 2023 Strategic Plan outlines the goal for FPCL’s Governance.
FPCL’s Management will continue to engage FPCL’s stakeholders within the port boundaries to have discussions on FPCL’s roles and responsibilities in port operations.

the Further, Management had discussions with Government for FPCL to provide oversight and security service for other non-declared outer ports.

FPCL’s Management continued to work with assets Fiji Limited as a strategic partner to expedite the lease back of key assets essential for port operations.
22 2019 Annual ReportFiji Ports Corporation Limited Obligations FPCL continues to work towards meeting expectations as an implementation body for standards relating to other local ports of entry in Fiji.

It remains vital to assist trade facilitation in a sustainable manner through Ports in Fiji while optimising returns.

Obligations Under Law The principal legislation under which FPCL is governed is the Sea Ports Management act 2005.
However, as a partially Government-owned Commercial Company, Fiji Ports also has broad responsibilities under the Public Enterprises act 1996.

FPCL’s objectives and responsibilities under the Sea Ports Management act 2005 are as follows: To effectively manage sea ports in Fiji: - To create or enhance opportunities in the provision of port services.

- To manage operation and regulatory responsibilities that include: a.
To manage the processes, on behalf of the Minister, of declaring of new ports and approaches to ports; b.

Be responsible for management of Fiji’s ports; c. Taking of action in the event of an emergency; d. acquiring land required for Port’s operations: e. To levy charges for provision of its services; f. Detail vessels in breach of Fiji law; Business Obligations FPCL is the Port Management Company in Fiji and also plays a regulatory role.
Strategically situated in the ‘centre’ of the South Pacific region, FPCL is critical to the local inter-island and regional sea transport industry.

Further to the transfer of Ports Terminal Limited (PTL), now Fiji Ports Terminal Limited (FPTL), FPCL relinquished freight and storage operations to the Group’s associate company, but continues to operate cruise liner and vessel operations of the Kings Wharf, Suva and the Queens Wharf, Lautoka.
FPCL maintains ownership and operation of Levuka Wharf, Ovalau, and oversees the operations and ISPS requirements for the following ports: - Malau Wharf Labasa, Vanua Levu (owned by Fiji Sugar Corporation); - rotuma Port, rotuma (owned by rotuma Council); - Wairiki Wharf, nabouwalu, Vanua Levu (owned by Tropic Woods Industries Limited) and - Vuda, Viti Levu (owned by oil companies).
FPCL continues to oversee and operate port facilities located at Mua-i-Walu I and II, Walu Bay, Suva, and Local Wharf at Lautoka, through the provision of ports infrastructure and related services to ensure industry safety and security, and maintains its Head Office located at Muaiwalu House, Walu Bay, Suva.

g. Exempt, reduce or refund, any vessels for dues and rates; Obligations in Partnership h. Take a lien, and after 21 days (or for perishables after 21 hours) sell goods in relation to charges; i.
Take a lien and after 21 days over vessels in relation to charges; j.

Prosecute offences of evasion of due or rate or charges; k. License persons to access ports for commercial purposes; l. Chair meetings of stakeholders on Port’s issues; m. removal of derelict and dangerous vessels, and n. Make rules regulating the use and operation of ports and approaches to ports, and the conduct of persons within ports and approaches to ports, and fine for breach of those rules.
FPCL works with Maritime Safety authority of Fiji (MSaF) with respect to Fiji Ports’ obligations for the implementation of conventions under the International Maritime Organisation (IMO) including Ports State Control, ILO/ IMO requirements for port reception facilities (discharge of sewerage and rubbish) and Code of Practice on Security in Ports.
addressing issues under the heavily regulated Global Cruise Industry is a continuing responsibility for FPCL, given the number of cruise ships in our ports continues to increase each year.

In line with other countries that have cruise ships, FPCL has effectively implemented measures to ensure compliance with relevant laws, regulations and international treaties.
The cruise industry is also subject to the International Ship and Port Facility Security Code (ISPS Code), which requires that access to ships and port facilities be tightly controlled.

23 2019 Annual ReportFiji Ports Corporation Limited In line with other countries that have cruise ships, FPCL has effectively implemented measures to ensure compliance with relevant laws, regulations and international treaties.
The cruise industry is also subject to the International Ship and Port Facility Security Code (ISPS Code), which requires that access to ships and port facilities be tightly controlled.
Corporate Obligations FPCL Board, Management and senior staff are committed to: - adopting, leading, planning principles and management systems; - Working cooperatively to ensure safe and secure port environments; - Providing appropriate technologically advanced infrastructure, and - adhering to FPCL’s Corporate Values at all times.
Obligations to the Community and Our Environment as FPCL diligently carries out its corporate obligations, the Company strives to maintain its commitment towards the community through its social activities, with direct and indirect benefit to the broader community.

Equally important as other issues, the Company takes environment protection seriously.

Frequently, Management and staff create stakeholder awareness regarding land and sea pollution as part of their daily activities and duties.
The growth of the mining industry in Fiji has bought new responsibilities.

Carrying solid bulk cargoes involves considerable risks, which must be managed carefully to safeguard the the Port, ship’s crew and the vessels.

Fiji Ports is assisting with these risks: reduced ship stability, and even capsising, due to cargo liquefaction, fire or explosion due to chemical hazard, and damage to ship structures due to poor loading procedures.
24 2019 Annual ReportFiji Ports Corporation Limited Infrastructure FPCL’s infrastructure and super-structure play a crucial role in meeting the Company’s mandated business partnership and corporate obligations.

In 2019, FPCL has put in place proactive measure for continual maintenance and where necessary upgrade of all Port facilities.

This commitment is evident in the significant investments highlighted in this report.
Local Wharf Repairs Following the 2017 Wharf and Jetty Condition assessment, it was deemed that the deteriorated condition of a section of Mua-i-Walu Jetty II in Suva needed repairs to address the future safety risks.

as Mua-i-Walu II serves as a primary access point for inter- island ferries, any damage or delay in counteracting structural defects can lead to hinderance in the services and disruption to the lives of the many users of the facility.
To reinstate loading capacity and ensure safety compliance, FPCL engaged external Engineering Consultants and Contractors to undertake the recommended overlaying deck repairs.

The total cost of the project amounted to FJ$388,478.

Cruise Passenger Lounge at Port of Suva The increasing number of tourists entering the Capital City via the Port of Suva is a significant economic contributor to Fiji.
In response to these increasing numbers and the need to provide modern facilities to cater for cruise liner passengers visiting the Port of Suva, a lounge was established, at the total cost of FJ$194,837.
The facility was opened in March 2019. International Wharf Management and Government with the assistance of the asian Development Bank are collaborating with the feasibility study of Suva Port relocation and maintaining the current wharf as a cruise terminal, with a focus on facilities to cater for cruise ship passengers.
Wharves Condition Assessment Early in 2019, FPCL engaged the services of an international consultant to undertake the Condition assessments of the Wharves, in Lautoka and Suva respectively.

In response to these increasing numbers and the need to provide facilities to cater for cruise liner passengers visiting the Port of Suva, a lounge was established, at the total cost of FJ$194,837.
25 2019 Annual ReportFiji Ports Corporation Limited FPCL has initiated the development and upgrading of the container yards to increase the Lautoka Port’s capacity and to improve operational activities.

In 2019, the development approvals were granted by the Lautoka City Council and the FPCL Engineering team is in process of executing the projects.
the assessment, FPCL Board Based on outcomes of and Management has allocated FJ$9.6million for the rehabilitation of priority areas highlighted by the consultant.

The rehabilitation works will be carried out in phases from 2020 and 2022.

Lautoka Container Yards Development FPCL has initiated the development and upgrading of the container yards to increase the Lautoka Port’s capacity and to improve operational activities.
In 2019, development approvals were granted by the Lautoka City Council, with FPCL’s Engineering team in the process of executing the projects.

FPCL intends to complete the project in phases, with construction to be completed in the years 2020 and 2022.

FPCL has allocated FJ$14.24 million for this project.
Towage Services In 2019, FPCL considered the feasibility of providing towage services with the possibility of either developing a partnership or a business acquisition, which was accompanied with an appropriate business case.

26 Incinerator Services installed incinerator was The electric increase capacity, reduce carbon emissions and to meet bio- security requirements.

With its successful installation and commissioning, specially trained staff have been appointed to oversee its function.
The expedience of providing incinerator services beyond the port can now be realistically appraised.

to Project Management Office Considering the substantial cost involved in infrastructure projects, Management has established a Project Management System that ensures each FPCL project initiated is feasible, profitable and completed on time.
This includes the training and use of MS Project Online, adoption of PrInCE2 Methodology, revision of the Project Management Office Standard Operating Procedures (SOP) and the recruitment of experienced Project Management staff.
2019 Annual ReportFiji Ports Corporation Limited Financial Performance Finance Perspective - Key Initiatives Fiji Ports Corporation Limited has exhibited a continuously strong financial performance over recent years, which can be attributed to key finance strategies that the Company has embarked upon.

The 2019 Financial Year saw FPCL spearheading the commercial and financial stewardship of the Company, to ensure that shareholder value is enhanced, whilst implementing capital intensive projects.
In 2019, FPCL focused on standardising its fees and operational structures to streamline and optimise its processes.

as part of this initiative, the Company has developed a tariff review proposal for its local wharf operations, after a lapse of a decade, to standardise its port fees and charges.

With the new tariff proposal, FPCL is promoting fairness and effective competition in the industry, the benefit of which will flow to the consumers.
The Company is also in the process of acquiring a Vessel Traffic Management System.

To optimise the use of the new system and to facilitate the transition, the Finance Team initiated a project to automate the invoicing process, which will benefit all port users.

In 2019, the Company embarked on identifying a funding model that would best suit the shareholding composition of the Company and that would financially support FPCL’s initiatives.
During the 2019 Financial Year, FPCL benchmarked its financial and operational performance against united nations Port Performance Indicators.

While the indicators suggest that the FPCL performance is strong, the Company continued on a journey to develop additional key performance indicators.
In 2019, FPCL supported the Ministry of Economy to partner with the asian Development Bank to conduct a feasibility study of a new port development, as well as develop additional key performance indicators that focus on maintaining FPCL’s performance at an optimal level.

Fiji Ports Corporation’s Performance for the Year ended 2019 The Company recorded another successful year with a record net Profit after Tax of FJ$28million.
The record profit is attributed to prudent and timely decision making by Management, with close guidance from the Board.

Extensive staff engagement and support were also major contributors towards achieving this milestone.

$28M Profit Return to Shareholders The dividend payout to the Company’s shareholders has grown substantially over the years, keeping pace with, and reflecting, FPCL’s financial performance.
The 2019 Financial Year marks a record dividend payout of FJ$16.8million to its shareholders, an increase of 3.5% in comparison to 2018.

It is worthwhile to note that these results were achieved, despite numerous challenges faced throughout the year, and were made possible by the cost management and cash investment initiatives undertaken by the Board and the Management.
Profitability vs Dividend 27 25 27 28 16 15 16 17 s n o i l l i M 30 25 20 15 10 5 0 FY16 FY17 FY18 FY19 Net profit after tax (NPAT) Dividend declared/proposed Actuals ($000) Description FY16 FY17 FY18 FY19 Net profit after tax (NPAT) Dividend declared/proposed 26,804 16,082 25,378 15,227 27,066 16,239 28,036 16,821 27 2019 Annual ReportFiji Ports Corporation Limited Key Challenges During the Financial Year 2019, FPCL set its course towards surpassing its profitability levels for the prior year.
However, the year had particular setbacks.

With FPCL being the gateway for trade in Fiji and the Pacific, the forecast for a decline in global and domestic economic activity for 2019 was a situation that needed a proactive response.

The trade tensions between the united States of america and China led to a general rise in protectionism and affected Fiji’s major trading partners, resulting in a decline in the number of goods being traded and the volume of cargo passing through our ports.
Domestically, the reserve Bank of Fiji (rBF) had also revised its projected growth of the real gross domestic product for 2019 from 3.4% to 1.0%, further evidence that Fiji’s imports and exports were forecasted to decline.
With tourism being the backbone of the Fijian economy and cruise tourists contributing significantly towards the tourism sector, FPCL was also notified in early 2019 that one of the largest cruise operators in the Pacific region was re-routing its itinerary from the Pacific to Europe, and hence, this had led to cancellation of 24 cruise vessels previously scheduled to call at Fiji’s ports throughout the year.

December to January is the peak period for welcoming cruise tourists to our shores.
However, in January 2019, Fiji experienced the wrath of Tropical Cyclone Mona, and in December 2019, Tropical Cyclone Sarai further hampered the Fijian economy, as these tropical cyclones led to the cancellation of additional cruise vessels that were Fiji bound.

Through the effective strategies adopted by the Board and Management, the Company surpassed the profitability of 2018 and made a record net Profit of FJ$28million in the 2019 Financial Year.
Strategic Initiatives The key challenges meant that the Board and Management had to re-adjust their course and make strategic decisions to steer FPCL forward.

Over the years, FPCL has solidified its financial position and with a strong liquidity stance, Management decided to exercise prudent cash investment opportunities by exploring term deposits, which have benefited FPCL with incremental interest income over the past years.
Management maximised the opportunity arising from the liquidity position that Fiji as a nation faced in the year 2019, and while major Capital Expenditure projects were in their planning phase, as part of the 5-Year Strategic Plan and prior to their gaining momentum, Management invested in term deposits and increased FPCL’s returns as interest income.
$0.5M $1.8M $3.0M 2017 2018 Interest Income Growth 2019 28 amidst the challenges of 2019, FPCL also focused on the key revenue and Cost drivers of the Company.

From 1st of January 2019, the Company adopted the Maritime Transport act (MTa) tariff structure for piloting services, which standardised the piloting charge in the market, as well as yielded FPCL additional piloting income.

The Management initiated another strategy to increase the market share of FPCL in Fiji’s Ports of Entry.
Prior to 2019, the Port of Savusavu did not fall under FPCL jurisdiction, hence FPCL had no regulatory authority to manage the vessels operating from the harbour or have any form of resulting revenue source.

In 2019, FPCL obtained the regulatory rights to manage pilotage at the Port of Savusavu and ultimately add an additional revenue stream.
FPCL strives to enhance its market standing by working very closely with the Pilots to maintain 80% of the piloting market in the country and upgrading its facilities to meet international standards.

This was highlighted by FPCL acquiring a new pilot boat for the Port of Suva.

This acquisition will increase the capacity of FPCL in hosting additional vessels to our Ports of Entry.

The new pilot boat is expected to arrive in the country in 2020 and will increase the capacity of FPCL’s piloting function.
The FPCL Finance Team worked assiduously to ensure that FPCL recoups its debts as they fall due.

as a result of this team effort, FPCL recorded a receivable turnover of 17 days in 2019. a staff reward and recognition system – a new performance management system – was introduced effectively and its benefits were harnessed during 2019.
This system had seen capacity building strengthened across the organisation and as a result, Management was able to motivate and reward staff to double up on key positions, which led to cost minimisation to the Company.

In 2018, Management initiated the conditional assessment of the wharf infrastructure.
With this project completed in 2019, and in consideration of the setbacks in 2019, FPCL developed a strategy to progress the repair and maintenance work in phases, and to prioritise high-risk areas to ensure that the Company has a long-term sustainable infrastructure.

The year 2019 also saw a strategic foundation being laid for some future projects, which are envisioned to boost the efficiency and profitability of the Company, from 2020 and beyond.
The Management, in 2019, engaged an australian firm to provide a Vessel Tracking Management System, which will monitor the safety and security of the Suva Harbour, as well as ensure that all incoming and outgoing vessels are adequately accounted for.

FPCL also initiated projects that would provide further foundations towards the vision of being a Smart Green Port of the Pacific.

These projects, however, while started in 2019, would be completed in 2020 or beyond.
Some of these projects include automation of the berth application process, an automated invoicing a feasibility study on a proposed design for an energy efficient facility at Mua-i-Walu II, and a feasibility study for a new port.

undertaking system, Liquidity 8.9:1 2019 Annual ReportFiji Ports Corporation Limited Revenue Financial Results of the Group The Company’s operating revenue showed an increase of 5.4% over 2018.
This increase was mainly due to increase in dockage income where dry bulk such as sand, wheat and clinker vessels docked at the port for longer periods.

Moreover, marine service charges increased as the MTa tariff came in effect on 1st January 2019, resulting in an increase in the piloting income.

There was also an increase in other service income, such as commission, rental income and interests and licenses fees.
Composition of Company Income 37% 20% 19% 12% 12% Marine Service Wharfage Dockage Other Services Income Other Revenue Expenses The Company’s major operational expenditure areas are marine service charges, employee expenses and depreciation.

These expenses are, in the main, directly correlated to increased operational revenue.

When compared to 2018, there were increases noted in the marine service charge, which was due to increases in its correlated marine service revenue.
additionally, in employee expenses, which are due to increased manpower needed to support the increase in revenue, as well as support the implementation of the 5-Year Strategic Plan that the Company embarked upon.

The cost management initiatives adopted by Management led to reductions in property expenses, which include repairs and maintenance and other day-to-day operational expenses.
there were slight increases Composition of Company Expenses 38% 22% 19% 8% 13% Marine Service Charges Employee Expenses Depreciation Expenses Property Expenses Other Operating Expenses The financial performance for the Group reflects a consistent and resilient outcome.

This year being the sixth consecutive full year of operations since the inception of the Public Private Partnership agreement, the Group recorded a net Profit after Tax (nPaT) of FJ$26.5million, which represents a 5.5% decrease from 2018.
This is mainly a result of slow economic growth and a drop in imports and exports, due to trade wars, natural disasters, as well as FPCL’s 100% owned subsidiary company, Fiji Ships & Heavy Industries Limited, experiencing significant profit reduction, due to its ageing infrastructure.

The share of profit from the Group’s associate company, Fiji Ports Terminal Limited (FPTL), also decreased in 2019, resulting from the decline in cargo throughput, which impacted the decline in group profitability.
Group Revenue and Expenses The Group operating revenue showed an increase of 3.2% over 2018.

Despite the increase in total revenue, wharfage revenue declined, due to the decrease in cargo throughput and smaller GrT vessels visiting our ports.

In addition, there was a breakdown of the 500T and 1000T slipways in the first half of 2019, which led to major revenue losses amounting to over FJ$400k for Fiji Ships & Heavy Industries Limited.
The slipway was fully booked, however, the breakdowns caused major backlogs and customers opted for other ship repair service providers.

Composition of FPCL Group Income Dockage 19% Marine Service Charges 37% Ship Repair & Slipway Income 9% Other Revenue 3% Wharfage 20% Other Service Income 12% net Finance (interest) income has significantly increased by 71% when compared to 2018, due to prudent cash management processes implemented by Management.
Composition of FPCL Group Expenses Marine Service Charges Property Expenses Depreciation Expenses 32% Emloyee Expenses 24% 7% Other Operating Expenses 19% 18% 29 2019 Annual ReportFiji Ports Corporation Limited The share of profits from Group’s associate company, FPTL, has declined by 8% when compared to the 2018 Financial Year, which is also attributed to increase in depreciation charges due to procurement of major assets, as well as lesser cargo volume due to slower economic activities.
The Group’s operational expenditure increased by 1.2% compared to 2018 Financial Year.

This is mostly correlated to increased operational revenue for FPCL, as well as an increase in expenses by 15.04% over 2018 for the subsidiary company, FSHIL, relating to repairs and maintenance of aged slipway infrastructure.

FPCL is embarking on its vision of becoming the Smart Green Gateway to the Pacific and to materialise this vision, a significant Capital expenditure is required.
FPCL has factored in plans of major capital projects as part of the 5-Year Strategic Plan, for which planning phases are currently being initiated.

