Connecting Islands: Shipping, Flights and Cables

How transport and digital connectivity shape island economies, from inter-island ferries to undersea cables, and why connectivity investments pay off.

For islands, connectivity is everything.

Shipping

Ferries and cargo ships connect islands, but services may be infrequent and costly.
Indonesia’s sea toll and India’s ships to Andaman and Lakshadweep aim to improve links.

Air links

Airports enable tourism and emergency services.
Small airports have high costs per passenger.

Undersea cables

Cables bring fast internet, enabling remote work, telemedicine and e-commerce.
Many Pacific islands gained cables in the 2010s-2020s.
In 2022, the Tonga volcanic eruption cut its cable, isolating the country for weeks.

Returns

Connectivity lowers costs, widens markets and improves resilience.

Subsidies

Governments often subsidise island transport because markets alone won’t provide it.

The cut cable

When a volcanic eruption cut Tonga's undersea cable in 2022, phone and internet links collapsed, hurting businesses and remittance flows.

Thinking islands can rely on markets for transport

Services often need subsidies.

Key takeaways

Connectivity is vital for islands.
Ferries and flights may need subsidies.
Undersea cables enable remote work and services.
Tonga's 2022 cable cut showed the risks.