By Petronella Sibeene
WINDHOEK
Fluctuating fuel prices have forced operators in the fishing industry to drastically cut the number of sea-going fishing vessels.
Chairman of the Confederation of Namibian Fishing Associations, Volker Kuntzsch, yesterday said a number of vessels have left the industry due to high fuel prices.
He added that the amount spent on fuel does not match the profit that should come with the product.
However, Kuntzsch could not say how many vessels have pulled out of Namibian waters.
Minister of Fisheries and Marine Resources, Dr Abraham Iyambo, yesterday acknowledged that soaring fuel prices have negatively affected one of the country’s economic backbones.
The Minister said there were 300 registered vessels in the industry and that the number of vessels still fishing has been severely reduced with most companies concluding the fishing business is not profitable.
“Fuel is the killer of the industry. For the past four years, prices have been fluctuating and that has negatively affected the industry,” said Iyambo.
The Minister added that traditionally, players in the fishing sector would direct a large portion of their cash flow to maintenance of vessels and labour but the scenario has changed in recent years.
A huge part of the budget is spent on fuel, leading to the number of vessels going to sea being reduced to cut costs.
Insiders say the fuel bill accounts for over 40 percent of its total operational costs, which together with other costs such as labour, food, levies and maintenance of vessels, leads to operational losses. In some instances companies fail to make profit.
The price of diesel was increased by 32 cents per litre in July 2007, barely a month after the previous increase. Diesel is sold at an average of N$6,89 per litre, while the retail pump price for diesel in Walvis Bay is NN$6,70 per litre.
The average tank capacity of a fishing vessel is about 30ǟ