Ocean Accounting for Maritime Transport

Solomon Islands Pilot

Final Report: National Shipping Asset Account and Maritime Labour Account

30 January 2026

Global Ocean Accounts Partnership Secretariat

Centre for Sustainable Development Reform

University of New South Wales

Cite as: GOAP (2026), Solomon Islands Pilot: Ocean Accounting for Maritime Transport; Report to The Pacific Community (SPC)

Project Leader: Dr Ben Milligan, Director UNSW Centre for Sustainable Development Reform

GOAP & UNSW CSDR Team: Ms Liz Hollaway, Dr Cheryl Joy Fernandez-Abila, Dr Edoardo Santagata, and Dr Mitchell Lyons

SIMA Team: Thierry Nervale, Caroline Keniasina, Allen Ofea, and Maree Rabaua

About:

Established in 2022, the UNSW Centre for Sustainable Development Reform (CSDR) mission is to catalyse pragmatic reforms in law, policy and governance that advance the integrated social, environmental and economic objectives of the global sustainable-development agenda. The Centre hosts the Global Ocean Accounts Partnership Secretariat, coordinates a multi-stakeholder partnership of over 30 national governments to help countries and other stakeholders go “Beyond GDP” by developing systems that measure the true value and condition of ocean ecosystems and economies, in line with international standards. Working in more than 20 countries, the Centre convenes governments, businesses, and researchers to co-design evidence-based pathways toward zero-carbon transitions, equitable blue economies and effective development and implementation of multilateral environmental treaties and agreements.

1. Executive Summary

This report presents the pilot ocean accounts for Solomon Islands' maritime transport sector, developed under the Global Ocean Accounts Partnership Ocean Accounting framework. The accounts establish internationally standardised measurements of the nation's maritime infrastructure and workforce, aligned with the System of Environmental-Economic Accounting Central Framework (SEEA-CF) and System of National Accounts 2025 (SNA 2025).

National Shipping Asset Account: Using Depreciated Replacement Cost (DRC) methodology, the Solomon Islands commercial maritime fleet is valued at USD $29.69 million for 2024 and USD $30 million for 2025. The corresponding replacement cost is around USD $90 million (2024) and USD $93 million (2025). This represents approximately 1.87% (2024) and 1.84% (2025) of national GDP. The valuation covers 244 and 247 domestic vessels with complete data, total Gross Registered Tonnage of 104,636 GT in 2024 and 106,599 GT in 2025, and an average fleet age of about 25 years.

Maritime Labour Account: Employment estimation indicates a workforce of 1,719 persons, with total compensation estimated at SBD 267.3 million (approximately USD $32 million), representing about 1.98% of GDP under the mid scenario. The workforce demonstrates clear wage hierarchies aligned with maritime certification levels, with Class 2 Masters earning average fortnightly wages of SBD $15,693 while deckhands earn approximately SBD $930.

With an average fleet age of around 25 years for vessels and international maritime decarbonisation ambitions requiring substantial fleet renewal, these accounts provide the evidence base for climate finance proposals and workforce development planning. The accounts quantify both the capital investment required for fleet modernisation (within the current dataset scope) and the training pipeline necessary to support the transition to low-carbon maritime technologies.

These pilot accounts establish a quantitative foundation for integrated maritime sector planning across three critical dimensions: fleet capacity and modernisation, workforce development, and regional connectivity. The ageing fleet and documented wage hierarchies reveal both the urgency of capital investment in vessel renewal and the imperative to build human capital through targeted training pipelines that ensure sufficient qualified seafarers, particularly at higher certification levels. By placing fleet assets and labour skills into a standardised accounting frame aligned with international statistical standards, these accounts create a coherent, auditable evidence base that supports maritime sector decision-making across government, industry, and development partners. This foundation enables Solomon Islands to move beyond fragmented, sector-specific planning towards integrated governance that recognises maritime transport as central to national cohesion, economic development, and climate transition objectives.

2. Introduction and Context

2.1 Purpose of the Pilot Accounts

The Pacific Community (SPC) has supported the development of pilot Ocean Accounts for Solomon Islands' maritime transport sector. The Global Ocean Accounts Partnership (GOAP) Secretariat at UNSW's Centre for Sustainable Development Reform has conducted this work in partnership with the Solomon Islands Maritime Authority (SIMA).

This pilot serves multiple strategic objectives: establishing baseline measurements of maritime sector capacity, improving understanding of the sector's economic and social contribution, creating data systems to support long-term decarbonisation planning, and positioning Solomon Islands to secure funding for fleet modernisation and maritime service improvement.

