Britain plans to construct a £300 million airport for a tiny island having a population of barely 4,000 people.
International Development Secretary, Mr Andrew Mitchell, said Britain had an "obligation" to build the airport on St Helena, which is a South Atlantic island and a British Overseas Territory.
The island can only be reached by water on Royal Mail ship St Helena, which now needs to be replaced.
A new ship would cost £64 million and there would be operating costs, The Sun quoted Mitchell as saying.
The previous Labour government dropped its plan for the airport due to soaring costs.
An airport could bring financial independence, Mitchell said and added: "A new ship would provide a costly service, but not a solution to St Helena's stagnation and perpetual dependence on UK aid."