In 2019, major areas of capital spending were for Port operations, mainly comprised of the new Pilot boat and CCTV upgrades.

additionally, the other major area was for engineering works, namely the new electronic incinerator, new tower lights and yard infrastructure development planning.
also, capital works were carried out for ICT projects relating to the video conferencing set-up, and access control system and the uPS for the server.
Capital expenditure Engineering & Infrastructure 27% CAPEX SPENDING Safety & Security 1% Building 3% Information Technology 10% Port Operation 58% FPCL Group Profit & Loss summary for 2019 and 2018 Group Income Category 2019 2018 $(000’s) $(000’s) Change % Operating Income Other Income TOTAL INCOME 57,607 1,645 59,252 55,817 4,605 60,422 Operating Expense (28,021) (27,361) EBITDA Depreciation EBIT(Loss)/Profit Net Interest Share of profit in associate Net Profit Before Tax (NPBT) Income Tax NPAT 31,231 (6,130) 25,101 3,008 4,056 32,165 (5,664) 26,501 33,061 (6,379) 26,682 1,760 5,325 33,767 (5,726) 28,041 3% -64% -2% 2% -6% -4% -6% 71% -24% -5% -1% -5% 30 2019 Annual ReportFiji Ports Corporation Limited Balance Sheet Extract (Consolidated 2019-2018) Accounts Cash at Bank Trade and other Receivables (current and non-current) Financial Assets Fixed Assets Total Assets Trade Creditors Total Liabilities Shared Capital Retained Earnings 2019 ($000’s) 2018 ($000’s) 26,916 9,106 47,000 53,246 160,463 4,082 19,923 73,155 67,385 23,408 11,204 37,000 55,135 149,769 4,303 19,490 73,155 57,124 Group Financial Position Group Key Performance Indicators The Balance Sheet for the FPCL Group remains strong, with a sound cash balance (including Interest bearing deposit) of FJ$26.9million with zero external borrowings, even after the dividend payment of FJ$16.24million to shareholders.
The Group has maintained a strong financial position with a total increase in assets of FJ$11million, which is attributable to increased financial assets that relate to term deposits.

This sets a positive foundation for future increased returns until the extensive capital expenditure programme takes traction.

In addition, the total liabilities have remained reasonable when compared to 2018, and this shows a positive trend reflecting the Group’s strong ability to pay off its liabilities as they become due.
Based on the performance indicators, the Group has a 42.36% operating profitability.

This reflects the Group’s margin on Earnings Before Interest and Taxes (EBIT), which has been maintained favourably when compared to 2018.

The Group has a 36.23% net profitability on its capital invested, reflecting the Company’s efficiency in allocating capital under its control to profitable investments.
The Group also has a 18.86% return on equity, showing the profitability of the Group in relation to stockholders’ equity, and this has slightly decreased with lower Group profits when compared to 2018.

The Group also maintains a strong liquidity of 8.9:1.
Return on Invested Capital Return on Equity 38.33% 36.23% 36.01% 21.52% 22.43% 18.86% 2019 2018 2017 2019 2018 2017 EBIT/Total Income 42.36% 44.16% 43.45% Liquidity Ratio 8.9:1 8.0:1 5.4:1 2019 2018 2017 2019 2018 2017 31 2019 Annual ReportFiji Ports Corporation Limited Organisational Capacity Organisational Structure During the 5 Year Strategic Plan planning and development stage, Management initiated a Job needs analysis and reviewed the current organisation structure.
Proposed by the Strategic Consultant key positions of Business Development Manager, Chief Engineer; and Strategic Projects Manager are being considered.

External Engagements Management strongly believes in staff’s internal development and capacity building.

Looking at each staff’s competencies and skills, FPCL develops a structured programme for building staff’s capacity and their skills.
as such, FPCL works in collaboration with the local universities and non- Government Organisations (nGOs) to upskill staff and their knowledge.

The Company is also considering opportunities with key agencies for staff placements in strategic positions.

Retention Policy FPCL continues to provide remuneration as per the 80% of upper quartile of market in order to attract and retain competent staff.
a total number of 33 staff had left the Company due to either retirement, non-renewal of contract, termination or resignations.

actual turnover rate for 2019 considering staff that had resigned due to better employment opportunities was 6.37%.

Subsequently, a total of 25 new staff joined FPCL to fill the vacant positions.

Staff Satisfaction Survey while creating and reinforcing employee satisfaction to maximise productivity.

The results of the survey are expected to be finalised and published in 2020.
Achievements Continued emphasis was seen on Equal Employment Opportunities and Female Empowerment within the organisation: o First female appointed as Supervisor, Local Wharf on 1st March 2019; o a person with a disability, who is a certified Class 5 Marine Engineer, employed as Pilot Boat engineer; o First female appointed as Company Driver/ Transport assistant, o Junior women given Team Leader roles in Team Building Exercise held at uprising resort.
Supporting Strategic Goals as outlined in the 5 Year Strategic Plan 2019-2023 through: o recruitment of suitable personnel for critical positions; o realigning of Organisation Structure to the Strategic Plan of FPCL, o Implementation of a robust and fair Performance Management System to motivate staff commitment.
Staff Health and Welfare: o Free medical screening and awareness; o Employee assistance Programme provides staff with workplace Counselling, if requested, a total of 160 staff members participated in a Staff Satisfaction Survey, carried out by a Hr consulting firm.

This provided staff with the opportunity to voice their opinions on FPCL.
The survey results are a tool for Management to build positive employee relations and a positive work environment o Financial Literacy for staff conducted by Fiji national Provident Fund, Fijian Holding unit Trust, unit Trust of Fiji and Kontiki Finance.

as a result, employees have now invested in buying units and are making additional, voluntary payments into their FnPF accounts.

32 2019 Annual ReportFiji Ports Corporation Limited Gender Distribution for 2019 ff a t S f o .
o N 140 120 100 80 60 40 20 0 Jan 35 Feb 37 Mar 37 Apr 37 May 36 Jun 35 Jul 35 Aug Sept 35 36 Oct 37 Nov Dec 37 37 121 120 118 119 118 122 118 120 123 124 124 120 Workforce Availability by Contract Type/Location/Gender for 2019 ff a t S f o .

o N 50 45 40 35 30 25 20 15 10 5 0 Female Male Female Male Female Male Suva Lautoka Levuka Contract Staff Support Staff 24 6 46 43 6 1 14 14 0 0 1 2 FPCL Employees by Contract & Gender Distribution for 2019 ff a t S f o .
o N 100 90 80 70 60 50 40 30 20 10 0 Contract Staff Support Staff Male 61 59 Female 30 7 Total 91 66 33 2019 Annual ReportFiji Ports Corporation Limited Employees by Gender for 2017, 2018 and 2019 ff a t S f o .

o N 140 120 100 80 60 40 20 0 Male 124 34 Female 125 35 Total 120 37 Talent Development In-House Training over External Training FPCL’s Human resources Department continued to implement Talent Development through the Organisation’s Training Plan.
Programmes were developed in consultation with the training providers with the focus to upskill the existing FPCL workforce in order to meet the job requirements.

The 2019 training expense was FJ$131,853 compared to FJ$171,094 for the same period in 2018.

The primary aim for this financial period was on both internal and external training, including overseas training, as well as continuous capacity building in relation to the succession plan.
The services provided to staff was guided by the Management’s quality management system.
External Training 35% FPCL Training Expenditure 2019 In-House Training 65% $131,853 $ D J F 180,000 160,000 140,000 120,000 100,000 80,000 60,000 40,000 20,000 - 34 $39,099 $36,408 $35,122 $21,224 In-House Professional Overseas USP/FNU/NTPC Total Training Cost Training Category 2019 Annual ReportFiji Ports Corporation Limited Safety Training FPCL is committed to ensuring the Health and Safety of its staff, training sessions taking place: 2019 trainings Conducted No.
of staff Fire Warden First aid Fire Safety at Work OHS Modules 1 & 2 OHS Modules 3 & 4 Tsunami awareness 33 48 24 29 15 10 Fire Drills (carried out twice in 2019 for Suva, Lautoka and Levuka office) 51 per fire drill Management/Supervisory Development Training Developing our leaders and potential leaders is important to Fiji Ports Corporation Limited, with the following training taking place: 47 Courses - 193 attended Total Training Hours 7,363.1 hours spent in training Total Number of Employees Attended Training FPCL and FPTL - 270, FSHIL - 57 Gender Equity In line with FPCL’s policy and initiatives, the Company continues to support Equal Employment Opportunities by providing tailor-made trainings suited to its diverse group of staff.
Whilst more males are employed than females, FPCL continues to support Equal Employment Opportunities with the appointment of suitably qualified females in positions traditionally held by males.

Contract Staff Support Staff 28% 16% 72% 84% 35 2019 Annual ReportFiji Ports Corporation Limited Pilot Training FPCL continues to support and build staff capacity by sending pilots annually to advanced- level workshops overseas, other than the local ones offered by Maritime Safety authority of Fiji.
This year, two Pilots attended the three-day workshop on the “Elements of Marine Pilotage” in Malaysia.

The workshop is designed to assist Pilots to keep abreast with recent developments in the piloting industry regarding work environment, tools, skills development and assessment; all with the primary objective of enhancing safety and efficiency for the services offered by pilots.
the year, During international Consultants conducted the two-day Pilots’ Portable unit (PPu) awareness workshop to update the Pilots on the current equipment and practice used in the maritime industry.

The workshop also focused on the integration of PPu and VTMS steps.

The workshop concluded with a live PPu exercise for the arrival of a vessel to the Port with the full spectrum use of PPu from pilot embarkation to berth.

The FPCL pilot boat ‘Senitakali’ undergoing sea trials.
FPCL and UN Port Performance Mean Comparison Variance Between UN Port Performance “Mean” vs. FPCL 35,257 (increase as compared to UN Port Performance “Mean”) UN Port Performance “Mean” 2016 194,908 FPCL 230,165 Variance Between UN Port Performance “Mean” vs. FPCL 2,296 (increase as compared to UN Port Performance “Mean”) UN Port Performance “Mean” 2016 374,940 FPCL 377,235 Variance Between UN Port Performance “Mean” vs. FPCL 23% (increase as compared to UN Port Performance “Mean”) UN Port Performance “Mean” 2016 38% FPCL 61% Variance Between UN Port Performance “Mean” vs. FPCL 10,489 (better than UN Port Performance “Mean”) UN Port Performance “Mean” 2016 49,715 FPCL 39,226 Variance Between UN Port Performance “Mean” vs. FPCL 2% (better than UN Port Performance “Mean”) UN Port Performance “Mean” 2016 0.95% FPCL 3% Variance Between UN Port Performance “Mean” vs. FPCL 13% (better than UN Port Performance “Mean”) UN Port Performance “Mean” 2016 23% FPCL 10% EBITDA as a percentage of TOTAL INCOME Revenue per Employee FJD (UN scorecard rates converted at 0.48) EBITDA per Employee FJD (UN scorecard rates converted at 0.48) Labour cost per Employee FJD (UN scorecard rates converted at 0.48) TOTAL EMPLOYMENT cost as a percentage of Total INCOME TRAINING COST as a percentage of WAGES 36 2019 Annual ReportFiji Ports Corporation Limited Health and Wellness a two-day workshop on non-Communicable Diseases (nCDs) conducted by the Ministry of Health and Medical Services for FPCL and FSHIL staff, included an address by the Ministry’s Head of Wellness, and free health checks by medical specialists.
Staff have responded positively to this timely advice and have established Company wide, healthy lifestyle and wellness initiatives.

Community Involvement FPCL’s initiatives demonstrate our commitment towards Corporate Social responsibilities (CSr).
The key principles of our approach to CSr include considering how our services and people can build a more resilient society, preparing for climate change risks - including reducing our own environmental impact, and ensuring strong governance and compliance practices.

In 2019, the Company supported initiatives that included Pinktober and the Blue Canoe race and the celebrations marking Fiji Day and World Maritime Day.
Employee Engagement FPCL continues to actively encourage employees to further their education and training in their respective fields.

Management is encouraged to attend the FIa Congress, and FHrI, CPa, IIa conferences, as well as completing rIna and other certification.

annually, FPCL organises team building exercises where all staff from Suva, Lautoka and Levuka take part.

The overarching aim is to promote team-work and create a cohesive work environment.
Variance Between UN Port Performance “Mean” vs. FPCL 20% (lower than UN Port Performance “Mean”) UN Port Performance “Mean” 2016 18% FPCL 38% Variance Between UN Port Performance “Mean” vs. FPCL 18% (lower than UN Port Performance “Mean”) UN Port Performance “Mean” 2016 38% FPCL 20% Variance Between UN Port Performance “Mean” vs. FPCL 4,449 (lower than UN Port Performance “Mean”) UN Port Performance “Mean” 2016 14,260 FPCL 9,811 Variance Between UN Port Performance “Mean” vs. FPCL 3% (higher than UN Port Performance “Mean”) UN Port Performance “Mean” 2016 21% FPCL 24% Variance Between UN Port Performance “Mean” vs. FPCL 55 (better than UN Port Performance “Mean”) UN Port Performance “Mean” 2016 116 FPCL 171 Vessel Dues as a percentage of TOTAL INCOME Cargo Dues as a percentage of TOTAL INCOME Average Gross Tonnage per Vessel Tonnes per working hours for dry bulk Female Participation Rate 37 2019 Annual ReportFiji Ports Corporation Limited Operational Efficiency The Port Operations cover a wide range of activities that include the Harbour Master’s Office, Piloting Movements, Tug Boat Movements, infrastructure maintenance and services in Ports of Suva, Lautoka and Levuka, including two local wharves in Suva and one local wharf in Lautoka.
In 2019, Port user Licences (PuL) issued by category increased by 11% compared with 2018.

This is attributed to the increase in numbers for Port Service Providers, Importers & Exporters, Shipping agents/Freight Forwarders, and Cruise Ship related activities.

No.
No.

of PUL issued by Categories - 2018 and 2019 Category Port Service Providers Importers and Exporters Cruise Ship Related Activities Shipping Agents/Freight Forwarders Fishing Activities Tenants Technical Services Providers/Contractors Others tOtAL 2018 2019 No.

of PUL Issued 142 158 75 57 59 26 18 5 7 93 65 63 29 10 8 5 389 431 No.

of PUL issued by Categories - 2018 and 2019 d e u s s i L U P f o .
o N 180 160 140 120 100 80 60 40 20 0 2018 2019 Port Service Providers Importers and Exporters Cruise Ship Related Activities Shipping Agents/Freight Forwarders Fishing Activities Tenants Technical Services Providers/ Contractors Others Total Vessel Calls by Vessel Type for 2017, 2018 and 2019 2017 45 309 1,072 92 496 44 24 73 Movement from 2016 to 2017 13 46 232 11 89 -3 -2 -7 2018 34 298 898 64 440 47 29 67 Movement from 2017 to 2018 -11 -11 -174 -28 -56 3 5 -6 2019 37 281 766 65 410 44 21 61 Movement from 2018 to 2019 3 -17 -132 1 -30 -3 -8 -6 2,155 379 1,877 -278 1,685 -192 Vessel Type Dry Bulk Liquid Bulk Fishing Cruise Liner LOLO RORO/LOLO Car Carrier Others tOtAL 38 2019 Annual ReportFiji Ports Corporation Limited Port of Suva Vessel Calls by Vessel Type for 2017, 2018 and 2019 Vessel Type Dry Bulk Liquid Bulk Fishing Cruise Liner General Cargo - LOLO General Cargo - RORO/LOLO Car Carrier Others total No.
of Vessels Total GRT (000’s) Pilot services at the Port are currently done by two agencies; namely FPCL Port Pilots and Sea Pilots (Fiji) Ltd.
Port of Suva Vessel Calls by Type for 2017, 2018 and 2019 s r e b m u N l e s s e V Dry Bulk Liquid Bulk Fishing Cruise Liner General Cargo - LOLO General Cargo - RORO/LOLO Car Carrier Others Port of Suva Piloting Movements for 2017, 2018 and 2019 2017 Jan Feb Mar Apr May Jun Jul Aug Sept Oct Nov Dec Total FPCL Port Pilots Sea Pilots tOtAL Jan Feb Mar Apr May Jun Jul Aug Sept Oct Nov Dec Total FPCL Port Pilots Sea Pilots tOtAL Jan Feb Mar Apr May Jun Jul Aug Sept Oct Nov Dec Total FPCL Port Pilots Sea Pilots tOtAL Annual ReportFiji Ports Corporation Limited Port of Suva Piloting Movements for 2017, 2018 and 2019 Port of Suva Tug Movements for 2017, 2018 and 2019 s t n e m e v o M f o .
o N 4000 3500 3000 2500 2000 1500 1000 500 0 3,496 FPCL Port Pilot Sea Pilot 3,132 2,698 658 434 392 s t n e m e v o M g u T f o .

o N 1350 1300 1250 1200 1150 1100 1050 1000 1,320 Tug Movements 1,149 1,121 2017 2018 2019 2017 2018 2019 Port of Suva Pilot Boat “Muri Mai” Movements for 2017, 2018 and 2019 i a M i r u M t a o B t o l i P f o .
o N s t n e m e v o M 300 250 200 150 100 50 0 2017 2018 2019 Jan Feb Mar Apr May Jun Jul Aug Sept Oct Nov Dec Port of Suva Tug Movements for 2017, 2018 and 2019 Year 2017 2018 2019 tOtAL Tug Movements 1,320 1,149 1,121 3,590 Port of Suva Pilot Boat “Muri Mai” Monthly Movements for 2017, 2018 and 2019 2017 2018 2019 Jan Feb Mar Apr May Jun 228 249 190 204 146 178 282 240 178 283 226 207 207 191 194 238 159 133 Jul 202 186 85 Aug Sept Oct Nov Dec 216 228 - 215 185 85 243 177 148 156 119 133 198 187 150 Port of Lautoka Vessels by Type for 2017, 2018 and 2019 No.
of Vessels Total GRT (000’s) Vessel Type Dry Bulk Liquid Bulk Fishing Cruise Liner General Cargo - LOLO General Cargo - RORO/LOLO Car Carrier Others total 2017 2018 2019 18 178 7 38 225 22 - 12 500 10 167 - 23 202 23 - 13 438 16 154 8 24 197 22 - 14 435 2017 408 1,917 0.7 3,253 2,676 386 - 5 2018 223 1,868 - 1,681 2,609 394 - 11 2019 345 1,761 4 1,669 2,661 388 - 35 8,646 6,786 6,865 40 2019 Annual ReportFiji Ports Corporation Limited Port of Lautoka Vessels by Type for 2017, 2018 and 2019 s l e s s e V f o .
o N 250 225 200 175 150 125 100 75 50 25 0 178 167 154 225 202 197 2017 2018 2019 18 16 10 7 - 8 38 23 24 22 23 22 Dry Bulk Liquid Bulk Fishing Cruise Liner General Cargo - LOLO General Cargo - RORO/LOLO - - - 12 13 14 Car Carrier Others Port of Lautoka Vessel Calls by Type for 2017, 2018 and 2019 YEAR PASS LOLO RORO/LOLO DRY BULK LIQUID BULK FISHING NAVAL OTHERS TOTAL 2017 2018 2019 Notes: 38 23 24 225 202 197 22 23 22 18 10 16 178 167 154 7 - 8 4 - - 8 13 14 500 438 435 There has been a 38% decrease in Passenger vessel arrivals over the last 3 years, a decrease of container vessels by 12%, a 3% increase in Oil and Gas tankers and, notably, 100% increase in fishing vessels.
For the period 2018 – 2019 alone, Dry Bulk vessels increased by 60%, following the commissioning of the Amex Berth, where Dry Bulk vessels have commenced loading iron concentrate.

