Singapore Market Report 2022 by Splash

Setting the pace How to stay ahead of the pack

Market Report

Singapore2022

INNOVATION

We attract, engage and grow a talent pool to support the growth of Maritime Singapore and meet its evolving needs.

SMF

The Singapore Maritime Foundation serves the industry by connecting players across the ecosystem, spurring innovation and developing a skilled talent pool . For more information, please visit www.smf.com.sg

We partner the industry to showcase maritime innovations in Singapore.

We connect Singapore to the world and the world to Singapore by participating in and organising international tradeshows and forums.

CONNECTIVITY

CareerMaritimePortalWebsite

TALENT

— Rajesh Unni, founder of MarineSynergyGroup

work?—Carl

— Tan Beng Tee, executive director, Singapore Maritime Foundation Singapore’s status as an international maritime centre, and enable many related industries to flourish Prime minister Lee Hsien Loong

1www.splash247.com CONTENTS 3 Editor’s Comment 5 Economy 7 Hub status 13 2022 Timeline 17 Port 21 MPA 23 SMF 25 Data 27 Lines 31 Offshore 35 Talent 39 Covid 43 Shipyards 47 Digital 53 Green 56 Bunkers 59 & 60 Opinion StraightSingapore

Tuas597will reinforce

without

—

requirementsemploymentWhat’sthepointofhaving long-

Maritimeflourishoffers a

We hope to see some relaxation in foreign term vision and grand strategy the people to make them Schou, president of Wilhelmsen Ship Management

— Edward Ion, founder of Helix PR

3560

news from Singapore

Singapore gets so many of the big strategic calls right and this helps those in shipping, maritime, and tech to compelling value

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And as it is a multi-generational campaign, there is continuity, purpose, spirit, and a keen awareness of upcoming challenges.Asshehanded the baton to her successor at the Maritime and Port Authority of Singapore, Quah Ley Hoon, who stepped down as chief executive this month, outlined some of the missing pieces of the maritime jigsaw Singapore, Inc will look to fill to ensure the shipping gongs keep heading to this Southeast Asian enclave. Ship finance, especially on the green side of the business, will be bolstered, while the country is determined to be front and centre in the the future fuel landscape through R&D development, trials, and deployment.

This has been a multidecade approach to harness the public and private sectors together to reach the shipping summit

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Market Report 2022www.Splash247.com Singapore

DESIGN

ere’s what I love about Singapore as a maritime centre: the constant questioning of what could be done better.Whatever the award, or hub report, the Lion Republic has invariably come out on top over the past decade - the mantelpiece for all the maritime accolades could stretch across the causeway.

intoxicating - this energy is something I have missed while being away from Splash’s corporate home during the pandemic.Morethorny

Paul French

ECONOMIST

effort has been made to ensure that the information contained in this review is correct, the publishers accept no liability for any inaccuracies or omissions that may occur. All rights reserved. No part of the publication may be reproduced, stored in retrieval systems or transmitted in any form or by any means without prior written permission of the copyright owner. For reprints of specific articles contact grant@ asiashippingmedia.com.

Sam EditorChambers

There’s no let up, which I do find

GENERAL MANAGER

The site for incisive, exclusive maritime news and views www.splash247.com

And yet, when we speak to the powers that be they are always looking at weak spots today, and shifting industry needs of tomorrow.Lestweforget, this whole global maritime star thing did not happen overnight - this has been a multidecade approach to harness the public and private sectors together to reach the shipping summit - it’s an all-encompassing, joined up industry approach, the likes of which few other countries are capable of mustering.

issues - such as human resources, red tape, the covid responseare detailed unflinchingly in the coming pages with the suggestions proffered by the hundreds of people we interviewed for this magazine hopefully being of some use to ensure the country’s maritime progress.

Ltd (ASM), Although2022.every

UP FRONT

Mixa Liu Printed in Singapore

What I love about Singapore as a maritime centre

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mong Asian countries Singapore’s response to, and now recovery from, covid has been by far the most impressive. China remains wedded to its economically disruptive zero covid strategy. Highly restrictive policies have adversely affected Singapore’s rival economies in Hong Kong, Taiwan, Malaysia and Indonesia, and are still only being slowly rolled back in most places. But the Lion State largely managed to limit the adverse effects of the virus, while the country has been getting back to work and, crucially, keeping its busy port open.

growth 2017 4.5% 2018 3.5% 2019 1.3% 2020 -5.4% 2021 6% 2022e 3.2%

The republic is well placed post-covid

Some positive numbers from Singapore first. The economy has continued to recover in the first half of 2022. The advance estimate of GDP for the second quarter of 2022 is up 4.8% year-on-year with confirmed growth of 4% in the first quarter. This follows gross domestic product (GDP) growth of 7.6% in 2021 as the economy rebounded from the impact of the pandemic. Officially, Singapore’s manufacturing output grew by 13.8% year-on-year in May 2022. This makes

Post-covid drivers

GDP

The road to recovery

locations like South Korea, Taiwan and mainland China, opted for Singapore to open new manufacturing facilities. Some of this is relocated manufacturing from more slowly emerging locations, such as China, while a significant amount of the new capacity is China +1 facilities – that’s to say companies looking to adapt their business strategy to avoid investing only in China and diversify business into other countries. Certainly China’s zero covid and Singapore’s more successfully managed pandemic response have contributed to both these business decisions.

