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SPF to save freight costs in new deal

December 23, 2012 6:02 pm

South Pacific Fertilisers Limited will save up to 50 per cent in freight costs for fertiliser after Xinfa – the company undertaking bauxite mining in Bua – shipped across fertiliser from China.

8,000 metric tonnes of fertiliser is being offloaded in Lautoka for SPF.

The shipment came in the same boat that transports bauxite from the mine in Nawailevu to China.

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Permanent Secretary for Sugar Manasa Vaniqi says currently freight charges for fertiliser can be as high as two hundred dollars per tonne.

“Sourcing raw materials from abroad by South Pacific Fertilisers has been an expensive exercise. Now, there is a substantial reduction in freight charges from China to Fiji. South Pacific Fertiliser has been able to save alot of money."

This cost saving measure is a timely intervention for the sugar industry.

“Fertiliser that is now being blended at the Lautoka mill is given as a subsidy to the farmers. 15,000 to 16,000 farmers enjoy this benefit from the South Pacific Fertiliser Limited. So it will really help in facilitating or reducing the cost of fertiliser that gets finally to the farmers.”

The initiative is the brainchild of the Prime Minister and Sugar Minister Voreqe Bainimarama which took about nine months of talks before the deal was finalised.

The fertiliser shipment arrived on Friday and offloading is expected to be complete by today.

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