Other types of vessels show a slight increase.
Port of Lautoka Piloting Movements for 2017, 2018 and 2019 2017 Jan Feb Mar Apr May Jun Jul Aug Sept Oct Nov Dec FPCL Port Pilots Sea Pilots Total Jan Feb Mar Apr May Jun Jul Aug Sept Oct Nov Dec FPCL Port Pilots Sea Pilots Total 42 38 80 53 27 80 65 44 109 45 36 81 50 38 88 51 32 83 2019 Jan Feb Mar Apr May Jun FPCL Port Pilots 85 Sea Pilots Transam Pilots Total Note: 4 - 89 92 9 - 101 81 7 - 88 92 9 - 100 5 - 101 105 78 9 - 87 45 35 80 Jul 103 4 - 107 47 43 90 55 36 91 86 20 106 60 14 74 64 6 70 Aug Sept Oct Nov Dec 96 2 - 98 124 4 - 99 7 - 93 29 - 107 24 2 128 106 122 133 Due to the capacity building of FPCL Pilots, Port Pilots attendance to vessels showed a major increase to 90.91%, compared with Sea Pilots attendance of 8.93%.
41 2019 Annual ReportFiji Ports Corporation Limited Port of Lautoka Tug Movements for 2017, 2018 and 2019 Port of Lautoka Tug Movements Tug Movements 1,018 897 834 2,749 Year 2017 2018 2019 TOTAL Note: As per FPCL Tug Regulation 2009, all vessels of 3000GT and above shall engage a tug.

All Medium Range Tankers at the Vuda Oil Terminal moorings are to engage 2 tugs.

s t n e m e v o M g u T f o .


o N 1200 1000 800 600 400 200 0 Tug Movements 2017 2018 2019 Port of Lauotka Monthly Pilot Boat “Senibiau” Movements for 2017, 2018 and 2019 Jan Feb Mar Apr May Jun Jul Aug Sept Oct Nov Dec TOTAL 117 109 100 Notes: • Pilot boat runs increased to 406 over the last 3 years, an increase of 128.5%.
In 2019, there was an increase of 321 runs, or 80%, compared with 2018.

• The pilot boat runs increase was due to the pick-up and drop-off at Vuda OPL anchorage, and additional movements to Bligh Water Pilot Station.

Port of Lauotka Pilot Boat “Senibiau” Movements for 2017, 2018 and s t n e m e v o M u a i b n e S t a o B t o i l i P f o .
o N 80 70 60 50 40 30 20 10 0 Jan Feb Mar Apr May Jun Jul Aug Sept Oct Nov Dec Port of Levuka Vessels by Type for 2017, 2018 and 2019 No.

of Vessels Total GRT (000’s) 2017 2018 2019 2017 2018 2019 111 1 112 78 - 78 47 1 48 35 2 37 26 - 26 20 4 24 Vessel Type Fishing Cruise Liner total 42 2019 Annual ReportFiji Ports Corporation Limited Port of Levuka Vessel Calls by Type 2017, 2018 and 2019 s l e s s e V f o .
o N 120 110 100 90 80 70 60 50 40 30 20 10 0 111 112 2017 2018 2019 78 78 47 48 1 - 1 Fishing Cruise Liner Total Ports of Malau, Wairiki & Savusavu - Vessels by Type for 2017, 2018 and 2019 Vessel Type Dry Bulk Liquid Bulk Cruise Liner total No.
of Vessels Total GRT (000’s) 2017 2018 2019 2017 2018 2019 12 54 - 66 10 53 - 63 10 58 1 69 394 220 331 232 - - 614 563 335 270 4 609 Ports of Malau, Wairiki & Savusavu - Vessels Calls for 2017, 2018 and 2019 s r e b m u N l e s s e V 80 70 60 50 40 30 20 10 0 2017 2018 2019 54 53 58 66 63 69 12 10 10 Dry Bulk Liquid Bulk Cruise Liner Total - - 1 FPCL is supplying marine services to the Port of Savusavu.
43 2019 Annual ReportFiji Ports Corporation Limited Safety, Security & Technology With recent upgrades and developments taking place at wharves, FPCL continued to improve safety of Port users by implementing separation schemes for the pedestrians and vehicular traffic.

a Traffic Study was conducted and based on its recommendations, the facility’s improvement budget was submitted for the Board’s approval.
FPCL continues to take safety as a top priority and ensures that all staff and Port users are well - protected at all times.

In 2019 saw the further inception of workplace safety culture relating to the good safety practices for the use of Personal Protective Equipment (PPE).

In 2019 the Company embarked on a project plan for the development and implementation of OHS policies, procedures and audit practices leading to ISO 45001:2018.
ISPS Code Compliance Ports’ security and ISPS compliance is a critical aspect relating to both national and international requirements.

as such in 2019, FPCL invested considerable resources towards the review and updating of Company’s International Ships & Ports Security (ISPS) Code compliance requirements, including conducting of internal audits in line with FPCL’s Port Security Plan.
The Ports’ Security Department has reviewed the CCTV coverage, security patrol practices to ensure both site security and ISPS are in compliance, which also includes broader security practices.

FPCL continued with its commitment in improving cooperation with the border security agencies by conducting regular meetings and developing and implementing high-level strategies for collaboration.
technology-based numerous also implemented to enhance boarder security from FPCL’s end and was incorporated into an interim ISPS plan, submitted to the Board.

initiatives were Occupational Health & Safety Occupational Health & Safety (OHS) initiatives included the launch of the use of Safetyhub online OHS training methodologies, which provides FPCL staff with up-to-date australian Occupational Health and Safety practices and standards.
In close collaboration with the natural Disaster Management Office, FPCL conducted the first tabletop natural disaster management exercise at FPCL Head Office, Muaiwalu House.

The Ports’ Security Department has reviewed the CCTV coverage, security patrol practices to ensure both site security and ISPS are in compliance, which also includes broader security practices.
44 2019 Annual ReportFiji Ports Corporation Limited Smart Port Initiative as a major initiative of the Smart Port Project, FPCL has plans to implement a Vessel Traffic Management System (VTMS) in 2020.

Due to the complexity of the project, the Company has appointed an overseas Consultant to provide advisory services and has appointed a reputable Supplier with extensive experience in development and implementation of VTMS.
FPCL representatives have attended a two day workshop on the use and application of the proposed system.

It will have an automatic Identification System (aIS), a radar system and communication links, all of which will enable the operator to manage vessel traffic, monitor the harbour basin and support the boarder control and other requirements of key stakeholders.
The VTMS will consist of: • Radar; • Coastal surveillance and tracking system; • VTMS software; • AIS base station; • VHF system; • CCTV system; • Voyage data recording and replay system for search and rescue; • Communication links; • Marine weather station; • Electrical power system, including UPS, • LAN hardware system.
Mua-i-Walu II Digital Vehicle Access Control System Installation of the Digital access Control System for vehicle entry at Mua-i-Walu II meant that vehicle operators and drivers are charged for the actual time spent parked in the wharf area, aiming at reducing traffic congestion within the wharf area.
The system not only prevents the congestion within the wharf area but has ensured the safety of public within the wharf area by asserting a control on the number of vehicles movements within the busy wharf area.

Further the system also provides reliable and accurate data on number of vehicles entered into the wharf that can be considered for any upgrading, future infrastructure development and wharf maintenance programmes.
Information & Communications Technology - Migration Towards Cloud FPCL is transitioning its operations online with the introduction of MS Office 365.

This is a cloud-based solution provided by Microsoft that offers the distinct MS Word, PowerPoint, Excel, and email services as opposed subscription to the traditional in-house software that organisations normally use to conduct their business.
MS Office 365 allows FPCL users to access the system anywhere, any time, as a complementary app installed on the computer makes it easily accessible offline.

This system is also secure and protects users from potential hackers.

The implementation of MS Office 365 was done in collaboration with a local mobile communication service provider.

In 2019, FPCL installed the system and strategically rolled it out to the other departments.
The Company using the software benefits from the additional features of MS Office 365: • Intranet system integration; • Team collaborations (live chats and team meetings) all done online from the comfort of their offices; • Sharing and saving of documents; • Less risk of data loss (software has 90-day backup), • Cost effectiveness.
Improvements to Communication Systems as part of delivering efficient and uninterrupted service, FPCL has moved towards the Host Cloud Telephony system, which does not require any hardware or up-front investment, thereby saving significant communication substantial costs to the Company while increasing coverage.

The system is network-based and can be used in any FPCL office location or anywhere the service provider’s internet link is available.
apart from low call costs, other main benefit includes FPCL not being required to maintain the system and availability of softwares updates which are cascaded down by the vendor without additional cost.

45 2019 Annual ReportFiji Ports Corporation Limited Microsoft Training Microsoft Excel training was held to upskill staff, to be better prepared to produce timely and accurate reporting, along with an enhanced ability to analyse data that is required for decision-making.
Staff were taught how to work with advanced formulas, create input data tables and format charts.

They were also introduced to Pivot tables and charts, as well as acquiring hands-on skills for the process of importing and exporting data.

Staff were also trained in the use of Microsoft Project, to capture, plan and manage various projects that are currently on-going within FPCL.

These training sessions were conducted with the assistance of the Training and Productivity Centre of Fiji national university.
Corporate WIFI at Head Office The installation of Wi-Fi access points throughout the Head Office was carried out late last year.

With this implementation, staff are able to access the local network wirelessly, enhancing their productivity at the work place.

To improve security, users need to provide their local domain credentials to sign into the wireless network and are only allowed access to resources for which they are authorised.
Wireless Presentation Gateways as part of introducing new technologies, all meeting rooms have been equipped with smart digital TV and wireless presentation gateways that allow users to present from their devices wirelessly and removes the need for projectors and projector screens.

Strategic Priorities These initiatives are part of Information Systems Strategic Plan 2019-2024 to be the business enabler on the digital frontier.
8 Key Challenges The FPCL ICT team has developed strategic priorities in eight (8) thematic areas as follows: 1.

Enhanced IT Border Security Infrastructure.

Monitoring and Response 2.

Incorporate Business Continuity of Information System with Organisational Continuity Plan 3.

Organisational-wide IT Policies and Procedures 4.

Professional Services Automation Systems and Processes 5.

Quality, Integrity, and Meaningful Representation of Data 6.

Unification of Systems 7.


Learning/Knowledge Management 8. International Best Practices Certification 46 2019 Annual ReportFiji Ports Corporation Limited The ICT Manager, with the guidance of the FPCL Project Management Office (PMO), will complete these priorities through rolling out action plans, starting in the final quarter of 2019.
The timeline for realising these goals is as follows: 2019 Fourth Quarter ICT Vulnerability Assessment VTMS Project Initiation Remote Site Connectivity First Quarter Second Quarter Third Quarter Fourth Quarter 2020 Patch Management Periodic review of network and security policies VTMS Project Digital Berthing Application Remote Site Connectivity Review of Office 365 access policies Formulation of security and change management committee Assess and implement High Availability for infrastructure Ensuring policies are available on relevant portals Identify requirements and develop/source relevant applications Dashboard and customized reporting Learning Management Systems - Requirements gathering Implementation of monitoring and reporting for network and system issues VTMS Project Identify Business critical Infrastructure ICT Policy review Data Cleansing Audit of Data Sources Identify and implement relevant industry security tools 2021 Upgrade backup application and test restoration of backup on cloud infrastructure Consultation with Navision Vendor Ensuring policies are available on relevant portals Identify and implement relevant technology for unification of systems Dashboard and customized reporting API identification and integration Policy enforcement First Quarter Second Quarter Third Quarter Fourth Quarter Network Backbone Upgrade Policy enforcement Smart Security Implementing of Learning Infrastructure Test Accessibility of restored servers and services from user Test accessibility of restored servers and services form user Policy enforcement Process review and realignment Implementing of Learning Infrastructure Develop course contents User training guides, manual and videos Process review and realignment Upgrade backup application and test restoration of backup on cloud infrastructure User training guides, manual and videos Process review and realignment Scope ISO standards Reverse restore to Date Centre and test for data integrity First Quarter ISO 20000 - Service Management ISO 27001 - Information Security
 Management ISO 22301 - Business Continuity Collaborate with business units and develop BCP and restoration test 2022 Second Quarter Third Quarter Fourth Quarter ISO 20000 - Service Management ISO 20000 - Service Management ISO 20000 - Service Management ISO - 27001 - Information Security Management ISO - 27001 - Information Security Management ISO - 27001 - Information Security Management ISO 22301 - Business Continuity ISO 22301 - Business Continuity ISO 22301 - Business Continuity Collaborate with business units and develop BCP and restoration test Penetration Testing 47 2019 Annual ReportFiji Ports Corporation Limited Environment & Sustainabilty Green Port Initiative as part of FPCL’s Green Port Initiative a number of key projects rolled out in 2019.
Background 2011 2016 FPCL attended a Green Ports conference in Japan as Environmental Sustainability is a concern to the organisation.

Energy audit conducted with funding support by South Pacific Community (SPC).

2017 & 2018 Support for Energy Management by Maritime Technology Cooperation Centre in the Pacific (MTCC-Pacific).
Protection of Port and Harbour Areas FPCL understands and works on protecting the areas adjacent to port lands and operational areas from the impact of increasing urbanisation, with the attendant pressures on air quality, noise pollution, and waste and traffic management issues.
FPCL’s commitment to addressing these issues saw the completion of the Port Waste reception Facility for the collection of sludge, oil and similar waste generated by vessels in FPCL’s ports, and shipping agents informed of the availability of the facility.

to Conforming requirements, five international unmanned vessels were removed from Suva Harbour and one from Lautoka Harbour in 2019. the o Management of hazardous and non- hazardous waste generated by the Port.
o upgrading of Muaiwalu House internal lighting to LED has reduced the energy consumption by an estimated 40% and a reduction of 62 tonnes of Green House Gas (GHG) emissions per year (2016).

o Energy Policy and Energy Management action Plan developed (2018).

o Energy tracker for electricity and fuel consumption - (2017).

o Office air conditioning upgrade (end 2018).

Launching FPCL’s 2019-2023 Green Port Masterplan Timeline and Sustainability Guidelines for Procurement.
2019 Installation of new Electric Incinerator Conforming to FPCL’s Green Port Initiative and Company’s commitment towards the reduction of emissions, the new electric powered incinerator was installed and commissioned by the Engineering Team with the engagement of an Engineering Consultant of the overseas supplier at a cost of FJ$630K.


48 2019 Annual ReportFiji Ports Corporation Limited Launching of 2019-2023 Green Port Master Plan and Sustainability Guidelines for Procurement The Ports encompassed by these initiatives are Suva, Lautoka and Levuka.
From FPCL’s perspective, a Green Port o Is clean o Contributes to the achievement of the Sustainable Development Goals (SDGs): Goal 3 - Health and Wellbeing; Goal 7 - affordable and Clean Energy; Goal 9 - Industry, Innovation and Infrastructure; Goal 13 - Climate action; Goal 14 - Life Below Water; Goal 15 - Life on Land, Goal 17 - Partnerships for Goals.
o Measures and achieves year-on-year reductions in its environmental impact in the following areas: • GHG Emissions; • Air pollution; • Marine pollution, • Waste reduction through Reuse and Recycling.

o Engages with stakeholders and port users to help reduce its environmental impact.

o Has healthy green space within its boundary.


Sustainable Procurement Guidelines The Guidelines cover procurement and civil works undertaken by FPCL, to ensure that they are implemented in a sustainable way, to the greatest extent possible.

Green Port Master Plan Strategy and Objectives This Green Port Master Plan aligns with this mission through reducing environmental impact, which directly and indirectly contributes to Fiji’s economic growth and prosperity.
Focusing on stakeholders, taking actions to reduce Environmental impact and ongoing assessment of its performance (SEa) FPCL’s green port actions that will contribute to the achievement of these objectives.

Highlighted below are few of these objectives; 2020 Stakeholder Engagement By 2020 committed to be fully engaged with stakeholders.

2021 Reporting By 2021 FPCL to be producing twice-yearly reports.

2021 ISO 50001 By 2020 / 2021 implement Environmental Management System in line with ISO 14001.
2022 Water Use Management By 2022 to have smart water metering.

2019 Green Development Major redevelopment or construction to adopt Green Port Guidelines.

2023 Water Pollution By 2023, comparative reporting on reduction of oil spill and contamination in harbour areas.

2023 Carbon Footprint By 2023, FPCL to become carbon neutral with respect to its electricity use.

2023 Clean Wharfs By 2023, waste going to landfill from port areas will have reduced by 30% and the port will be perceived as cleaner.
49 2019 Annual ReportFiji Ports Corporation Limited Fiji Ships & Heavy Industries Limited 2019 Highlights ü Quality Management System - first training workshop for ISO 45001:2018 Occupational Health & Safety Management systems commenced ü 500 tonne slipway new creedal fabrication project commenced ü 200 tonne slipway upgrading project commenced ü Four employees achieve professional membership with royal Institution of naval architects (rIna) ü national Fire authority conducted trainings ü Green Space Initiative - corporate garden established Financial Performance Client Base FSHIL has recorded a net profit of FJ$112k for the 2019 Fiji Ships & Heavy Industries Limited (FSHIL) has recorded a net profit of FJ$112k for the 2019 Financial Year.
Total income exhibited a decrease by FJ$819k, or 12.5%, compared to 2018.

This decline resulted from the challenges encountered due to aging slipway infrastructure.

Expenses increased by FJ$730k, or 15.04%, over 2018 and this increase is mainly attributed to repairs and maintenance of infrastructure.

nPaT has decreased by FJ$1.22million, or 91.62%, compared with 2018.
Despite this, the balance sheet has remained strong, with a healthy cash balance of FJ$2.4million, term deposit of FJ$1million and a low gearing of 0.10.

The Dividend paid in 2019 with respect to the 2018 Financial Year increased.

This was due to higher profits made from project-based works in 2018 when compared to 2017.
FSHIL’s client base continues to include Pacific Island countries, such as Kiribati, Vanuatu, Tonga, Solomon Islands, Tuvalu, Marshall Islands, nauru, and Samoa, as well vessels owned by Fiji-based overseas fishing companies and Fiji registered vessels.

Customer Focus During the year in review, FSHIL continued to promote and maintain the customer focused business culture that reinforces the reputation of the Company.
FSHIL’s continuing track record of reliability, quality and on- time delivery meeting and exceeding customer requirements was maintained in 2019 despite the challenges caused due to aging infrastructure.
50 2019 Annual ReportFiji Ports Corporation Limited 2019 Annual Report Fiji Ports Corporation Limited FSHIL is committed to acquiring, retaining and developing the right people with the right skills, and prides itself on having a stable, professional and well-qualified workforce that adheres to national and international codes of Occupational Health and Safety.

Core Function In 2019 FSHIL continued to provide high-level services in the area of Slipping of marine vessels and Ship repairs and Maintenance.
The Heavy Industry and Engineering works section provided services in the area of building and fabrication.

Slipways • 200tonne slipway (to be upgraded to 500tonne for 46metre vessels with 11metre beams) • 500tonne slipway (46metre vessels with 11metre beams) • 1,000tonne slipway (65metre vessels with 13metre beams) Heavy Industries FSHIL continued providing services for marine and other industry customers in Fiji by undertaking steel, engineering, electrical, timber and technical works.
Quality Management Following the 2018 certification of FSHIL for ISO 9001:2015, for the provision of services related to ship repair works, ship repair services, slipway facilities and heavy industry services, the FSHIL team embarked upon their first training workshop for ISO 45001:2018 Occupational Health & Safety Management systems.

The two-day workshop conducted by the certification body Sri Lanka Standards Institution (SLSI) was also attended by FCPL staff.
Protecting the Environment FSHIL has introduced control measures to manage ships’ bio fouling, to minimise the transfer of invasive aquatic species.

The Company’s improved water recycling system captures, filters and recycles the water used in operating the Company’s water blaster.

The process means that FSHIL is not discharging paint or chemical-laden water into the surrounding marine environment.
This is of vital importance as FSHIL’s business and the livelihoods of the nearby communities depend upon the continued health of the marine environment.

Green Space Initiative a system was developed to use recycled water within the Company and it was also used to water FSHIL’s Green Space.

