Over the years, ports and maritime operators have been pushed to create green shipping corridors and address the sector’s increasing emissions. Transportation through inland waterways is also becoming an economic potential as it is an efficient, cost-effective and environment-friendly option to move people and bulk commodities over long distances. Besides, transporting people and goods over navigable rivers and canals reduces road and rail congestion, road crashes, pollution, emissions and energy consumption.
Green shipping
Green shipping involves the implementation of strategies, technologies, and practices deployed in the shipping industry to lessen its negative impact on the environment by reducing pollutants and greenhouse gas emissions. It comprises a range of strategies and measures aimed at improving the environmental performance of ships, shipping operations and the broader maritime supply chain. These initiatives are designed to improve energy efficiency, reduce fuel consumption, limit air and water pollution, and conserve marine ecosystems. To this end, a number of measures are being undertaken by Southeast Asian (SEA) countries.
Singapore
The governments of Singapore and Australia recently signed a memorandum of understanding (MoU) to establish the Singapore-Australia green and digital shipping corridor. As per the MoU, both countries will work with the interested parties to develop near-zero greenhouse gas emission fuel supply chains for their maritime industry. Further, it will also
include building the required infrastructure, formalising standards, and developing and implementing training requirements. The countries will also explore facilitating digital information exchange to enable efficient port clearance, port calls and flow of vessels between countries. The MPA, Singapore, has also signed an MoU with the China-based Tianjin Municipal Transportation Commission to develop the Singapore-Tianjin green and digital shipping corridor. The corridor will support decarbonisation, digitalisation and growth of the maritime industry between Singapore and the Bohai region.
Moreover, the MPA has signed a five-year agreement with Shell Eastern Trading Pte to expand their decarbonisation efforts in the Port of Singapore. As part of this agreement, both the MPA and Shell will work together to advance the adoption of electric harbour craft and the development of low and zero-carbon fuels in Singapore. The MPA is looking to replace its entire 1,600 diesel-powered harbour craft with vessels that are fully electric, operate on 100 per cent biofuels or are compatible with net zero carbon fuels by 2030. There has been significant progress in the supply of alternative fuels and the electrification of harbour craft in Singapore. For instance, the bunker sales of biofuel blends increased to 520,000 tonnes in 2023, a threefold increase from 140,000 tonnes in 2022. Besides, fully electric 200-passenger ferries and supply vessels were deployed within the port in 2023.
Indonesia
The Ministry of Transportation, Indonesia, has also been actively involved in the implementation of green shipping to protect the maritime environment by issuing several mitigation regulations. Some of these measures include an obligation to use low-sulphur fuel, use scrubbers for ships to clean exhaust gas, ships’ rejuvenation, use of environmentally friendly navigation aids, and the obligation to report ship fuel consumption for all Indonesian-flagged ships.
Philippines
The Philippines has also initiated measures to develop and implement fuel economy policies and standards as well as policies towards cleaner fuels and vehicles and vessels. For instance, the Philippines Department of Energy (DOE) is implementing the Energy Efficiency and Conservation Act and the Electric Vehicle Industry Development Act. As per the country’s energy plan 2020-40, hydrogen is being considered for use in power generation and the maritime transport sector. Similarly, the DOE is also planning to increase liquefied natural gas (LNG) facilities in the country to accommodate maritime transport, as LNG is considered a transition maritime fuel. The Government of the Philippines has also approved a 10-year Maritime Industry Development Plan 2028 (MIDP) to set the strategic direction for the integrated development of the maritime sector. As per the executive order, a system for the implementation, monitoring and review of the MIDP and its component programmes will be adopted by the Maritime Industry Authority board.
Malaysia
Malaysia has the potential to become a regional green fuel bunkering hub in the SEA region. The port of Tanjung Pelepas, being at an ideal location, can be developed as a green fuel bunkering hub, which could enhance its attractiveness as a vessel refuelling stop, leading to increased trade, jobs and economic growth.
Inland waterways
In the past few years, there has been a resurgence in commercial inland waterways, as the major rivers of the SEA, China and India are being used as an alternative to road transport to achieve greater fuel conservation, and to reduce emissions of greenhouse gases and road and vehicle maintenance costs.
Cambodia
Cambodia’s navigable inland waterways span about 1,750 km. The Council for the Development of Cambodia recently announced plans to commence construction works on the 180 km Funan Techo Canal by the end of 2024. With an investment requirement of $1.7 billion, the project will be funded by the Government of China. It will be the first waterway canal in the country and will connect the Phnom Penh Autonomous Port to the province of Kep. In October 2023, the developer, the China Road and Bridge Corporation, started work on a feasibility study; the work is still underway. The canal will include three waterway dams, 11 bridges and a 208 km sidewalk. With a width of 100 metres and a consistent depth of 5.4 metres, the waterway will be capable of accommodating cargo ships of up to 3,000 deadweight tonnage.
Malaysia
The Sarawak Inland Water Transport System has become an essential mode for citizens due to its geographical location. In February 2024, an agreement was signed to set up a hydrogen production hub, known as the Sarawak H2 hub, at the Borneo Energy Transition Conference (BETC24) in Kuching, Malaysia. The hub will serve as the sole supplier of green hydrogen for downstream facilities in the Bintulu division area.
The way ahead
The shipping sector contributes 2 to 3 per cent of global carbon or greenhouse gas emissions. To resolve this issue, all industry players need to play an active role in carrying out decarbonisation in the maritime sector. Furthermore, ports need to plan and implement adaptation measures to increase the resilience of operations and to reduce their vulnerability to the effects of climate change and greenhouse gas emissions. Additionally, industries around ports need to embrace green initiatives and contribute to the decarbonisation of the entire port ecosystem.