Shipyard confident of surplus for both 2012 and 2013
The government’s Shipyard Services Authority remains confident that it will again show a surplus in the last fiscal year, 2012, and has no doubt that its current fiscal year will also have a surplus.
This is according to the authority board vice chairman David Robinson, who responded last Friday following a letter to the editor and a Just Asking request to Samoa News, as to whether or not the authority, which manages and operates the ASG owned Ronald Reagan Marine Railway in Satala will in fact have a surplus in FY 2012, as reported at least three times by Samoa News this year.
“We are finalizing our 2011-12 figures but we are just about on budget for a projected surplus of $125,000,” said Robinson responding to Samoa News questions. “We are reinvesting any surplus in capital expenditure such as a new chain for the railway platform, over $200,000, some new plant equipment to assist with our work and some materials such as sand for blasting, paint and welding equipment.”
In addition, according to Carlos Sanchez, the Shipyard Services Authority chairman, there have been repairs for wood, piping, welding and labor (more than $120k on repairs) for the cradle. “We also repaired the walls of the warehouses, workshops, etc., machine shop, welding shop, sandblasting/ sand storage warehouse, maintenance shop and another warehouse that will be rented, paint warehouse, etc.”
Sanchez said, “There are two more warehouses to be repaired and refurbished; and all repairs are being done in-house by the shipyard staff.” He added that “as of last Friday, we have more than $600k in inventory (materials and supplies in the warehouse). All of this is apart from what was purchased by the ARRA grant funds. Cash flow average last week was approximately $380k with payables of about $50k and receivables of about $60k - $70k.”
In FY 2012 (which closed Sept. 30, 2012) expenditures were projected at $1.42 million with revenue at $1.53 million, resulting in forecasted surplus of over $100,000. According to the approved FY 2013 budget, total expenditures for the shipyard comes to $1.89 million while revenues are forecast at $2.17 million, with a projected surplus of close to $300,000. In FY 2011, the shipyard surplus was $60,237.
In late September this year, Gov. Togiola Tulafono informed the Fono that the shipyard “has produced a surplus” for FY 2012.
The Shipyard Services Authority chairman told a Senate committee in August that the shipyard is expected to hire more people in FY 2013 — which began Oct. 1, 2012 — hiking the workforce to at least 60 workers. Additionally, more vessels are expected for the shipyard, which also continues to undergo renovations to meet international standards and therefore attract more ships.
“ We have 42 employees and we expect this figure to increase next year by about 10 additional people,” Robinson told Samoa News last Friday. “We estimate that through local purchases and disposable income being spent in the shops and stores we have pumped about $1.5 million dollars into the local economy.”
“We have a full work schedule for fishing vessels through ’til February next year,” he said, adding that anybody wishing to find out more about the shipyard operation should contact Carlos Sanchez 644-4122 or David Robinson 699-4814.
“...they will receive an invitation to visit the shipyard and see first hand what improvements have been made and the sort of activities that are being carried out on the fishing boats and government vessels,” he said.
“We are budgeting a similar surplus for this current fiscal year and we shall no doubt meet the predictions,” he concluded.
Samoa News asked about the position of General Manager that has been advertised, and when it is filled, will it affect the surplus? Sanchez said “there is still no paid general manager.”
However he noted, “the shipyard is getting to a comfortable situation to be able to afford the salary/ benefits of a general manager especially with the fact that the dry docking schedule is full until end of February 2013, plus dockside repairs by boats that are unscheduled.”
“I am still working for free,” said Sanchez, “and I will continue until the new administration comes in, so that the new administration has the ability to do whatever they choose with the management. No one from the new administration has contacted the shipyard yet, but that will probably happen after the transition reports are presented — which is scheduled for December 4th. At which point, they will obviously make the plans known regarding the shipyard.”
In the meantime for info updates on the shipyard a a newly created website for the shipyard can be found at www.ronaldreaganmarinerailway.com.
Rhonda Annesley, editor contributed to this report.