The newly established FSHIL’s Green Space provides a welcoming shady avenue for anyone entering into the premises and seating space for staff to take their lunch and tea breaks.
The Company has the capacity for steel fabrication work up to 300tonnes, making it possible for FSHIL to design multipurpose, roll-on, roll-off vessels, specifically for inter- island trade and transport.

51 2019 Annual ReportFiji Ports Corporation Limited Steel Section Fibreglass Boat Manufacture Work includes steel and aluminum ship construction and repairs, industrial fabrication and heavy machinery welding.
Engineering Section Engineering includes general pipework, machining and turning stern gear servicing, installation and repair of deck machinery and valve and pump repairs.

Electrical Section Work includes marine electrical services, industrial electrical services, servicing and repair of electrical generators and motors, and auto electrical services, including marine, industrial and heavy mobiles, and the rewinding of generators and motors.
Timber Section Work includes ship repair outfitting, wooden boat building, machining and installation of timber decking, marine and industrial painting, fibreglassing, building construction, office renovation and furniture making.

Technical Section Work includes boat designing, ship calculations, conducting of inclining experiments, compiling of visibility data, hull ultrasonic gauging and general estimating.
FSHIL manufactures two sizes of fibreglass boats using the Wr 23D and 23Sr hull designs, with redesigned internal structures, which meet the compliance and approval of the Maritime Safety authority of Fiji (MSaF).

all FSHIL fibreglass boats are fitted with grabbers, in case of capsising, and equipped with a Safety of Life at Sea compliant kit of oars and rowlocks, flares, life jackets and a first aid kit.
Each boat goes through a swamp test conducted by MSaF officials, in compliance with ISO 12217-2 Boat Building Standards of the International Classification Society (IaCS) of which Fiji is a member.

Specialised Services FSHIL also offers other specialised services that include: - Vessel conversion, upgrading and reconstruction; - Diving services; - Berthing; - Garbage disposal; - Three-ton crane hire; - Pontoon hire, - Gangway hire.
Departments The FSHIL Functional and Operational Departments and Sections consist of: Steel Ship Repairs and Heavy Engineering Works.

Slipways Dry Docking.

Administration Human Resources, Central Registry, Property and Security.

Finance Accounts and Financial Management.

Fiji Ships & Heavy Industries Limited Stores Purchasing, Inventory Control and Transport.

Engineering Fitting, Machining, Electrical and Plumbing.

Production Projects and Quality Control.

Estimating Estimating and Planning.


Painting Painting and Water Blasting.

52 2019 Annual ReportFiji Ports Corporation Limited Workforce Training FSHIL is committed to acquiring, retaining and developing the right people with the right skills, and prides itself on having a stable, professional and well-qualified workforce that adheres to national and international codes of Occupational Health and Safety.

Workforce Availability by Contract Type/Gender for 2019 ff a t S f o .
o N 50 45 40 35 30 25 20 15 10 5 0 FSHIL recognises that training and development of its staff is fundamental to the ongoing improvements at FSHIL and striving towards strategic goals.

FSHIL’s investment in training recognises the imperative need to both maintain the standard of service delivery to customers with a skilled and professional workforce and supports staff in their professional development.

The 2019 training expense utilised was FJ$33,106.

2019 Trainings Conducted No.
of Staff Working at Heights and Confined Space Training of Trainers Modules I & II Gas Detector OHS Management Systems Occupational Health & Safety Management System & Standards First aid Training Six Sigma White Belt Fire Warden and Fire Fighting Permanent Contract Project Mechanical Engineering Industry Skills Male Female Male Female Male Female Microsoft Office Excel 2016 Gender 22 0 10 4 48 2 Doggers & riggers 20 2 8 30 6 4 10 1 25 1 6 6 FSHIL Organisation Structure & Change Management Steering Team Governance FPCL Executive Management Legal Unit (FPCL) Risk & Compliance Unit (FPCL) Financial Finance Department Business Information Unit Procurement Infrastructure Asset Management (FPCL) Projects Unit Sustainability & Environment Environmental Management Unit Energy Management Unit General Management OM Production Department HR Department Technical & Estimation Department Quality Assurance Department Slipway Operations WM Slipway Steel Water Blasting/Painting/Boatbuildings Carpentry and Joinery Engineering Heavy Industries HRC Organisation Skills & Knowledge Development Motivation, PMS and Capacity Building Startegic Goals, KPI, Monitoring and Check and Balance Control System.
SE Technical & Estimation Onboard Assessment Survey Report Quotation & Invoice Template Ship Design, Workshop Drawings & Drafting Works/Ship Repair & Heavy Industries.

Quality Systems QAO ISO 9001:2015 / ISO 14001:2018 Standard Operaton Procedures (SOP) Quality Checklist/IACS/MSAF Reg.

Risk Management .

Finance & ITC ACC Budget Income Forecast CAPEX/OPEX/Finance Risks Check & Balance / Financial Report, P&L Statement.
Stores & Transport 53 2019 Annual ReportFiji Ports Corporation Limited Fiji Ports Corporation Limited Consolidated Financial Statements FOR THE YEAR ENDED 31 DECEMBER 2019 Contents Directors’ report Directors’ declaration auditor’s independence declaration Independent audit report Consolidated statement of profit or loss and other comprehensive income Consolidated statement of changes in equity Consolidated statement of financial position Consolidated statement of cash flows 55 - 58 59 60 61 - 63 64 65 66 67 notes to the consolidated financial statements 68 - 92 54 2019 Annual ReportFiji Ports Corporation Limited and its Subsidiary Directors’ Report FOr THE YEar EnDED 31 DECEMBEr 2019 In accordance with a resolution of the Board, the Directors present their report on the consolidated entity consisting of Fiji Ports Corporation Limited (“the Company”) and its subsidiary (collectively “the Group”) as at 31 December 2019.
Financial comparisons used in this report are of results for the year ended 31 December 2019 compared with the year ended 31 December 2018.

The historical financial information included in this Directors’ report has been extracted from the audited Financial Statements accompanying this Directors’ report.
Information in this Directors’ report is provided to enable shareholders to make an informed assessment of the operations, financial position, performance and other aspects of the Company and the Group, and whether the Company and the Group are a going concern.

Principal activity The principal activity of the Company is providing and managing the port infrastructure and services within declared ports.
The principal activity of the subsidiary trading as “Fiji Ships and Heavy Industries Limited” is the provision of ship repair and slipway services.

There has been no significant change in these activities during the year.

Review and results of operations The operating Group profit for the year was $26,500,505 (2018: $28,041,359) after providing for income tax expense of $5,664,291 (2018: $5,725,731).
The operating profit for the Company for the year was $28,035,714 (2018: $27,065,479) after providing for income tax expense of $5,620,759 (2018: $5,369,473).

Our values In financial year 2019 and looking forward in 2020, we have been progressively working towards delivering results for our key priorities as identified within our strategy.
These key priorities are: at Fiji Ports Corporation Limited and its subsidiary, we have 6 key values that are the core of our business, as listed below: - Professionalism - We are guided by the highest level of honesty and integrity in everything we do and will always demonstrate fair, open, honest and ethical business practices.

We aim to treat our people, customers and stakeholders with respect.
Our people and our conduct is a measurement of high standards of professional integrity; - Commercial Stewardship - We will manage our business and activities in a commercial manner and ensure that competitive and compensatory financial returns provide for a long and prosperous future for the organisation.
We will commit to being accountable to effective business planning, and reward our people for achieving success; - Strategic Innovation - Through our people and our development strategy, we will challenge the status quo of the maritime transportation and logistic sector and become recognised leaders in the industry by being responsive to the changing needs of maritime and industrial sectors, and by bringing value to our customers through being an effective link in the supply chain; - Progressive Leadership - We will promote a proactive and creative environment that supports a work culture of collaboration and teamwork, and aim to develop leaders who enthusiastically embrace achievement and innovation.
We will encourage the continuous learning, training and development of our people.

We will always try to do better; - Corporate Citizenship - We will integrate corporate citizenship and social responsibility into every aspect of our operations.
We recognize that it is a privilege to share the marine and land assets of Fiji Ports with the community, and the people in the various associated regions, and that we have responsibility to the community to communicate openly with residents, participate in, and support development, and ensure that our actions protect the environment and Fiji culture; and - Employees Well Being Diversity - as a company we hold advancing the health, safety and well being of our workforce as an absolute priority.
It’s a commitment that encompasses the environments in which employees work, and the communities in which they live.

We aim to be a leader in diversity aiming always to be non-discriminatory in respect to culture, race, sex or age, and consequently providing a fair and accepting workplace.

Our strategy Fiji Ports Corporation Limited (FPCL) aims to be the Smart Green Gateway for Trade in the Pacific region.
The 5 Year Strategic Plan (2019- 2023) is a cornerstone of the overall alignment of the Port to an increasingly dynamic and competitive business environment.

Through the Strategic Plan, the Port will meet key challenges and leverage opportunities to achieve its goals.

The Plan addresses the physical, operational, economic, environmental and recreational requirements of the company.

It forms the basis for the strategic policy for effective resources utilization and efficient service delivery.
55 2019 Annual ReportFiji Ports Corporation Limited and its Subsidiary Directors’ Report continued FOr THE YEar EnDED 31 DECEMBEr 2019 Our strategy continued The company implemented 5 Year Strategic Plan commencing from 2019 – 2023.

The strategic goals is adopted from previous strategy which had nine goals and only six goals have been adopted for 5 – Year Strategic Plan.

These goals are targeted to the challenges that lie ahead as well as reflecting the nature of the ownership model of FPCL.
The six strategic goals include: strategic Goal 1 - Governance Protect Shareholders integrity and transparency while achieving a balance between commercial and social deliverables.

strategic Goal 2 - infrastructure Invest strategically to ensure necessary availability of fit for purpose facilities while investigating future asset options for long term efficiency and productivity.
strategic Goal 3 - Financial Performance To spearhead the Commercial and Financial stewardship of FPCL and to ensure that shareholder value is enhanced, in the midst of implementing capital intensive projects.

strategic Goal 4 - Organisation/ Capacity align organisational structure to objectives and capacity requirements, while promoting gender equality and retention.
strategic Goal 5 - Environment Implement Port Sustainability Guidelines and Energy Management Initiatives to become a Green Port in the Pacific.

strategic Goal 6 - safety, security and technology adopt Smart Port initiatives to achieve best practice in international Port Security and safe working environment.

Our priorities this year In financial year 2019 and looking forward in 2020, we have been progressively working towards delivering results for our key priorities as identified within our Strategy.
These key priorities are: - Launching of 5-year Green Port Master Plan and Timeline.

- Launching of Sustainable Procurement Guidelines.

- Commissioning of new electric powered incinerator at Port of Suva to support our smart/green port initiative.

- Opening of Cruise Passenger Lounge at Port of Suva.

- Condition inspections of international wharfs, to determine condition of the wharf structures, load ratings and prepare risk matrix for rehabilitation work.
- Investigate and Develop computerised asset Management and or Maintenance Management System.

- Conduct feasibility studies to increase port capacities.

- Start preparatory work for implementation Vessel Traffic Management from 2020.

- review tariff structure for local wharves.

- Installation of the access system for vehicle entry at M2.

- upgrade pilot boats to meet the international standards.

- Conduct feasible studies on revenue automation process and provide recommend to management.
- Improve capacity building and recruitment process.

Key statistics number of employees Dividend per share Total Income net assets Group 251 $ 0.22 Company 157 $ 0.22 $ 59,252,320 $ 59,225,921 $ 140,540,289 $ 136,091,316 56 2019 Annual ReportFiji Ports Corporation Limited and its Subsidiary Directors’ Report continued FOr THE YEar EnDED 31 DECEMBEr 2019 the future Major future strategies of the Group are: - Implement Vessel Traffic Management System.
- Implement automated revenue system and integrated with Vessel Traffic Management System.

- Installation of solar system at Local Wharf.

- Lautoka Yard 3 development to increase port capacity.

- review tariff structure for International Wharves.

- Commence rehabilitation at various wharves based on the risk matrix.

- ISO 14000 Certification.

- Procure second pilot boat to align to international standards.
- Develop marketing strategies and invest in business development to build key throughputs and revenues.

Identify regional trade and market share opportunities, interface with industry groups including shipping forums and regional commissions.

- Enterprise training [enterprise value and thinking].

- Initiate Information Systems and Strategic Plan.

- review International Ship Port Facility Security (ISPS) compliance.

- revamp Environment Management Program.


Dividends On 15th March 2019, the Directors resolved to pay a dividend of twenty-two cents per share ($0.22) for the 2018 financial year.
Dividends paid out during the year were as follows: Dividend Date resolved Date paid Dividend per share total dividends Final Dividend 15/03/2019 25/03/2019 $ 0.22 $ 16,239,287 Significant changes in the state of affairs There were no significant changes in the state of affairs of the Company and the Group during the year ended 31 December 2019.
Events occurring after the end of the financial year Subsequent to the end of the financial year, the COVID-19 outbreak was declared a pandemic by the World Health Organisation in March 2020.

We have seen a significant impact on our business to date.

The outbreak and the response of Governments in dealing with the pandemic is interfering with general activity levels within the community, the economy and the operations of our business.
The scale and duration of these developments remain uncertain as at the date of this report however they are having an impact on our earnings, cash flow and financial condition.

It is not possible to estimate the impact of the outbreak’s near-term and longer effects or Governments’ varying efforts to combat the outbreak and support businesses.
This being the case, we do not consider it practicable to provide a quantitative or qualitative estimate of the potential impact of this outbreak on the Group at this time.

The financial statements have been prepared based upon conditions existing at 31 December 2019 and considering those events occurring subsequent to that date, that provide evidence of conditions that existed at the end of the reporting period.
as the outbreak of COVID-19 occurred after 31 December 2019, its impact is considered an event that is indicative of conditions that arose after the reporting period and accordingly, no adjustments have been made to financial statements as at 31 December 2019 for the impacts of COVID-19.
57 2019 Annual ReportFiji Ports Corporation Limited and its Subsidiary Directors’ Report continued FOr THE YEar EnDED 31 DECEMBEr 2019 Details of Directors and executives Directors of the Company and the Group during the financial year and up to the date of this report were: - Shaheen ali (Chairman) - Tupou Baravilala (Director) - Vijay Maharaj (Director) - Vilash Chand (Director) - Tevita Kuruvakadua (Director) - Sashi Singh (Director) - Joseph Brito (Director) - Dr Parakrama Dissanayake (Director) - Iqram Cuttilan (Director) reappointed 18th november 2018 reappointed 28th april 2018 reappointed 3rd July 2018 appointed 3rd July 2017 appointed 16th november 2015 appointed 16th november 2015 resigned on 18th March 2019 appointed 18th March 2019 appointed 1st July 2017 none of the directors had shareholding in the Company as at 31 December 2019.
Board and Committee meeting attendance Details of the number of meetings held by the Board and its committees during the financial year ended 31 December 2019, and attendance by Board members, are set out below: Directors Board Mr Shaheen ali Mr Vijay Maharaj Mr Vilash Chand Ms Tupou Baravilala Mr Tevita Kuruvakadua Mr Sashi Singh Mr Iqram Cuttilan Mr Parakrama Dissanayake A 3 3 3 3 3 3 3 3 B 3 2 3 3 1 3 3 2 Column a: number of meetings held while being a member Column B: number of meetings attended Auditor independence Board Finance Audit, Risk and Management Sub-committee A 3 3 B 3 2 Committees Board HR Sub Committee Board Technical and Infrastructure Development Sub-committee A 3 3 3 3 B 2 2 2 3 A 3 3 3 B 2 3 3 The Directors have obtained an independence declaration from the Company’s auditor, Ernst & Young.
a copy of the auditor’s independence declaration is set out in the auditor’s Independence Declaration to the Directors of Fiji Ports Corporation (Fiji) Limited on page 7.

For and on behalf of the Board of Directors and in accordance with a resolution of the Directors.

Dated this 22nd day of april 2020.


............................................................. Director ............................................................. Director 58 2019 Annual ReportFiji Ports Corporation Limited and its Subsidiary Directors’ Declaration FOr THE YEar EnDED 31 DECEMBEr 2019 This Directors’ Declaration is required by the Companies act 2015.
The Directors of Fiji Ports Corporation Limited (“the Company”) and its subsidiary (collectively “the Group”) have made a resolution that declared: a) in the Directors’ opinion, the financial statements and notes of the Company and the Group for the financial year ended 31 December 2019: i) give a true and fair view of the financial position of the Company and the Group as at 31 December 2019 and of the performance of the Company and the Group for the year ended 31 December 2019. ii) have been made out in accordance with the Company and the Group of Companies act 2015. b) they have received declarations as required by section 395 of the Companies act 2015. c) at the date of this declaration, in the Directors’ opinion, there are reasonable grounds to believe that the Company and the Group will be able to pay its debts as and when they become due and payable.
For and on behalf of the Board of Directors and in accordance with a resolution of the Directors.

Dated this 22nd day of april 2020.
............................................................. Director ............................................................. Director 59 2019 Annual ReportFiji Ports Corporation Limited and its Subsidiary auditor’s Independence Declaration to the Directors of Fiji Ports Corporation Limited as lead auditor for the audit of Fiji Ports Corporation Limited (“the Company”) and its subsidiary (collectively “the Group”) for the financial year ended 31 December 2019, I declare to the best of my knowledge and belief, there have been: a. no contraventions of the auditor independence requirements of the Companies act 2015 in relation to the audit; and b. no contraventions of any applicable code of professional conduct in relation to the audit.
This declaration is in respect of Fiji Ports Corporation Limited and the entities it controlled during the financial year.
Ernst & Young Chartered accountants Sikeli Tuinamuana Partner Suva, Fiji 22 april 2020 60 2019 Annual ReportFiji Ports Corporation Limited and its Subsidiary independent Auditor’s Report To the members of Fiji Ports Corporation Limited report on the audit of the Financial Statements Opinion We have audited the financial statements of Fiji Ports Corporation Limited (“the Company”) and its subsidiary (collectively “the Group”), which comprise the statement of financial position as at 31 December 2019, the statement of profit or loss and other comprehensive income, the statement of changes in equity and the statement of cash flows for the year then ended, and notes to the financial statements including a summary of significant accounting policies.
In our opinion, the accompanying financial statements give a true and fair view of the financial position of the Company and the Group as at 31 December 2019, and of its financial performance and its cash flows for the year then ended in accordance with International Financial reporting Standards (“IFrS”).

Basis for Opinion We conducted our audit in accordance with International Standards on auditing (ISa).
Our responsibilities under those standards are further described in the auditor’s responsibilities for the audit of the Financial Statements section of our report.
We are independent of the Company and the Group in accordance with the International Ethics Standards Board for accountant’s Code of Ethics for Professional accountants (IESBa Code) together with the ethical requirements that are relevant to our audit of the financial statements in Fiji and we have fulfilled our other ethical responsibilities in accordance with these requirements and the IESBa Code.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Emphasis of Matter We draw attention to note 25 of the financial report which notes the World Health Organisation’s declaration of the outbreak of COVID-19 as a global pandemic subsequent to 31 December 2019 and how this has been considered by the Directors in the preparation of the financial report.
as set out in note 25, no adjustments have been made to financial statements as at 31 December 2019 for the impacts of COVID-19.

Our opinion is not modified in respect of this matter.
Responsibilities of the Directors and management for the Financial statements The Directors and management are responsible for the preparation and fair presentation of the financial statements in accordance with IFrS, and for such internal control as the Directors and management determine is necessary to enable the preparation of the financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the Directors and management are responsible for assessing the Company’s and the Group’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Directors and management either intend to liquidate the Company and the Group or to cease operations, or have no realistic alternative but to do so.
The Directors and management are responsible for overseeing the Company’s and the Group’s financial reporting process.
61 2019 Annual ReportFiji Ports Corporation Limited and its Subsidiary independent Auditor’s Report continued Auditor’s Responsibilities for the Audit of the Financial statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion.
reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISa will always detect a material misstatement when it exists.

