Pacific Magazine > Magazine > January 1, 2007

Business Briefs

Business Briefs

Jan/Feb 2007


Region
French firm Total Oil completed its purchase of Shell’s operations in Fiji, Tonga and Samoa on November 2. The sale was completed following approvals from governments of these countries. Total bought out a network of nine terminals and depots in Fiji and Tonga and 20 service stations in Fiji. Meanwhile the Solomon Islands National Provident Fund (SINPF) is now a part owner of a Shell business in Honiara. SINPF and GRP and Associates took over ownership of the Shell Company in Honiara from December 15 under a new company called South Pacific Oil.  Shell announced in 2006 it was divesting its Pacific operations because its returns represented only a small part of its global operations.

—AO, RM

Guam 

The Guam Shipyard had good news to celebrate recently. U.S. federal legislation enacted at the end of September contained a provision that closed loopholes permitting U.S. ships to be repaired in foreign ports. Mathew Pothen, shipyard CEO, estimated that five or six ships a year were bypassing Guam for repairs because of the loopholes.  On October 11, the company inducted 30 apprentices into a new federally certified apprenticeship program, which was made feasible in part by a recent Guam law offering tax incentives for employers to subsidize such training. And at the end of September, the Department of Defense announced it was awarding the company a $6 million contract to repair the USS Frank Cable, a submarine tender based in Guam.
                                                                                                              —FW

Two large openings were held at the Agana Shopping Center in Guam on November 17. Popular Philippine retail chain ShoeMart opened a 40,000 square foot outlet in the center’s third wing, which had been closed since it was damaged by Supertyphoon Pongsona in December 2002. A five-screen movie complex, Agana Stadium Theaters, owned by Tango Theaters, a division of Tan Holdings Co. was also opened. Orion Construction was the contractor for both projects that were valued at about $2.5 million each.
                                                                                                             -FW
CNMI  
The local chapter of American Red Cross Club 200 generated $130,000 during its annual fundraising event on October 16, about $20,000 less than 2005. Red Cross officials said the lower amount is a result of the current ailing economy.
                                                                                                                -FSR
 
Payless Shoe Source closed one of its stores and will only keep one open, another casualty of the Northern Marianas economic crisis. The popular shoes store closed its Garapan branch on October 28 but will keep its store in San Jose open.
                                                                                                               --FSR

Fiji 
Monopoly mobile service provider Vodafone Fiji has completed a multi-million dollar upgrade to its pre-paid service platform. The upgrade will ease network congestion experienced because of the growing number of subscribers. About 95 percent of Vodafone’s 250,000 subscribers are pre-paid customers. The new “intelligent network” system was supplied by Intervoice, a global provider of such systems. Vodafone’s capital expenditure budget for 2006-7 is F$37.4 million (US$22.5 million).
—RM

Samoa
A Samoa-based export company has launched a new range of frozen goods in New Zealand aimed at the large Pacific community. CJ Exports unveiled its frozen palusami and breadfruit products at a launch in south Auckland in November. The launch was a combined effort between the company and the Pacific Islands Trade and Investment Commission (PITIC) of New Zealand, an agency of the Pacific Islands Forum Secretariat, tasked with assisting Pacific Island businesses export their products into New Zealand and promote investment and tourism to the Pacific. The products are made and packaged in Samoa.
—PR

The long awaited lease of government-owned land for the multimillion Taumeasina Tourist Resort Hotel was recently signed, paving the way for work on the five star hotel on the 14 acre man-made island on the outskirts of Apia. Gordon Taylor, the New Zealand owner of the new hotel, says Samoa’s booming tourist industry needs quality accommodation. The resort is expected to be ready for use during the South Pacific Games in Samoa this year.
—AT
The Codex Commission for North America and the South West Pacific met in Apia during the second week of October. Codex is the organization responsible for developing a quality and safety code for food when traded internationally. Although Codex is more than 40 years old, participation by most Pacific island countries is relatively recent. In opening the conference, Prime Minister Tuilaepa S. Malielegaoi said the rise in lifestyle diseases in the Pacific highlights the need to ensure the safety and quality of imported foods that are forming such a large part of Pacific people’s diet today.
                                                                                                                --AT
 
Samoa joined the world of Global System for Mobiles (GSM) telephone communications when Digicell Samoa, a new entry into telecommunications in the country, launched its advanced GSM network late last year. The new GSM service replaces older network that was employed by Samoa Telecom Cellular, the only mobile phone service provider in the country. By acquiring 90 percent ownership of Samoa Telecom Cellular, Digicell started its new service with an existing client base of 30,000 subscribers.
                                                                                                                 --AT

Papua New Guinea
Papua New Guinea-based Canadian petroleum company InterOil Limited has announced a major gas find in the Gulf Province’s Eastern Papua Basin. Described as “potentially the biggest gas well in PNG, New Zealand and Australia,” the Department of Petroleum and Energy says onsite tests show gas condensation at high pressure with reserves estimated at several trillion cubic feet. The location of the discovery is closer to the coast than previous PNG gas discoveries, which industry commentators say could drive the development of a PNG liquefied natural gas industry.

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—AR

 

Port Moresby-based water company Eda Ranu has repaid a K6 million loan it took from the National Superannuation Fund. The government-owned company currently provides water and sewerage services to the PNG capital city and needed the loan to fund an upgrading program of its facilities. Eda Ranu was able to make a profit of K500,000 last year which it paid to the PNG government as dividend. Emphasizing that public enterprises could be successful if managed well, Eda Ranu general manager Billy Imar says the company will continue to improve its services.
                                                                                                                   --AR


Solomon Islands
A newly leased Boeing-737 aircraft from Airclass of Spain is making it possible for Solomon Airlines to operate direct flights to and from Santo on the Lugainville Island of Vanuatu. The aircraft will also serve routes between Honiara, Brisbane, Nadi and Port Vila. Solomon Airlines general manager Joseph Anea says the lease will be for six months but a renewal is possible if it proves viable. Anea says the airline is the first to open the Santo market, which shows a booking rate of between 60 to 70 percent.

—AO
Solomon Telekom is challenging government’s decision in November to grant a research license to Caribbean-based telecommunications company Digicel. The director of Spectrum Robert Bokelema says the research license granted to Digicel is not in breach of the telecommunications act, which some say gives exclusive rights to Solomon Telekom. Its lawyers have filed suit in the High Court for a stay order on Digicel’s research license, and to challenge government’s interpretation that the telecommunications act does not give Solomon Telecom the right to monopolize the industry.
                                                                                                               --AO

Contributors: Ricardo Morris, Peter Rees, Afamasaga Toleafoa, Frank Whitman, Alex Rheeney and Alison Ofotolau.

 

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