POLICY BRIEF NUMBER 1

Fleet Modernisation Investment Case

KEY MESSAGES

Solomon Islands' commercial maritime fleet represents a USD $29.69 million asset and a critical modernisation opportunity. The fleet is aging rapidly, with an average age of 25 years and 15–16% of vessels exceeding 20 years old. Without strategic renewal, capital stock will continue declining by approximately USD $300,000–500,000 annually through depreciation. Strategic fleet modernisation aligned with IMO 2050 decarbonisation targets offers quantified financial returns through fuel efficiency gains, reduced maintenance costs, and improved service reliability, whilst positioning the nation to access climate finance for green maritime infrastructure.

1.The Fleet Modernisation Challenge

Current Fleet Status

Solomon Islands operates a commercial maritime fleet of 242 vessels (with complete valuation data) comprising approximately 105,000 Gross Registered Tonnes. The fleet's depreciated replacement cost (DRC) valuation is USD $29.69 million for 2024, representing approximately 1.87% of national GDP—consistent with developed economies where transport equipment typically represents 2–8% of GDP. This capital intensity reflects Solomon Islands' status as a small island developing state where maritime transport is foundational to economic connectivity.

The fleet demonstrates significant age concentration. Average vessel age is 25 years; 77.8% of vessels are cargo ships serving inter-island routes and provincial operators. Approximately 96–97 vessels (15–16% of the fleet) are over 20 years old and approaching economic end-of-life. Without replacement investment, the net capital stock will decline from USD $29.69 million (2024) to USD $30.0 million (2025), representing annual depreciation of approximately USD $300,000–500,000.

The Renewal Imperative

Fleet renewal is not optional. Current vessels will require replacement regardless of climate commitments. The strategic question is whether Solomon Islands will modernise reactively (replacing vessels as they fail) or proactively (implementing planned renewal aligned with decarbonisation targets and infrastructure investment). Proactive modernisation captures multiple returns: operational cost savings, improved safety and insurance outcomes, competitive positioning in regional markets, and alignment with international emissions standards.

2.The Fleet Renewal Imperative and Financial Justification

Why Fleet Renewal Is Necessary

Fleet renewal is not discretionary—it is economically necessary. Current vessels will require replacement regardless of climate commitments. Approximately 96–97 vessels (15–16% of the fleet) are over 20 years old and approaching economic end-of-life. The strategic question for the government is not whether to modernise, but whether to do so reactively (replacing vessels as they fail) or proactively (implementing planned renewal aligned with decarbonisation targets and infrastructure investment). Proactive modernisation enables prioritisation of oldest and most underutilised vessels first, allowing strategic capital allocation and enabling access to development financing for modern, efficient, lower-emission replacement tonnage.

3.Investment Requirements and Climate Finance Alignment

Fleet Replacement Investment

The gross replacement cost of Solomon Islands' entire fleet is USD $90–93 million, representing the investment required if all vessels were replaced simultaneously with equivalent new tonnage. The documented fleet comprises 242 vessels with complete valuation data. The full operating fleet includes additional vessels below documentation thresholds, particularly small commercial craft. Phased modernisation should target replacement of vessels over 25 years old (estimated 40–50 vessels from the documented fleet) over a 5–10 year period, requiring investment of USD $15–30 million depending on vessel specifications and technology choices. This approach eliminates the oldest and most underutilised portion of the documented fleet whilst preserving modern tonnage, reducing overall capital requirements relative to a full fleet replacement.

Climate Finance Mobilisation

Phased fleet modernisation aligned with IMO 2050 decarbonisation targets Solomon Islands to access climate finance from the Green Climate Fund, the Asian Development Bank, and bilateral development partners. The quantified capital stock valuation (USD $29.69 million) and gross replacement cost projections provide the evidence basis required by climate finance institutions to assess investment requirements and allocate resources.

