HAVANNAH MARINA Transforming Vanuatu’s Coastline: A Bold Vision for a Sustainable Marina and Residential Development

February 5, 2025 12:05 am | Posted in Features | Share now TwitterFacebook

Vanuatu is set to emerge as a hub for marine tourism and sustainable development, thanks to an ambitious new project at Havannah Harbour, North Efate. This groundbreaking initiative combines a state-of-the-art marina, residential canals, and commercial infrastructure, addressing long-standing regional challenges while unlocking opportunities for economic growth and environmental stewardship.

Spearheaded by a team of local and international experts, this transformative project faces significant hurdles, including the financial resources needed to execute its vision and the imperative to maintain high environmental standards. Despite these challenges, the team remains confident in delivering a development that balances economic and ecological goals.

A Vision Born from Necessity

The concept for this ambitious project was driven by the urgent need for reliable marina infrastructure in Vanuatu. Mike Thompson, a former sailing catamaran owner, recalls the difficulties faced by boaters during cyclones and in day-to-day operations.

“We tried to lift our catamaran out of the water three times during cyclone threats, but the local boatyards lacked the capacity,” he says. “During Cyclone Pam, we lost 40 boats in the harbor. That experience made it clear that Vanuatu needed a facility to protect and service boats year-round.”

This realization inspired the creation of a marina capable of safeguarding vessels while acting as a catalyst for marine tourism and economic growth. The idea gained momentum during the COVID-19 pandemic when Thompson partnered with Tal Milfirer, a local entrepreneur and director of Goodies Ltd, the lessee of the land in North Efate. Together, they navigated the complex approval processes with the support of local lessors and the Vanuatu Government.

In May 2024, after securing LMPC, Shefa Province, and Foreshore Development permits, the duo partnered with Australian investors Dave Collins (formerly of DBC Bulk Haul Ltd), Eric Ross (EJ Warehousing), and Grant MacDonald (CEO of Ross Haven Marina, Townsville). These investors had been searching for a suitable marina site in the South Pacific, and within weeks, a collaborative agreement was reached to bring the flagship project to life.

A Project of Unprecedented Scale

Spanning over 607 hectares, when completed, the development will be one of the largest in the South Pacific. Its centerpiece is a 10-hectare marina with up to 230 berths for yachts and cruise ships. The marina will include floating concrete docks, a fuel dock, a 75-tonne travel lift for boat maintenance, and a shipyard capable of servicing various vessel sizes.

Surrounding the marina, the development features a residential canal system with 62 waterfront lots and a commercial zone with plans for a supermarket, fuel station, retail outlets, accommodations, and recreation facilities.

The project emphasizes environmental sustainability, with 100 hectares allocated to local communities for gardening and livelihood activities. Additionally, 15 hectares of green spaces are set aside for replanting mangroves and enhancing the local ecosystem.

“We’re giving back to the community while prioritizing the environment,” says Tal. “This isn’t just about development; it’s about creating a harmonious balance between progress and preservation.”

To achieve this vision, the team will remove approximately one million cubic meters of fill to construct the marina and canals that anchor the project.

A Collaborative Effort

The marina project unites a diverse team of experts. Since acquiring the lease in 2008, Goodies Ltd and the lessors have overcome numerous legal challenges. Mike and Tal have taken the lead in navigating Vanuatu’s regulatory landscape, while Australian investors Dave, Eric, and Grant, the financial and operational backbone of the project, bring decades of experience in mining, bulk earthworks, and machinery.

The partnership is structured around a works agreement, with Port Havannah Construction Ltd engaged in the construction work of the project with Mike and Tal focusing on the residential and commercial aspects surrounding the marina. On completion, Port Havannah Marina Ltd will be owning and operating the marina. The two companies, owned by Dave, Eric, and Grant are in the process of registering with the VFSC.

This collaborative approach plays to the strengths of each partner while mitigating financial risks.

Navigating Challenges

As with any large-scale development, this project has faced its fair share of challenges. Securing permits and approvals involved years of negotiations across multiple government ministries and environmental agencies.

“Over the past four years, we’ve worked with four different ministers and countless bureaucratic hurdles,” says Mike and Tal. “However, the unwavering support of the Vanuatu Government and dedicated personnel in various departments has helped us achieve these milestones.”

Environmental compliance is another critical focus. The team is working closely with the Department of Environment and Albert Williams, a former director of Vanuatu’s environment department, to ensure that the project meets local and international environment standards. An Environmental Impact Assessment (EIA) is currently being completed.

