Business

MBA and MASA sign MoU to boost bunkering and trade activities in Malaysia

MoU, effective for three years, is expected to help contain outflow of funds by prioritising local bunkering players; it will also address illegal activities in local bunkering and shipping scene.

Published

1 year ago

May 5, 2023

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Malaysia Bunkering Association (MBA) on Friday (5 May) inked a Memorandum of Understanding (MoU) with Malaysia Shipowners’ Association (MASA) that will promote employment of local vessels and provide more opportunities for Malaysian players in bunkering and trade activities.

The exclusive collaboration, effective for three years, is expected to help contain the outflow of funds by prioritising local bunkering players. It will also address illegal activities in the bunkering and shipping scene.

The MoU was signed at an event graced by Minister of Transport Anthony Loke Siew Fook, attended by Manifold Times.

Under the MoU, the signatories will share information about their registered members upon request as well as share latest news or regulations pertaining to the Malaysian marine and the International Maritime Organisation. In addition, both MBA and MASA will collaborate to work with relevant authorities to avoid any redundancies in their pursuit of improvement for the shipping and maritime industries.

Malaysia Bunkering Association Chairman Tan Sri Mohd Bakri Mohd Zinin, said: “We are delighted to have YB Anthony Loke Siew Fook, the Minister of Transport, for witnessing this significant event today. We hope to work closely with the government as we strive to collectively achieve Malaysia’s aspiration to become a major maritime nation.”

“With the continued growth in domestic trade activities, the Malaysian bunkering landscape has a bright future ahead. Hence, the collaboration with MASA is necessary in order to ensure that local vessel owners are the ultimate beneficiaries of the robust future demand. We also hope to jointly contribute to tackling illegal activities affecting the maritime industry.”

Malaysia Shipowners’ Association Chairman Mr. Mohamed Safwan Othman, said: “I am optimistic that this collaboration between MASA and MBA would allow us to jointly develop feasible business opportunities for local players. This is vital in furthering strengthening the local maritime scene, particularly bunkering and shipping services.”

“As an industry body that has been around for more than four decades, MASA can contribute significantly by advising on industry best practices. Our strong and long-built relationship with relevant authorities will also benefit this MASA-MBA collaboration. We hope that through this tie-up, challenges and risks faced by Malaysian shipowners’ can be mitigated for better growth ahead.”

In his opening speech at the event, Mr. Mohamed Safwan Othman said bunkering is one of the important activities in ensuring the shipping industry continues to function optimally.

“This matter was noted in the Review of Maritime Transport 2022 from the United Nations Conference of Trade and Development (UNCTAD) which recorded the value of Very Low Sulfur Fuel Oil (VLSFO) above USD 1,000 per tonne in the middle of 2022, with an increase of more than 160% from June 2022. This increase is due to increased demand from the industry following the COVID-19 pandemic,” he said.

Seeing the great potential of the local bunkering industry, he urged the government to take proactive steps in ensuring that Malaysia becomes the destination of choice for bunkering to further boost the effectiveness and competitiveness of Malaysian ports.

“With Malaysia's strategic position on the world's busiest shipping route, the Malacca Strait, Malaysia has a golden opportunity to grab market share in the region,” he added.

“Recognising this opportunity, industry players, especially ship owners, need a conducive policy, not only for bunkering, but for all Malaysian flag ship owners who are lagging behind. Until 2022, Malaysia has fallen two steps behind with its fleet size with a record of over 9 million deadweight (dwt) only, compared to Singapore with a record of 130 million dwt, Indonesia with 23 million dwt and Viet Nam which has surpassed Malaysia in 2022 with a record of 12 million.”

For the purpose of implementing the collaboration as provided under the MOU signed today, both MBA and MASA have agreed that the detailed terms and conditions of the collaboration will be determined in the Definitive Agreement.

Established in 2021, MBA is founded by a group of like-minded Malaysian physical bunkering suppliers to improve the standards of bunkering within the Malaysian ports. MBA strives to encourage co-operation within the industry and also organises activities to attract customers to take bunkers in Malaysian ports.

Meanwhile, MASA is the only national industry organisation representing shipowners in Malaysia. Founded in 1976, MASA has a central role to play in the development of the shipping industry in the country, thanks to its strong rapport with relevant government agencies such as the Marine Department and the Maritime Division in the Ministry of Transport.

Photo credit: Manifold Times
Published: 5 May, 2023

Bunker Fuel

SIBCON 2024: Singapore bunker suppliers must provide e-BDN from 1 April 2025

Senior Minister of State Amy Khor also announced MPA will reduce the frequency of verification checks for mass flow meters from twice a year currently, to once a year, from 1 April 2025.

Published

4 hours ago

October 9, 2024

Admin

SIBCON 2024: Singapore bunker suppliers must provide e-BDN from 1 April 2025

From 1 April 2025, all bunker suppliers in the Port of Singapore will be required to provide digital bunkering services as a default, said Senior Minister of State for Transport and Sustainability and the Environment Amy Khor on Wednesday (9 October).

Khor said Singapore will be the first port globally to implement digital bunkering at scale. MPA launched the digital bunkering initiative on 1 November 2023, becoming the first port in the world to implement electronic bunker delivery notes (e-BDN).

“This initiative is expected to save the industry close to 40,000 man-days annually. In addition, MPA will introduce a centralised electronic Bunker Delivery Note record verification facility to enhance the transparency and integrity of transactions in bunkering operations,” she said in her speech at the 23rd Singapore International Bunkering Conference and Exhibition (SIBCON).