4.Conclusion

Solomon Islands' maritime fleet represents a USD $29.69 million asset requiring strategic management and planned renewal. The fleet is aging: an average age of 25 years and 96–97 vessels over 20 years old indicate that significant replacement will be necessary within the coming decade regardless of climate commitments. Strategic fleet modernisation aligned with decarbonisation targets enables the government to implement planned vessel renewal whilst accessing climate finance for green maritime infrastructure investment. The evidence base (USD $29.69 million asset valuation, gross replacement cost of USD $90–93 million, 25-year average fleet age) supports credible funding proposals. Action is required now to establish the data systems, financing mechanisms, and policy frameworks necessary to transition from reactive vessel replacement to proactive modernisation aligned with national maritime and climate commitments.

ABOUT THIS BRIEF

This policy brief was developed by the Global Ocean Accounts Partnership (GOAP) Secretariat at UNSW’s Centre for Sustainable Development Reform, the Solomon Islands Maritime Authority (SIMA). For further information, contact the GOAP Secretariat at oceanaccounts.org and https://www.unsw.edu.au/research/centre-for-sustainable-development-reform.

POLICY BRIEF NO. 2

Ocean Maritime Workforce & Skills Training Investment Case

KEY MESSAGES

Solomon Islands' maritime sector currently employs a documented workforce of 1,719 persons generating annual compensation of SBD 267.3 million (approximately USD $32 million), representing approximately 1.98% of national GDP. The documented workforce captures employment across the commercial maritime fleet, including 242 vessels with complete valuation data plus additional undocumented maritime activity. Clear wage hierarchies, Class 2 Masters earning SBD $15,693 fortnightly versus deckhands at SBD $930, demonstrate wage differentiation by qualification level. Current maritime training capacity (approximately 50 graduates annually) is insufficient to meet workforce expansion and replacement needs, creating an estimated annual training gap of approximately 75 persons. Strategic training investment to address this gap would position maritime employment as a pathway for skilled employment whilst supporting decarbonisation-aligned workforce development.1.The Workforce Opportunity

Current Workforce Baseline and Gaps

Solomon Islands' maritime employment is documented through SIMA's seafarer registry. The 2024 registry contains 157 registered seafarers with formal Seafarer Employment Agreements (SEAs). The final report notes a gap between documented employment and the full maritime workforce: while 242 vessels have complete valuation data, additional vessels below documentation thresholds operate throughout the archipelago. Employment estimation using multiple methods (crew-per-vessel proxy, registry multiplier approach) produces a mid-range workforce estimate of 1,719 persons. This mid-range figure bridges the gap between documented registry data and the larger, partially undocumented workforce serving the full commercial fleet. The documented workforce of 157 seafarers represents only a subset of total maritime employment, indicating that substantial maritime work occurs either outside formal documentation systems or involves crew not captured in current registry processes.

Workforce Composition and Wage Hierarchies

The documented maritime workforce demonstrates clear occupational segmentation. Deck officers comprise 31% of registered seafarers; engine department staff represent 17%; general ratings and deckhands constitute 31%. This composition reveals two critical dynamics: (1) concentration of skilled labour in relatively small numbers of certified officers, and (2) large proportion of lower-wage, less-skilled ratings indicating significant capacity for workforce upskilling.

The wage structure reveals significant economic differentiation by qualification. Analysis of 2024 SIMA salary data shows:

• Class 2 Masters: SBD $15,693 fortnightly (approximately SBD $408,000 annually)
• Class 3 Masters: SBD $9,162 fortnightly (approximately SBD $238,000 annually)
• Class 3 Engineers: SBD $8,233 fortnightly (approximately SBD $214,000 annually)
• Class 4-6 Officers: SBD $1,044–$3,507 fortnightly (approximately SBD $27,000–91,000 annually)
• Deckhands/Ratings: SBD $930 fortnightly (approximately SBD $24,000 annually)

The wage differentiation reflects international maritime labour standards and market demand. A deckhand earning SBD $930 fortnightly (SBD $24,000 annually) who transitions to a Class 4 Officer position earning SBD $1,044 fortnightly would increase annual earnings to approximately SBD $27,000. This wage structure demonstrates employer demand for trained maritime workers and creates economic incentive for individuals to pursue maritime training.

