News

Mr Kitack Lim, Secretary-General Emeritus, International Maritime Organization,

Distinguished Guests,

Ladies and Gentlemen,

1.     Good morning. Welcome to the 23rd Singapore International Bunkering Conference and Exhibition, or SIBCON. 

2.     This year’s SIBCON is aptly themed “Accelerating the Maritime Fuel Transition”. Following the adoption of the 2023 International Maritime Organization Greenhouse Gas Strategy last year, we have reached an important juncture in this journey, where collective action and partnerships are more crucial than ever to accelerate maritime decarbonisation.

3.     As a leading bunkering hub, the Port of Singapore has an important role to play in the maritime fuel transition. In the first eight months of 2024, Singapore saw strong growth of approximately 7% in total bunker sales over the same period last year, reaching more than 36 million tonnes. We have also seen continued demand for biofuel blends and Liquefied Natural Gas (LNG). As of August 2024, bunker sales for biofuel blends have crossed 400,000 metric tonnes, and LNG bunker sales have reached close to 300,000 metric tonnes. Overall, this is already more than the total biofuel and LNG bunker volumes in 2023. Singapore will continue to grow our multi-fuel bunkering capabilities to support the maritime fuel transition. 

4.     Looking ahead, there are challenges and opportunities for the maritime sector in digitalisation and decarbonisation. We are witnessing rapid shifts in fuel demand, with growing emphasis on the adoption of green marine fuels. This transition will require significant investments in infrastructure and research and development, as well as changes in regulations and policies to support and incentivise the adoption of green fuels and technologies. 

5.     To prepare Maritime Singapore for this transition, the Maritime and Port Authority of Singapore (MPA) will continue to work closely with industry partners and the unions in three key areas: first, digitalising and streamlining processes to improve efficiency in our port; second, strengthening our capabilities for the bunkering of future fuels and encouraging the adoption of these fuels; and third, upskilling our workforce to facilitate the green transition.  

6.     Digitalisation will be a key enabler of the transition to green fuels. Singapore was the first port globally to adopt mass flow meters (or MFMs) in 2017, and we are now ready to take the next step in the digitalisation of bunkering.

a.     From 1 April 2025, all bunker suppliers in the Port of Singapore will be required to provide digital bunkering services as a default, following successful pilots conducted since November 2023. This will boost efficiency and transparency during the bunkering process in Singapore, and is expected to help the industry save close to 40,000 man-days annually. Singapore will be the first port globally to implement digital bunkering at scale, and we will continue to share our experiences with like-minded partners.   

b.     As part of the digital bunkering initiative, MPA will also introduce a centralised electronic Bunker Delivery Note (e-BDN) record verification facility. The facility will enable the verification of e-BDNs received against the information transmitted to MPA, thereby enhancing the transparency and integrity of transactions in bunkering operations. 

c.     Enterprise Singapore, through the Singapore Standards Council (SSC) and in partnership with MPA, has also developed a new Standard on Digital Bunkering Supply Chain Documentation. This will ensure data consistency and the interoperability of systems, and will facilitate more seamless business transactions across companies.

d.     As we continue to enhance digital bunkering, we will carry out trials to integrate data from MFMs with the digital bunkering process. We welcome shipping and bunkering companies to participate in these trials. 

7.     MPA has also been working with the industry and unions to review its existing rules and streamline procedures to reduce business costs and improve efficiency for businesses. MPA has made a number of changes along the way, including the waiver of security deposits and banker’s guarantees for companies with low credit risk, and allowing night tows for container barges to reduce the turnaround time for barges from regional ports.

8.     Today I am happy to share another example. From 1st April 2025, MPA will reduce the frequency of verification checks for MFMs from twice a year currently, to once a year, while maintaining the credibility and performance of MFMs. This move is expected to help the industry save approximately $300,000 annually. 

9.     MPA has also been working closely with the industry to co-develop artificial intelligence products for the maritime sector that will streamline procedures. I am delighted to share that from 1st January 2025, MPA will roll out two innovative AI applications developed in collaboration with cloud service providers – DocuMind and DocuMatch. These applications will significantly improve the accuracy and efficiency of ship certificate renewals for Singapore-flagged ships. 

10.    DocuMind leverages multi-modal Large Language Models to read information from various document formats, while DocuMatch verifies the relevant data against MPA’s internal databases and recommends application outcomes. These innovations are expected to accelerate certificate processing time from up to three days currently, to a few minutes for most transactions. MPA will continue to deploy AI for maritime use cases to drive greater efficiency in our port. 