A Sustainable Future

Sustainability is a recurring theme throughout the project. “We’re designing this project to be as selfsufficient as possible,” says Mike. “From rainwater harvesting to solar power, we’re incorporating sustainable practices at every stage.”

“We’re committed to zero-discharge facilities, wastewater treatment plants, and sustainable construction practices,”

Some of the measures include:

Financial Constraints: A Potential Roadblock

Despite the project’s strong foundation and experienced team, financial constraints remain a significant concern. The sheer scale of the development—requiring hundreds of millions of vatu in upfront investment for earthworks, construction, and infrastructure poses a formidable challenge. While Dave, Eric, and Grant have already committed substantial resources, with the importation of all the necessary heavy machinery and equipment required, the construction phase of the project will continue to require substantial financial backing.

Economic Impact and Opportunities

The project is expected to have a transformative impact on Vanuatu’s economy. By attracting yachts, cruise ships, and marine tourists, the marina will create new revenue streams for local businesses and generate employment opportunities. The residential and commercial developments will further stimulate economic activity, providing housing, retail, and services for residents and visitors alike.

“This project has the potential to position Vanuatu as a premier destination for marine tourism,” says Tal. “We’re working with the government to streamline regulations and extend visas for yachts, making it easier for visitors to stay and explore the outer islands.

” A Model for Sustainable Development

The Havannah Harbor Marina project is more than just a marina—it’s a model for sustainable development in the Pacific. By prioritizing the environment, community engagement, and economic growth, the project demonstrates how large-scale developments can deliver long-term benefits for all stakeholders.

However, the road to completion is not without obstacles. Financial constraints, logistical challenges, bureaucratic delays, and the complexities of operating in a remote location on North Efate all pose significant risks. The team remains committed to their vision, but they acknowledge that the project’s success will depend on their ability to navigate these challenges effectively. Once completed, it promises to transform Havannah Harbour into a premier destination for marine tourism and a symbol of what can be achieved through collaboration and innovation.

Australian airlines now dominate Vanuatu’s skies, so
why does its government want to reboot Air Vanuatu?

By Lucy Cooper.

The collapse of Vanuatu’s national carrier is the “best thing that’s ever happened” to its tourism industry, resort owner Brendon Deeley says.

Far from lamenting the airline’s demise in May, he hopes it never operates international flights again.

So he was dismayed when the Vanuatu government announced a plan for a new Air Vanuatu that would restart international routes.

“I don’t think there was anything holding back the country more than Air Vanuatu,” he said.

“It hurt the country massively, the failure of Air Vanuatu.

” Mr Deeley said the national carrier owed him a “significant amount of money” after it failed to pay his resort for accommodation it provided to stranded tourists at the time of the collapse.

“We will never see that money again,” he said.

The airline’s troubled record of cancellations and delays also did damage to the nation’s tourism, he said.

“The opportunity cost, for us personally, is in the tune of millions. For the country it would be in the tune of probably hundreds of millions,” he said.

When Air Vanuatu entered voluntary liquidation in May 2024, the nation’s business and tourism community hoped it would mark a new chapter for the embattled airline.

Australian carriers entered the market, now dominating the tourism hotspot.

But when it exited liquidation just a few months later in October, Air Vanuatu was handed back to the government, which has announced plans to restart international services.

Now there are questions as to why Vanuatu’s political figures are so intent on playing a role in the airline industry and want to reboot its failed airline.

A tourism revival

While there were initial fears Air Vanuatu’s collapse would damage Vanuatu’s tourism, Mr Deeley said the number of Australian tourists has “grown substantially” over the last year.

Virgin has been operating flights into Vanuatu from Australia since 2004, and the collapse of Air Vanuatu prompted Qantas and Jetstar to move in on the route, operating up to nine return flights each week.

This was also supported by an “Open Sky” policy the Vanuatu government adopted to allow foreign carriers to use the route, in an effort to bring in tourists.

The Vanuatu Department of Tourism told the ABC that in August 2024, the number of international passengers was 18 per cent higher when compared to the same time in 2023, when Air Vanuatu was still flying internationally

“The benefits to Vanuatu of having Qantas and Virgin coming into the country outweigh, in my opinion, 1,000-fold the benefits to the country starting up another international airline,” Mr Deeley said

Last year, Ernst & Young (EY) Australia was appointed as liquidator of Air Vanuatu, which saw the airline resume domestic operations and shares transferred to the shareholders of AV3, a privately owned company of the Vanuatu government.