2.2 Alignment with International Frameworks

The accounts integrate two authoritative international statistical frameworks. The System of Environmental-Economic Accounting Central Framework (SEEA-CF) provides the classification structure, identifying maritime vessels as produced fixed assets. The System of National Accounts 2025 (SNA 2025) provides valuation methodology and labour accounting standards. Together, these frameworks ensure international comparability and integration with national economic statistics.

What are Ocean Accounts?

Ocean Accounts (OA) are structured compilations of consistent and comparable information that organise ocean-related data into a common framework, using the same structures as found in existing national accounts of national statistical offices or finance ministries.^[1] Their use supports auditable and standardised reporting processes compliant with key international standards, specifically the ‘System of National Accounts’ (SNA) and the ‘System of Environmental-Economic Accounting – Central Framework & Ecosystem Accounting’ (SEEA-CF and SEEA-EA).

The framework operates through a multi-layered architecture: at the foundation are diverse data sources encompassing social, economic, environmental, and customary information. These data undergo sharing and validation processes applying rigorous statistical principles and standards. The validated data are then organised into standardised accounts comprising tables and other data structures with defined interfaces. Finally, these accounts generate indicators and reports that inform multiple decision processes across government, industry, and civil society..

For an archipelagic state where populations and markets are dispersed across hundreds of islands, maritime transport is a prerequisite for national cohesion. The primary constraint in such contexts is often not “demand” for cargo or passengers, but the reliability and service capacity of the vessel stock, the condition of wharves and landing points, and the availability of qualified crews. A recurring finding across sector studies is the persistence of fragmented data, ship registries, port call records, cargo throughput and labour information are held in separate systems, making it difficult to trace how investments translate into service outcomes. This pilot directly addresses that gap by demonstrating how the vessel registry and seafarer records can be converted into accounts that are compatible with national statistics and can be linked to port planning and decarbonisation programmes.

Applications for Maritime Sector Planning and Investment

The integration of SNA and SEEA frameworks transforms how maritime asset data can inform sector development decisions. Traditional cargo demand forecasting in Small Island Developing States (SIDS) has suffered from “demand-side bias”—projecting GDP growth and assuming linear correlation with cargo volumes. However, the ocean accounts reveal a critical supply-side constraint: the Solomon Islands’ fleet capacity is the limiting factor, not cargo demand. The asset accounts enable “Capacity-Constrained Forecasting”, a methodology that models the interaction between the service flow (cargo) and the capital stock (vessels), providing more robust projections for infrastructure investment decisions at Honiara, Noro, and provincial ports.

These pilot accounts should be interpreted in the wider context of Solomon Islands’ port network and economic transition. Honiara Port remains the country’s primary import gateway and a critical determinant of the cost of living, yet it faces persistent congestion, space constraints and climate exposure. Noro Port, by contrast, is an export-oriented industrial hub anchored by tuna processing and integrated logistics, showing how port–industry clustering can generate employment and value-added growth. The proposed Bina Harbour development represents a strategic decentralisation opportunity, but its success depends on durable land agreements, social consensus and complementary services (power, water, road access). By placing fleet capacity and labour skills into a standardised accounting frame, the accounts create a bridge between “port planning” decisions and the underlying shipping capital and workforce required to make those investments productive

The transition to a decarbonised maritime sector introduces fundamental changes to vessel technology, fuel systems, and operational practices. International Maritime Organization (IMO) ambitions for emissions reductions and uptake of zero/near-zero fuels by 2030 and beyond provide the global policy direction for this transition. For Solomon Islands, this presents both challenge and opportunity: the ageing fleet requires renewal regardless of climate commitments, and early alignment with decarbonisation pathways positions the nation to access climate finance and green technology investments.

The accounts developed in this pilot provide the quantitative foundation for this transition by establishing the following: current fleet value and replacement costs, workforce capacity and training needs, baseline emissions profiles (through fuel consumption proxies), and the economic contribution at stake during transition.

3. National Shipping Asset Account

3.1 Methodology Overview

The National Shipping Asset Account applies Depreciated Replacement Cost (DRC) methodology, the international standard recommended by SNA 2025 for valuing produced assets when historical investment data are unavailable. The methodology estimates current economic value by calculating what it would cost to replace vessels at current market prices, then adjusting for accumulated depreciation.

The core formula is: Net Capital Stock = Replacement Cost × (1 − Cumulative Depreciation Factor). Geometric depreciation is applied at 5.5% per annum, with a minimum residual value of 5% to prevent operational vessels from reaching zero value. Full methodological details are provided in Technical Annex A.

3.2 Fleet Composition and Valuation Results

The following table presents the key valuation results for reference years 2024 and 2025:

Table 1: Summary of Solomon Islands National Shipping Asset Account

3.3 Interpretation and Policy Relevance

The maritime fleet's depreciated value, representing nearly 1.87% (2024) and 1.84% (2025) reflects Solomon Islands' status as a small island developing state with heavy dependence on maritime transport infrastructure. This falls with the typical transport equipment valued at 2-8% of GDP in developed economies.

