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

7 months 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

Vessel Arrest

Malaysia: MMEA detains tanker for illegal anchoring in East Johor waters

Panama-registered vessel was operated by 17 crew members, aged between 21 to 58 years, from Pakistan, India and Bangladesh.

Published

6 hours ago

November 29, 2023

Admin

Malaysia: MMEA detains tanker for illegal anchoring in East Johor waters

The Malaysian Maritime Enforcement Agency (MMEA) on Tuesday (28 November) said a Panama-registered tanker has been detained for illegally anchoring in East Johor waters on 27 November.

MMEA Tanjung Sedili Zone acting director Maritime Cmdr Mohd Najib Sam said the tanker was detained by a patrol boat at 11am at 15.8 nautical miles northeast of Tanjung Penawar.

The captain of the vessel failed to produce any documents that permission had been obtained to anchor in Malaysian waters.

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The vessel was operated by 17 crew members, aged between 21 to 58 years, from Pakistan, India and Bangladesh.

The case will be investigated under Section 491B(1)(L) of the Merchant Shipping Ordinance 1952 for anchoring without permission. If found guilty, individuals may be fined not exceeding MYR 100,000 or face an imprisonment term of not more than two years, or both.

Manifold Times previously reported law firm Oon & Bazul LLP sharing on steps shipowners should keep in mind before anchoring and conducting STS operations in Malaysian waters to avoid detention.

Photo credit: Malaysian Maritime Enforcement Agency
Published: 29 November, 2023

Alternative Fuels

DNV paper outlines bunkering of alternative marine fuels for boxships

Third edition of its paper series focuses on LNG, methanol and ammonia as alternative bunker fuel options for containerships; explores bunkering aspects for LNG and methanol.

Published

6 hours ago

November 29, 2023

Admin

DNV paper outlines bunkering of alternative marine fuels for boxships

Classification society DNV recently released the third edition of its paper series Alternative fuels for containerships, focused on LNG, methanol and ammonia as alternative bunker fuel options for containerships.

In its updated paper series, DNV examined the different alternative marine fuel options and provided an overview of the most important technical and commercial considerations for the containership sector.

It explored the bunkering technology for LNG, bunkering infrastructure for methanol, and availability and infrastructure of ammonia.

Building on the foundation laid in the second edition, which focused on the most important aspects of methanol as a fuel, this latest third edition delves deeper – exploring the technical intricacies and commercial considerations associated with adopting methanol as an alternative fuel for containerships.

Furthermore, it provides an overview of crucial aspects related to ammonia and discusses its potential as an alternative fuel for containerships.

Amongst others, the new edition of the paper looks at the following aspects:

Technical design considerations for methanol
Commercial implications of adopting methanol as an alternative fuel
Ammonia's potential as an alternative fuel
Availability, infrastructure and ship fuel technology for ammonia
Major updates based on the latest IMO GHG strategy decisions at the MEPC 80 meeting

Note: The third edition of DNV’s full paper titled Alternative Fuels for Containerships can be found here.

Photo credit: DNV
Published: 29 November, 2023

Alternative Fuels

EDF, LR and Arup launch tool scoring ports’ potential to produce and bunker electrofuels

Tool is also applied to three different port scenarios, including ports exploring fuel production and bunkering, ports exploring fuel exports, and ports exploring fuel imports and bunkering.

Published

6 hours ago

November 29, 2023

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EDF, LR and Arup launch tool scoring ports’ potential to produce and bunker electrofuels

Lloyd’s Register (LR) Maritime Decarbonisation Hub and Environmental Defense Fund (EDF), in collaboration with Arup, on Tuesday (28 November) introduced the Sustainable First Movers Initiative Identification Tool, a system to help shipping stakeholders align investment decisions that support the maritime energy transition away from fossil fuels.

The tool, which is presented in a preliminary findings report – The Potential of Ports in Developing Sustainable First Movers Initiatives – scores a port’s potential to produce and bunker electrofuels while delivering local environmental and community benefits in alignment with the global temperature target of 1.5 degrees Celsius set by the Paris Agreement.

“Ports can play an important role in kickstarting shipping’s decarbonisation process even before global policies are established,” said Marie Cabbia Hubatova, Director, Global Shipping at Environmental Defense Fund.

“By considering the impact sustainable first mover initiatives can have on port-side communities, climate, environment and economies, resources can be better directed to locations where these initiatives will make the biggest difference.”

With close to two billion people living near coastal zones globally, the role of, and impacts on local port communities must be intentionally considered as the sector decarbonises globally. Ports can play a crucial role in ensuring shipping decarbonisation efforts are done in a way that has positive impacts on port communities.

The preliminary phase of the Sustainable First Movers Initiative Identification Tool analyses 108 ports in the Indo-Pacific region according to five criteria including land suitability, air quality, renewable energy surplus, economic resilience and ship traffic.

It is also applied to three different port scenarios, including ports exploring fuel production and bunkering, ports exploring fuel exports, and ports exploring fuel imports and bunkering. The combined criteria and scenario evaluation determines which ports have the greatest potential (high potential) for sustainable first mover initiatives to lead to significant emissions reductions and positive impacts in nearby communities, such as improved air quality and economic resilience.

“The transition to clean energy supply for shipping can be achieved only if stakeholders act together. Identifying potential port locations is the first step in this process,” said Dr Carlo Raucci, Consultant at Lloyd’s Register Maritime Decarbonisation Hub. “This approach sets the base for a regional sustainable transition that considers the impacts on port-side communities and the need to avoid regions in the Global South lagging behind.”

Regions in the Global South are fundamental in driving the decarbonisation of shipping. To make this transition effective, the rate at which different countries adopt and scale up electrofuels must be proportional to the difference in capital resources globally to avoid additional costs being passed on to local communities. Sustainable first mover initiatives can play an important role in making this happen by ensuring the sector’s decarbonisation is inclusive of all regions and by engaging all shipping stakeholders, including port-side communities.

“There’s a huge opportunity for early adopter shipping decarbonisation initiatives to unlock benefits for people and planet – shaping the way for a more equitable transition in the 2030s,” said Mark Button, Associate, Arup. “Our collective approach shows that taking a holistic view of shipping traffic, fuel production potential and port communities could help prioritise action at ports with the greatest near-term potential.”

The tool can be customised according to stakeholders’ needs and goals and is dependent on scenario desirability. The next phase of this work will include the selection and detailed assessment of 10 ports to help better understand local needs and maximise the value offered by sustainable first mover initiatives.

LR and EDF carried out a joint study on ammonia as shipping fuel, and LR and Arup have collaborated on The Resilience Shift study focused on fuel demand for early adopters in green corridors, ports, and energy systems, amongst many other projects.

Photo credit: Lloyd’s Register
Published: 29 November, 2023