Pacific Magazine > Magazine > September 1, 2006

Business Briefs

Business Briefs

Sept/Oct 2006

A Marshallese living on an outer island makes copra, which is used to process coconut oil. [photo: Ben Chutaro]

The sale of coconut oil as a replacement for diesel is slowly increasing in Pohnpei, according to Pohnpei Coconut Products, Inc., a private company that processes copra into crude oil as well as body products and bath soap. PCP manager Peterson Sam reports sales of more than 200 gallons of the oil per month. The company began selling the oil less than a year ago. Customers include several local businesses as well as the Pohnpei Ports Authority. The product currently sells for $2.85 per gallon, more than a dollar cheaper than current gas prices on the island. PCP is the only producer of coconut oil for diesel engine use in the FSM. In the Marshall Islands, the Tobolar Copra Processing Authority is fueling heavy construction equipment and a handful of local vehicles with locally-produced coconut oil. It is selling coconut oil at $2 a gallon, which is less than half the cost of diesel and gas in Majuro. - JC and GJ

 
The Guam Marriott Resort and Spa was purchased by UFB Guam Hotel Corp. on June 1. UFB also owns a Marriott hotel in Sydney and is developing a Marriott-managed hotel and resort complex in Fiji, according to the Web site of Bridgecorp Investments, one of the UFB partners. The Guam Marriott was originally known as the Pacific Star Hotel and was owned by the Republic of Nauru. The Marriott assumed management of the property in 2000 and took ownership in a foreclosure in 2004. The hotel will keep the Marriott brand. - FW

TD Food of Honolulu purchased six Taco Bell restaurants, two of which include Long John Silver’s locations, in Guam. The sale marks the end of Pacific Ventures operations in Guam after 40 years during which the company opened a number of brand-name restaurants. TD owns 44 Pizza Huts and 25 Taco Bells in Hawaii as well as five Pizza Hut restaurants in Guam. Brentwood Associates is a partner in the transaction. - FW


Pacific Savings Bank’s long-time vice president, John DeVivo, has left the bank. The current president of the Fiji Development Bank, Tukana Bovoro, will return to Palau to act as a temporary consultant to the bank. He previously served in Palau with that nation’s development bank. Pacific Savings Bank was founded by Senate President and PSB board chairman Johnny Reklai and its current president Tim Taunton and is now the largest locally-owned bank in Palau. - BP

Shell Company Limited in mid-July suspended delivery of fuel and lubricants to the Palau Public Utilities Corporation for failure to pay overdue accounts. PPUC chairman Kione Isechal disputed Shell’s interpretation of the fuel supply contract. The dispute is pending in court. Meanwhile, Isechal reassured the public that “the suspension would not affect the distribution of electricity to the public.” PPUC is still able to obtain fuel, provided it pays on delivery. - BP


Papua New Guinea carrier Airlines PNG has added a Boeing 737 to its jet fleet to serve its new Port Moresby-Brisbane route. The addition of the B737 marks the airline’s entry into the competitive Port Moresby-Brisbane sector, currently controlled by PNG national airline Air Niugini and Qantas—through a code-share agreement. Airlines PNG already flies to Cairns using its Dash 8 turboprop aircraft but CEO Simon Wild said Brisbane was the next logical step in light of the success of its Port Moresby- Cairns flights. - AR

The US$250 million Hidden Valley gold/silver project in Papua New Guinea’s Morobe province is on track to produce 350,000 gold-equivalent ounces annually in 2009, says developer and South African gold producer Harmony Gold. The access road to the mine has been completed and mine construction will start in September and is expected to take about two years to complete before production begins. It is anticipated that the project will produce 2.6 million ounces of gold and 39 million ounces of silver over 10 years, the company said in a statement. - AR


Riding on the success of its national rugby sevens team, which won last year’s World Cup and this year’s IRB world sevens series, the Fiji Rugby Union signed a multi-million dollar sponsorship deal with international mobile telecommunications giant Digicel. The deal is reportedly worth US$2.5 million (F$4 million) to be spread over four years. The sponsorship package is one of biggest ever for any sports body in Fiji and the region. Digicel will now become the official telecommunications partner and official sponsor of the FRU and the sole sponsor of the Digicel Fiji 7s Team. “We are very excited to have Digicel on board as a partner and supporter of Fiji Rugby,” says FRU chief executive Timoci Tavanavanua. “This will help us enormously as we build further on the skills and winning track record of the team.” Digicel recently won a contract to provide wireless communications services in Samoa. It currently does not operate in Fiji, but the sponsorship move is thought to signal its intentions to enter that market, too. - PR

Royal Dutch Shell in early July agreed to sell off its oil distribution outlets in Fiji and Tonga as part of its global divesting of small markets. Total France SA agreed to buy the nine oil terminals and depots and 20 service stations for an undisclosed sum. Shell said it would continue to sell its products through the new managers for up to five years. It also announced its business in New Caledonia, Vanuatu and French Polynesia will be purchased by Albert Moux and Partners, a consortium whose principal is Shell’s current partner in French Polynesia, Albert Moux. No developments for the Cook Islands and Solomon Islands were announced. - RM