The sole shareholder of AV3 is the Vanuatu Ministry of Foreign Affairs, re-establishing Air Vanuatu under an ownership set-up similar to before its collapse, when three senior ministers were the shareholders.

Glen Craig, the managing partner of Pacific Advisory, a regional consultancy firm, believes that without any new shareholders, the “new” Air Vanuatu will be “tainted”.

“AV3 and the assets of Air Vanuatu as far as we’re aware, it’s the same management, same shareholders, and it’s a bit like Groundhog Day,” he said.

‘Ego’ controlling decisions

Matai Seremaiah, who was Vanuatu’s deputy prime minister at the time he spoke to the ABC, confirmed Air Vanuatu would continue to fly domestically, and re-enter the international market.

Since then, Vanuatu held a snap election and negotiations are underway to form a new government, and it’s unclear whether it will have the same policy on Air Vanuatu.

Commentators have said restoring regular air services between Vanuatu’s islands should be a priority for the next government.

The Vanuatu Department of Tourism said that the resumed domestic flights remain irregular.

“Sadly, most of the tourism businesses in the outer islands are still faced with the lack of reliable air connectivity, it continues to impact their forward bookings and revenues,” the department said in a statement to the ABC.

Mr Deeley, the resort owner, welcomed the decision to re-commence domestic flights but believes re-entering the international market would “mess up things”.

Mr Craig, of Pacific Advisory, agrees.

“If it was just domestic they were looking at, we would support … but stay away from international,” he said.

Mr Craig said “national pride” is the reason why the government wants to restart international services.

“I think that there’s several politicians whose parties were involved in the very early days in the formation of Air Vanuatu. [They] took it very personally that it went broke and can’t let it go, it’s nothing more than ego,” he said.

Air Vanuatu’s sole Boeing 737 had been in maintenance for extended periods before the airline collapsed.

A report by EY found the airline had been in financial distress, dealing with large debts and unable to pay for spare parts needed to keep its Boeing 737 in the air.

George Faktaufon, an airline consultant who has previously held roles with Air Pacific and the Association of South Pacific Airlines, said a lack of accountability had plagued Air Vanuatu’s operations.

“I think [the government is] desperately wanting to maintain some form of air transportation, particularly within Vanuatu … unfortunately, egos are expensive,” he said.

But Mr Faktaufon said Vanuatu is not alone.

“Pacific Island airlines are very much undercapitalised,” he said.

“The majority of the routes they operate are unviable, they have very high operational cost when compared with the revenue.”

Mr Faktaufon believes a return to international operations for Air Vanuatu would only be possible with collaboration.

“The solution is for the airlines to work together and it’s my belief that it’s got to be driven from the governments because they are the shareholders,” he said.

Collapse not without cost

When it entered liquidation, Air Vanuatu’s financial situation was dire — it owed more than $99 million to creditors.

For the developing nation, its economic circumstances only worsened in the wake of the deadly magnitude-7.3 earthquake that struck last month, and it’s estimated the recovery will cost at least 29 billion vatu ($374 million).

Mr Craig believes that Air Vanuatu re-entering the international market would set the government up for “huge financial losses”.

“We’re all for the government to retain a silent shareholding, non-management control, 10 per cent, 15 per cent, so long as it doesn’t have any financial obligations for the people of Vanuatu, because we’ve got no funding for this,” he said.

Mr Craig said despite the “reputational damage” Air Vanuatu had suffered, an international company has expressed interest in the embattled airline.

Panaf Group, a Germany-based airline consultancy company which acquires shares of airlines and provides managerial advice to them, approached the Vanuatu government after learning of its situation.

Board member Oliver Lackmann said the company had plans to bring national airlines in the South Pacific region together.

“Small island nations’ airlines are facing all the same problems — they’re too small, they have no scale effects, [the operations are] too complex for the size of the airline which means that it is very hard for them to earn money,” he said.

“We are really thinking about building centres of excellence which can be used by all of these airlines, which would be potential partners of an alliance”.

Mr Lackmann said their long-term plan for Air Vanuatu would see the airline re-enter the international market.

“We are willing to invest into the airline and that will be in every area.

“We are actually in some interesting talks already to other partners there, which shows us that there is this urgent need to join forces and that makes it very attractive for us.”

Airline consultant George Faktaufon said while “centres of excellence” were not “a new idea”, they were a good one.

“I hope that it can materialise somehow,” he said.

https://www.abc.net.au/news/2025- 01-27/air-vanuatu-international-flights-plan/10485475.