Cook Islands Government is investing $2 million this financial year in shipping services, specifically for the setup of two vessels that will provide transportation and cargo services for the Pa Enua.

Speaking in Parliament last week, Prime Minister Mark Brown said, “If we want a shipping service that provides regular shipping at a standard and quality that is affordable for the people, protects the goods of the people, the government needed to provide an intervention to make it happen.”

Brown made the comment in response to a question from Opposition MP and Cook Islands United Party leader Teariki Heather, who questioned the government’s intention of venturing into domestic shipping when local operator Taio Shipping has been providing the service for over 30 years.

“Why shouldn’t we look at those who are already in the shipping sector, our people cannot compete with government…” Heather said.

In response, PM Brown explained that the standard of domestic shipping service has been inadequate, and the cost has been unaffordable for the people over the years.

“It’s not an easy job for a private company to run a shipping service but also to make enough money to cover, not just its cost but also to cover its margin for profit as well,” Brown said. “So, government took the conscious decision that we need to provide an intervention into this particular area.”

In his 2025/26 Budget statement last week, Brown said the $2 million investment is to set up shipping services, covering administrations, crew, warehousing, operations and maintenance.

He said in 2023, government approved the Domestic Shipping Roadmap which detailed the establishment of a government-operated fleet to serve people in the Northern and Southern Pa Enua.

Two vessels have been secured, one from China and one from Japan.

“These vessels are an essential lifeline for our communities and this budget continues Government’s $2 million investment this financial year towards establishing these shipping services,” said Brown, who is also the country’s Finance Minister.

“Additional expenditures will be required to confirm and regulate classifications, put in place administration, establish crew, manning, warehousing and operations and maintenance.”

Brown said this was a clear example of the benefits of actively diversifying Cook Islands development partnerships.

“The support from two nations for our shipping needs speaks to the value of that approach. By building relationships with a wider network of trusted partners, we are ensuring our infrastructure needs are met in ways that are strategic and sovereign.”

Brown reiterated the domestic shipping faces high costs and limited demand, discouraging the private sector to invest and operate in this space, leading to inadequate shipping services in the Pa Enua.

“The people of the Pa Enua feel these challenges most deeply. When business is scarce, people must make do with solutions that are simply not suitable, using old ships or vessels unfit for purpose.

“Communities cannot count on regular deliveries or safe shipping transport. This bottleneck limits economic opportunity and holds back development, especially in our Northern Group islands.

“For these reasons, it was clear that a market-driven solution alone would not meet the needs of our people – and that is why we are taking direct action.”
Brown said the arrival of the two ships is expected sometime next year: a vessel from Japan is due for delivery in March, and one from China in July.

“It’s inevitable that if the government wants to help the Pa Enua people with a reliable shipping service, we need to subsidise that shipping service.

“If we want to encourage economic activity or to make things easier for our people in the Pa Enua, we have to provide them with a service.

“One of the key infrastructure and transportation links that we need, a service not only affordable where government subsidises cost but one that is on a regular basis so people can plan their lives. Which is why we are insistent that the two vessels have a certain quality and standard to deliver that service to the Pa Enua.”