2.Training Investment Case

Current maritime training capacity is insufficient to meet workforce expansion and replacement needs. Solomon Islands Maritime College (now SINU) produces approximately 50 graduates annually. Workforce replacement and expansion would require approximately 125 trained individuals annually. This implies an estimated training gap of approximately 75 persons per year.

Beyond replacement, skills advancement training is absent. The 31% of the documented workforce currently occupying uncertified ratings positions represents potential for advancement through officer certification, which would increase earnings from SBD $930 to SBD $1,044–$3,507 fortnightly wages.

What can be observed from documented wage data is that wage differentiation by qualification exists, creating economic incentive for individuals to pursue maritime training. Officer positions command significantly higher compensation than ratings positions, ranging from SBD $1,044–$3,507 fortnightly compared to SBD $930 for deckhands. This wage structure demonstrates employer demand for certified maritime workers.

3.Priority Training Domains

Based on the pilot’s assessment of decarbonisation-related skills requirements, priority training areas should include the following domains identified in the offshore transition roadmap:

• Deck Officers: IMO model courses covering energy-efficient voyage planning, Ship Energy Efficiency Management Plan (SEEMP) implementation, and Carbon Intensity Indicator (CII) compliance.
• Marine Engineers: Training for operation of alternative fuel systems, specifically ammonia, hydrogen, and methanol propulsion technologies identified in the Final Report as priority clean fuel pathways.
• Ratings and Support Staff: Safety awareness training for new fuel systems and electrical safety for high-voltage systems used in modern maritime equipment.

Detailed assessment of training facility requirements, curriculum gaps, student recruitment targets, and instructor capacity building needs should be incorporated into a comprehensive maritime training development roadmap.

4. Conclusion

Solomon Islands' maritime sector demonstrates clear wage differentiation by qualification level, reflecting employer demand for trained maritime workers. Current training capacity at SINU Maritime College (approximately 50 graduates annually) is insufficient to meet estimated workforce replacement and expansion needs (approximately 125 trained workers annually), creating a training gap of approximately 75 persons per year. The 31% of the documented workforce currently in uncertified ratings positions represents potential for skills advancement, whilst workforce development aligned with decarbonisation priorities requires training in alternative fuel systems and modern maritime technologies. Strategic training investment—supported by a comprehensive workforce development roadmap, adequate financing, and curriculum integration of decarbonisation content—is essential to address documented training shortfalls and position maritime employment as a pathway for young Solomon Islanders seeking skilled employment.

ABOUT THIS BRIEF

This policy brief was developed by the Global Ocean Accounts Partnership (GOAP) Secretariat at UNSW’s Centre for Sustainable Development Reform, the Solomon Islands Maritime Authority (SIMA). For further information, contact the GOAP Secretariat at oceanaccounts.org and https://www.unsw.edu.au/research/centre-for-sustainable-development-reform.

POLICY BRIEF NO. 3

Ocean Accounts for Maritime Transport: Informing Port Development and Community Planning in Solomon Islands

30 January 2026

KEY MESSAGES

The Solomon Islands maritime fleet is valued at USD $29.69 million (2024), representing approximately 1.87% of national GDP, consistent with transport equipment values in developed economies, reflecting this archipelagic nation's reliance on maritime connectivity.

With an average fleet age exceeding 25 years, imminent renewal requirements align with IMO 2050 decarbonisation targets and port modernisation needs at Honiara, Noro, and the planned Bina Harbour.

Ocean accounts provide the evidence base for climate finance proposals, workforce development planning, and integrated port-vessel investment strategies—essential tools for forecasting community wellbeing and local economic impacts.

