The chief executive of the
Maritime and Port Authority of Singapore (MPA),
Andrew Tan, has today called on more ports to be ready for liquefied natural gas (LNG) bunkering during his keynote address at the 3rd Busan International Port Conference (BIPC) in Busan, South Korea.
In the speech, entitled
'Environmental sustainability for international shipping - LNG as a marine fuel', Tan said Asia has "great potential to offer LNG bunkering considering some of the most important trade routes traverse the region". In this regard, the MPA "hopes to promote greater discussions and cooperation amongst global hub ports to provide LNG bunkering for short-sea and ocean-going vessels", he added.
LNG has been touted to deliver impressive reductions in sulphur oxide (SOx), nitrogen oxide (NOx) or carbon dioxide (CO2) emissions. Currently, about 48 ports around the world are either LNG bunkering ready or have plans to do so.
The 3rd BIPC is being held in Busan, South Korea from 5 to 6 November 2015. Themed 'Ports Exploring the Unexplored', the conference aims to identify and discuss the challenges and opportunities in the shipping and maritime industry.
Mr Tan met the new President of Busan Port Authority, Mr Woo Ye-jong, at the sidelines of the BIPC where, according to the MPA,
they discussed areas of cooperation such as the impact of mega-vessels, raising port productivity and future opportunities for LNG bunkering.
Andrew Tan's full speech has been provided below.
Speech
'Environmental Sustainability for International Shipping - LNG as a marine fuel'
Mr Jon Joon-soo, Chairman of the Port Commission of Busan Port Authority,
Mr Woo Ye-jong, President of Busan Port Authority,
Distinguished Speakers,
Ladies and Gentlemen,
Thank you, Mr Lino Vassallo for your introductory remarks. I cannot think of anyone else more knowledgeable on the challenges facing the International Maritime Organisation (IMO) than yourself in giving us a broad overview of the IMO's work.
Let me also congratulate Mr Lim Ki Tack on his new appointment as the incoming Secretary-General of IMO. I am sure he will be able to steer the IMO to greater heights. Let me also thank the Busan Port Authority for organising this important event.
As many speakers have highlighted, shipping is a global business and it is important that ports like Busan, Hamburg, Singapore and others that are key nodes in the global supply chain talk to one another, share their expertise and break new frontiers as seen in the earlier presentation by Hamburg on its Smart Port initiative.
In the few days I have been in Busan, I have seen your beautiful city and impressive port which is growing in volume. With all the new investments, you will be well-positioned to meet your aspirations as the hub port for Northeast Asia. I would also like to thank the organisers for making an effort to invite the younger audience to join us today. This is because much of the discussion about the future sustainable transport is as much driven by new regulations and technologies as it is driven by changing aspirations and rising expectations of the young towards the environment.
This year's theme "Ports Exploring the Unexplored" comes at an opportune time. Many of us will agree that the shipping industry faces many challenges ahead, not least a volatile freight environment and ever growing expectations to deliver on safety, efficiency and sustainability.
The role of IMO and national authorities
International shipping remains the backbone of international trade and globalisation. Today, it is still the most efficient mode of transportation of goods, contributing 2.2% of global emissions. As international shipping continues to grow in tandem with world trade, the maritime industry must constantly play its part in reducing emissions and improving energy efficiency.
In this regard, the International Maritime Organisation (IMO) plays a key role in promoting safe, efficient and sustainable shipping in collaboration with all maritime stakeholders. Annex VI of the International Convention for the Prevention of Pollution from Ships (MARPOL) plays a pivotal role in the reduction of emissions by shipping. The global sulphur cap was reduced to 3.5% from 4.5% from January 2012, and depending on the outcome of the IMO's fuel availability study, there are plans to further reduce sulphur emissions to 0.5% by either 2020 or 2025.
Various regions have also adopted more stringent measures in their waters. This includes the 0.1% sulphur cap for vessels plying Sulphur Emission Control Area (SECA) zones in Northern Europe and North America as well as regulations in Hong Kong limiting the sulphur content of fuels used by vessels alongside berths to 0.5% from 1 July 2015.
Ship owners and operators will have to decide on the appropriate solutions to meet these demands, and the eventual 0.5% global sulphur cap. These solutions include burning Low Sulphur Marine Gas Oil (LSMGO), installing scrubbers or using alternative fuels such as LNG.
While the IMO remains in the driver's seat to drive overall effort to reduce shipping emissions at the international level, at the national level, port authorities also have an important role to play. This includes the effective enforcement of regulations, working with stakeholders to collectively raise standards and incentivising adoption of new technologies that are cleaner and greener.
