Moana Minerals chief executive officer Hans Smit says the Cook Islands’ long-standing issues with freight cost and shipping delays could be improved through the development of a seabed mining industry.

Speaking to Cook Islands News after the company’s recent engagement tour in Mangaia and the Ngaputoru islands, Smit highlighted freight as one of the potential benefits for the country if seabed mining goes ahead.

“Yeah, look, I think the islands are challenged with regards to transportation and freight,” he said. “And what I was speaking about in Atiu is one of the things that we see as developing, if and when mining goes ahead, is that the demand for freight into the islands will be driven by large by the mining companies. And what we would anticipate is that we'd be able to get a better freight service into the country.”

Freight challenges have been a long-standing concern in the Pa Enua and Rarotonga, with recent anticipations that residents can expect a price surge in goods due to increased freight rates from the international shipping company servicing Rarotonga and Aitutaki.

In a notice to their customers in March this year, Matson South Pacific Limited and its Cook Islands shipping agent, Excil Shipping Limited, advised an increase in freight rates and associated charges for cargo carried between New Zealand and other load ports, and the Cook Islands.

Cook Islands Chamber of Commerce says the overall increase in freight costs is 30 per cent, and they expect businesses to pass this cost on to customers.

Smit believes that the establishment of a seabed mining industry could help alleviate increasing freight problems by increasing demand and creating a more reliable shipping cycle.

“And hopefully a more cost-competitive freight rate. That is some of the benefits that we see accruing if this goes ahead. Because there’ll be more demand,” he said. “There’ll be the need for stuff to get here, not in a month or six weeks maybe, but to get here within 10 to 14 days definitely. And we need to figure out how we fix that.”

Currently, the Cook Islands lacks the freight volumes necessary to negotiate better terms with shipping companies. But Smit said seabed mining could change that.

“At the moment we don’t have enough freight demand to be able to go to the freighting companies and to negotiate,” he said. “But when we are looking at putting up an industry and we have warehousing and we have equipment and stuff that needs to move backwards and forwards, then there’s a real opportunity to go and have that discussion.”

Smit added that alongside revenues, job creation and keeping families together, solving the freight issue was one of the tangible benefits discussed during community consultations, particularly in Atiu.

“So that discussion, we were talking at the time about what are the benefits to the Cook Islands. So we spoke about the revenues, we spoke about the jobs, we spoke about being able to keep the families together. And then at Atiu, we were also speaking about being able to address the freight problem, because that is a real issue here.”

In Matson’s notice, the ocean-freight has increased by 5.25 per cent, Bunker Adjustment Factor (BAF) increased to 28.2 per cent, Currency Adjustment Factor (CAF) increased to 20 per cent and the LSS (Low Sulphur Surcharge) increased to 17.65 per cent. The Emergency BAF will no longer apply.

These adjustments came into effect with Liloa II Voyage 100, which left Auckland on May 24, and Imua Voyage 149, which departed Auckland on June 3, 2025.