VT7.5M port fees appeal dismissed, NISCOL ordered to pay
May 20, 2025 9:50 pm | Posted in Business News | Share now TwitterFacebook
By Matthew Kensen.
The Vanuatu Court of Appeal (COA) has dismissed an appeal lodged by the Northern Islands Stevedoring Company Limited (NISCOL), upholding an earlier Supreme Court ruling that ordered the company to pay VT7.5 million in unpaid concession fees and surcharges to the Government of Vanuatu through the Vanuatu Maritime Safety Authority (VMSA).
The decision, delivered on 16 May 2025, reinforces efforts to uphold port regulations and recover levies from operators with exclusive rights to national ports.
A bench comprising Justices Mansfield, Astier, Aru, Trief, and Goldsbrough confirmed that the concession fees, introduced under Order 188 of 2022 of the VMSA Act, are lawful and enforceable. The order, issued by the Minister of Infrastructure and Public Utilities, requires NISCOL to pay VT2 million annually, plus a 25% surcharge for non-compliance, covering the years 2022, 2023, and 2024.
NISCOL argued that the fees conflicted with its 2015 concession agreement and claimed it should be exempt as a partly state-owned entity. The COA dismissed both claims, finding that NISCOL is a registered company under the Companies Act and not a government agency.
The court clarified that clauses in the concession agreement relating to revenue sharing and port dues do not prevent the government from introducing new charges through ministerial orders. It further held that no contract can override laws passed by Parliament or limit lawful regulatory powers granted under legislation.
“The language used in the agreement does not prohibit the imposition of different tariffs or levies for operational costs incurred by the Government,” the ruling reads. It adds that “the Government cannot fetter its future ability to legislate or regulate,” citing legal precedent.
Justice Oliver Saksak had initially ordered NISCOL to pay the full VT7.5 million within 28 days. The COA upheld that ruling and ordered NISCOL to pay an additional VT50,000 in legal costs.
Commissioner of VMSA, Mr. John Less Napuati, welcomed the outcome, noting that the ruling affirms the Authority’s role in ensuring proper oversight of port operations and the collection of statutory fees.
“The judgment reinforces the authority of the VMSA to regulate the maritime sector, including the collection of fees necessary for the maintenance and safety of national port operations,” he said.
The ruling serves as a clear reminder to all concession holders and stevedoring companies that compliance with port regulations is compulsory, regardless of ownership structure or prior agreements.
As the port and shipping sectors continue to expand with increasing commercial activities, this ruling is seen as a step forward in ensuring transparency, legal compliance, and improved governance across Vanuatu’s maritime industry.