Singapore intends to be a preferred platform for collaboration in a divided

Singapore one of the best performing economies in the world right now, and certainly the best regionally in Asia.

As well as the pre-existing Singaporean economy rebounding the country has also found some new opportunities during the pandemic that are adding to the current growth spurt. Several overseas electronics and pharmaceuticals manufacturing companies have, given the current and seemingly long-term unreliability of

Though there has been caution exercised. The Monetary Authority of Singapore (MAS) did tighten monetary supply but this seemed prudent and justified as being due to the continued significant risks in the global economy. MAS announced that Singapore does not see or expect a recession or stagflation in 2023.

5www.splash247.com ECONOMY

Creating Value Teamwork Technical Management Man-Power Supply Services Marine Services Safety and Sustainability Email: info@su-nav.co Phone: (+91) 44 4687 8999 Website: su-nav.co Accountability Sunav Travel Sunav Maritime Academy Sustainable and bespoke journey. Today and Tomorrow. MISSION To inspire, develop and implement solutions for safety, Sustainability and upliftment of the marine fraternity. ECONOMY

There’s also been the reported creation of several new vaccine manufacturing plants in Singapore, including by Sanofi, BioNTech and Hilleman Laboratories. Add to this some relocation of services, particularly from politically and economically troubled Hong Kong. Banks, insurers, logistics firms and marketing operations have all relocated from Hong Kong to Singapore citing the better covid response as well as greater political stability, less government interference and senior expatriot staff preferring the location. And other service providers are following.Fullemployment, more high earners and a rebound in transit flights and tourism have all combined to ensure that domestically the economy has bounced back too. Freedom of movement, open shopping malls and sensible applications of mask wearing mandates has meant that something close to normal life has returned.

This does seem to contrast, and indeed the opportunity is enhanced by, China’s apparent basic determination to continue manufacturing as before the pandemic while also turning inwards to a new degree.Incontrast to Beijing, Singapore is now looking to accelerate its outward focus as an attribute, pioneering new forms of connectivity and reinforcing existing ones. According to speakers at the recent Economic Review Conference this will include growing Singapore’s hub port status and enhancing its position as a global logistics network. This was specifically detailed to include further expansion of Changi Airport.

Many, from North America to Europe to East Asia, now see the economic world as fragmenting, Balkanising in ways that resist and retreat from globalisation. Singapore goes against this new consensus, indeed actively pushes back against the anti-globalisers. Singapore intends to be a preferred platform for collaboration in a divided world and provide a meeting place based on rule of law, intellectual property rights, advanced data management and financial services, clean manufacturing and, as ever, a port situated at one of the globe’s still absolutely key crossroads.

ECONOMY

Crisis is opportunityprovidinginSingapore

markets as a whole rose in June, mainly due to the United States, Malaysia and Indonesia. Other smaller sectors saw phenomenal growth - food preparations by 48%, petrochemicals by over 22%, and measuring instruments by over 30% yearon-year.

Exports success

Crisis is opportunity

Being first out of the starting gates postcovid has had obvious massive benefits for Singapore – resumed economic growth, the ability to attract investment, an opportunity to cash in on new technologies, a chance to yet again push the port of Singapore as a regional and global leader. But being among the first to recover also gives a nation the chance to think ahead to a longer-term postpandemic world too.

The recently held Ninth Singapore Economic Review Conference saw government ministers stressing that the country had to build on its globally perceived success combatting covid and attracting new vaccine businesses by actively developing the capacity to produce what the world needs in times of crisis. Crisis is literally providing opportunity in Singapore. This, so the government believes, can entrench the nation in the global value chain and make it hard to displace Singapore as a vital component of the new globalised world.

Future vision

Singapore’s economy is always a delicate balance between manufacturing and services. The two are naturally interrelated and supported by the strength of the port of Singapore for both imports and exports. Singapore remains essentially an entrêpotExportseconomy.havebeen another success story from Singapore. While attention has tended to focus on the blockages at Shanghai and other China coast ports, Singapore has managed some strong growth. A 12% year-on-year rise in nonoil domestic exports in May 2022 was followed by another 9% year-on-year in June. The government body Enterprise Singapore (ESG) has reported that both electronics and non-electronics exports increased, led by integrated circuits and disk drives. Exports to the top 10

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The World Bank’s Ease of Doing Business Index ranks Singapore second in the world, behind only New Zealand, and it’s a clear leader when compared to other rival shipping or technology hubs. Its regulatory environment is supportive of business. Property rights and the rule of law are fair and efficient. Trading across borders, registering a business, enforcing contracts and paying taxes all receive praise from the World Bank.

he two leading maritime hub reports - one compiled by DNV and Menon Economics, and the other by the Baltic Exchange and Xinhua - both crowned Singapore again as the world’s top shipping city, an annual event that is becoming a ritual, so secure and far ahead is this Southeast Asian enclave when it comes to shipping prowess.

