SMW 2024: Giving the harbour craft sector a leg up in maritime’s decarbonisation drive

The article ‘Giving the harbour craft sector a leg up in maritime’s decarbonisation drive’ was first published on Issue 4 of the Singapore Maritime Week 2024 Show Dallies; it has been reproduced in its entirety on Singapore bunkering publication Manifold Times with permission from The Nutgraf and the Maritime and Port Authority of Singapore:

Jaime Niam
[email protected] 

The harbour craft sector is set to go almost fully electric by 2030, but more can be done to ensure it does not get left behind in the shadows of larger ocean-going ships.

One key issue is costs, said panellists at a discussion on transforming the harbour craft sector on Wednesday.

“We have to bring costs down. Financing can be a problem because new, sexy tech comes with a price,” said Mr Michael Phoon, Executive Director of the Singapore Shipping Association, who moderated the panel.

While Ms Huang Sipei, Vice President of Sustainability at Institutional Banking Group, DBS Bank, acknowledged that financing new technology can be a challenge, she also said that the local environment is becoming increasingly hospitable, with DBS Bank being supportive of this green transition.

“Government schemes are helpful in sharing risks with banks and mitigating uncertainties,” she said. For example, homegrown integrated marine and offshore services provider Penguin International took up the Enterprise Financing Scheme-Green loan from DBS Bank and Enterprise Singapore to launch Singapore’s first all-electric commuter ferry, Penguin Refresh, to Pulau Bukom island.

But it is not simply about mitigating the cost of new technology. Because the harbour craft sector is highly fragmented, streamlining and consolidating its business operations – both seaward and landward – is also imperative in lowering costs and enhancing efficiency, said Mr Danny Lien, President of the Singapore Association of Shipsuppliers & Services. As of July 2023, there were about 1,600 harbour crafts plying the waters of the Port of Singapore, though they are owned by many diverse groups of operators.

“We are trying to create a more consolidated effort with Pyxis…Instead of a single company in this industry trying to solve this, we must synergise our resources together,” said Mr Tommy Phun, Founder of Pyxis, a tech start-up that is helping coastal vessels switch from diesel to electricity.

“Going forward, a role that will be extremely important is that of the port orchestrator,” added Mr Nakul Malhotra, Vice President (Emerging Opportunities Portfolio) of Wilhelmsen Group, referring to how the various activities and processes that happen within a port must be coordinated.

The multi-purpose Jurong Port is one good example. “People see (ports) as just infrastructure, but we have capabilities beyond just providing land,” said Mr Desmond Ong, Chief Digital Officer of Jurong Port.

“The data (from the digital platforms and operating systems we built) allows us to streamline the supply side and become more optimal…and industry players can leverage these data points.”

Singapore Maritime Week 2024 was organised by Maritime and Port Authority of Singapore from 15 to 19 April. 

Related: Transport Minister launches Singapore’s first fully-electric ferry “Penguin Refresh”
Related: Homegrown start-up Pyxis unveils Singapore’s first electric port passenger launch

Photo credit: Maritime and Port Authority of Singapore
Article credit: The Nutgraf/ Maritime and Port Authority of Singapore
Published: 25 April 2024