From a port-planning perspective, the most material implication of an ageing fleet is the risk of a “replacement cliff”: when a large cohort of vessels reaches the end of technical life in a short window, service frequency and reliability can decline rapidly, even if underlying cargo demand is growing. This can manifest as higher dwell times at Honiara (containers waiting for inter-island distribution), service interruptions to outer islands, and increased freight prices as operators bid for scarce capacity. Accordingly, port capacity investments should be assessed alongside fleet renewal pathways, to ensure that berth upgrades and yard expansions are matched by sufficient feeder and domestic shipping capacity to distribute cargo to provincial markets.

The year-on-year change from 2024 to 2025 reflects ongoing depreciation of an ageing fleet (average age ~25 years). Under the current registry-based dataset, the fleet’s net capital stock is around 1.84%–1.87% of GDP. This should be interpreted as a baseline that will strengthen as data completeness improves (including construction year, tonnage, and vessel classification for all operational vessels) and complement with SIMA database.

For decarbonisation planning, the gross capital stock (replacement cost) of approximately USD $93 million (5.72% of GDP in 2025) indicates the order of magnitude of investment required to replace the vessels covered by the current dataset with modern, potentially low-emission vessels. Climate finance proposals can use this as an auditable baseline, with a clear pathway to expand coverage as registry records are completed.

A companion document “Recommendation Report and Roadmap” has been prepared alongside this Final Report to provide the forward-looking implementation package. It translates the pilot findings into prioritised recommendations and a phased roadmap for strengthening and institutionalising ocean accounting for maritime transport in Solomon Islands, including actions to address key data gaps (e.g., vessel age completeness, fuel consumption, small-vessel coverage), formalise data-sharing arrangements and governance roles, improve dashboard utility and sustainability, and embed account updates into routine government planning and reporting cycles, with pathways for Phase 2 and future expansion to additional ocean accounts (e.g., port infrastructure, fisheries, tourism, ecosystems).

4. Maritime Labour Account

4.1 Methodology Overview

The Maritime Labour Account quantifies employment, compensation, and working conditions in Solomon Islands' maritime sector. The methodology implements SNA 2025 labour accounting standards structured around five core measurement dimensions: employment by occupational role, contract type and status, residency classification, hours worked and labour input, and compensation of employees.

Maritime Labour Accounts follow international best practice established by pioneer nations including Portugal (Satellite Account for the Sea), the United States (Marine Economy Satellite Account), Norway (Ocean Satellite Account), and China (Gross Ocean Product system).^[2] These accounts distinguish between “ocean-based” industries (activities physically taking place in the ocean), “ocean-related” industries (supply chain activities like shipbuilding and seafood processing), and “ocean-dependent” industries (coastal tourism and services). For Solomon Islands, this classification is critical: shipping falls within the core “ocean-based” category regulated by SIMA, while the informal subsistence sector—central to household welfare but traditionally outside the market boundary of SNA—requires integration through SEEA methodology.

Due to data limitations inherent in developing economy contexts, the current account employs multiple estimation methods with documented proxies. Primary data from SIMA's seafarer registry is supplemented with operator surveys and regional benchmarks. Full methodological details are provided in Technical Annex B.

4.2 Employment Estimates

Employment estimation employs complementary approaches. The crew-per-vessel proxy method uses operator survey data (average 21 crew per vessel) applied to 188 manned vessels, giving an upper-bound estimate of 3,901 persons. The administrative SIMA registry method scales registered seafarers using an assumed capture rate of 10% (multiplier of 10), giving a lower-bound estimate of around 1,980 persons. A recommended value is 1,719 persons is produced using vessel-type segmentation, which tallies with the existing estimate of SIMA.

Beyond the range of total employment, the account highlights an operational constraint that is immediately relevant to port and fleet modernisation: shortages of higher-certification masters and engineers can delay vessel deployment, restrict voyage scheduling, and increase safety risks. As ports introduce larger vessels, specialised harbour craft (tugs, pilot boats) and digital compliance requirements (electronic reporting, traceability), the demand for qualified officers and technical staff rises faster than overall headcount. This strengthens the case for integrating a funded “human capital component” into infrastructure and fleet procurement programmes, so that training supply keeps pace with the technology and service standards being introduced.

Table 2: Solomon Islands Maritime Labour Account Employment Estimates (2024).

4.3 Compensation Structure

Analysis of SIMA salary data reveals clear wage hierarchies aligned with maritime certification levels. The following table summarises compensation by qualification category:

Table 3: Compensation by Maritime Qualification (compiled from 2024 - 2025 SIMA data).