Balancing domestic interests and global standards will be a delicate balancing act. Each nation may have its take on what defines safe and efficient shipping in its waters, but these must be properly aligned with the IMO's standards to prevent a proliferation of rules that could undermine the industry and impose undue costs. This will require greater dialogue among all key stakeholders and the harmonisation of standards.
Singapore's commitment to building a sustainable maritime transportation system
As a responsible member of the international community, Singapore actively contributes to on-going discussions at the IMO pertaining to environmental sustainability. This includes being a member of the Steering Committee that oversees the fuel oil availability study to assess the feasibility of implementing the 0.5% global sulphur cap in 2020.
Last month, Singapore and the IMO also jointly organised the inaugural Future Ready Shipping Conference - the first international conference on maritime technology transfer and capacity building. It provided a platform for the international shipping community exchange ideas and identifies priority areas in facilitating maritime technology transfer. Hopefully, this will help sustain the momentum towards more energy-efficient and low-carbon shipping.
Sustainability requires continuous improvement and a future-ready mind-set in order to ensure productivity, responsiveness and efficiency of operations. MPA alone is unable to future-proof Singapore's port developments, and instead, requires strong collaboration with an extensive network of stakeholders to generate new ideas as well as to support our drive for sustainable development. Over the years, we have established good partnerships not only with the industry but also with Institutes of Higher Learning and Research Institutes.
Our Maritime Singapore Green Initiative (MSGI), which provides funding to companies to develop and adopt environmentally-friendly technology solutions, is now in its fourth year. At the same time, these initiatives have also served to build up institutional capabilities in maritime education as well as in R&D.
Looking beyond 2015, Singapore has started planning for our Next Generation Port 2030, or the NGP 2030 initiative. This initiative is reinforced by four key thrusts, as shown in the diagram, covering an Efficient Port, Intelligent Port, Safe and Secure Port Clean, and finally a Green and Community-Oriented Port.
MPA is working closely with our stakeholders in identifying new areas of strategic opportunity for our Next Generation Port (NGP). Some of the key elements being explored for the NGP include the next generation vessel traffic management, single window port clearance, use of Automated Storage and Retrieval System for containers to further increase the yard storage capacity. In addition, as part of the NGP 2030 initiative, Singapore will also be providing cleaner sources of fuel, such as LNG.
MPA's overall directions for the bunkering industry in Singapore
To prepare for the future, Singapore is taking steps to prepare itself to be a LNG bunker-ready port when LNG becomes more viable as an alternate fuel. This will enable us to service a range of vessel types and sizes seeking to take LNG as a marine fuel. Singapore will be commencing our LNG bunkering pilot programme in 2017 as the platform to test the LNG bunkering procedures in Singapore.
LNG has been touted to deliver impressive reductions in emissions, whether SOx, NOx or CO2, and has seen gradual adoption to that end. Currently around the world, there are already 48 LNG-fuelled vessels operating on dual fuel or tri-fuel diesel electric propulsion engines with another 85 on order. Some 48 ports around the world are also either LNG bunkering ready or have plans to do so. However, in Asia, we are still relatively behind other parts of the world, but there is great potential for LNG bunkering considering some of the most important trade routes traverse the region.
However, the high costs involved in building or retrofitting LNG-fuelled vessels, and the need for further development of LNG bunkering infrastructure in ports, necessitates governmental intervention to make LNG widely adopted as a marine fuel. For example, the European Union (EU) is providing significant funding under its "Trans-European Transport Network" that has seen support of various LNG-fuel related projects. Looking to the East, countries such as China, Korea, and Singapore have made commitments to further develop LNG bunkering infrastructure and/or support the building of LNG-fuelled vessels.
MPA has been collaborating closely with industry partners, stakeholders as well as the Ports of Antwerp, Zeebrugge and Rotterdam to harmonise LNG bunkering procedures. MPA has already received proposals from potential LNG bunker suppliers and we have plans to issue LNG bunker supplier licences by 2016.
While LNG bunkering is likely to take off for short sea voyages in its initial stages, MPA hopes to promote greater discussions and cooperation amongst global hub ports interested in providing LNG bunkering for short sea and ocean going vessels. We could leverage on existing platforms including the Port Authorities Roundtable (PAR) which the Port of Busan participated in this year as well as the Singapore International Bunkering Conference 2016 (SIBCON) to exchange ideas, share best practices and even develop a regional roadmap for LNG bunkering.
Conclusion
To conclude, IMO must continue to perform the roles of facilitator and coordinator for global maritime standards and policies in ensuing sustainable maritime development. Governments, businesses and industry associations must also collaborate closely to ensure that the maritime transportation system will continue to be safe, reliable and sustainable. This includes minimising pollution, maximising energy efficiency and ensuring resource conservation. By working together, we can shape the future of our global maritime economy.
Thank you.
