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The Maritime and Port Authority of Singapore (MPA) has announced that it will be implementing a 10 percent port dues concession for bulk carriers later this month.

The new concession, which the MPA says has been granted "in view of the current downturn in the shipping industry", will be effective from April 15. It will be applicable if the vessels are carrying out cargo works with a port stay of not more than five days and will be in place for one year, the MPA said.

The concession follows the MPA's announcement in January of an additional 10 percent concession on port dues granted to container vessels carrying out cargo works with a port stay of not more than five days. This was on top of existing port dues concessions such as the Green Port Programme incentives and the 20 percent concession first introduced in 1996.

According to MPA data, container throughput and cargo throughput contracted by 8.7 and 1.1 percent respectively in 2015. Explaining the reason for the decline, the MPA said earlier this year that it was "largely caused by the overall slump in Asia-Europe volumes, compounded by developments such as the rebalancing of volumes across alliances agreements, and an increase in direct sailings due to lower bunker prices."

Taken together with the existing concessions - including those granted to offshore support vessels and container vessels - the MPA estimates that the concessions will yield S$18 million (US$13.3 million) in savings for shipping companies over one year.

"The roll out of these measures demonstrates Singapore's commitment to help the maritime sector through this challenging time, and its importance in contributing to our economy and creating good jobs for Singaporeans.

"MPA will continue to work closely with our industry partners and stakeholders to support the long-term development of Maritime Singapore," the MPA said.

Green initiatives

Launched in July 2011, the Green Port Programme (GPP) offers concessions to ships calling at the Port of Singapore using scrubber technology or burning low sulphur fuels as part of the Maritime Singapore Green Initiative to encourage ocean-going vessels to reduce the emission of pollutants.

Under the GPP, a 15 percent concession in port dues is granted to ocean-going vessels that use type-approved abatement/scrubber technology or clean fuels (with a sulphur content of less than 1% m/m) during the entire port stay (of 5 days or less) within Singapore port limits. Participation in the programme is on a voluntary basis.

The GPP commenced on July 1, 2011, with a validity of 5 years, until June 30, 2016.

The Maritime Singapore Green Initiative comprises three programmes: Green Ship Programme, Green Port Programme and Green Technology Programme.

The Green Ship Programme (GSP) encourages Singapore-flagged ships to reduce carbon dioxide and sulphur oxides emissions. Qualifying Singapore-flagged ships can enjoy a reduction of initial registration fees and a rebate on annual tonnage tax.

The Green Technology Programme (GTP) provides a grant of up to 50 percent of total qualifying costs to co-fund the development and adoption of green technological solutions Grants are capped at S$2 million per project, with an increased cap of S$3 million per project for solutions that can achieve more than a 10 percent reduction in emission levels.