Download National shipping  policy and inter­ island shipping­ Solomon Islands

National shipping policy and inter­
island shipping­
Solomon Islands
Presenter: Ambrose F Kirei
Presentation Outline
• Background Info – Solomon Islands
• Inter Island Shipping: Current state of affairs (Solomon Is.)
• Transport Challenges (Solomon Is.)
• Summary
Solomon Is.‐ Background
• six (6) large Islands and 992 small islands
• third largest archipelago in the South Pacific
• population: 552,267 (2011 est.)
• Annual population growth rate: 2.8% (est.)
• 85% of population live in rural areas
• total land area‐28,400 km²
• exclusive access to an economic ocean area of about 1.34 million km²
• GDP: 838 million USD (2011)‐
World Bank
Solomon Is.‐ Background
• six (6) large Islands and 992 small islands
• third largest archipelago in the South Pacific
• population: 552,267 (2011 est.)
• Annual population growth rate: 2.8% (est.)
• 85% of population live in rural areas
• total land area‐28,400 km²
• exclusive access to an economic ocean area of about 1.34 million km²
• GDP: 838 million USD (2011)‐
World Bank
Economy‐Current State in SI
• growth rate: annual average rate of 6.9% from 2003 to 2008, supported by foreign aid inflows and strong demand for logs. • In 2009 growth was just 0.4% and for 2010, the IMF predicts only a moderate rebound with growth of 2.4%. Government faces several of challenges to spur faster growth
• overly dependent on foreign aid as a source of gov’t revenue and capital spending. • 2010/2009: foreign grants equivalent to 24.7% of GDP. (IMF est.) Budget deficit in 2009 would have been 22.2% of GDP without foreign aid. Economy vulnerable to decline in foreign assistance.
• Round log exports accounted for 66% of total exports in the first three quarters of 2009. IMF forecast: $110.3m in 2008 to $13.8m in 2014. • Mineral exports may fill the gap as Allied Gold is expected to start gold production in 2012 and Sumitomo Metal and Mining will begin nickel production in 2015. To avoid this merely swapping dependence on logs for dependence on minerals, other economic sectors must be developed to increase diversity and reduce economic vulnerability.
Solomon Is.
2 Intl Seaports, 1 Intl Airport
Inter‐island shipping: Current State of Affairs‐SI
• SI Gov’t with development partners working on key infrastructure services‐ building new wharves/jetties‐ e.g. Domestic Maritime Support Project (DMSP)‐
funding by ADB, Ausaid & NZAid to build 9 new wharves in 2012/2013
• Reform: Component 2 of DMSP: Franchise Shipping Scheme (FSS) (subsidy to selected private shipping operators to uneconomical routes in SI)
• Reform: SIG Gov’t removed customs duties on importation of ships and marine equip., reducing the tax burden (43% to less than 20 %)
• Gov’t Shipping Grant Initiative‐
Aims at supporting local ship builders and operators . SBD$12M in 2012, $15M SBD for 2013.
Subsidized Shipping Service Locations –
Franchise Shipping Scheme (FSS)
Inter island shipping‐Current State of Affairs Con’td.
• National Transport Fund (NTF)‐NTF Act passed in 2009. significant financial resources are now available from SIG and development partners for rehabilitation, capital investment, and maintenance of transport infrastructures (Roads/bridges, Wharves, airfields)
• Reform: New foreign investment legislation ‐ease restrictions on foreign and domestic investors. ‐ Attracted capital investment.
Inter‐island shipping: Current State of Affairs‐SI Con’td.
• Reform: Solomon Islands Maritime Safety Administration (SIMSA) Division successfully established on 1 July 2010 supported by SIMSA Act.
• Regulations passed by Cabinet under SIMSA Act:
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(i) Shipping (Pilotage Certification) Regulations 2010; (ii) Shipping (Registration) Regulations 2010; (iii) Marine Safety Administration (Research Vessels) Regulations 2010;
(iv) Shipping (Marine Navigation Aids) Regulations 2010; (v) Shipping (Seafarers Training and Certification of Watch keepers) Regulations 2010; (vi) Marine Pollution Regulations 2011; (vii) Shipping (Dangerous Goods and International Maritime Dangerous Goods Code) Regulations 2011; (viii) Shipping (Marine Inquiries and Investigations) Regulations 2011; (ix) Marine Safety Administration (Ship and Port Security) Regulations 2011;
(x) Shipping (Small Craft Safety) Regulations 2011; and (xi) Shipping (Safety Requirements for Registration) Regulations 2011.
• total revenue of SI$12 million was achieved in 2011 by SIMSA
Transport challenges in SI
SI transport infrastructure: predominantly shipping with few berthing facilities limited road network on large island provinces Limited domestic air services.
Scattered islands (9 provinces spread apart) Poor condition and availability of both transport infrastructure
and services – preventing economic prosperity and social interaction
• Relatively small transport demand and low economic activity creates a serious challenge in the provision and maintenance of transport services.
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Summary
• Although the existing transport infrastructure is largely in poor condition as a result of neglected maintenance, insufficient funding, lack of comprehensive planning and poor management capacity, the commitment of SIG supported by its development partners through the National Transport Fund, ongoing projects and programs is gradually changing the situation.
• Any long term development plans in the Solomon Islands must consider the archipelagic nature of the country how this relates to economic development opportunities. • The islands must be interconnected by good transport and communication networks that will open up new economic opportunities, reduce transport and transaction costs, increase access to social services, and foster national cohesion.
tagio tumas! (thank you very much)
Questions?
New Roads & Bridges
New BRIDGES
New Jetties