Misstatements can arise from fraud and error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of the financial statements.
as part of an audit in accordance with ISas, we exercise professional judgement and maintain professional skepticism throughout the audit.

We also: ▪ Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion.
The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

▪ Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company’s and the Group’s internal control.
▪ Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the Directors and management.

▪ Conclude on the appropriateness of the Directors’ and management’s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company’s and the Group’s ability to continue as a going concern.
If we conclude that material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures, are inadequate, to modify our opinion.

Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report.
However, future events or conditions may cause the Company and the Group to cease to continue as a going concern; and ▪ Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
We communicate with the Directors and management regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
We also provide the Directors and management with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards 62 2019 Annual ReportFiji Ports Corporation Limited and its Subsidiary independent Auditor’s Report continued report on Other Legal and regulatory requirements In our opinion, the financial statements have been prepared in accordance with the requirements of the Companies act 2015 in all material respects, and; a. we have been given all information, explanations and assistance necessary for the conduct of the audit; and b. the Company and the Group has kept financial records sufficient to enable the financial statements to be prepared and audited.
Ernst & Young Chartered accountants Sikeli Tuinamuana Partner Suva, Fiji 22 april 2020 63 2019 Annual ReportFiji Ports Corporation Limited and its Subsidiary Consolidated Statement of Profit or Loss and other Comprehensive Income FOr THE YEar EnDED 31 DECEMBEr 2019 Operating revenue Other revenue Total income Depreciation Employee benefit expenses Property expenses Marine service charges Operating expenses Total expenses Profit from operations Finance income Finance costs Share of profit in associate Profit before income tax Notes Group Company 2019 $ 2018 $ 2019 $ 2018 $ 2(a) 2(b) 57,607,628 1,644,692 55,816,679 4,604,877 52,251,199 6,974,722 49,585,436 9,970,912 59,252,320 60,421,556 59,225,921 59,556,348 (6,130,423) (8,310,509) (2,359,241) (10,803,427) (6,547,535) (34,151,135) (6,379,223) (8,031,031) (2,899,713) (9,001,745) (7,428,165) (33,739,877) (5,472,969) (6,158,434) (2,359,241) (10,803,427) (3,768,841) (28,562,912) (5,762,259) (5,896,476) (2,899,713) (9,001,745) (5,321,847) (28,882,040) 25,101,185 26,681,679 30,663,009 30,674,308 3,009,436 (1,494) 4,055,669 32,164,796 1,762,243 (2,247) 5,325,415 33,767,090 2,994,958 (1,494) - 33,656,473 1,762,891 (2,247) - 32,434,952 3(a) 3(b) 3(c) 3(d) 3(e) 3(f) 19 Income tax expense 4 (5,664,291) (5,725,731) (5,620,759) (5,369,473) Net profit for the year Other comprehensive income 26,500,505 - 28,041,359 - 28,035,714 - 27,065,479 - Total comprehensive income for the year, net of tax 26,500,505 28,041,359 28,035,714 27,065,479 The accompanying notes form an integral part of this Statement of Profit or loss and Other Comprehensive Income.
64 2019 Annual ReportFiji Ports Corporation Limited and its Subsidiary Consolidated Statement of Changes in Equity FOr THE YEar EnDED 31 DECEMBEr 2019 Share capital as at 1 January at 31 December Retained earnings as at 1 January Operating profit after income tax Dividends at 31 December Notes Group Company 2019 $ 2018 $ 2019 $ 2018 $ 17(a) 73,154,852 73,154,852 73,154,852 73,154,852 73,154,852 73,154,852 73,154,852 73,154,852 17(b) 57,124,219 26,500,505 (16,239,287) 67,385,437 44,309,365 28,041,359 (15,226,505) 57,124,219 51,140,037 28,035,714 (16,239,287) 62,936,464 39,301,063 27,065,479 (15,226,505) 51,140,037 Total shareholders’ equity 140,540,289 130,279,071 136,091,316 124,294,889 The accompanying notes form an integral part of this Statement of Changes in Equity.
65 2019 Annual ReportFiji Ports Corporation Limited and its Subsidiary Consolidated Statement of Financial Position FOr THE YEar EnDED 31 DECEMBEr 2019 Assets Current assets Cash and cash equivalents Trade and other receivables Financial assets Inventories Other assets Loan to subsidiary Income tax asset Total current assets Non-current assets Trade and other receivables Property, plant and equipment Intangible asset right of use asset Investment property Loan to subsidiary Investment in subsidiary Investment in associate company Deferred tax assets Total non-current assets Total assets Liabilities and equity Current liabilities Trade and other payables Lease liability Provisions Employee benefit liability Income tax liability Total current liabilities Non-current liabilities Deferred income Lease liability Employee benefit liability Total non-current liabilities Total liabilities Net assets Shareholders’ equity Share capital retained earnings Total shareholders’ equity Notes 16 5 6 7 8 18(e) 5 9 11 10 12 18(e) 19 4 13 10 14 15 23 10 15 Group Company 2019 $ 2018 $ 2019 $ 2018 $ 26,916,064 4,317,845 47,000,000 1,526,544 1,239,795 - 642,989 81,643,237 4,788,382 53,195,784 - 25,499 24,654 - - 12,623,597 8,161,998 78,819,914 23,408,479 4,434,032 37,000,000 1,422,285 1,804,923 - 21,910 68,091,629 6,769,883 55,068,961 631 44,624 20,396 - - 12,042,619 7,730,364 81,677,478 24,501,932 3,248,858 46,000,000 1,360,744 1,089,553 130,172 538,124 76,869,383 4,788,382 46,417,910 - 25,499 24,654 844,405 6,660,000 10,511,536 7,967,956 77,240,342 20,498,183 3,268,870 36,000,000 1,235,589 1,150,570 125,076 21,910 62,300,198 6,769,883 48,722,216 - 44,624 20,396 974,577 6,660,000 8,950,230 7,597,674 79,739,600 160,463,151 149,769,107 154,109,725 142,039,798 4,081,596 20,016 4,165,077 952,366 - 4,302,554 19,233 3,294,028 886,386 6,934 3,191,662 20,016 4,165,077 843,635 - 3,594,939 19,233 3,294,028 782,633 - 9,219,055 8,509,135 8,220,390 7,690,833 10,298,949 6,852 398,006 10,703,807 10,523,246 26,868 430,787 10,980,901 9,414,286 6,852
 376,881 9,798,019 9,619,316 26,868 407,892 10,054,076 19,922,862 19,490,036 18,018,409 17,744,909 140,540,289 130,279,071 136,091,316 124,294,889 17(a) 73,154,852 67,385,437 140,540,289 73,154,852 57,124,219 130,279,071 73,154,852 62,936,464 136,091,316 73,154,852 51,140,037 124,294,889 The accompanying notes form an integral part of this Statement of Financial Position.
66 2019 Annual ReportFiji Ports Corporation Limited and its Subsidiary Consolidated Statement of Cash Flows FOr THE YEar EnDED 31 DECEMBEr 2019 Operating Activities receipts from customers Payments to suppliers and employees Interest paid Interest received Income tax paid Income tax refund Net cash provided by Operating Activities Investing Activities Notes Group Company 2019 $ 2018 $ 2019 $ 2018 $ 62,257,820 (27,446,288) (1,494) 490,763 (5,946,524) - 29,354,277 56,691,808 (27,815,437) (2,247) 958,284 (6,767,454) 401,014 23,465,968 56,490,622 (23,262,277) (1,494) 515,473 (5,771,524) - 27,970,800 49,966,278 (23,137,314) (2,247) 987,890 (6,397,454) 352,546 21,769,699 acquisition of property, plant and equipment Proceeds from sale of property, plant and equipment 47,944 Placement of Term deposits redemption of Term deposits Dividend from investment in associate Proceeds from repayment of borrowings by related parties Net cash (used in) Investing Activities (4,672,112) 1,767,583 (15,000,000) 5,000,000 5,035,997 - (9,588,171) (3,620,858) 47,944 (23,000,000) 8,000,000 5,078,398 1,669,072 (10,105,805) (3,584,156) 1,767,583 (14,000,000) 4,000,000 5,702,606 125,076 (7,708,530) (2,233,220) (22,000,000) 7,000,000 5,682,753 1,789,251 (7,993,633) Financing Activities Payment of special and final dividends repayment of lease on right of use asset Net cash (used in) Financing Activities 17 (b) (16,239,287) (19,234) (16,258,521) (17,397,407) (18,480) (17,415,887) (16,239,287) (19,234) (16,258,521) (17,397,407) (18,480) (17,415,887) Net increase/(decrease) in cash and cash equivalents 3,507,585 (4,055,724) 4,003,749 (3,639,821) Cash and cash equivalents at the beginning of the year 23,408,479 27,464,203 20,498,183 24,138,004 Cash and cash equivalents at the end of the year 16 26,916,064 23,408,479 24,501,932 20,498,183 The accompanying notes form an integral part of this Statement of Cash Flows.
67 2019 Annual ReportFiji Ports Corporation Limited and its Subsidiary Notes to the Consolidated Financial Statements FOr THE YEar EnDED 31 DECEMBEr 2019 1.0 Corporate Information Fiji Ports Corporation Limited was incorporated under the Fiji Companies act and is domiciled in Fiji.

Till 12 november 2015, Fiji Ports Corporation Limited was a Government owned entity incorporated as a Government Commercial Company under the Public Enterprises act of 1996.
The Minister for Public Enterprises, via a gazette on 13 november 2015, declared Fiji Ports Corporation Limited (“the Company”) and Fiji Ships and Heavy Industries Limited (collectively “the Group”) a re-organisation Enterprise under the Public Enterprise act 1996.

This facilitated the changes under the privatisation and divestment initiative of the Government.

The registered office of the Company is located at Muaiwalu House, Walu Bay.
The principal place of business is Suva Kings Wharf, Port of Suva, Fiji.

The consolidated financial statements of the Company and the Group for the year ended 31 December 2019 were authorised for issue in accordance with a resolution of the Directors on 22 april 2020.
1.1 Basis of preparation The consolidated financial statements of the Group have been drawn up in accordance with the provisions of the International Financial reporting Standards (“IFrS”) as issued by the International accounting Standards Board (“IaSB”).

The consolidated financial statements have been prepared primarily on the basis of historical costs and except where specifically stated, do not take into account current valuations of non-current assets.
The consolidated financial statements provide comparative information in respect of the previous financial year.

Where necessary, comparative information has been reclassified to achieve consistency in disclosure with the current financial year amounts and other disclosures.
In addition, the Group presents an additional statement of financial position at the beginning of the preceding period when there is a retrospective application of an accounting policy, a retrospective restatement, or a reclassification of items in financial statements.

The accounting policies have been consistently applied, and except where there is a change in accounting policy, are consistent with those of the previous year.
Several other amendements and interpretations apply for the first time in 2019, but do not have an impact on the financial statements.

The group has not early adopted any standards, interpretations or amendments that have been issued but not effective.

1.2 a) Company financial statements The financial statements prepared are separate (non-consolidated) financial statement of Fiji Ports Corporation Limited.
as permitted by IaS 27 Consolidated and Separate Financial Statements, the financial statements have not been consolidated to account for the Company’s investments in either its associates, joint ventures or subsidiaries.

The Company has elected to account for the investment in subsidiaries and its associate at cost.

The Company applies the same accounting for each category of investments.
Dividends from subsidiaries and associates are recognised in the profit or loss in the separate financial statements prepared when its right to receive the dividend is established.

b) Principles of consolidation The Group financial statements consolidate the financial statements of the Company and its subsidiary and are drawn up to 31 December 2019.
Control is achieved when the Group is exposed, or has rights, to variable returns from its involvement with the investee and has the ability to affect those returns through its power over the investee.
Specifically, the Group controls an investee if, and only if, the Group has: - Power over the investee (i.e., existing rights that give it the current ability to direct the relevant activities of the investee) - Exposure, or rights, to variable returns from its involvement with the investee - The ability to use its power over the investee to affect its returns Generally, there is a presumption that a majority of voting rights results in control.
To support this presumption and when the Group has less than a majority of the voting or similar rights of an investee, the Group considers all relevant facts and circumstances in assessing whether it has power over an investee, including: - The contractual arrangement(s) with the other vote holders of the investee - rights arising from other contractual arrangements - The Group’s voting rights and potential voting rights 68 2019 Annual ReportFiji Ports Corporation Limited and its Subsidiary Notes to the Consolidated Financial Statements (Cont’d) FOr THE YEar EnDED 31 DECEMBEr 2019 1.2 Principles of consolidation continued The Group re-assesses whether or not it controls an investee if facts and circumstances indicate that there are changes to one or more of the three elements of control.
Consolidation of a subsidiary begins when the Group obtains control over the subsidiary and ceases when the Group loses control of the subsidiary.

assets, liabilities, income and expenses of a subsidiary acquired or disposed of during the year are included in the consolidated financial statements from the date the Group gains control until the date the Group ceases to control the subsidiary.
Profit or loss and each component of Other Comprehensive Income (OCI) are attributed to the equity holders of the parent of the Group and to the non-controlling interests, even if this results in the non-controlling interests having a deficit balance.

When necessary, adjustments are made to the financial statements of subsidiaries to bring their accounting policies in line with the Group’s accounting policies.
all intra-group assets and liabilities, equity, income, expenses and cash flows relating to transactions between members of the Group are eliminated in full on consolidation.

a change in the ownership interest of a subsidiary, without a loss of control, is accounted for as an equity transaction.
If the Group loses control over a subsidiary, it derecognises the related assets (including goodwill), liabilities, non-controlling interest and other components of equity, while any resultant gain or loss is recognised in profit or loss.

any investment retained is recognised at fair value.

The financial statements of the subsidiary are prepared for the same reporting year as the parent company, using consistent accounting policies.
From 1 august 2013, Fiji Ports Terminal Limited was assessed to be an associate company and is accounted for using equity accounting.

1.3 Significant accounting judgments, estimates and assumptions The preparation of the Company’s and the Group’s financial statements requires management to make judgments, estimates and assumptions that affect the reported amounts of revenue, expenses, assets and liabilities, and the disclosure of contingent liabilities at the reporting date.
However, uncertainty about these assumptions and estimates could result in outcomes that could require a material adjustment to the carrying amount of the asset or liability affected in the future.
Judgments In the process of applying the Company’s and the Group’s accounting policies, management has made the following judgment, apart from those involving estimations, which has the most significant effect on the amounts recognised in the financial statements: Estimations and assumptions The key assumptions concerning the future and other key sources of estimation uncertainty at the balance date, that have a significant risk of causing a material adjustments to the carrying amount of assets and liabilities within the next financial year.
Impairment of non-financial assets The Company and the Group assesses whether there are any indicators of impairment for all non-financial assets at each reporting date.

non-financial assets are tested for impairment when there are indicators that the carrying amounts may not be recoverable.

Application of IFRS 16 - Leases The application of IFrS 16 requires the Group to make judgements and estimates that affect the measurement of right-of-use assets and liabilities.
In determining the lease term, management must consider all facts and circumstances that create an economic incentive to exercise renewal options (or not exercise termination options).

assessing whether a contract includes a lease also requires judgement.

Estimates are required to determine the appropriate discount rate used to measure liabilities.

Provision for expected credit losses (ECL) of trade receivables The Company and the Group uses a provision matrix to calculate ECLs for trade receivables.
The provision rates are based on days past due for groupings of various customer segments that have similar loss patterns (i.e., by geography, product type, customer type and rating).

The provision matrix is initially based on the Company and the Group’s historical observed default rates.

The Company and the Group will calibrate the matrix to adjust the historical credit loss experience with forward-looking information.
at every reporting date, the historical observed default rates are updated and changes in the forward-looking estimates are analysed.

The assessment of the correlation between historical observed default rates, forecast economic conditions and ECLs is a significant estimate.

The amount of ECLs is sensitive to changes in circumstances and of forecast economic conditions.
The Company and the Group’s historical credit loss experience and forecast of economic conditions may also not be representative of customer’s actual default in the future.

The information about the ECLs on the Group’s trade receivables is disclosed in note 5.
69 2019 Annual ReportFiji Ports Corporation Limited and its Subsidiary Notes to the Consolidated Financial Statements (Cont’d) FOr THE YEar EnDED 31 DECEMBEr 2019 1.3 Significant accounting judgments, estimates and assumptions continued Performance obligations The performance obligation from provision of port related services, which are detailed in note 2(a), is satisfied upon provision of these services and payment is generally due within 30 to 90 days from delivery.
In the event of sale of assets, performance obligation is satisfied when the buyer obtains control of the asset.

Methods, inputs and assumptions used in allocating transaction price to performance obligation is determined after considering factors identified in note 1.4(z).

1.4 Summary of significant accounting policies (a) Functional and presentation currency These financial statements are presented in Fiji dollars (“FJD”), which is the Company’s and the Group’s functional currency.
Except as indicated, financial information presented in FJD has been rounded to the nearest dollar.

(b) Foreign currencies Transactions in foreign currencies are initially recorded at the functional currency rate ruling at the date of the transaction.

Monetary assets and liabilities denominated in foreign currencies are retranslated at the functional currency rate of exchange ruling at the balance date.

all differences are taken to the statement of comprehensive income.
non monetary items that are measured in terms of historical cost in a foreign currency are translated using the exchange rates as at the date of the initial transaction.

non monetary items measured at fair value in a foreign currency are translated using the exchange rates when the fair value is determined.

(c) Revenue recognition Income comprising sales revenue from providing port services and managing port infrastructure is brought to account on an accrual basis as services are provided.
Details of revenue recognition criteria is outlined in note 1.4(z).

The following specific recognition criteria must also be met for the subsidiary (Fiji Ships and Heavy Industries Limited) before revenue is recognised: Slipway charges Some slipping charges are received in advance.

The revenue is recognised in the statement of comprehensive income when the vessels actually come on the slipway.

Ship repair charges revenue is recognised when work on the vessel has been performed.
Billing is performed/done upon completion of work on stages.

(d) Expense recognition all expenses are recognised in the statement of comprehensive income on an accrual basis.

(e) Property, plant and equipment Property, plant and equipment is stated at cost less accumulated depreciation and accumulated impairment losses.

Such costs includes the cost of replacing part of the plant and equipment when that cost is incurred, if the recognition criteria is met.
Likewise, when a major inspection is performed, its cost is recognised in the carrying amount of the plant and equipment as a replacement if the recognition criteria are satisfied.

all other repair and maintenance costs are recognised in the statement of comprehensive income as incurred.
Depreciation is calculated on a straight line basis over the useful life of the asset as follows: Wharves Buildings Motor vehicles and motorised equipment Plant and equipment Office equipment Furniture and fittings 5%-20% 5%-20% 10% - 33% 10% - 33% 10% - 33% an item of property, plant and equipment is derecognised upon disposal or when no future economic benefits are expected from its use or disposal.
any gain or loss arising on derecognition of the asset (calculated as the difference between the net disposal proceeds and the carrying amount of the asset) is included in statement of comprehensive income in the year the asset is derecognised.

The asset’s residual values, useful lives and methods of depreciation are reviewed, and adjusted if appropriate, at each financial year end.
70 2019 Annual ReportFiji Ports Corporation Limited and its Subsidiary Notes to the Consolidated Financial Statements (Cont’d) FOr THE YEar EnDED 31 DECEMBEr 2019 1.4 Summary of significant accounting policies continued (f) Impairment of non-financial assets The Company and the Group assesses at each reporting date whether there is an indication that an asset may be impaired.
If any such indication exists, or when annual impairment testing for an asset is required, the Company and the Group estimates the asset’s recoverable amount.

an asset’s recoverable amount is the higher of an asset’s or cash-generating unit’s fair value less costs to sell and its value in use and is determined for an individual asset, unless the asset does not generate cash inflows that are largely independent of those from other assets or groups of assets.
When the carrying amount of an asset exceeds its recoverable amount, the asset is considered impaired and is written down to its recoverable amount.

