National Reserve Bank of Tonga

Private container growth rebounding

Container Registrations
September 2016

Private container growth rebounding

In September 2016, the total number of container registrations increased by 16 registrations (2.0%). This was due to a lift in private containers by 73 registrations (22.0%) after having declined in the last 2 months. Business containers however declined by 57 registrations (12.4%), following a strong month in August 2016. As a result, a total number of 809 containers were registered over the month, much higher than the 753 registered in September 2015.

Despite the lower number of cargo ships that arrived during the month, the total number of containers registered still rose. The higher number of private containers in September 2016 indicates a lively informal distribution sector and could be attributed to preparations for the upcoming Christmas holiday season, and is similar to monthly trends over the previous years. The growth in registrations coincided with a $3.3 million (12.5%) rise in import payments (excluding oil) in September 2016. All categories for import payments (excluding oil) contributed to the monthly increase, with payments for wholesale & retail trade imports increasing the most by $8.6 million (80.9%).

Total container registrations rose by 1,520 registrations (17.6%) over the year to September 2016, again, due to an increase in both private and business containers. The private containers grew strongly by 883 registrations (24.4%) and business containers increased by 637 registrations (12.7%). The events and celebrations taking place during the year contributed to the higher registrations, including annual church conferences, various family reunions and the celebration of the Tupou College Toloa 150th and Latter Day Saints 100th anniversaries. A total of 115 cargo ships arrived during the year to September 2016 which supported the higher registrations, and was much higher than a total of 95 cargo ships arriving in the same period last year. This coincided with a $53.3 million (22.1%) increase in import payments (excluding oil), due to higher payments for the import of construction materials, vehicles and wholesale & retail goods. This reflected the on-going construction activities in the country and is consistent with the continuous rise in the number of vehicles registered over the year by 817 vehicles (33.8%). This in turn supports an increase in government revenue collection.

The NRBT expects imports and consequently container registrations to generally increase in 2016/17 due to festivities scheduled for this financial year including the Church of Jesus Christ Latter Day Saints 100th Anniversary, annual church conferences, one-off events such as family reunions and on-going activities in the country. Credit growth is projected to continue in 2016/17 which will support growth in imports. Furthermore, NRBT’s liaisons with the construction and transport sectors had indicated growing demand in these sectors which will drive imports in the near future. On-going projects such as the construction of the St. George Palace, LDS chapels, renovation of the Tanoa Dateline Hotel and new private residential constructions are anticipated to contribute to the rise. Spill over effects on the trade, tourism, construction sectors and other sectors in the economy are also expected.

Download the full report: Container Registrations - September 2016