Shipping
STUDY IDENTIFIES OPPORTUNITIES IN SINGAPORE-POLA, POLB GREEN SHIPPING CORRIDOR
April 18, 2024

One year after signing the memorandum of understanding to establish a Green and Digital Shipping Corridor, the Maritime and Port Authority of Singapore (MPA), Port of Los Angeles (POLA) and Port of Long Beach (POLB) have completed a comprehensive baseline study that forecasts a wide range of benefits in terms of sustainability and economic impact.


The study, commissioned by C40 Cities and the ports and conducted by the American Bureau of Shipping, analyzed maritime trade flows between Singapore, Los Angeles and Long Beach and provided a baseline of activities and energy demand requirements for vessels operating on the corridor through to 2050.


"The Port of Long Beach and its partners have been very successful reducing emissions from cargo-handling equipment, trucks and other mobile sources moving cargo in our harbor," said Mario Cordero, CEO of the Port of Long Beach.

 

"One of the most important parts of this partnership is it allows us to better understand and target a source of emissions that is hard for us to control as a local seaport authority — shipborne emissions. This work, vital to our net zero-emission quest, will result in economic and health benefits all along the trans-Pacific trade corridor," he added.

 

Gene Seroka, executive director at the Port of Los Angeles, said this study provides a "sense of scale and scope" to inform the parties of the implementation of the Green and Digital Shipping Corridor.

 

"Achieving the reductions of greenhouse gas emissions required will take coordination and commitment from public and private stakeholders across the maritime and goods movement industries. We're proud to be collaborating with industry partners to make this corridor a reality," Seroka added.

 

The joint statement said the study highlights the potential socioeconomic impact of transitioning to zero- and near-zero emission fuels and leveraging digital solutions.

 

Based on the study's estimates, the corridor at full implementation could create over 700 new job opportunities in zero- and near-zero emission fuel production and improve local air quality.

 

"These estimates support findings by C40 and other organizations that activities undertaken through green shipping corridors can accelerate wider decarbonization across the maritime industry and unlock health benefits for local communities and green economy opportunities for participating countries," it said.

As leading global ports, Singapore, Los Angeles and Long Beach are vital nodes on the trans-Pacific shipping lane and are key stakeholders in the maritime sector's green and digital transition.


The corridor partners underscore their dedication to a data-driven decision-making approach through the study, utilizing its insights to guide their actions in pursuing the partnership's decarbonization objectives and aligning with the related goals of the shipping sector.

 

The study noted that the projected annual energy demand of vessels on the corridor is estimated to be approximately 60,000 terajoules, equivalent to approximately two months of Singapore's national electricity generation. 

 

Shipping demand on the corridor is estimated to be around 850,000 tons of methanol and 160,000 tons of ammonia annually by 2030, displacing the equivalent greenhouse gas emissions from almost 320,000 cars annually.

 

It also found that the transition to zero- and near-zero emission fuels could potentially create approximately 700 jobs in the production and supply chain of such fuels by 2030.

 

"Shipping is a new pillar in the multifaceted partnership with the US. The GDSC with the ports of Los Angeles and Long Beach highlights the importance of working with industry, researchers, government and society through innovation and capacity building," said Teo Eng Dih, chief executive of MPA. 

 

"With traffic along the GDSC accounting for 7% of the world’s container trade, the initiatives by GDSC partners and stakeholders will help generate growth and new opportunities for maritime professionals," he added.