Singapore’s port operator PSA Singapore (PSA) and compatriot shipping company Pacific International Lines (PIL) have signed a Memorandum of Understanding (MOU) to jointly develop sustainable solutions to cut carbon emissions and optimize maritime efficiency.
The duo plans to work on developing a set of low-carbon emission routes for containers shipped by PIL via PSA. Beyond the MOU, the companies are also cooperating in GHG emissions reduction levers such as the use of reclaimed refrigerant and the adoption of PSA’s OptEVoyage, a digital solution for vessels to arrive at port ‘just in time’ to achieve bunker savings and carbon emissions reduction.
In April 2022, PIL conducted a biofuel trial using a blend of fatty acid methyl esters (FAME) and very low sulfur fuel oil (VLSFO). Encouraged by the results, PIL intends to trial another blend of biofuel on its Singapore Qinzhou Shuttle (SQS) service as part of this MOU. This trial will involve a blend of 24% FAME with VLSFO.
“Given the ever-increasing global challenges stemming from climate change, it is imperative that we take proactive steps to reduce carbon emissions throughout the shipping industry. This will require the collective efforts of all players in the maritime supply chain sector, ” Nelson Quek , Regional CEO of Southeast Asia, PSA International, said.
“PSA is pleased to partner PIL as we take the bold and essential step towards decarbonizing the global supply chains that power our economy. We remain committed to working hand-in-hand with like-minded stakeholders as we spur concerted action towards our transition to a cleaner and sustainable future beyond the areas served by our ports.”
Demand for biofuel is expected to grow significantly in the coming years, as the shipping industry looks at ways to decarbonize and curb emissions.
Bio and e-methanol are also significant pathways for the industry to achieve decarbonization and there have been a number of specialist dual-fuel methanol-powered vessels on order for delivery starting next year.
“PIL is delighted to partner PSA in co-developing sustainable shipping solutions for our common target of attaining net zero emissions. As PIL actively explores and invests in solutions to reduce emissions across our organization, we believe in the importance of collaborating with like-minded partners like PSA. Together, we can deliver a greener future for the shipping industry,” Abhishek Chawla , General Manager Operations & Procurement, PIL, said.
The two companies have committed to a common goal to achieve net zero emissions by 2050.