The maritime industry in the Southeast Asia (SEA) region is moving ahead to operate more efficiently and with greater sustainability to meet international decarbonisation targets. Additionally, there has been an increase in throughput due to the improved competitiveness of ports in the SEA region and global trade. This has resulted in increased pressure on ports to transform to continue to remain competitive, attract shipping lines to berth and become future-ready. At present, the international shipping sector is responsible for about 3 per cent of global emissions, as the sector generates around 1 billion tonnes of carbon dioxide and greenhouse gases each year. Sustainable biofuels are being used as a marine drop-in fuel to help reduce carbon emissions in shipping. Biofuels are carbon-neutral because carbon dioxide that is absorbed by the source of the biomass is equal to the carbon dioxide that is released when the fuel is burned. As a result, as compared to the traditional bunkers, greenhouse gas emissions are expected to be reduced by about 9 per cent when biofuels are used. In a notable development, the International Maritime Organization (IMO) adopted a revised strategy in July 2023 to reduce greenhouse gas emissions from international shipping. This revised strategy includes a target to reach net zero greenhouse gas emissions from international shipping by or around 2050, a commitment to ensure an uptake of alternative zero and near-zero greenhouse gas fuels by 2030, and indicative checkpoints for 2030 and 2040. This will help tackle harmful emissions in the SEA region as well.
A look at the key initiates and recent developments at ports in the SEA region…
Singapore
The Maritime and Port Authority of Singapore (MPA) is the world’s first maritime administration to launch a comprehensive pro-environment initiative, known as the Maritime Singapore Green Initiative, in 2011. The purpose of this initiative was to reduce the environmental impact of shipping and shippingrelated activities to promote clean and green shipping in Singapore. To reduce emissions by 20-30 per cent by 2030 and achieve net zero by 2050, the MPA and the Port of Rotterdam Authority will ensure the use of zero and near-zero emissions fuels on the 15,000 km route between Singapore and Rotterdam. Moreover, both the port authorities are conducting ship-toship green methanol bunkering for Laura Maersk. Further, studies are being conducted by the corridor’s partners for alternative fuels, which include synthetic and bio-versions of methanol, ammonia and liquefied natural gas (LNG), among others. Besides, the MPA, Port of Long Beach and Port of Los Angeles, with the support of C40 cities, signed a memorandum of understanding in April 2023 to establish a green and digital shipping corridor between Singapore and the San Pedro Bay Ports complex to support the decarbonisation of the maritime industry and to improve efficiency through digitalisation. The C40 cities act as a facilitator and provides support to cities, ports, and their corridor partners by coordinating, convening, facilitating, and providing communications support in furtherance of the corridor’s goals.
The Philippines
The Philippines has drafted its National Strategy and Action Plan after the adoption of the IMO’s revised strategy to reduce greenhouse gas emissions from ships. Besides, it has taken initiatives to develop and implement fuel economy policies and standards as well as policies towards cleaner fuels and vehicles and vessels. For instance, as per the Philippine Energy Plan 2020-40, hydrogen is being considered for use in the maritime transport sector as well as the power generation sector. Moreover, plans are being made to increase the capacity of LNG facilities in the country to accommodate maritime transport. LNG is being considered as a transition maritime fuel. Further, to reduce the carbon footprint, the Philippines Port Authority (PPA) has shifted its focus towards sustainable port operations. The PPA is building the green port infrastructure, which involves the implementation of orders, memos, and circulars on the sustainable development of ports.
Vietnam
Vietnam has also started its move towards developing green ports that adopt sustainable and eco-friendly practices in their operations, infrastructure, and management. The country has started planning to build the country’s first green port, known as the Can Gio International Transshipment Port. The project plan has been submitted to the government for approval. Once operational, the green port will be able to accommodate container ships of up to 24,000 twenty-foot equivalent units (TEUs), transhipment ships between 750 TEUs and 5,200 TEUs and cargo ships up to 8,000 tonnes. On the port site, all the equipment to be used will operate on clean and sustainable fuel and energy and smart technologies will be used to improve efficiency.
Malaysia
Malaysia has the potential to develop into a regional green fuel bunkering hub with government and industry support. The Port of Tanjung Pelepas was recently selected to join the partnerships for infrastructure (P4I) initiative. P4I is a government-to-government decarbonisation scheme between Malaysia and Australia that supports the Port of Tanjung Pelepas’s ambition to become a green bunkering hub for alternative fuels. As per studies, the green fuel methanol has attracted the most investment from shipping lines. Methanol, which is produced either from biomass or captured carbon, and hydrogen from renewable power, can reduce carbon dioxide emissions from container ships by 60 per cent to 95 per cent as compared to that from conventional fuels.
Thailand
The Government of Thailand is also speeding up the development of Laem Chabang port into a green port. This transformation of the port aligns with green port directives, which include reducing energy and fuel consumption while limiting carbon dioxide emissions. With the conversion of about 10 per cent of all vehicles at the port or about 1,000 trucks per day to electric, the annual diesel consumption will decline by up to 50 million litres. This will result in a saving of around THB 800 million in annual fuel costs. Additionally, the port’s solar power demand is expected to increase by an average of 11.1 per cent annually from 2023 onwards. An investment of around THB 600 million has been earmarked for this initiative.
The way ahead Going forward, it remains essential for ports to align to international maritime targets of reducing greenhouse gas emissions and improving sustainability. This requires the adoption of alternative fuels, the building of necessary infrastructure and the introduction of bunkering regulations. Sustainable biofuels have the potential to significantly cut pollution levels, paving the way for a cleaner future for shipping across the SEA region. Thus, 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.