In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset.

In determining fair value less costs to sell, an appropriate value model is used.
For assets, an assignment is made at each reporting date as to whether there is any indication that previously recognised impairment losses may no longer exist or may have decreased.

If such indication exists, the Company and the Group makes an estimate of recoverable amount.

a previously recognised impairment loss is reversed only if there has been a change in the estimates used to determine the asset’s recoverable amount since the last impairment loss was recognised.
If that is the case the carrying amount of the asset is increased to its recoverable amount.

The increased amount cannot exceed the carrying amount that would have been determined, net of depreciation, had no impairment loss been recognised for the asset in prior years.

Such a reversal is recognised in the statement of comprehensive income.
(g) Taxes Current income tax Current income tax assets and liabilities for the current and prior periods are measured at the amount expected to be recovered from or paid to the taxation authorities.

The tax rates and tax laws used to compute the amount are those that are enacted or substantively enacted by the balance date.

Current income tax relating to items recognised directly in equity is recognised in equity and not in the statement of comprehensive income.
Deferred income tax Deferred income tax is provided, using the liability method, on all temporary differences at the balance date between the tax bases of assets and liabilities and their carrying amounts for financial reporting purposes.
Deferred income tax liabilities are recognised for all taxable temporary differences: - where the deferred income tax liability arises from goodwill amortisation or the initial recognition of an asset or liability in a transaction that is not a business combination and, at the time of the transaction, affects neither the accounting profit nor taxable profit or loss; and - in respect of taxable temporary differences associated with investments in subsidiaries, associates and interest in joint ventures, except where the timing of the reversal of the temporary difference can be controlled and it is probable that the temporary difference will not reverse in the foreseeable future.
Deferred income tax assets are recognised for all deductible temporary differences, carry forward of unused tax credits and unused tax losses, to the extent that it is probable that taxable profit will be available against which the deductible temporary differences, and the carry forward of unused tax credits and unused tax losses can be utilised except: - where the deferred tax asset relating to the deductible temporary difference arises from the initial recognition of an asset or liability in a transaction that it is not a business combination and, at the time of the transaction, affects neither the accounting profit nor taxable profit or loss; and - in respect of deductible temporary differences associated with investments in subsidiaries, associates and interests in joint ventures, deferred tax assets are recognised only to the extent that it is probable that the temporary differences will reverse in the foreseeable future and taxable profit will be available against which the temporary differences can be utilised.
The carrying amount of deferred income tax assets is reviewed at each balance date and reduced to the extent that it is no longer probable that sufficient taxable profit will be available to allow all or part of the deferred income tax asset to be utilised.

unrecognised deferred income tax assets are reassessed at each balance date and are recognised to the extent that it has become probable that future taxable profit will allow the deferred tax asset to be recovered.
Deferred income tax assets and liabilities are measured at the tax rates that are expected to apply to the year when the asset is realised or the liability is settled, based on tax rates (and tax laws) that have been enacted or substantively enacted at the balance date.

Deferred income tax relating to items recognised directly in equity is recognised in equity and not in the statement of comprehensive income.
71 2019 Annual ReportFiji Ports Corporation Limited and its Subsidiary Notes to the Consolidated Financial Statements (Cont’d) FOr THE YEar EnDED 31 DECEMBEr 2019 1.4 Summary of significant accounting policies continued (g) Taxes continued Deferred income tax assets and deferred income tax liabilities are offset, if a legally enforceable right exists to set off current tax assets against current income tax liabilities and the deferred income taxes related to the same taxable entity and the same taxation authority.
Value Added Tax revenue, expenses and assets are recognised net of the amount of Value added Tax (VaT) except: - where the VaT incurred on a purchase of assets or services is not recoverable from the taxation authority, in which case the VaT is recognised as part of the acquisition of the asset or as part of the expense item as applicable; and - receivables and payables are stated with the amount of VaT included.
The net amount of VaT recoverable from, or payable to, the taxation authority is included as part of receivables or payables in the statement of financial position.

(h) Cash and cash equivalents Cash and cash equivalents comprises of cash at bank and in hand and short term deposits with an original maturity of three months or less.

For the purposes of the statement of cash flows, cash and cash equivalents consist of cash and cash equivalents as defined above.
(i) Financial assets Initial recognition and measurement Financial assets within the scope of IFrS 9 are classified, at initial recognition, as subsequently measured at amortised cost, fair value through other comprehensive income and fair value through profit and loss.

The classification of financial assets at initial recognition depends on the financial asset’s contractual cash flow characteristics and the Company and the Group’s business model for managing them.
With the exception of trade receivables that do not contain a significant financing component or for which the Company and the Group has applied the practical expedient, the Company and the Group initially measures a financial asset at its fair value plus, in the case of a financial asset not at fair value through profit or loss, transaction costs.
Trade receivables that do not contain a significant financing component or for which the Group has applied the practical expedient are measured at the transaction price determined under IFrS 15.

In order for a financial asset to be classified and measured at amortised cost, it needs to give rise to cash flows that are ‘solely payments of principal and interest (SPPI)’ on the principal amount outstanding.

This assessment is referred to as the SPPI test and is performed at an instrument level.
The Company and the Group’s business model for managing financial assets refers to how it manages its financial assets in order to generate cash flows.

The business model determines whether cash flows will result from collecting contractual cash flows, selling the financial assets, or both.
Purchases or sales of financial assets that require delivery of assets within a time frame established by regulation or convention in the market place (regular way trades) are recognised on the trade date, i.e., the date that the Company and the Group commits to purchase or sell the asset.

Subsequent measurement Financial assets at amortised cost This category is the most relevant to the Company and the Group.
The Company and the Group measures financial assets at amortised cost if both of the following conditions are met: - The financial asset is held within a business model with the objective to hold financial assets in order to collect contractual cash flows; and - The contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.
Financial assets at amortised cost are subsequently measured using the effective interest rate (EIr) method and are subject to impairment.

Gains and losses are recognised in profit or loss when the asset is derecognised, modified or impaired.

The Company and the Group’s financial assets at amortised cost includes trade receivables, and loan to subsidiary and associate companies.
72 2019 Annual ReportFiji Ports Corporation Limited and its Subsidiary Notes to the Consolidated Financial Statements (Cont’d) FOr THE YEar EnDED 31 DECEMBEr 2019 1.4 Summary of significant accounting policies continued (i) Financial assets continued Derecognition a financial asset (or, where applicable, a part of a financial asset or part of a group of similar financial assets) is primarily derecognised when: - The rights to receive cash flows from the asset have expired; or - The Company and the Group has transferred its rights to receive cash flows from the asset or has assumed an obligation to pay the received cash flows in full without material delay to a third party under a ‘pass-through’ arrangement; and either (a) the Group and the Company has transferred substantially all the risks and rewards of the asset, or (b) the Company and the Group has neither transferred nor retained substantially all the risks and rewards of the asset, but has transferred control of the asset.
When the Company and the Group has transferred its rights to receive cash flows from an asset or has entered into a pass- through arrangement, it evaluates if, and to what extent, it has retained the risks and rewards of ownership.

When it has neither transferred nor retained substantially all of the risks and rewards of the asset, nor transferred control of the asset, the Company and the Group continues to recognise the transferred asset to the extent of its continuing involvement.
In that case, the Company and the Group also recognises an associated liability.

The transferred asset and the associated liability are measured on a basis that reflects the rights and obligations that the Company and the Group has retained.
Impairment of financial assets Further disclosures relating to impairment of financial assets are also provided in the following notes: - Disclosures for significant assumptions (note 1.3) The Company and the Group recognises an allowance for expected credit losses (ECLs) for all debt instruments not held at fair value through profit or loss.
ECLs are based on the difference between the contractual cash flows due in accordance with the contract and all the cash flows that the Company and the Group expects to receive, discounted at an approximation of the original effective interest rate.

The expected cash flows will include cash flows from the sale of collateral held or other credit enhancements that are integral to the contractual terms.

ECLs are recognised in two stages.


For credit exposures for which there has not been a significant increase in credit risk since initial recognition, ECLs are provided for credit losses that result from default events that are possible within the next 12-months (a 12-month ECL).
For those credit exposures for which there has been a significant increase in credit risk since initial recognition, a loss allowance is required for credit losses expected over the remaining life of the exposure, irrespective of the timing of the default (a lifetime ECL).

For trade receivables and contract assets, the Company and the Group applies a simplified approach in calculating ECLs.
Therefore, the Company and the Group does not track changes in credit risk, but instead recognises a loss allowance based on lifetime ECLs at each reporting date.

The Company and the Group has established a provision matrix that is based on its historical credit loss experience, adjusted for forward-looking factors specific to the debtors and the economic environment.

(j) Inventories Inventories are measured at the lower of cost and net realisable value.
The cost of inventories is based on the first-in-first-out principle.

The cost of the inventories includes expenditure incurred in acquiring the inventories and bringing them to their existing location and condition.

(k) Trade and other receivables Trade receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market.

Trade receivables are initially recognised at original invoice (inclusive of VaT where applicable).
(l) Other assets Other assets include insurance and other prepayments, Energy Fiji Limited and other deposits, and VaT receivable.

(m) Investment property Investment property is stated at cost less depreciation and impairment losses.

When an item of property, plant and equipment becomes an investment property following a change in its use, any difference arising at the date of transfer between the carrying amount of the item and its fair value is recognised directly in equity if it is gain.
upon disposal of the item, the gain is transferred to retained earnings.

any loss is recognised in the statement of comprehensive income immediately.

73 2019 Annual ReportFiji Ports Corporation Limited and its Subsidiary Notes to the Consolidated Financial Statements (Cont’d) FOr THE YEar EnDED 31 DECEMBEr 2019 1.4 Summary of significant accounting policies continued (n) Intangible assets Intangible assets acquired separately are measured on initial recognition at cost.
Following initial recognition, intangible assets are carried at cost less any accumulated amortisation and any accumulated impairment losses.

Internally generated intangible assets, excluding capitalised development costs, are not capitalised and expenditure is reflected in statement of comprehensive income in the year in which the expenditure is incurred.

The useful lives of intangible assets for the Company and the Group are assessed to be finite.
Intangible assets with finite lives are amortised over the useful economic life and assessed for impairment whenever there is an indication that the intangible asset may be impaired.

The amortisation period and the amortisation method for an intangible asset with a finite useful life is renewed at least at each financial year end.
Changes in the expected useful life or expected pattern of consumption in future economic benefits embodied in the asset is accounted for by changing the amortisation period or method, as appropriate, and are treated as changes in accounting estimates.

The amortisation expense on intangible assets with finite lives is recognised in the statement of comprehensive income in the expense category consistent with the function of the intangible assets.
Gains or losses arising from the derecognition of an intangible asset are measured as the difference between the net disposal proceeds and the carrying amount of the asset and are recognised in the statement of comprehensive income when the asset is derecognised.
(o) Trade and other payables Liabilities for trade payables and other amounts are carried at cost (inclusive of VaT where applicable) which is the fair value of the consideration to be paid in the future for goods and services received whether or not billed to the entity.

amounts payable that have been denominated in foreign currencies have been translated to local currency using the rates of exchange ruling at the end of the financial year.
(p) Employee entitlements Provisions are made for wages and salaries, incentive payments, annual and long service leave estimated to be payable to employees at balance date on the basis of statutory and contractual requirements.

(q) Deferred income an unconditional grant related to assets is recognised in statement of comprehensive income as other income when the grant becomes receivable.
Other grants are recognised initially as deferred income at fair value when there is reasonable assurance that they will be received and the Group will comply with the conditions associated with the grant and are then recognised in the statement of comprehensive income as other income on a systematic basis over the useful life of the asset.
Grants that compensate the Group for expenses incurred are recognised in the statement of comprehensive income on a systematic basis in the same periods in which the expenses are recognised.
(r) Provisions Provisions are recognised when the Company and the Group has a present obligation (legal or constructive) as a result of a past event, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and reliable estimate can be made of the amount of the obligation.

Where the Company and the Group expects a provision to be reimbursed, the reimbursement is recognised as a separate asset but only when reimbursement is virtually certain.
If the effect of time value of money is material, provisions are determined by discounting the expected future cash flows at a pre-tax rate that reflects current market assessments of the time value of money and, where appropriate, the risks specific to the liability.

Where discounting is used, the increase in the provision due to the passage of time is recognised as an interest expense.
(s) Financial liabilities Initial recognition and measurement Financial liabilities within the scope of IFrS 9 are classified at initial recognition, as loans and borrowings or payables, as appropriate.

all financial liabilities are recognised initially at net of directly attributable transaction costs.

The Group’s financial liabilities include trade and other payables and loans and borrowings.
74 2019 Annual ReportFiji Ports Corporation Limited and its Subsidiary Notes to the Consolidated Financial Statements (Cont’d) FOr THE YEar EnDED 31 DECEMBEr 2019 1.4 Summary of significant accounting policies continued (s) Financial liabilities continued Subsequent measurement continued The measurement of financial liabilities is described below: Loans and borrowings This is the category most relevant to the Group.
after initial recognition, interest-bearing loans and borrowings are subsequently measured at amortised cost using the Effective Interest rate (EIr) method.

Gains and losses are recognised in profit or loss when the liabilities are derecognised as well as through the EIr amortisation process.

amortised cost is calculated by taking into account any discount or premium on acquisition and fees or costs that are an integral part of the EIr.
The EIr amortisation is included as finance costs in the statement of profit or loss.

(t) Dividend distribution Dividends are recorded in the Company’s and the Group’s financial statements in the year in which they are paid.

Dividends paid during the year are subject to the provisions of the Fiji Income Tax act 2015.

(u) Leased assets Previously, the Company determined at contract inception whether an arrangement is or contains a lease.
under IFrS 16, the Company assesses whether a contract is or contains lease based on definition of a lease.

a contract is, or contains, a lease if it conveys the right to control the use of an identified asset for a period of time in exchange for consideration.

Control is conveyed where the customer has both the right to direct the identified asset’s use and to obtain substantially all the economic benefits from that use.
(u) Leased assets continued Company and the Group as a lessee Leases classified as operating leases under IFrS 16, the Company recognises right-of-use assets and lease liabilities i.e.

these leases are on-balance sheet.


Rights-of-use assets are measured at either: - their carrying amounts as if IFrS 16 had been applied since the commencements date, discounted using lessee’s incremental borrowing rate at the date of initial application; or - an amount equal to the lease liability, adjusted by the amount of prepaid or accrued lease payments.

The Company applied the second approach.
The Company used the following practical expedients when applying IFrS 16 to lease previously classified as operating leases under IaS 17: - applied a single discount rate to a portfolio of leases with similar characteristics; - adjusted the right-of-use assets by the amount of onerous contract provision immediately before the date of initial application, as an alternative to an impairment review; - applied the exemption not to recognise the right-of-use assets and liabilities for leases with less than 12 months of lease term; - excluded initial direct costs from measuring the right-of-use asset at the date of initial application; and - used hindsight when determining the lease term if the contract contains options to extend or terminate the lease.
Leases previously classified as finance leases For leases that were classified as finance leases under IaS 17, the carrying amount of the right-of-use asset and the lease liability at 1 July 2017 are determined at the carrying amount of the lease asset and lease liability under IaS 17 immediately before that date.

The Company had no finance leases under IaS 17.

Company and the Group as a lessor The Company and the Group as a lessor classifies each lease as an operating lease or a finance lease.
a lease is classified as a finance lease if it transfers substantially all the risks and rewards incidental to ownership of an underlying asset.

Otherwise a lease is classified as an operating lease.

upon lease commencement, the Company recognises assets held under a finance lease as a receivable at an amount equal to the net investment in the lease.
The Company recognises finance income over the lease term of a finance lease, based on a pattern reflecting a constant periodic rate of return on the net investment.

For leases classified as operating lease, the Company was not required to make any adjustments on transition to IFrS 16, except for a sub-lease.

The Company had accounted for its leases in accordance with IFrS 16 from date of initial application.
75 2019 Annual ReportFiji Ports Corporation Limited and its Subsidiary Notes to the Consolidated Financial Statements (Cont’d) FOr THE YEar EnDED 31 DECEMBEr 2019 1.4 Summary of significant accounting policies continued (v) Comparative figures Where necessary, comparative information has been re-classified to achieve consistency in disclosure with current financial year amounts.
(w) Segment information a business segment is a group of assets and operations engaged in providing products or services that are subject to risks and returns that are different from those of other business segments.

a geographical segment is engaged in providing products and services within a particular economic environment that are subject to risks and returns that are different from those of segments operating in other economic environment.
(a) Industry segment The Company and the Group operates predominantly in the shipping industry.

(b) Geographical segment The Company and the Group operates predominantly in Fiji and has therefore one geographical area for reporting purposes.

(x) Investment in associates an associate is an entity over which the Group has significant influence.
Significant influence is the power to participate in the financial and operating policy decisions of the investee, but is not control or joint control over those policies.

The considerations made in determining significant influence are similar to those necessary to determine control over subsidiaries.

The Group’s investment in its associate are accounted for using the equity method.

under the equity method, the investment in an associate is initially recognised at cost.
The carrying amount of the investment is adjusted to recognise changes in the Group’s share of net assets of the associate since the acquisition date.

Goodwill relating to the associate is included in the carrying amount of the investment and is not tested for impairment separately.

The statement of profit or loss reflects the Group’s share of the results of operations of the associate.

any change in OCI of those investees is presented as part of the Group’s OCI.
In addition, when there has been a change recognised directly in the equity of the associate, the Group recognises its share of any changes, when applicable, in the statement of changes in equity.

unrealised gains and losses resulting from transactions between the Group and the associate are eliminated to the extent of the interest in the associate.
The aggregate of the Group’s share of profit or loss of an associate is shown on the face of the statement of profit or loss outside operating profit and represents profit or loss after tax and non-controlling interests in the subsidiaries of the associate.

The financial statements of the associate are prepared for the same reporting period as the Group.

When necessary, adjustments are made to bring the accounting policies in line with those of the Group.
after application of the equity method, the Group determines whether it is necessary to recognise an impairment loss on its investment in its associate.

at each reporting date, the Group determines whether there is objective evidence that the investment in the associate is impaired.
If there is such evidence, the Group calculates the amount of impairment as the difference between the recoverable amount of the associate and its carrying value, and then recognises the loss within ‘share of profit in associate’ in the statement of profit or loss.

upon loss of significant influence over the associate, the Group measures and recognises any retained investment at its fair value.
any difference between the carrying amount of the associate upon loss of significant influence and the fair value of the retained investment and proceeds from disposal is recognised in profit or loss.

(y) Current versus non-current classification The Group presents assets and liabilities in the statement of financial position based on current/non-current classification.
an asset is current when it is: - Expected to be realised or intended to be sold or consumed in the normal operating cycle; - Held primarily for the purpose of trading; - Expected to be realised within twelve months after the reporting period; or - Cash or cash equivalent unless restricted from being exchanged or used to settle a liability for at least twelve months after the reporting period.
76 2019 Annual ReportFiji Ports Corporation Limited and its Subsidiary Notes to the Consolidated Financial Statements (Cont’d) FOr THE YEar EnDED 31 DECEMBEr 2019 1.4 Summary of significant accounting policies continued (y) Current versus non-current classification continued all other assets are classified as non-current.
a liability is current when: - It is expected to be settled in the normal operating cycle; - It is held primarily for the purpose of trading; - It is due to be settled within twelve months after the reporting period; or - There is no unconditional right to defer the settlement of the liability for at least twelve months after the reporting period.

The Group classifies all other liabilities as non-current.