She emphasised that the Maritime and Port Authority of Singapore (MPA) will work closely with industry partners and the unions to digitalise and streamline processes to improve efficiency in our port; strengthen our capabilities for the bunkering of future fuels and encourage adoption of these fuels; and upskill our workforce to facilitate the green transition.

Khor also made the following announcements:

From 1 April 2025, MPA will reduce the frequency of verification checks for mass flow meters from twice a year currently, to once a year. Singapore was the first port globally to adopt mass flow meters in 2017, and this new move is expected to help the industry save approximately $300,000 annually.
From 1 January 2025, MPA will roll out two innovative AI applications, DocuMind and DocuMatch, developed in collaboration with cloud service providers to drive greater efficiency in our port. These are expected to accelerate certificate processing time from up to three days currently, to a few minutes for most transactions.
Two ammonia bunkering proposals by Mitsui and Fortescue-Equatorial Marine Fuels have been selected by the consortia for the next round of Request for Proposal to provide a low- or zero-carbon ammonia solution on Jurong Island for power generation and bunkering.
MPA will commit $50 million to support the implementation of the refreshed Maritime Singapore Green Initiative, to further encourage the early adoption of green fuels and technologies across the maritime industry.
Singapore will continue to strengthen international partnerships through initiatives like the Green and Digital Shipping Corridors (GDSCs) to enable the digitalisation and decarbonisation of shipping. On 9 October, 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.

Photo credit: Singapore Ministry of Transport
Published: 9 October, 2024

Mass Flowmeter

Singapore-based Metcore and LR team up for MFM certification service

Both launched an independent accredited certification service to certify the accuracy and reliability of bunker fuel quantity received via Mass Flow Meters.

Published

4 hours ago

October 9, 2024

Admin

Singapore-based MFM system measurement solutions provider, Metcore International Pte Ltd (Metcore), and classification society Lloyd’s Register (LR) on Tuesday (8 October) launched an independent accredited certification service to certify the accuracy and reliability of the quantity of fuel received via Mass Flow Meters (MFM).

The service provides an additional conformity assessment of the installed meters, positioned, used, maintained and continually certified to the ISO 22192:2021 standard.

The demand for greater accuracy in delivered bunker quantities, coupled with the need for greater transparency, security and process automation, is fuelling the widespread adoption of MFMs across the bunker industry. In 2017, the Maritime and Port Authority (MPA) of Singapore mandated the use of MFM for bunkering operations. SOHAR Port and Freezone has announced a mandate from the start of 2025 and the Port of Rotterdam and Antwerp-Bruges are also set to introduce mandatory use of MFMs in 2026.

To help address the concerns that shipowners and bunker buyers have with the use of MFM on bunker tankers, the LR-Metcore MFM certification service aims to minimise the likely causes of measurement error and ensure that the MFM system serviceability extends beyond its initial qualification at installation. Its post-approval conformity assessment program includes metering-data analysis to monitor crew competency to help maintain secure integrity for continual measurement performance.

In the event of a dispute, the service also offers an independent bunker delivery MFM digital data review as part of the investigation process, helping ensure all parties can carry out a detailed review of the data.

Lewis Cox, LR’s FOBAS Business Development Area Manager, said: “With the potential to eliminate bunker quantity disputes, minimise turnaround time and boost confidence in delivery data – particularly as ship operators seek to account for emissions from the fuel they consume – using Mass Flow Meters seems to be a win for all stakeholders.”

“But the reality of adopting them is not necessarily as straightforward. With the new LR-Metcore MFM certification service, bunkering stakeholders will have peace of mind that their installed meters are certified in conformity with internationally recognised standards for enhanced transparency and trust.”

Photo credit: Metcore International
Published: 9 October, 2024

LNG Bunkering

Seaspan Energy takes delivery of first LNG bunkering vessel

“Seaspan Garibaldi” will take first cargo and finalise commissioning in Vancouver before its first ship-to-ship bunkering in Long Beach, where Seaspan will bunker a series of vessels.

Published

5 hours ago

October 9, 2024

Admin

Seaspan Energy takes delivery of first LNG bunkering vessel “Seaspan Garibaldi”

Seaspan Energy on Monday (7 October) said it took delivery of its first LNG bunkering vessel, the Seaspan Garibaldi and is currently sailing to Vancouver.

Manifold Times previously reported that the vessel is the first of three 7,600m3 LNG bunkering vessels and it is named after Mount Garibaldi, or “Nch'ḵay̓”.

The Garibaldi will take first cargo and finalise commissioning in Vancouver before its first ship-to-ship bunkering in Long Beach, where Seaspan will provide Simultaneous Operations to bunker a series of vessels.

Following its first bunkering, the Seaspan Garibaldi will continue to provide low-carbon solutions to vessels on the West Coast of North America and will soon be joined by Seaspan Energy’s second LNG bunkering vessel, the Seaspan Lions (Ch’ich’iyúy Elxwíkn).

The Seaspan Garibaldi is 112.8 metres in length, 18.6 metres in width, 5 metres in draft, with a design speed of 13 knots.

CIMC Sinopacific Offshore & Engineering (CIMC SOE), a small-scale gas carrier shipyard in the world, was appointed to build all three LNG bunkering vessels.

Photo credit: Seaspan
Published: 9 October, 2024