08 April 2014

Mr Andrew Tan, Chief Executive, Maritime and Port Authority of Singapore,

Prof Raj Thampuran, Managing Director of A*STAR,

Distinguished guests,

Ladies and gentlemen,

Good morning. I am delighted to join you here today.

Singapore's Bunkering Sector - Powering World Shipping

Bunkering is one of the most critical maritime services. With fuel accounting for about two-thirds of a vessel's operating costs, ship owners look for ports that not only provide quality bunkers, but which have efficient bunkering operations and high service standards.

With more than 42 million tonnes of bunker sales last year, Singapore plays a key role in powering world shipping and is in fact the world's top bunkering port. Our bunkering services also support Singapore's growth as a leading hub port and international maritime centre. This is why we work closely with the industry to continuously improve our bunkering services and ensure that Singapore remains the global bunkering port of choice.

Continuous Improvements to Ensure Bunker Quality and Quantity

The Maritime and Port Authority of Singapore (MPA) and its industry partners have continuously strived to deliver efficient bunkering services with the highest assurances of quality and quantity. To this end, MPA regulates our bunker suppliers, bunker craft operators and bunker surveyors to ensure that bunker deliveries are conducted with a high level of competency and professionalism. All bunkering operations by licensed bunker suppliers are also governed by the Singapore Standard Code of Practice for Bunkering, or SS 600 as it is commonly known.

The SS 600 was implemented in 2009 to ensure that the correct quality and quantity of bunkers are delivered, in a safe and efficient manner. It sets out the procedures, documentation and equipment requirements for a proper bunker delivery, and provides the technical basis for dispute resolution. In addition, as part of the licensing condition, bunker suppliers have to conform to the SS 524, which is the Singapore Standard Specification for Quality Management for Bunker Supply Chain. MPA has also published an information sheet on all licensed bunker suppliers in Singapore, to help ship-owners make a more informed selection of bunker supplier.

We are keenly aware of industry concerns over possible discrepancies and disputes over the quantity of bunker deliveries.To address such concerns, MPA has been collaborating with SPRING Singapore's Weights and Measures Office and A*STAR's National Metrology Centre to study the adoption of a mass flow metering system for bunkering in our Port.

Developing Mass Flow Metering for Bunker Delivery
Since 2009, MPA has worked with government and industry partners to develop a robust procedure and approval process for the adoption of mass flow metering for bunker deliveries. MPA has also committed $2 million from its Maritime Innovation and Technology (MINT) Fund to support the test-bedding of such mass flow meters.

I am heartened by the industry's strong support for mass flow metering. 17 bunker tankers participated in the test-bedding programme, and the first commercial bunker delivery using a mass flow meter took place in June 2012. To date, MPA has overseen the successful completion of more than 700 bunker deliveries under the test-bedding programme. 11 bunker tankers have been fitted with mass flow metering systems and are in the process of being approved for use in our Port. MPA and the Weights and Measures Office have also used feedback from the test-bedding programme to publish an Industry Guide on the Mass Flow Metering System.

The test-bedding programme has demonstrated how mass flow metering can enhance transparency, operational efficiency and productivity of our bunkering processes. By having automatic measurements, tamper-evident seals and calibrated meters, the mass flow meter can reduce the likelihood of quantity disputes and enhance the transparency of the bunker delivery process. The trials have also shown that mass flow meters can shorten each bunker delivery by as much as 3 hours, as compared to the conventional sounding method. These time-savings represent significant productivity gains for our bunkering industry.

Mandatory Adoption of Mass Flow Metering for Bunkering in the Port of Singapore

Today, I am pleased to announce that Singapore will implement mandatory adoption of mass flow meters for bunkering in the Port of Singapore from 1 January 2017. As the first port in the world to mandate the use of mass flow meters for bunkering, we will set a new benchmark for bunkering practices worldwide.

Under this new framework, all existing bunker tankers operating in Singapore must be fitted with an approved mass flow meter for Marine Fuel Oil delivery by 31 December 2016. In addition, all new bunker tankers applying for the Harbour Craft (Bunker Tanker) licence after 31 December 2014 will need to be fitted with an approved mass flow meter. MPA will release more details on the framework shortly.

We are also enhancing our R&D infrastructure to support the use of mass flow meters for bunkering. The National Metrology Centre (NMC) has been providing scientific metrology services to verify the repeatability of the mass flow meter bunkering trials. With the opening of a Liquid Flow Lab that can conduct R&D to improve the accuracy of mass flow measurements, the insights gained will put NMC in an even better position to assist Singapore's bunkering industry to meet the highest international standards through the use of mass flow meters.NMC will also provide consultancy and metrological expertise to help Mogas Flow Lab build a heavy hydrocarbon calibration rig and set up a joint R&D laboratory for the study of hydrocarbon flows.
These efforts will further enhance the accuracy of mass flow measurement for bunker fuels.

Conclusion

Ladies and gentlemen, we are taking a bold step forward with the mandatory adoption of mass flow meters for bunkering. As we move towards a new operating landscape, today's symposium provides an opportunity for the bunkering community to exchange views on how we can further advance mass flow metering through technological advancements and sensible enforcement.

With the continued strong partnership between the Government and our stakeholders, I am confident that we can take our bunkering industry to greater heights in the coming years.

On this note, I wish everyone a fruitful symposium.
Thank you.