---

As a further sign of Singapore's commitment to environmentally friendly shipping, the Maritime and Port Authority of Singapore (MPA) will extend its port dues waiver for new double-hulled bunker tankers operating within its waters from 1 April 2008.

The port dues surcharge for older single-hulled bunker tankers will be increased, but only from next year. Both measures are in support of the International Maritime Organization's (IMO) regulations to phase out single-hulled tankers from international operations by 2015 or by vessel age 25, whichever is earlier.

According to MPA Port Director Captain M Segar "Singapore is both a major shipping hub and bunker port. The protection of the marine environment is a priority concern. We seek to be proactive in meeting and supporting the IMO's regulation, while working closely with our partners in the bunker industry to facilitate the transition to double-hulled tankers." Segar also stated that in 2007, some 30,000 vessels called at Singapore for bunkers, resulting in bunker sales of 31.5 million tonnes.

"It is our hope that Singapore's efforts to encourage the bunker industry to switch to double-hulled tankers early will have a positive demonstration effect on the global phasing out of single-hulled tankers, leading towards more environmentally friendly shipping."

MPA's port dues waiver scheme was introduced in 2005 to encourage Singapore's bunker industry to begin fleet renewal to double-hulled tankers early. The industry's response to the scheme has been positive, with 19 new double-hulled tankers being introduced in the last three years and more replacements expected. This has prompted the MPA to extend the five year scheme for a further three years until 31 March 2011.

Major bunker tanker owner and operator Sentek Marine & Trading, which has introduced three newly built double-hulled bunker tankers in Singapore in the last few years, welcomed the new move.

Pai Keng Pheng, Managing Director of Sentek said "Newly built, larger double-hulled bunker tankers with modern design operate more efficiently to cater to the stringent demands of increasingly larger vessels that require quick turnaround times. Further, they enhance safety by lowering risks of oil pollution. We are thus happy with MPA's decision to extend the port dues waiver because it will help to mitigate the higher cost of these double-hulled bunker tankers."

The waiver extension scheme is expected to result in collective savings of over S$6 million for the industry. The MPA will also be raising the port dues surcharge for single-hulled bunker tankers aged 16 years and above from its current 10 percent to 15 percent. This increase will only take effect from 1 January 09.

Both measures complement MPA's 'Gate System' for licensing bunker operators, which was introduced in 2005. The 'Gate System' aligns Singapore's licensing requirements with international regulations.

The MPA schemes aim to promote environmentally friendly shipping in Singapore's waters and help strengthen the IMO's MARPOL regime aimed at protecting the marine environment from ship-sourced pollution. Singapore is currently a party to all six MARPOL annexes regulating pollution from ships.