$1.2m Delay: PDM Awaits Govt Approval
A$1.2 million capital project that promises to bring larger vessels to Fiji has been on hold for the past five years, as developers await Government approval for a dredging project.
The delay in expansion plans at Port Denarau Marina Limited, also impacts the number of jobs the development promises to bring to the local economy.
This as the marina announced its plans to cater for more capacity – including catamarans and super yachts – in Nadi.
In its annual report, the marina pegged the dredging timeline at 2022/2023.
But contractors have been on standby since 2017, SunBiz was reliably informed.
For a commercial marina of that magnitude, the bureaucratic processes need to be simplified, if approvals are not automatic, an industry spokesperson said.
The Government-owned channel
is also used for outer island transfer.
The company’s success, coming out of the COVID-19 pandemic, has been remarkable.
$2.1 million turnaround
Chairman, David Skeggs, said the company aimed to recoup its losses through such capital investment, given the limitations over the past
two years.
The listed company recorded an increase in revenue for the year at $4,493,328, against $2,583,827 in 2021, with a $2.1 million turnaround in profit from operations.
The improved profitability following the impact of the COVID-19 pandemic is expected to be reflected through the share price next year, Mr Skeggs said.
Challenging demand-supply situation
Chief executive officer, Cynthia Rasch, said the marina met with a challenging demand-supply situation, as an increase in the return of foreign-flagged vessels brought with it fully occupied berths, between August and October.
“The pace of recovery for the real estate market was much faster than predicted in 2021, as evidenced by a solid recovery in valuations, which increased by $8 million over 2021,” Ms Rasch said.
“Rents were revised to pre-rebate 2019/20 levels, and new land and commercial tenancies were negotiated on appropriate terms in the second quarter of 2022.
“Port Denarau Marina’s highly targeted approach to leasing negotiations preserved the weighted average lease expiry profile, improved leasing spreads, and enhanced the tenancy mix.”
Loan deferment
The Skeggs Group decision to allow a 24-month deferment on loan repayment offered some respite through the challenging financial climate since the COVID-19 outbreak began, Ms Rasch said.
“We achieved fast growth in 2022, and were able to raise both sales and profit, which, in my opinion, was attributed to the aforementioned reasons,” she said.
“Despite the challenges that the world faces, PDM has the wind in its sails.
“We anticipate that 2023 will be a year of continued recovery and progress, bringing us closer to postCOVID-19 stability.”
SunBiz wrote to the relevant Government agencies.