REMARKS BY CAPT M SEGAR, ASSISTANT CHIEF EXECUTIVE (OPERATIONS), MARITIME AND PORT AUTHORITY OF SINGAPORE, AT IBIA ASIA GALA DINNER 2018
Ladies and gentlemen,
Honoured guests and friends,
A very good evening to you all.
It gives me great pleasure to be with you at the International Bunker Industry Association (IBIA) Asia Gala dinner. I am very pleased to see all of you here tonight, as we gather with our industry partners and friends from the region for a time of networking and exchanging of ideas and opinions.
Partnership with IBIA
2 I would like to begin by expressing my appreciation for IBIA and the strong support they have shown us over the years. The numerous initiatives that IBIA runs, including their training courses, symposiums and annual conventions, have been invaluable for fostering strong ties within the bunkering community. We would also like to thank our stakeholders for the successful implementation of MFM as well as achieving record bunker sales in 2017. We deeply appreciate your continual efforts and support.
Extension of MFM for distillates
3 Last year, MPA had invested close to S$17 million to help the industry implement the mandatory use of MPA-approved mass flow meters (MFM) for all Marine Fuel Oil (MFO). As of 1 April 2018, we have 135 bunker tankers carrying MFO that are fitted with MPA-approved MFM. Current indicators have shown that the introduction of MFM has not impacted Singapore’s bunker sales, evident of the record bunker sales of 50.6 million tonnes that we had achieved in 2017.
4 The use of MFM systems enhances transparency in the bunkering process, improves operational efficiency and increases the productivity of the entire industry. Since its rollout, the industry has given positive feedback. On the regulatory front, the MFM has enabled MPA to better enforce the bunkering regulations and deter abuses to bunkering procedures. MPA will continue to adopt a zero tolerance approach towards bunkering malpractices and will take firm action against any licensee who has flout the regulations.
5 We also conducted a test bed on “Mass Flow Metering for Distillates” to determine the feasibility of MFM for distillate fuels such as Marine Gas Oil, Marine Diesel Oil, Low Sulphur Marine Gas Oil and Ultra Low Sulphur Oil. This was timely as we keep in view the implementation of IMO’s 0.5% global sulphur cap in 2020.
6 I am proud to announce that the tests have been successful. From 1 July 2019, all distillates bunker deliveries to international ships will be required to use the MFM. To assist the industry to offset a portion of the costs of adopting the MFM system, MPA has set aside another S$9 million to co-fund this. All existing bunker tankers that are registered with MPA as being used for Distillates delivery as at today would be eligible for a co-funding incentive of $60,000 per bunker tanker. MPA will commence the acceptance tests from July 2018 and we will work closely with the industry to schedule these tests.
Other developments in bunkering space
7 In line with SMW’s theme “Positioning for Future Growth – Driving Connectivity, Innovation and Talent”, MPA is leveraging on the electronic-Bunker Delivery Note (e-BDN) to further improve the efficiency and productivity of bunkering operations. The e-BDN would also be an important building-block for exploration of new technology to promote further transparency, such as Blockchain. To date, we have completed preliminary assessment of data transmission from one bunker tanker installed with MFM to MPA’s server. We will be embarking on a pilot run to test another 5 bunker tankers and we encourage interested industry players to come forward if you are keen to participate in the pilot run.
8 We know that the 2020 global sulphur cap is a big concern of the industry. As a leading global hub port and international maritime centre, Singapore is committed to provide a broad range of solutions to meet the energy needs of the global shipping industry. Shipowners have recognised Liquefied Natural Gas (LNG) as one viable solution. To ensure the availability of LNG supply, last December, MPA injected a further investment of S$12 million towards LNG bunkering in Singapore. Half of the S$12 million will be used to co-fund the construction of new LNG bunker vessels (LBVs) to facilitate the development of ship-to-ship LNG bunkering while the other half will be used to top up our existing co-funding programme to support the building of LNG-fuelled vessels.
9 I’m pleased to share that South East Asia’s first LNG-dual-fuelled vessel, a tugboat which received a S$2 million grant from MPA, was delivered yesterday by Keppel SMIT Towage. We look forward to having more such vessels from other companies that we have co-funded namely Maju Maritime Pte Ltd, Sinanju Tankers Pte Ltd, and PSA Marine (Pte) Ltd, and GEA India Pte Ltd which is a subsidiary of Global Energy. I am pleased to note that Sinanju Tankers recently concluded a contract with Keppel Singmarine for its LNG-dual-fuelled bunker tanker which would also be first of its kind in South East Asia.
10 As many here would already know, MPA’s bunkering event, the Singapore International Bunkering Conference and Exhibition, or SIBCON for short, will be held in the first week of October 2018. This year marks the twentieth edition of SIBCON – a major milestone for MPA as SIBCON continues to be the go-to bunkering conference where participants connect, engage and succeed. I understand that this year’s SIBCON will see topics of great interest to the bunkering industry discussed with focus on pre and post 2020, as well as the future bunkering scene that will leverage technologies to create opportunities. We look forward to seeing you at SIBCON in October.
11 For Singapore to remain competitive and continue thriving as a global maritime hub amid changing landscape, technology and innovation are indisputably key. To this end, we are indeed seeing the changes and adoption of new technologies in the bunkering sector. I remain confident that, with the continual support of industry partners and friends like IBIA and yourselves, Singapore will succeed in our endeavour to stay competitive as a leader and forerunner in the global bunkering environment.
12 I wish you all a very pleasant evening. Until next year… Bon appétit!