Deferred tax assets and liabilities are classified as non-current assets and liabilities.
(z) Revenue from contracts with customers The Group is in the business of providing and managing the port infrastructure and services within declared ports, as well as provision of ship repair and slipway services.

revenue from contracts with customers is recognised when control of the goods or services are transferred to the customer at an amount that reflects the consideration to which the Group expects to be entitled in exchange for those goods or services.
The Group has generally concluded that it is the principal in its revenue arrangement because it typically controls the goods or services before transferring them to the customer.

Sale of equipment revenue from sale of equipment is recognised at the point in time when control of the asset is transferred to the customer, generally on delivery of the equipment.

The normal credit term is 30 to 90 days upon delivery.
(z) Revenue from contracts with customers continued The Group considers whether there are other promises in the contract that are separate performance obligations to which a portion of the transaction price needs to be allocated (e.g., warranties, customer loyalty points).
In determining the transaction price for the sale of equipment, the Group considers the effects of variable consideration, the existence of significant financing components, non-cash consideration, and consideration payable to the customer (if any).
IFrS 15 requires that an entity considers the effects of all of the following in determining the transaction price: - Variable consideration - Constraining estimates of variable consideration - The existence of a significant financing component in the contract - non-cash consideration - Consideration payable to a customer The Group did not incur any consideration payable to a customer.

Consideration payable to a customer includes cash amounts that an entity pays, or expects to pay, to the customer.
The consideration payable to a customer is accounted for as a reduction of the transaction price unless the payment to the customer is in exchange for a distinct good or service that the customer transfers to the entity.
(aa) Offsetting of financial instruments Financial assets and financial liabilities are offset and the net amount is reported in the consolidated statement of financial position if there is a currently enforceable legal right to offset the recognised amounts and there is an intention to settle on a net basis, to realise the assets and settle the liabilities simultaneously.
1.5 Changes in accounting policies and disclosures The new and amended standards and interpretations that are issued, but not yet effective, up to the date of issuance of the Group’s financial statements include: - an amendment to IFrS 3 Business Combination on the definition of a business; and - amendments to IaS 1 and IaS 8 in the definition of “material” to ensure the definition is aligned across the standards.

The Group intends to adopt these amendments when they become effective.
The amendments will not have any material impact on the Group.
77 2019 Annual ReportFiji Ports Corporation Limited and its Subsidiary Notes to the Consolidated Financial Statements (Cont’d) FOr THE YEar EnDED 31 DECEMBEr 2019 Group Company 2019 $ 2018 $ 2019 $ 2018 $ 11,300,895 317,590 22,157,364 6,571,675 3,902,926 1,453,504 11,903,674 57,607,628 224,297 - - - - 11,903,674 52,251,198 205,030 5,702,606 13,429 72,000 - - - 13,195,430 49,585,436 205,030 5,682,753 3,001,604 72,000 - 1,009,525 9,970,912 41,726 169,256 573,414 27,619 32,416 239,710 112,183 3,994,713 162,734 273,594 98,017 171,094 5,896,476 191,212 792,356 120,706 729,819 1,015,096 50,524 2,899,713 8,263,132 164,433 99,380 474,800 9,001,745 REVENUE 2 (a) Operating revenue Dockage Licence fees Marine services Other service income Ship repair and heavy industries Slipway Wharfage (b) Other revenue release of deferred income Dividend income Gain on sale of assets Management fees Other income rent income 3 (a) EXPENSES Employee benefit expenses allowances annual leave FnPF and Fnu levy Fringe benefit tax Long service leave Medical expenses retirement benefit Salaries and wages Sick leave Staff incentive pay Staff welfare Staff training
 (b) Property expenses Cleaning and sanitation Electricity Property rates repairs and maintenance Water Mini assets replacement cost (c) Marine service charges Tug/pilot/lines boat hire Linesman hire Pilotage service - external Security hire 78 2019 Annual ReportFiji Ports Corporation Limited and its Subsidiary Notes to the Consolidated Financial Statements (Cont’d) FOr THE YEar EnDED 31 DECEMBEr 2019 EXPENSES continued 3 (d) Operating expenses advertising and publicity expense auditors’ remuneration Direct material cost Directors fees Movement in expected credit loss Insurance expense Professional legal fees repairs and maintenance - cranes repairs and maintenance - others Other expenses Finance income Interest income on term deposits and inter-company loans Finance costs Interest charges on borrowings (e) (f) 4 Group Company 2019 $ 2018 $ 2019 $ 2018 $ 137,247 56,430 985,159 71,499 (43,497) 1,554,312 127,661 103,936 728,763 2,826,025 6,547,535 106,447 91,282 804,353 60,500 120,561 1,587,103 139,089 1,151,606 626,069 2,741,155 7,428,165 116,171 31,090 - 71,499 (252,645) 1,396,047 119,636 103,936 240,479 1,942,628 3,768,841 95,608 58,492 - 60,500 39,322 1,442,386 123,057 1,151,606 181,114 2,169,762 5,321,847 3,009,436 1,762,243 2,994,958 1,762,891 1,494 2,247 1,494 2,247 INCOME TAX The major components of income tax expenses for the years ended 31 December 2019 and 2018 are: Operating profit before tax Prima facie tax thereon at 20% under-provision from prior years adjustment to statement of tax account restatement of deferred tax balances Tax effect of items treated as non-deductible difference 32,164,796 6,432,959 (20,233) (4,449) (10,010) (733,976) 33,767,090 6,753,418 (5,265) 1,506 (30,082) (993,846) 33,656,473 6,731,295 (17,876) - (8,550) (1,084,110) 32,434,952 6,486,990 (6,025) 622 (27,891) (1,084,223) Income tax expense reported in the statement of comprehensive income Current tax asset Current tax asset as at 31 December relates to the following: 5,664,291
 5,725,731 5,620,759 5,369,473 Balance at the beginning of the year Current tax provision Deferred tax expense net payments made during the year Credits transferred from VaT account Provisional and Withholding tax credits Other adjustments under/(over) provision in the prior year Income tax asset 14,975 (5,698,983) (455,937) 5,946,524 424,523 391,654 - 20,233 642,989 435,647 (5,787,235) (1,535,228) 6,767,454 - 172,111 5,291 (43,065) 14,975 21,910 (5,647,185) (361,732) 5,771,524 412,438 323,293 - 17,876 538,124 384,936 (5,402,766) (1,535,228) 6,397,454 - 172,111 - 5,403 21,910 Deferred tax assets reflected in the statement of financial position as follows: Deferred tax assets 8,161,998 7,730,364 7,967,956 7,597,674 net deferred tax assets at 31 December relates to the following: Deferred tax assets Doubtful debts Employee entitlements Lease liability rOu assets Legal claims Decelerated depreciation for tax purposes 183,524 270,074 5,363 (5,100) 18,752 7,689,385 8,161,998 192,224 263,434 - - 18,752 7,255,954 7,730,364 72,975 244,103 5,363 (5,100) 18,752 7,631,863 7,967,956 123,504 238,105 - - 18,752 7,217,313 7,597,674 79 2019 Annual ReportFiji Ports Corporation Limited and its Subsidiary Notes to the Consolidated Financial Statements (Cont’d) FOr THE YEar EnDED 31 DECEMBEr 2019 5 TRADE AND OTHER RECEIVABLES Current Trade receivables Less: allowance for expected credit losses Staff advances Shore crane sale receivables Other receivables receivable from associate [note 18(d)] receivable from subsidiary [note 18(d)] allowance for expected credit losses on accrued income Group Company 2019 $ 2018 $ 2019 $ 2018 $ 1,785,526 (681,545) 1,103,981 2,564 804,343 2,535,438 44,587 - (173,068) 4,317,845 2,566,982 (725,042) 1,841,940 14,218 804,343 1,943,886 2,713 - (173,068) 4,434,032 1,185,098 (301,867) 883,231 2,564 804,343 1,510,167 44,587 3,966 - 3,248,858 1,686,378 (554,512) 1,131,866 14,218 804,343 1,310,678 2,713 5,052 - 3,268,870 Non-Current Shore crane sale receivables
 Total trade and other receivables 4,788,382 9,106,227 6,769,883 11,203,915 4,788,382 8,037,240 6,769,883 10,038,753 For terms and condition relating to related party receivables, refer to note 19.
Trade receivables are non-interest bearing and are generally on terms of 30 days.

The information on credit exposure is disclosed in note 24.
Movement in the provision for impairment of receivables were as follows: Balance at 1 January additional provision unused amount reversed Balance at 31 December 898,110 446,994 (490,491) 854,613 777,549 348,723 (228,162) 898,110 554,512 138,908 (391,553) 301,867 515,191 165,052 (125,731) 554,512 at 31 December, the ageing analysis of trade receivables is as follows: Year Total 2019 2018 2019 2018 $ 1,785,526 2,566,982 1,185,098 1,686,378 neither past due nor impaired $ 747,465 1,460,074 586,972 898,166 30 - 60 days 60 - 90 days >90 days $ 352,153 423,555 315,062 393,664 $ 49,609 168,813 49,609 133,806 $ 636,299 514,540 233,455 260,742 47,000,000 37,000,000 46,000,000 36,000,000 795,932 730,612 1,526,544 947,009 475,276 1,422,285 630,132 730,612 1,360,744 760,313 475,276 1,235,589 Group Company 6 FINANCIAL ASSETS Term deposits 7 INVENTORIES Parts Goods in transit 8 OTHER ASSETS Prepayments Less: allowance for expected credit losses Deposits VaT receivable 638,666 (63,006) 575,660 469,102 195,033 1,239,795 1,198,485 (63,006) 1,135,479 469,802 199,642 1,804,923 544,505 (63,006) 481,499 424,431 183,623 1,089,553 585,601 (63,006) 522,595 424,431 203,544 1,150,570 80 2019 Annual ReportFiji Ports Corporation Limited and its Subsidiary Notes to the Consolidated Financial Statements (Cont’d) FOr THE YEar EnDED 31 DECEMBEr 2019 9 PROPERTY, PLANT AND EQUIPMENT Land Cost: at 1 January at 31 December Depreciation, impairment and amortisation at 1 January Depreciation charge for the year at 31 December net book value Building Cost: at 1 January additions Transfers Disposals at 31 December Depreciation and impairment at 1 January Depreciation charge for the year Disposals at 31 December net book value Wharves Cost: at 1 January additions Transfers at 31 December Depreciation and impairment at 1 January Depreciation charge for the year Disposals at 31 December net book value Plant and equipment Cost: at 1 January additions Transfers Disposals at 31 December Depreciation and impairment at 1 January Depreciation charge for the
 year at 31 December Group Company 2019 $ 2018 $ 2019 $ 2018 $ 16,944,157 16,944,157 16,944,157 16,944,157 15,980,821 15,980,821 15,980,821 15,980,821 691,582 224,297 915,879 479,369 212,213 691,582 632,176 205,030 837,206 427,146 205,030 632,176 16,028,278 16,252,575 15,143,615 15,348,645 14,886,304 20,770 289,370 - 15,196,444 14,547,156 71,096 271,623 (3,571) 14,886,304 10,266,051 614 289,370 - 10,556,035 10,728,885 493,712 - 11,222,597 10,265,327 466,771 (3,213) 10,728,885 8,578,647 243,574 - 8,822,221 9,997,999 - 271,623 (3,571) 10,266,051 8,358,770 223,090 (3,213) 8,578,647 3,973,847 4,157,419 1,733,814 1,687,404 92,323,540 40,600 47,319 (174,718) 92,236,741 91,380,532 9,633 933,375 - 92,323,540 92,323,540 40,600 47,319 (174,718) 92,236,741 65,241,868 4,167,350 (140,278) 69,268,940 60,957,469 4,284,399 - 65,241,868 65,241,868 4,167,350 (140,278) 69,268,940 91,380,532 9,633 933,375 - 92,323,540 60,957,469 4,284,399 - 65,241,868 22,967,801 27,081,672 22,967,801 27,081,672 10,658,464 556,483 454,231 - 11,669,178 10,002,347 547,382 108,733 - 10,658,462 3,358,435 140,215 454,231 - 3,952,881 8,338,404 596,551 8,934,955 7,805,012 533,392 8,338,404 2,736,051 253,272 2,989,323 3,094,332 208,082 56,021 - 3,358,435 2,513,841 222,210 2,736,051 net book value 2,734,223 2,320,058 963,558 622,384 81 2019 Annual ReportFiji Ports Corporation Limited and its Subsidiary Notes to the Consolidated Financial Statements (Cont’d) FOr THE YEar EnDED 31 DECEMBEr 2019 9 PROPERTY, PLANT AND EQUIPMENT continued Furniture and fittings Cost: at 1 January additions Transfers Disposals at 31 December Depreciation and impairment at 1 January Depreciation charge for the year Disposals at 31 December net book value Motor vehicles Cost: at 1 January additions at 31 December Depreciation and impairment at 1 January Depreciation charge for the year Disposals at 31 December net book value Cranes Cost: at 1 January Disposals at 31 December Depreciation and impairment at 1 January Depreciation charge for the
 year Disposals at 31 December net book value Office equipment and software Cost: at 1 January additions Transfer Disposals at 31 December Depreciation and impairment at 1 January Depreciation charge for the year Disposals at 31 December net book value 82 Group Company 2019 $ 2018 $ 2019 $ 2018 $ 363,911 41,045 46,232 (5,315) 445,873 283,065 35,793 (5,242) 313,616 132,257 641,120 29,666 670,786 394,737 116,016 - 510,753 329,835 34,076 - - 363,911 245,778 37,287 - 283,065 80,846 581,487 59,633 641,120 309,767 84,970 - 394,737 160,033 246,383 224,774 39,990 - (5,315) 259,449 190,040 15,530 (5,242) 200,328 59,121 457,815 29,666 487,481 211,432 116,016 - 327,448 160,033 210,820 13,954 - - 224,774 174,937 15,103 - 190,040 34,734 398,182 59,633 457,815 126,462 84,970 - 211,432 246,383 6,838,265 - 6,838,265 19,203,329 (12,365,064) 6,838,265 6,838,265 - 6,838,265 19,203,329 (12,365,064) 6,838,265 4,497,858 298,470 - 4,796,328 11,254,726 566,732 (7,323,600) 4,497,858 4,497,858 298,470 - 4,796,328 11,254,726 566,732 (7,323,600) 4,497,858 2,041,937 2,340,407 2,041,937 2 ,340,407 2,200,377 373,197 53,434 (15,726) 2,611,282 1,990,429 158,018 (15,726) 2,132,721 2,132,176 68,201 - - 2,200,377 1,842,747 147,682 - 1,990,429 2,024,508 359,738 53,434 (15,726) 2,421,954 1,851,564 134,139 (15,726) 1,969,977 1,966,452 58,056 - - 2,024,508 1,735,255 116,309 - 1,851,564 478,561 209,948 451,977 172,944 2019 Annual ReportFiji Ports Corporation Limited and its Subsidiary Notes to the Consolidated Financial Statements (Cont’d) FOr THE YEar EnDED 31 DECEMBEr 2019 9 PROPERTY, PLANT AND EQUIPMENT continued Work in progress at 1 January additions Transfers reversed at 31 December Group Company 2019 $ 2018 $ 2019 $ 2018 $ 2,379,653 3,585,633 (890,586) (395,853) 4,678,847 939,564 2,804,062 (1,313,731) (50,242) 2,379,653 1,187,643 2,948,615 (844,354) (395,850) 2,896,054 641,823 1,857,081 (1,261,019) (50,242) 1,187,643 net written down value at 31 December 53,195,784 55,068,961 46,417,910 48,722,216 as part
 of the share divestment agreement signed on 5th november 2015, the Group during the financial year 2018 transferred $963,336 worth of interests in two pieces of land recorded under Property, Plant and Equipment to a Government owned company (“assets Fiji Limited”) for $nil consideration.
Both land pieces were required by the Group for its operational use.

Thus, it was assigned to the Group from assets Fiji Limited in form of Government grant.

The opening balances of the statement of financial position and changes in equity were restated to effect these asset transfers on the date on which the share divestment agreement was signed.

as at 31 December 2019, the Group is yet to transfer 7 land titles of written down value $5,199,318 to assets Fiji Limited.
Disposals of property, plant and equipment In 2019, the Group sold plant and machinery, motor vehicles and furniture and fittings with a total net carrying amount of $34,515 (2018: $5,041,822) for a cash consideration of $47,944 (2018: $8,043,426).

The net gains on these disposals were recognised as part of other operating income in the statement of profit or loss and other comprehensive income.
10 LEASES Group as a lessee The Group has lease contracts for various items of plan, machinery, vehicles and other equipment used in its operations.

Leases of plant and machinery generally have lease terms between 3 and 15 years, while motor vehicles and other equipment generally have lease terms between 3 and 5 years.

The Group’s obligations under its leases are secured by the lessor’s title to the leased assets.
Generally, the Group is restricted from assigning and subleasing the leased assets and some contracts require the Group to maintian certain financial ratios.

There are several lease contracts that include extension and termination options and variable lease payments, which are further discussed below.

The Group also has certain leases of machinery with lease terms of 12 months or less and leases of office equipment with low value.
The Group applies the ‘short-term lease’ and ‘lease of low-value assets’ recognition exemptions for these leases.
Set out below are the carrying amounts of right-of-use-assets recognised and the movements during the period: As at 1 January 2018 additions Depreciation expense As at 31 December 2018 additions Depreciation expense As at 31 December 2019 Motor vehicles ($) 64,582 - (19,958) 44,624 - (19,125) 25,499 83 2019 Annual ReportFiji Ports Corporation Limited and its Subsidiary Notes to the Consolidated Financial Statements (Cont’d) FOr THE YEar EnDED 31 DECEMBEr 2019 Group Company 2019 $ 2018 $ 2019 $ 2018 $ 10 LEASES continued Set out below are the carrying amounts of lease liabilities and the movements during the period: As at 1 January Payments accretion of interest as at 31 December 2018 Comprising: Current non-current 46,101 (20,728) 1,495 26,868 20,016 6,852 26,868 64,582 (20,728) 2,247 46,101 19,233 26,868 46,101 46,101 (20,728) 1,495 26,868 20,016 6,852 26,868 64,582 (20,728) 2 ,247 46,101 19,233 26,868 46,101 The following are the amounts recognised in profit or loss: Depreciation expense of right-of-use assets Interest expense on lease liabilities Total amount recognised in profit or loss Group 2019 $ 19,125 1,495 20,620 2018 $ 19,958 2 ,247 22,205 The Group had total cash outflows for leases of $20,728 in 2019 ($20,728 in 2018).
The Group also had non-cash additions to right-ofuse assets and lease liabilities of $nil.

The future cash outflows relating to leases that have not yet commenced are disclosed in the notes.
11 INTANGIBLE ASSET Cost at 1 January at 31 December accumulated depreciation at 1 January Depreciation charge for the year at 31 December net book value at 31 December 12 INVESTMENT PROPERTY Cost at 1 January additions at 31 December Accumulated depreciation at 1 January Depreciation charge for the year at 31 December 45,349 45,349 44,718 631 45,349 4 - 588,835 24,718 613,553 568,439 20,460 588,899 45,349 45,349 43,357 1,361 4,718 631 588,835 - 588,835 543,981 24,458 568,439 - - - - - - 588,835 24,718 613,553 568,439 20,460 588,899 net book value at 31 December 24,654 20,396 24,654 - - - - - - 588,835 - 588,835 543,981 24,458 568,439 20,396 84 2019 Annual ReportFiji Ports Corporation Limited and its Subsidiary Notes to the Consolidated Financial Statements (Cont’d) FOr THE YEar EnDED 31 DECEMBEr 2019 13 TRADE AND OTHER PAYABLES Trade creditors Payable to subsidiary [note 18(d)] Payable to associate [note 18(d)] Sundry creditors Group Company 2019 $ 2018 $ 2019 $ 2018 $ 774,127 - - 3,307,469 4,081,596 730,330 - 9,396 3,562,828 4,302,554 574,987 2,285 - 2,614,390 3,191,662 560,183 2 ,977 9,396 3,022,383 3,594,939 Terms and conditions of the above financial liabilities: - Trade payables are non-interest bearing and are normally settled on 30-day terms.
- For terms and conditions relating to related parties, refer to note 18.