1. Introduction

The Solomon Islands is an archipelagic state where maritime transport is the fundamental prerequisite for national connectivity. The dispersion of the population across nine provinces creates a unique logistical context often described as the ‘tyranny of distance’, where access to education, healthcare, and markets is entirely dependent on maritime services.^[1]

This policy brief presents findings from the pilot Ocean Accounts for Solomon Islands’ maritime transport sector, developed under the Global Ocean Accounts Partnership (GOAP) framework in partnership with the Pacific Community (SPC), the Solomon Islands Maritime Authority (SIMA), and UNSW’s Centre for Sustainable Development Reform. It examines how these accounts can inform economic development planning for the nation’s port infrastructure—Honiara, Noro, and the transformative Bina Harbour project—while also enabling better forecasting of community wellbeing indicators.^[2]

The National Shipping Asset Account

The National Shipping Asset Account applies Depreciated Replacement Cost (DRC) methodology—the international standard recommended by the System of National Accounts 2025 (SNA 2025) for valuing produced assets when historical investment data are unavailable. This methodology estimates current economic value by calculating replacement costs at current market prices, then adjusting for accumulated depreciation using geometric depreciation at 5.5% per annum.^[3]

Table 1: Solomon Islands National Shipping Asset Account Summary

Source: SIMA vessel registry data; World Bank GDP estimates; GOAP calculations using DRC methodology.

The maritime fleet’s depreciated value, representing nearly 39% of GDP reflects Solomon Islands’ status as a small island developing state with heavy dependence on maritime transport infrastructure. For context, transport equipment typically represents 2–8% of GDP in developed economies, highlighting the relative capital intensity of the maritime sector for archipelagic nations.^[4]

2. The Maritime Labour Account

The Maritime Labour Account quantifies employment, compensation, and working conditions in Solomon Islands’ maritime sector. Employment estimation indicates a mid-range workforce of 1,719 persons**,** with total compensation estimated at SBD 267.3 million (approximately USD $32 million), representing approximately 1.98% of GDP.

The workforce demonstrates clear wage hierarchies aligned with maritime certification levels. Class 2 Masters earn average fortnightly wages of SBD $15,693, while deckhands—comprising 31% of the registered workforce—earn approximately SBD $930 fortnightly. This combination of high employment concentration and relatively low pay among ratings indicates a priority area for workforce development attention.

Labour accounting is considered an essential adjunct to national accounting, capturing employment, workforce characteristics, and income distribution. Maritime labour accounts specifically contribute by detailing employment patterns in maritime sectors beyond what aggregate national accounts show, and by tracking social dimensions including working conditions, skills distribution, and demographic characteristics of maritime workers.

3. Practical Applications for Port Development

Solomon Islands’ port network comprises the international gateway of Honiara, the industrial tuna hub of Noro, and the transformative planned development of Bina Harbour in Malaita Province. These infrastructure assets are central engines of economic development, facilitating the transition from an extraction-based economy to a sustainable ‘Blue Economy’ predicated on fisheries, tourism, and value-added processing.^[5]

Quantifying Investment Requirements

The gross capital stock (replacement cost) of USD $90–93 million represents the investment required to replace the entire fleet with modern, potentially low-emission vessels. The year-on-year decline from USD $29.69 million (2024) to USD $30.0 million (2025) reflects ongoing depreciation of the ageing fleet. Without new investment, net capital stock will continue declining as vessels approach end-of-life. This quantifies the fleet renewal challenge: maintaining current capacity requires investment offsetting annual depreciation of approximately USD $300,000–500,000.

