Singapore, Australia ink pact for green and digital shipping corridor

Singapore and Australia have signed a Memorandum of Understanding (MoU) to establish the Singapore-Australia Green and Digital Shipping Corridor (GDSC).

The strategic partnership will delve into creating zero or near-zero greenhouse gas (GHG) emission fuel supply chains for the maritime industry, encompassing infrastructure development, standardization, and training programs.

In addition, the MoU outlines plans for digital information exchange to streamline port processes and vessel flow between Singapore and Australia. The collaboration involves key stakeholders, including the Maritime and Port Authority of Singapore (MPA) and various levels of the Australian government.

Australia’s potential as a major green marine fuels producer aligns with Singapore’s standing as the world’s largest bunkering and busiest transshipment hub port. The collaboration anticipates fostering zero or near-zero GHG emission technologies, alongside digital solutions, to bolster the resilience, efficiency, and sustainability of global maritime supply chains. This initiative seamlessly aligns with the Singapore-Australia Green Economy Agreement signed in October 2022.

“The MoU affirms the shared commitment of Singapore and Australia to pool our expertise and resources to develop scalable green and digital solutions for the maritime sector, and upskill our workforce to support the energy transition,” Singapore’s Minister for Transport, Chee Hong Tat, said.

“This is an important partnership for a sustainable global maritime future. Australia is committed to supporting the decarbonisation of international shipping, which plays an important role in economies across the globe,” Australian Minister for Infrastructure, Transport, Regional Development and Local Government Catherine King, said.

“This collaboration will place Singapore and Australia amongst the leaders in contributing to the international maritime community’s objectives, while supporting Australia’s exports of clean renewable energy.”

In 2023, the annual vessel arrival tonnage in the Port of Singapore crossed three billion Gross Tonnage (GT) for the first time, increasing by 9.4% over 2022 and setting a high of 3.09 billion GT.

This growth is distributed across diverse segments of the port ecosystem, encompassing container ships, dry bulk carriers, liquid bulk and chemical tankers, ferries, and specialized vessels, overcoming challenges posed by a global trade slowdown.

Furthermore, Singapore’s container throughput experienced a 4.6% increase in 2023, achieving a new pinnacle at 39.01 million twenty-foot equivalent units (TEUs), surpassing the prior record of 37.57 million TEUs set in 2021.