- For explanations on the Group’s liquidity risk management processes, refer to note 24 (c).

14 a) PROVISIONS Legal Claims at 1 January utilised during the year at 31 December 93,760 - 93,760 103,760 (10,000) 93,760 93,760 - 93,760 103,760 (10,000) 93,760 Provision for legal claim at balance date represents the legal claims brought against the Company and the Group by former employees.
The provision is reflected in the statement of comprehensive income as an administrative expense.
The Directors are of the opinion that the outcome of these legal claims will not give rise to any significant payments beyond the amounts provided as at 31 December 2019. b) Rental Income External at 31 December 4,043,179 3,006,092 4,043,179 3,006,092 Provision for rental income represents rental income (less property expenses) received by the Company for the year 2019 that will be remitted to a Government’s asset company (“assets Fiji Limited”).
The net rental income received are from properties that have or will be transferred to assets Fiji Limited as part of the share divestment agreements signed on 5 november 2015.
The Directors are of the opinion that the outcome of these rental income remittance will not give rise to any significant payments beyond the amounts provided as at 31 December 2019. c) Job Evaluation Exercise at 31 December 28,138 194,176 28,138 194,176 Provision for job evaluation exercise at balance date presents the expected overall increase in staff salary due to Job Evaluation Exercise.
Total Provision as at 31 December 4,165,077 3,294,028 4,165,077 3,294,028 15 EMPLOYEE BENEFIT LIABILITY at 1 January arising during the year utilised/reversed during the year at 31 December analysis of employee benefit liability: Current non-current 16 CASH AND CASH EQUIVALENTS 1,317,173 1,101,947 (1,068,748) 1,350,372 1,084,834 971,806 (739,467) 1,317,173 1,190,525 1,027,755 (997,764) 1,220,516 970,275 893,809 (673,559) 1,190,525 952,366 398,006 1,350,372 886,386 430,787 1,317,173 843,635 376,881 1,220,516 782,633 407,892 1,190,525 Cash and cash equivalents consist of cash on hand and balances with banks net of bank overdraft.
Cash and cash equivalents included in the statement of cash flows comprise the following amounts: Cash on hand Cash at bank 4,580 26,911,484 26,916,064 4,580 23,403,899 23,408,479 3,580 24,498,352 24,501,932 3,580 20,494,603 20,498,183 85 2019 Annual ReportFiji Ports Corporation Limited and its Subsidiary Notes to the Consolidated Financial Statements (Cont’d) FOr THE YEar EnDED 31 DECEMBEr 2019 17 SHARE CAPITAL a) Issued and paid up capital 73,154,852 ordinary shares Group Company 2019 $ 2018 $ 2019 $ 2018 $ 73,154,852 73,154,852 73,154,852 73,154,852 The holders of ordinary shares are entitled to receive dividends as declared from time to time and are entitled to one vote per share at the meetings of the Company.
b) Dividends at 1 January add: dividends declared during the year Less: special dividend paid to Government of Fiji from sale of land and building proceeds Less: special dividend paid to Government of Fiji from Fiji Ports Terminal Limited loan repayment proceeds Less: dividends paid during the year at 31 December - 16,239,287 2 ,170,902 15,226,505 - 16,239,287 2,170,902 15,226,505 - (574,475) - (574,475) - (16,239,287) - (1,596,427) (15,226,505) - - (16,239,287) - (1,596,427) (15,226,505) - 18 RELATED PARTY TRANSACTIONS Directors The names of persons who were directors of Fiji Ports Corporation Limited and its subsidiary at any time during the reporting period were as follows: Shaheen ali (Chairman) Tupou Baravilala (Director) Vijay Maharaj (Director) Vilash Chand (Director) Tevita Kuruvakadua (Director) Sashi Singh (Director) Joseph Brito (Director) Dr Parakrama Dissanayake (Director) Iqram Cuttilan (Director) Key Management Personnel reappointed 18th november 2018 reappointed 28th april 2018 reappointed 3rd July 2018 appointed 3rd July 2017 appointed 16th november 2015 appointed 16th november 2015 resigned on 18th March 2019 appointed 18th March 2019 appointed 1st July 2017 Key Management personnel are those persons having authority and responsibility for planning, directing and controlling the activities of the entity directly or indirectly, including any director (whether executive or otherwise) of that entity.
During the financial year the following persons were identified as key management personnel, with the greatest authority and responsibility for the planning, directing and controlling the activities of the company: Name Vajira Piyasena roshan abeyesundere Title Chief Executive Officer Chief Financial Officer 86 2019 Annual ReportFiji Ports Corporation Limited and its Subsidiary Notes to the Consolidated Financial Statements (Cont’d) FOr THE YEar EnDED 31 DECEMBEr 2019 18 RELATED PARTY TRANSACTIONS continued Identity of related parties The Company has a related party relationship with its subsidiary, Fiji Ships and Heavy Industries Limited (100% equity interest) and its associate, Fiji Ports Terminal Limited (49% equity interest).
Transactions with related parties all transactions with related parties are made on normal commercial terms and conditions.

The following transactions were carried out with related parties: Group Company 2019 $ 2018 $ 2019 $ 2018 $ (a) Key management personnel compensation Directors Short-term benefits Management Short-term benefits 71,499 60,500 71,499 60,500 708,877 602,712 708,877 602,712 The aggregate compensation of the key management personnel comprises only of salary and short term benefits.
(b) Sales of goods and services Management fees income from associate rental income from associate Dividend income from associate Dividend income from subsidiary Sale of services to associate (c) Purchases of goods and services Purchase of services from subsidiary (d) Receivable from/(payable to) subsidiary/associate Fiji Ports Terminal Limited associate Fiji Ships and Heavy Industries Limited Subsidiary Disclosed as: receivable from associate (note 5) Payable to associate (note 13) receivable from subsidiary (note 5) Payable to subsidiary (note 13) (e) Loan to subsidiary Beginning of the year Loan repayments received Interest charged End of the year Comprising: Current non-current 72,000 2 ,563,598 5,035,997 - - 72,000 2 ,447,071 5,078,398 - 83,436 72,000 2 ,563,598 5,035,997 666,609 - 72,000 2,447,071 5,078,398 604,355 83,436 - - 131,571 107,499 44,587 - 44,587 44,587 - - - 44,587 - - - - - - - (6,683) - (6,683) 2,713 (9,396) - - (6,683) - - - - - - - 44,587 1,681 46,268 44,587 - 3,966 (2,285) 46,268 1,099,653 (166,785) 41,709 974,577 130,172 844,405 974,577 (6,683) 2 ,075 (4,608) 2 ,713 (9,396) 5,052 (2,977) (4,608) 1,219,832 (166,785) 46,606 1,099,653 125,076 974,577 1,099,653 The loan to the Subsidiary Company is unsecured and based on approval from the Board of the Company, subject to interest at the fixed rate of 4.0% per annum.
This is repayable by monthly installments of $13,899.

The repayment schedule is reviewed annually.
87 2019 Annual ReportFiji Ports Corporation Limited and its Subsidiary Notes to the Consolidated Financial Statements (Cont’d) FOr THE YEar EnDED 31 DECEMBEr 2019 18 (f) RELATED PARTY TRANSACTIONS Loan to associate Beginning of the year Loan repayments received Interest charged Comprising: Current non-current Group Company 2019 $ 2018 $ 2019 $ 2018 $ - - - - - - - 1,571,011 (1,622,465) 51,454 - - - - - - - - - - - 1,571,011 (1,622,465) 51,454 - - - - The loan to Fiji Ports Terminal Limited amounting to $4,000,000 was unsecured and subject to interest at the fixed rate of 4.0% per annum.
This was repayable by monthly installments of $38,447 per month.

In December 2018, the outstanding loan balance was fully repaid by the associate company.
(g) Receivable from associate - for sale of Shore Cranes Beginning of the year notional interest on related party note Interest released to profit and loss for the year arising during the year Payments received during the year 7,574,226 (1,561,306) 384,148 - (804,343) 5,592,725 - - - 8,767,334 (1,193,108) 7,574,226 7,574,226 (1,561,306) 384,148 - (804,343) 5,592,725 - - - 8,767,334 (1,193,108) 7,574,226 The sale of shore cranes by the Company to FPTL is receivable over ten years at zero interest.
notional interest has been calculated on the interest- free loan at the FPTL’s incremental borrowing rate of 4% per annum.

The notional interest adjustment has been recognised as an increase in investment in associate.
(h) Other related parties Fiji national Provident Fund - member contribution 704,043 675,092 544,607 522,820 19 INVESTMENT IN AN ASSOCIATE The Group has a 49% interest in Fiji Ports Terminal Limited at balance date, which is involved in terminal operations including stevedoring at the Ports of Suva and Lautoka.

The Group’s interest in Fiji Ports Terminal Limited is accounted for using the equity method in the consolidated financial statements.
The following table illustrates the summarised financial information of the Group’s investment in Fiji Ports Terminal Limited.
Current assets non- current assets Current liabilities non- current liabilities Equity Proportion of the Group’s ownership Goodwill Carrying amount of the investment revenue Operating expenses Finance costs Finance income Profit before tax Income tax expense Profit for the year Group’s share of profit for the year 88 13,654,820 33,796,542 (5,444,180) (23,863,265) 18,143,917 49% 8,890,519 3,733,078 12,623,597 35,111,667 (23,340,291) (1,045,395) 334,557 11,060,538 (2,783,662) 8,276,876 4,055,669 11,587,146 16,610,688 (3,197,470) (8,042,117) 16,958,247 49% 8,309,541 3,733,078 12,042,619 37,580,985 (23,872,578) (51,454) 27,469 13,684,422 (2,816,228) 10,868,194 5,325,415 2019 Annual ReportFiji Ports Corporation Limited and its Subsidiary Notes to the Consolidated Financial Statements (Cont’d) FOr THE YEar EnDED 31 DECEMBEr 2019 20 CAPITAL COMMITMENTS Capital expenditure: - approved by the Board and committed 21 RENTAL INCOME COMMITMENTS Group Company 2019 $ 2018 $ 2019 $ 2018 $ 4,088,511 1,901,516 3,309,968 1,122,973 not later than one year Later than one year but not later than five years Later than five years 754,662 435,922 4,406,358 5,596,942 907,849 791,165 4,551,316 6,250,330 754,662 435,922 4,406,358 5,596,942 907,849 791,165 4,551,316 6,250,330 22 a) CONTINGENT LIABILITIES Guarantee given on behalf of the subsidiary company Bank guarantee for HM Customs and FEa bonds Bank guarantee for Ministry of Primary Industries FUTURE LEASE COMMITMENTS not later than one year Later than one year but not later than five years 23 DEFERRED INCOME - 81,000 7,000 88,000 20,017 6,846 26,863 800,000 83,900 7,000 890,900 19,233 26,863 46,096 - 81,000 - 81,000 20,017 6,846 26,863 800,000 83,900 - 883,900 19,233 26,863 46,096 Deferred income represents assets assigned to the Group to use in its operations by the Government of Fiji through assets Fiji Limited.
The assets assigned to the Group are based on conditions that these would only be used for the operating activities of the Group.
Opening balance Less: amortisation charges during the year Closing balance 10,523,246 (224,297) 10,298,949 10,747,543 (224,297) 10,523,246 9,619,316 (205,030) 9,414,286 9,824,346 (205,030) 9,619,316 Movement in the accumulated amortisation are as follows: as at 1 January amortisation charge for the year as at 31 December 691,582 224,297 915,879 467,285 224,297 691,582 632,176 205,030 837,206 427,146 205,030 632,176 24 FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES The principal financial liabilities comprises of interest bearing borrowings, trade payables and other accruals.
The financial liabilities is the result of the Group’s operations.

The Group has various financial assets such as trade receivables and cash, which also arise directly from its operations.

The Group’s activities expose it to a variety of financial risks: market risk, credit risk and liquidity risk.

The Group’s overall risk management program focuses on the unpredictability of financial markets and seeks to minimise potential adverse effects on financial performance.
risk management is carried out by finance executives and management of controlled entities of the Group.

Management and finance executives identify, and evaluate financial risks in close co-operation with the Group’s operating units.

The Board provides direction for overall risk management covering specific areas, such as mitigating credit risks, and investment of excess liquidity.
(a) Market risk Market risk is the risk that changes in market prices, such as foreign exchange rates, interest rates and equity prices will affect the group’s income or the value of its of financial instruments.

The objective of market risk management is to manage and control market risk exposures within acceptable parameters, while optimising the return on risk.
89 2019 Annual ReportFiji Ports Corporation Limited and its Subsidiary Notes to the Consolidated Financial Statements (Cont’d) FOr THE YEar EnDED 31 DECEMBEr 2019 24 FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES continued (a) Market risk continued (i) Political climate The Group operates in Fiji and changes to governments and the policies they implement affect economic situation and ultimately the revenues of the group.
To address this, the Group reviews its pricing and product range regularly and responds to change in policies appropriately.

(ii) Currency risk Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate because of changes in foreign exchange rates.

The Group’s exposure to the risk of changes in foreign exchange rates relates primarily to the Group’s operating activities (when revenue or expense is denominated in a foreign currency).
The Group is exposed to currency risk through transaction in foreign currencies.

These currencies include the australian (auD) and uS (uSD) dollar.

as the currency in which the Group presents its financial statements is the Fiji dollar, the Group’s financial statements are affected by movements in the exchange rates between these currencies and the Fiji dollar.
Sensitivity analysis a strengthening/(weakening) of the Fiji dollar as at 31 December 2019, as indicated below, against the uSD and auD would have increased/(decreased) equity and the statement of profit or loss and other comprehensive income by the amounts shown below.

This analysis assumes that all other variables, in particular interest rates, remain constant.

The analysis is performed on the same basis for 2018.
The following significant exchange rates were applied during the period: Reporting date mid spot rate auD uSD 2019 0.67 0.47 2018 0.66 0.46 Strengthening/(Weakening) Statement of profit or loss and other comprehensive income Effect in FJD 31 December 2019 auD uSD 31 December 2018 auD (b) Credit risk +10% -10% +10% -10% +10% -10% 49,153 (49,153) 935 (935) 28,803 (28,803) Credit risk is the risk of financial loss to the Group if a customer or counterparty to a financial instrument fails to meet its contractual obligations, and arises principally from the Group’s receivables from customers.
The Group has no significant concentrations of credit risk.

The Group has policies in place to ensure that services are provided to customers with an appropriate credit history.

The Group has policies that limit the amount of credit exposure to any one customer or group of customers.

Credit levels accorded to customers are regularly reviewed to reduce the exposure to risk of bad debts.
The Group establishes an allowance for impairment that represents its estimate of incurred losses in respect of trade and other receivables.

The main component of this allowance is a specific loss component that relates to individually significant exposures.

The carrying amount of financial assets represents the maximum credit exposure.
90 2019 Annual ReportFiji Ports Corporation Limited and its Subsidiary Notes to the Consolidated Financial Statements (Cont’d) FOr THE YEar EnDED 31 DECEMBEr 2019 24 FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES continued (b) Credit risk continued Cash and cash equivalents Trade and other receivables Financial assets Ageing of trade receivables Notes 16 5 6 Carrying amount 2019 $ 26,916,064 4,317,845 47,000,000 78,233,909 2018 $ 23,408,479 4,434,032 37,000,000 64,842,511 The table below summarises the ageing of trade receivables as at 31 December based on contractual undiscounted payments: Group 31 December 2019 Expected credit loss rate Trade receivable Expected credit loss 31 December 2018 Expected credit loss rate Trade receivable Expected credit loss (c) Liquidity risk Total 0-30 days 31-60 days 61-90 days Over 90 days 47.86% 1,785,526 854,613 0.00% 747,465 - 34.99% 2,566,982 898,110 0.00% 1,460,074 - 0.00% 352,153 - 0.00% 423,555 - 0.00% 49,609 - 0.00% 168,813 - 134.31% 636,299 854,613 174.55% 514,540 898,110 Liquidity risk is the risk that the Group will not be able to meet its financial obligations as they fall due.
The Group’s approach to managing liquidity is to ensure, as far as possible, that it will always have sufficient liquidity to meet its liabilities when due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to the Group’s reputation.

Prudent liquidity risk management implies maintaining sufficient cash, marketable securities, and the availability of funding through an adequate amount of committed credit facilities.
The following are the contractual maturities of financial liabilities, including estimated interest payments and excluding the impact of netting agreements: 31 December 2019 Trade and other payables Lease liability 31 December 2018 Trade and other payables Lease liability On demand $ < 1 year $ 1 to 5 years $ > 5 years $ - - - 4,081,596 20,016 4,101,612 - 6,852 6,852.00 - - - On demand $ < 1 year $ 1 to 5 years $ > 5 years $ - - - 4,302,554 19,233 4,321,787 - 26,868 26,868 - - - Total $ 4,081,596 26,868 4,108,464 Total $ 4,302,554 46,101 4,348,655 91 2019 Annual ReportFiji Ports Corporation Limited and its Subsidiary Notes to the Consolidated Financial Statements (Cont’d) FOr THE YEar EnDED 31 DECEMBEr 2019 24 FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES continued (d) Capital risk management The board’s policy is to maintain a strong capital base so as to maintain investor, creditor and market confidence and to sustain future development of the business.
The Group’s objectives when obtaining and managing capital are to safeguard the Group’s ability to continue as a going concern and provide shareholders with a consistent level of returns and to maintain an optimal capital structure to reduce the cost of capital.

The Group monitors capital on the basis of the gearing ratio.

This ratio is calculated as debt divided by total capital.
Debt is calculated as total borrowing (including ‘current and non- current borrowing’ as shown in the Group statement of financial position).

Total capital is calculated as ‘equity’ as shown in the Group statement of financial position plus debt.
Interest bearing borrowings Debt Equity Capital and debt Gearing ratio Group 2019 $ 2018 $ - - 140,540,289 140,540,289 - - 130,279,071 130,279,071 0% 0% 25 EVENTS SUBSEQUENT TO BALANCE DATE Subsequent to the end of the financial year, the COVID-19 outbreak was declared a pandemic by the World Health Organisation in March 2020.

We have seen a significant impact on our business to date.
The outbreak and the response of Governments in dealing with the pandemic is interfering with general activity levels within the community, the economy and the operations of our business.

The scale and duration of these developments remain uncertain as at the date of this report however they are having an impact on our earnings, cash flow and financial condition.
It is not possible to estimate the impact of the outbreak’s near-term and longer effects or Governments’ varying efforts to combat the outbreak and support businesses.

This being the case, we do not consider it practicable to provide a quantitative or qualitative estimate of the potential impact of this outbreak on the Group at this time.
The financial statements have been prepared based upon conditions existing at 31 December 2019 and considering those events occurring subsequent to that date, that provide evidence of conditions that existed at the end of the reporting period.
as the outbreak of COVID-19 occurred after 31 December 2019, its impact is considered an event that is indicative of conditions that arose after the reporting period and accordingly, no adjustments have been made to financial statements as at 31 December 2019 for the impacts of COVID-19.

26 PRINCIPAL ACTIVITIES The principal activity of the Company is providing and managing the port infrastructure and services within declared ports.
The principal activity of the subsidiary trading as “Fiji Ships and Heavy Industries Limited” is the provision of ship repair and slipway services.

There has been no significant change in these activities during the year.
92 2019 Annual ReportFiji Ports Corporation Limited and its Subsidiary Fiji Ports Corporation Limited Muaiwalu House, Walu Bay, Suva, Fiji.
GPO Box 780 Suva, Fiji.

T + 679 331 2700 www.fijiports.com.fj 2019 ANNUAL REPORT