In 1878 The Colonial Defence Committee had drawn up the first steps of a policy and funding for British Coaling Stations around the World.
The summary below shows the estimated cost of the armaments for Coaling Stations in 1887 according to the War Office. The figures are extracted from one of the tables in The National Archives, WO 33/48 concerning financing.
This return gives some indication as to the importance of the various coaling stations. Of primary concern to the Imperial Government was who would pay for the weapons? The payment model favoured by the UK Government was where the armament was provided by the Imperial Government while the actual works (fortifications) were paid for by the Colony. It should be noted that some of the listed stations, such as Labuan, were never fully established.
The coaling stations are split into 1st and 2nd Class locations, the former receiving priority with funds.
COALING STATION | Actual Expenditure 1886 | Estimated Expenditure 1887 | Additional funds to complete works 1888 | Funding Model (Still not decided in all locations) |
| 1st CLASS STATIONS | £ | £ | £ | |
| Aden | 12,000 | 56,285 | 8,075 | Half paid by the India Office, half by Imperial Government |
| Trincomalee | 465 | 8,520 | 365 | Imperial Government |
| Colombo | NIL | NIL | 53,000 | Armaments paid for by Imperial Government, work by Colony |
| Singapore | 42,700 | 50,635 | 24,740 | Imperial Government |
| Hong Kong | 50,535 | 76,175 | 27,200 | Imperial Government |
| Table Bay | 8.600 | 20,920 | 70.450 | Negotiating terms, suggesting Colombo Model |
| Simon’s Bay | 22,740 | 24,040 | 20,500 | Same as Table Bay |
| Sierra Leone | 2,405 | 11,840 | 365 | Imperial Government |
| St Helena | NIL | 325 | 2,075 | Imperial Government |
| Mauritius | 1,810 | 1,900 | 52,040 | Imperial Government |
| Jamaica | 280 | 7,630 | 62,860 | Imperial Government |
| St Lucia | 35 | 6,955 | 13,715 | Imperial Government |
As things developed the more affluent locations assumed a greater role of the costs such as Hong Kong.
The situation in respect of the 2nd Class Coaling Stations, as listed below, was still not finalised. At this point no decision had been made as to which stations would be defended as Coaling Stations. As things developed, Port Elizabeth, Falkland Island, Labuan and Demerara were not established as Coaling Stations. Other localities, such as Perim Island off Yemen, were private ventures that were commercially funded as coaling depots. In some cases, such as Ascension Island, the funds came from the Admiralty Budget. Other locations, such as the Fortresses of Malta, Gibraltar, Bermuda and Halifax already had established defences and coal stocks.
With Coaling Stations, the cost was not just supplying the armaments and fortifications but providing coal bunkers and then purchasing and supplying the coal to store at the facility. The Admiralty relied heavily on Welsh Coal although Northern UK Coal was an alternative. The coal from South Wales was regarded highly both in terms of power generated and cleanliness of use. Thus, coal to be stored at Esquimalt was shipped over 11,000 nautical miles (13,000 miles) from South Wales.
COALING STATION | Actual Expenditure 1886 | Estimated Expenditure 1887 | Additional funds to complete works 1888 | Funding Model (Still not decided in all locations) |
| 2nd CLASS STATIONS | £ | £ | £ | |
| Port Elizabeth | NIL | NIL | 2,050 | Same as Table Bay |
| Esquimalt | NIL | 8,630 | 22,450 | Not specified |
| Falklands Islands | NIL | NIL | NIL | No decision on funding |
| Labuan (Malaya) | NIL | NIL | NIL | No decision on funding |
| Barbados | 250 | NIL | NIL | Awaiting guns |
| Freemantle | 300 | NIL | NIL | Guns at Woolwich awaiting transport |
| King George’s Sound | 865 | NIL | NIL | Guns at Woolwich awaiting transport |
| Demerara (Georgetown, British Guyana) | 880 | NIL | 500 | Guns at Woolwich awaiting transport |
This return showed that total expenditure for 1885 to 1888 was £419,295 with another £358,310 required to finish this work. A sizeable amount of money which does not consider the defence of other key harbours such as Halifax.