For port planners, these figures have direct implications. The Port of Honiara faces chronic congestion and capacity constraints, with scoping studies forecasting capacity saturation within 10–12 years based on demand growth.^[6] Meanwhile, Noro’s recent ‘e-port’ digital traceability system demonstrates the potential of vertical integration linking fishing, processing, and logistics.^[7]

Bina Harbour, designed to create over 1,600 direct jobs and generate $40 million in foreign direct investment, represents strategic decentralisation of economic activity to Malaita Province.^[8]

Forecasting Community and Wellbeing Indicators

Ocean accounts enable planners to forecast critical community indicators by linking infrastructure investment to employment, income distribution, and service delivery:

Employment pipeline projections: The Labour Account shows that estimated annual training need for workforce replacement alone is approximately 125 persons per year (assuming 5% natural attrition). Current training capacity at Solomon Islands Maritime College is estimated at 50 graduates annually, indicating a training gap of approximately 75 persons per year (60% undersupply).^[9]

Income distribution analysis: Wage data reveals that deckhands constitute the largest occupational category (31% of workforce) yet receive the lowest remuneration. Port modernisation projects can target improvements in working conditions and wages for this segment.

Urban planning integration: For Noro, where port expansion aims to increase throughput, Labour Account coefficients can predict associated rises in stevedores, truck drivers, and processing workers—informing housing, healthcare, and childcare infrastructure requirements.

Workforce Pipeline for Port Modernisation

The transition to decarbonised maritime transport—aligned with IMO 2050 targets—introduces new technologies, fuels, and operational practices requiring a workforce equipped with new skills. Priority training areas include:^[10]

Deck Officers: Energy-efficient voyage planning and Ship Energy Efficiency Management Plan (SEEMP) implementation.

Engineers: Operation of dual-fuel engines, battery management systems, and hybrid propulsion.

Small Craft Operators: Electric outboard motor operation and battery safety as these technologies become viable for last-mile connectivity.

4. Evidence Base for Climate Finance

The DRC valuation also provides the quantitative foundation for climate finance proposals. The Green Climate Fund, Asian Development Bank, and bilateral development partners require credible economic assessment of assets at risk and investment requirements. Ocean accounts demonstrate that:^[11]
Maritime fleet valued at approximately 1.87% of GDP represents critical national infrastructure requiring climate-resilient investment.

Average fleet age of 23+ years indicates imminent renewal requirements aligned with IMO 2050 decarbonisation targets.

Gross replacement cost of USD $90–93 million quantifies the scale of fleet modernisation investment needed.

5. Recommendations

1. Integrate ocean accounts data into port master planning to ensure vessel modernisation timelines align with berth capacity upgrades and terminal operating system investments.

2. Establish MoUs for data sharing between operators (SIMTA), SIPA, and fuel suppliers covering fuel consumption, vessel operational data, and refuelling schedules to support emissions monitoring.

3. Embed training requirements into vessel and equipment procurement contracts to ensure workforce readiness accompanies technology deployment at upgraded ports.

4. Use ocean accounts valuations to support climate finance applications for the Green Climate Fund and regional development banks, demonstrating the scale of climate-vulnerable maritime infrastructure.

5. Commission a comprehensive decarbonisation roadmap study covering fleet transition scenarios, clean fuel pathway assessment, small craft electrification feasibility, and MRV system design.

6.Conclusion

The pilot ocean accounts establish the first comprehensive, internationally standardised measurements for Solomon Islands’ maritime transport sector. By aligning with the System of Environmental-Economic Accounting Central Framework (SEEA-CF) and System of National Accounts 2025, these accounts provide a credible evidence base for integrated port-vessel planning, climate finance mobilisation, and workforce development.

The methodological foundation and institutional relationships established through this pilot position Solomon Islands as a regional leader in evidence-based ocean governance. As the nation navigates its transition to a sustainable Blue Economy, these accounts provide the quantitative foundation to ensure maritime infrastructure investment delivers maximum development impact—not only for port efficiency, but for community wellbeing, workforce development, and climate resilience across the archipelago.

ABOUT THIS BRIEF

This policy brief was developed by the Global Ocean Accounts Partnership (GOAP) Secretariat at UNSW’s Centre for Sustainable Development Reform, the Solomon Islands Maritime Authority (SIMA). For further information, contact the GOAP Secretariat at oceanaccounts.org and https://www.unsw.edu.au/research/centre-for-sustainable-development-reform.