Fate of MV Niuvakai uncertain as FISA tries to sell her after export plans fail

A month after it went on sale, it is still unclear whether anybody is interested in the government cargo ship, the MV Niuvakai.

The vessel is being put up for tender locally and overseas.

One of the reasons given for buying the vessel, formerly known as the St Theresa, was that it would be able to carry Tongan produce for sale in Fiji and Samoa.

However, there were not enough goods to export and the MV Niuvakai appears to have become a financial liability.

FISA now needs to sell the vessel to try to cover its costs.

As Kaniva News reported at the time, the vessel was unable to lift the 20 foot (six metre) containers typically used for shipping with its deck crane and was deemed to be unprofitable on voyages lasting more than three days.

The purchase of the MV Niuvakai was surrounded by controversy, not least because it was surrounded by financial complications.

In March 2014 Kaniva News published details of an e-mail by former Finance Minister Lisiate ‘Akolo which revealed that the Tongan government had urged a potential buyer of the former St Theresa to help pay the owners’ loan with their bank in New Zealand.

The vessel was owned by the Ramanlal brothers, who were close friends of the late King George V while he was a Grown Prince and then when he became king.

‘Akolo asked Mosese Uele, director of EZI World Cargo in Auckland, to pay  10-15 percent in advance for the Ramanlals, as part of a settlement payment to their bank.

The Minister also made it clear he would regard Uele’s purchase of the ship as a boost to his own plans to develop export markets for Vava’u.

At the time, Uele denied that he intended to buy the ship because of what ‘Akolo told him about the Ramanlals.

He said the ship could only make a profit if it was restricted to voyages of three days.

Calculations based on the cost of fuel, operational costs and cargo carrying capacity meant it could only profitably sail to neighbouring countries like Fiji, Samoa and American Samoa, Niue and Wallis and Futuna.

The Friendly Island Shipping Agency eventually paid about TP$1.5 million (NZ$950,000) for the vessel.

The 35 year-old boat was re-named the MV Niuvakai by His Majesty King Tupou VI.

FISA created a new company called Tonga Exports Shipping Agency Limited (TESAL) to operate the MV Niuvakai.

FISA Former CEO Vaka Utapola Vi told Kaniva News in 2014 that FISA only bought the former St Theresa because the price of  other ships they looked at, including one in the Caribbean, were  either too high or because it would have cost too much to bring them to Tonga.

Vi denied FISA bought the ship to help the Ramanlals with their struggle to pay back their loan for the ship.

When he was told a company in Auckland had turned down an offer to purchase the ship because it would lose money on voyages lasting longer than three days, Vi said FISA had tested the ship and he had recommended it.

The MV Niuvakai has had a troubled history since being bought by FISA.

In 2015 it was anchored in Vava’u for a month because of a mechanical failure.

It also became stranded on a reef last year.

In March last year Vi was suspended and later resigned.

Neither FISA nor the government has revealed why he was told to resign.

Kaniva News asked the Minister of Public Enterprises, Hon. Poasi Tei, whose department is responsible for FISA, for comment on the sale two weeks ago. We are still waiting for an answer.

Maggie Cat

Meanwhile, the Tongan Broadcasting Commission has reported that the Maggie Cat, which FISA has been renting from an Australian company for – a day, was unable to return to Australia at the end of its contract in January because one of its engines broke down.

The Maggie Cat was hired in June last year to provide inter-island ferry services while the MV ‘Otuanga’ofa was being repaired in Suva.

The cost of the catamaran’s repairs will be met by its owners, Captain Cook Cruises.

According to the TBC, FISA claims the MV ‘Otuanga’ofa can meet the needs of cargo and passengers on the outer islands route.

The main points

  • A month after it went on sale, it is still unclear whether anybody is interested in the government cargo ship, the MV Niuvakai.
  • The vessel is being put up for tender locally and overseas.
  • One of the reasons given for buying the vessel, formerly known as the St Theresa, was that it would be able to carry Tongan produce for sale in Fiji and Samoa.
  • However, there were not enough goods to export and the MV Niuvakai appears to have become a financial liability.

For more information

http://nzkanivapacific.co.nz/2014/03/e-mail-reveals-akolo-wanted-sweetener-ramanlals-cargo-ship-deal/

E-mail reveals ‘Akolo wanted sweetener for Ramanlals over cargo ship deal

Maggie cat’s return delayed due to engine problem

FISA

About The Author

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Right now Kaniva News provides a free, politically independent, bilingual news service for readers around the world that is absolutely unique. We are the largest New Zealand-based Tongan news service, and our stories reach Tongans  wherever they are round the world. But as we grow, there are increased demands on Kaniva News for translation into Tongan on our social media accounts and for the costs associated with expansion. We believe it is important for Tongans to have their own voice and for Tongans to preserve their language, customs and heritage. That is something to which we are strongly committed. That’s why we are asking you to consider sponsoring our work and helping to preserve a uniquely Tongan point of view for our readers and listeners.

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