Deckhands constitute the largest occupational category (31% of registered workforce in 2024, increasing to 45% in 2025) yet receive the lowest average remuneration. This combination of high employment concentration and relatively low pay indicates a priority area for workforce development attention.

The findings in this Maritime Labour Account, particularly the estimated workforce range, compensation structure by qualification, and the identified constraints in higher-certification roles—should be treated as a decision-support baseline for subsequent workforce policy, training investment, and fleet modernisation readiness. Detailed guidance on “what to do next” is provided in the separate Recommendation Report and Roadmap, including recommended measures to improve data completeness and standardisation (e.g., crew–vessel linkages and routine reporting templates), formalise data-sharing and governance arrangements, and sequence workforce and skills initiatives so that training supply keeps pace with fleet renewal and new technologies.

5. Dashboard

To translate the National Shipping Asset Account and Maritime Labour Account into operational decision support, a web-based maritime transport dashboard has been developed for SIMA, the Ministry of Finance and Treasury, the National Statistics Office, and port planners.

The dashboard provides an integrated view of the fleet, workforce, and operational data underpinning the accounts. Key sections display fleet composition and vessel status (drawn from the validated vessel registry), crew distribution by rank and nationality (from the Safe Manning survey), and vessel search functionality supporting rapid operational reference. A companion spatial view displays vessel and crew density across provinces and ports, supporting geographic prioritisation of infrastructure and service investments.

The dashboard explicitly flags four indicators as synthetic prototype figures pending integration of additional data sources. These are: (1) maritime GDP contribution and GDP share, pending statistical integration with the National Statistics Office; (2) safety certificate coverage, pending connection to SIMA's safety certification database; and (3) crew training coverage, pending linkage to formal training records. These distinctions are visually flagged within the dashboard to ensure users distinguish between production metrics and decision-support placeholders.

The dashboard is designed as a read-only analytics platform, with underlying data held in standardised, validated JSON files. This architecture enables SIMA to refresh and maintain the dashboard as new vessel registry records are completed and as live data sources (compliance databases, statistical integration, crew records) become available. As these integrations occur, the synthetic indicators will automatically update to reflect current data. Technical specifications for data structures, validation procedures, and deployment processes are detailed in Technical Annex C.

6. Conclusion

This pilot establishes the first comprehensive, internationally standardised ocean accounts for Solomon Islands' maritime transport sector. The National Shipping Asset Account documents a fleet (with complete data) valued at about USD $29.69 million (2024), representing 1.87% of national GDP in 2024. It is projected to be at 1.84% of national GDP, due limited investments of new vessels (5 new vessels) in 2025. The Maritime Labour Account estimates a mid-range workforce of 1,719 persons with total compensation of around USD $ 32.20 million (1.98% of GDP).

Looking ahead, the greatest value of these accounts will come from their routine use in decision cycles: annual fleet and labour account updates tied to SIPA port statistics, domestic service performance indicators, and national budget and donor programming. In practical terms, this means using the accounts to (i) test whether proposed port expansions are matched by realistic fleet renewal scenarios, (ii) design subsidy and franchise mechanisms that cover total cost of ownership rather than short-term operating costs, and (iii) prioritise training investments that unlock both safety improvements and the economic opportunities of the Blue Economy transition (fisheries value addition, tourism, and provincial market integration).

Together, these accounts provide the quantitative foundation for evidence-based maritime governance, climate finance mobilisation, and workforce development planning. The average fleet age exceeding 25 years indicates that fleet renewal aligned with decarbonisation imperatives is not merely an environmental ambition but an economic necessity.

To support targeted decision-making, a set of standalone Policy Briefs accompanies this Final Report. These briefs distil the core evidence and implications from the pilot ocean accounts into short, action-oriented summaries for policy-makers and partners, focusing on: (1) the fleet modernisation investment case, including quantified asset values, depreciation trends, and climate finance alignment; (2) the maritime workforce and skills training investment case, including workforce estimates, wage/qualification patterns, and the scale of training gaps; and (3) how ocean accounts can inform port development and community planning, linking fleet renewal, labour needs, and infrastructure decisions for integrated planning and investment

The methodological foundation and institutional relationships established through this pilot position Solomon Islands as a regional leader in evidence-based ocean governance, with the capacity to expand ocean accounting to fisheries, port infrastructure, tourism, and ecosystem dimensions in subsequent phases.

Ocean accounts serve as the critical intermediary layer that transforms fragmented data sources into standardised, auditable information for policy decision-making. This pilot demonstrates that for Large Ocean States like Solomon Islands, where 98% of territory is ocean, such accounts are not merely a statistical exercise but a fundamental requirement for coherent national planning—linking maritime transport, labour force development, port infrastructure, and climate adaptation into an integrated evidence base that supports both domestic governance and engagement with international climate finance mechanisms.