2 Sep 2008

Niue shipping links cut back

4:33 pm on 2 September 2008

Niue is facing a reduction in its shipping service.

The company running the service says it not viable at the moment to run a vessel every month.

At this stage there are likely to be only two more services before Christmas.

A Director of Reef Shipping, John Gresson, says the company has to be able to cover its costs

"We provide a degree of service and capacity to meet the demand and if there isn't demand to fill up the ship or to at least cover the cost then it's very hard to justify the cost of doing that unless someone wants to underwrite the service."

Mr Gresson says the service is less cost efficient since the company mothballed its fishing operation nearly a year ago.

He says they are waiting for a New Zealand government report into the long term viability of the fishing plant and hope to secure addtional funding so that it can reopen.