Franchise Shipping Scheme (FSS) to Undergo Comprehensive Review

The government, through the Ministry of Infrastructure and Development (MID), has announced a comprehensive review of the Franchise Shipping Scheme (FSS), a critical maritime service for underserved regions of the country.

The review will focus on operational efficiency, service reliability, and overall performance, ensuring that the programme meets its intended objectives.

FSS, which operates remote routes, will be evaluated for its financial sustainability, particularly concerning the effectiveness of subsidies and cost management on routes deemed economically unviable.

Currently, only the Sikaiana-Ndai route is operational, recently re-awarded to Ki’i Shipping Service, which operates the M.V. Ortega. Since its inception in 2010, the FSS aims to improve shipping services to several remote areas, including the Temotu Outer Islands, Sikaiana, Ndai Island, Ontong Java Atolls, Shortland Islands, Rennell Bellona, Makira Weather Coast, and the Guadalcanal Weather Coast. These regions often face challenges due to insufficient maritime infrastructure and irregular shipping services, which have been a hindrance to their economic development.

Grants were allocated annually under MID towards subsidised services on these island routes. Launched in 2009 and co-funded by the Asian Development Bank, the European Union, and the Solomon Islands Government, the scheme has evolved significantly over the years.

This review highlights the Government for National Unity and Transformation (GNUT) productive sector policy’s recognition of the vital role that reliable and efficient shipping services play in fostering economic growth and social development, especially in remote and economically challenging areas.

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-MID Press Release