In response to the long-standing concern of irregular and unaffordable shipping services to South Pacific countries, particularly SIS, the Central Pacific Shipping Commission (CPSC) was formed as a context-specific solution to address this sub-regional challenge. CPSC’s main objective was to address the existing market failure by regulating shipping services to Kiribati, Nauru, the Marshall Islands and Tuvalu through a public–private partnership between these countries and the shipping lines that operate in this region.