The purpose of this report is to identify and assess key maritime challenges faced by FSM, RMI and Palau, and those common to the sub-region, identify gaps constraining the contribution of the maritime sector to development outcomes, and propose specific sustainable measures and action plans to strengthen port and maritime operations.  This report focuses on three pillars of the maritime sector, namely: (1) institutional arrangements and sector strengthening; (2) port infrastructure and operations; and (3) shipping services (international, intra-regional and domestic) and trade