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Speaking at the Singapore International Maritime Awards during Singapore Maritime Week, Lui Tuck Yew, Minister for Transport, announced initiatives aimed at further enhancing the competitiveness of the Port of Singapore, including a rise in the port dues reduction for vessels that burn clean fuels or use approved abatement technology.

Review of Singapore's port dues structure and rates

Minister Lui shared that the Maritime and Port Authority of Singapore (MPA) has completed a comprehensive review of Singapore's port dues structure and rates, in consultation with the shipping industry and other stakeholders. The review aims to ensure that the port dues framework remains relevant, to enhance Singapore's competitiveness as a hub port and to enable more efficient use of the port's limited anchorage space. As part of the port dues review, MPA says it will also simplify the port dues structure and streamline the various incentive schemes.

The changes to port dues are expected to save the industry an additional $11 million a year. This is on top of the $11 million a year savings from the 20% port dues concession for container ships that will be made permanent and the $7 million a year from the waiver of Maritime Welfare Fee introduced in October 2012.

Under the revised port dues structure, up to 83% of vessel calls are expected to pay lower port dues compared to today. About 10% of vessel calls will pay the same port dues and up to 7% of vessel calls - mainly long staying vessels - may pay more port dues if call patterns remain unchanged.

Patrick Phoon, President of the Singapore Shipping Association remarked: "I am pleased that the MPA has taken note of our industry's feedback to simplify the port dues tariff structure. Given the challenges faced by the shipping community, any cost savings is certainly welcomed! Today's announcement will not only stimulate the growth of the shipping sector; ancillary services such as bunkering and ships supplies are likely to receive a boost too."

Enhancements to the Maritime Singapore Green Initiative

To further encourage companies to adopt environmentally-friendly shipping practices, Minister Lui announced several enhancements to the Maritime Singapore Green Initiative. The S$100 million Green Initiative, which comprises the Green Ship Programme, Green Port Programme and Green Technology Programme, was introduced in 2011 to encourage and support the industry's efforts towards clean and green shipping in Singapore.

The Green Ship Programme will be expanded to recognise Singapore-flagged ships that adopt approved SOx scrubber technology, which go beyond the International Maritime Organization's (IMO) emission requirements. This comprises a 25% reduction of their Initial Registration Fees and a 20% rebate on their Annual Tonnage Tax. This is in addition to the current 50% reduction on Initial Registration Fees and 20% rebate on Annual Tonnage Tax for ships that exceed the IMO's Energy Efficiency Design Index. Singapore-flagged ships which adopt both energy efficient ship designs and approved SOx scrubber technology that exceeds IMO's requirements will enjoy a 75% reduction of their Initial Registration Fees and a 50% rebate on their Annual Tonnage Tax.

Under the Green Port Programme, the port dues reduction for ocean-going vessels that burn clean fuels or use approved abatement technology throughout their entire stay at the Port of Singapore will be increased from 15% to 25%. A new tier of port dues reduction of 15% will be introduced for ocean-going vessels that burn clean fuels or use approved abatement technology only while at berth.

The grant limit under the Green Technology Programme will be increased from S$2 million to S$3 million for qualifying projects that can achieve more than 10% reduction in emission levels.

To date, 40 companies have signed the Maritime Singapore Green Pledge. Many other companies have also participated in the three programmes under the Green Initiative.