Strengthening Capabilities to Bunker and Encourage Adoption of Future Fuels 

11.    Alternative fuels such as biofuels, methane, methanol and ammonia will play a critical role in the decarbonisation of the maritime industry. Singapore is therefore taking steps to advance our readiness for the bunkering of these fuels and to grow our multi-fuel bunkering ecosystem, which will in turn create new job opportunities in related fields, including trading, green technology, and finance.

12.    Over the past two years, we have conducted the world’s first ship-to-containership methanol bunkering operation, as well as simultaneous methanol bunkering and cargo operations, together with partners from the industry and Institutes of Higher Learning. This year, MPA also supported the world's first use of ammonia as a marine fuel in Singapore. We successfully demonstrated shore-to-ship transfer of ammonia, and extended the trial to use ammonia, in combination with diesel, as a marine fuel. MPA will continue to work closely with industry, unions, and research institutes to enhance training of maritime workers.

13.    In July 2024, MPA and the Energy Market Authority (EMA) announced that two consortia, led by Sembcorp-SLNG and Keppel’s Infrastructure Division, were shortlisted in a restricted Request for Proposal (RFP), to advance to the next round of evaluations to provide a low- or zero-carbon ammonia solution on Jurong Island for power generation and bunkering. Three proposals from the consortia by Itochu Corporation, NYK Line and Sumitomo Corporation were previously selected. The consortia have since proposed two ammonia bunkering proposals by Mitsui and Fortescue-Equatorial Marine Fuels, which have also been selected. All five proposals will be considered in the next round of the RFP process. 

14.    To further encourage the early adoption of green fuels and technologies across the maritime industry, MPA has refreshed the initiatives and incentives under the Maritime Singapore Green Initiative – or MSGI - and will commit $50 million to support the implementation of the refreshed MSGI. MPA will share further details on the refreshed MSGI.

15.    As we move towards the bunkering of zero or near-zero emission fuels, safety must remain the top priority. More maritime personnel and seafarers need to be equipped to bunker fuels safely and respond effectively to chemical spills. MPA is therefore working closely with the industry to upskill our workforce.

16.    In April this year, MPA set up the Maritime Energy Training Facility (METF) to develop the requisite knowledge and skills among the global maritime workforce, including seafarers and shore-based workers, on the operations, bunkering and management of vessels running on zero or near-zero emission fuels. Since then, METF has trained over 300 maritime personnel. 

18.    To accelerate the maritime fuel transition, Singapore must work closely together with the global maritime ecosystem through meaningful partnerships and collaborative initiatives to create wider impact. As Vice-Chair of the IMO Marine Environment Protection Committee, MPA will continue to support the ongoing negotiations to finalise a set of mid-term greenhouse gas reduction measures. 

19.    Singapore will also continue to strengthen international partnerships through initiatives like the Green and Digital Shipping Corridors (GDSCs) to enable the digitalisation and decarbonisation of shipping.

a.    Later this morning, MPA and the Shandong Provincial Transport Department will be signing the Singapore-Shandong GDSC at the sidelines of the 25th Singapore-Shandong Business Council co-chaired by Mr Chee Hong Tat, Minister for Transport and Second Minister for Finance, and Mr Zhou Naixiang, Governor of the Shandong Provincial Government. 

b.    Singapore is also deepening collaboration on existing GDSCs. Under the Singapore-Rotterdam GDSC, MPA and the Port of Rotterdam have studied the potential demand for sustainable variants of methane and methanol for container vessels along the Rotterdam-Singapore route. Moving forward, we will work with corridor partners to develop trials for alternative fuels.

c.    Likewise, the GDSC between Singapore, Los Angeles, and Long Beach is gaining momentum as the corridor is in discussions with three new industry partners, namely Hafnia, K Line and MOL. Supported by the ports and C40 Cities, a global network of major cities that have committed to fighting climate change, the liners will be expected to champion pilot projects focusing on digitalisation and decarbonisation, such as Just-in-Time voyage and port call optimisation, wind-assisted ship propulsion, and net-zero fuel pathways. 

20.    The acceleration of the maritime fuel transition cannot be achieved by any country or company alone. I am heartened to see the continued strong commitment from our tripartite partners from the industry and unions, and our partners across international organisations and governments. Forums such as SIBCON are useful platforms to exchange expertise and ideas, and spur collaboration. We look forward to many more ideas and partnerships fostered through the discussions at SIBCON. 

21.    Thank you for supporting and participating in this conference, and I wish you all a most fruitful and productive time here at SIBCON.