Vision Group Limited, a consortium of four Fiji companies, bought out British-owned Courts Homecentres in May for F$47 million. Vision Group is owned by hardware merchants RC Manubhai Group, high-end retailer Jack’s of Fiji and property investors Challenge Group and Candle Investments. No jobs were lost in the acquisition. Courts Homecentres is one of two consumer goods giants in Fiji. - RM


The annual accounts of the Methodist Church of Samoa, the third largest denomination in the country, showed the church expects to collect T$10 million (approximately US$4 million) from its members this year, compared to T$8 million last year. The financial statement said T$8 million will be used for church development projects. Money donated to the Samoan churches, estimated at T$1million weekly, has long attracted comment with one prominent church minister saying, “There will be no economic poverty in Samoa as long as the church stops all its building projects.” - AT

Tausala Beer made its debut on the Samoan beer market in June—a market long dominated by Vailima Beer, a product of Samoa Breweries that is owned by Carlton Breweries of Australia. Samoa Breweries had been government-owned until some three years ago when most of government’s shares were sold to Fiji Breweries, which is also owned by Carlton Breweries. Tausala Beer is brewed in China, and joins a number of novelty beers that pay stiff duty and excise taxes when brought into the country. - AT


Telecommunications monopoly Solomon Telekom Company Limited says it is open to discuss competition, provided government amends the act that makes it a monopoly. General manager Martin Robinson says if the industry is to open to competition, then government must be willing to subsidize the provincial services as the company loses up to SBD$5 million a year in operating the service. Robinson made those comments following recent comments by Minister for Planning and Aid Coordination Gordon Lilo Darcy that government is working to open the telecommunications industry to competition. - AO


Five high school students on Saipan were awarded $2,500 each scholarships by the Saipan Chamber of Commerce for 2006.  They are Michelle Raganot, Marianas High School who will attend the University of Michigan; Theresa Arriola, Northern Marianas Academy, Brown University; Theresa Semona Igama, Marianas High School, Northern Marianas College; Mantasha Alam, Marianas High School, Embry-Riddle Aeronautical University; and Wilet E. Reiman, Kagman High School, Hawaii Pacific University.  The one-time scholarships are based on academic excellence, extracurricular activities, leadership qualities, community involvement, level of need, and a 1,000 word essay that explained how they would use their higher education to help the CNMI. - FSR

June visitor arrivals were down 10.7 percent compared to June 2005, according to statistics released by the Marianas Visitors Authority (MVA). A total of 38,510 visitors came to the CNMI this year compared to 43,155 in June of last year. The biggest decline was 26 percent for Japan tourists, which MVA continues to attribute to Japan Airlines’ pullout last October. Korea posted a 48 percent increase in arrivals. Guam and other countries increased dramatically by 16 percent and 175 percent, respectively, which was attributed to the Micronesian Games that started June 23. Northwest Airlines has launched a new nighttime flight to Japan three days per week. - FSR


The Majuro Chamber of Commerce is seeking U.S. Interior Department help to address postal and banking problems that are hurting the private sector in the Marshall Islands. In response to Interior’s recent announcement that it is sponsoring the third Conference on Business Opportunities in the Islands in Hawaii on November 13 and 14, Chamber President Jack Niedenthal wrote to conference organizers that “while the conference is helpful, another avenue for the Department of Interior (DOI) to have a great and immediate impact on the business climate here in the Marshall Islands is to help engineer some greatly needed changes to (postal and banking) policies. The U.S. spends a lot of money on this conference, yet the businesses in the Marshall Islands are suffering because of the new U.S. postal policy that makes the Marshall Islands an international postal destination. We have also received little or no support for the Bank of Marshall Islands, which needed to be classified as a U.S. bank—or at a minimum needed to be acknowledged as having a special relationship with the U.S. banking system—in order for the bank to maintain a corresponding banking relationship with a U.S. bank.” Niedenthal also appealed to the U.S. State Department for action on the postal front, saying that because of changes to the Compact relationship, “many U.S. based companies will not ship (through the post office) to the Marshall Islands” any longer. - GJ

The Marshall Islands ship registry is now ranked fifth largest in the world and is the fastest growing registry worldwide, according to International Registries, Inc., which manages the operation from Reston, Virginia. There are now more than 1,200 ships, accounting for 33 million gross tons, flying the Marshall Islands flag. These include 420 tankers, 200 yachts, 173 container vessels and 164 bulk carriers among others. In a recent development, Mitsui OSK Line became the first major ship owner in Japan to flag a vessel in the Marshall Islands. The ship registry opened an office in Japan last year to court shipping business there. - GJ

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Contributors: Jessica Chapman, Giff Johnson, Frank Whitman, Blaire
Phillips, Alex Rheeney, Ricardo Morris, Afamasaga Toleafoa, Alison Ofotalau, Peter Rees and Frank S. Rosario.