However, as is customary, the powers that be in Singapore are not taking anything for granted. Weaknesses continue to be assessed, complaints listened to, and future trends discussed and acted

Osman,upon.co-author of the Leading Maritime Cities report compiled by DNV and Menon, tells Splash: “Singapore can definitely do a lot more in the area of maritime finance.”

In the Xinhua-Baltic International Shipping Centre Development Index Report, meanwhile, released in June, the city-state scored a remarkable 94.88 out of a possible 100 points, far ahead of second placed London, which managed 83.04 points.

The Lion Republic will not be sitting on its laurels

The view from the top

9www.splash247.com HUB STATUS

“Singapore holds the top slot for attractiveness and competitiveness while also scooping the maritime technology title, thanks to the city-state’s unrelenting focus on digital transformation. Singapore gives way to Athens and Shanghai in shipping and ports and logistics respectively, and losing some ground in maritime finance and law,” noted Dr Shahrin Osman, regional head of maritime advisory at DNV, and co-author of one of the two main shipping hub reports, giving a few pointers for the the city’s maritime leaders on where they can scrub up.

“Quite simply,” Unni continues, “Singapore gets so many of the big

“Singapore is widely recognised as one of the most important maritime hubs in the world,” says Brian Png, who has just set up The Swedish Club’s brand new office in the republic.

strategic calls right and this helps those in shipping, maritime, and tech to flourish.”

“From tax to insurance, from education to the law courts, and from finance to technology, Singapore is fantastic at building meritocratic, transparent, supportive, and fair ecosystems that encourage the growth of business,” says Rajesh Unni, the founder of Singaporebased Synergy Marine Group. “This is what keeps this wonderful city-state on top of the shipping rankings.”

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“Offshoring to Malaysia, India and Philippines works up to a point, but sometimes quality then suffers,” warns Cara Carter, who heads up Halcyon Recruitment’s Asia Pacific operations.

“This avoids conflict with Singapore’s employment policies and makes for an efficient business.

It is important to bear in mind how the pandemic has opened top management’s eyes to the ease of office function relocations.

financing solutions.

working tools and practices, on the back of the covid pandemic has helped many maritime employers to operate in a more agile fashion, with teams spread across borders, so it is may well make sense for some organisations to look for more cost-effective models, if certain job functions can be delivered as effectively from new jurisdictions,” says Henrik Hyldahn, the CEO of ShipServ.

Quite so, says Alan Hatton, the CEO of Foreguard Shipping. In ship finance, many historically strong shipping names have retrenched from local markets in Asia and alternative financiers tend to operate from elsewhere and serve the market from other countries, Hatton explains, citing Chinese lessors, certain Japanese names and the funds and financiers providing more niche

Kishore Rajvanshy, managing director of Fleet Management, names a couple of other areas that he thinks could be beefed up. These include education and training to develop the local talent pipeline for technical expertise in shipmanagement, and increased government support for the local ship repair scene.

“Singapore debt or equity capital markets have not been very active in terms of the shipping markets for some time, and more activity and liquidity there would only support Singapore’s maritime sector,” Hatton says.

If excellent talent is available offshore, such as in the Philippines for example, then companies should offshore these roles, Borcoski advises.

Dr Shahrin Osman, regional head of maritime advisory at DNV, says there’s plenty of scope for greater international ecosystem collaboration between ASEAN neighbours whereby the likes of Indonesia and Malaysia can prosper by taking some of Singapore’s labour functions, allowing the Lion City to focus on more technologically advanced activities and on design and innovation.“Ibelieve that collaboration can lead to an increase in overall value-add in terms of not only achieving greater efficiency within maritime, but also allowing the ASEAN region as a whole to prosper through increased business activity,” Osman says.

David Borcoski, CEO of ASP Ships Group, argues that to operate efficiently the maritime sector must use appropriately priced labour for each level of its “Singaporeansbusiness.haveshown their

The authorities are aware of this slight deficiency as our interview with the departing head of the Maritime and Port

Authority makes clear on page 21.

11www.splash247.com HUB STATUS

Many companies have already relocated their companies’ sharedfunctions such as call centre, billing, IT support to other Southeast Asian countries such as the Philippines and Malaysia. Further functions could also be headed to neighbouring countries.

Cheaper overseas

A COMMON COMPLAINT from those surveyed for this magazine is the spiralling costs in Singapore, something that has seen a subsequent shift of some operations to cheaper climes.“With the rising cost of doing business in Singapore, I note that some segments and business have begun scaling down in Singapore and moving into more low-cost countries,” says Carl Schou, who heads up Wilhelmsen Ship Management, a company which moved its headquarters in the other direction - from Kuala Lumpur to Singapore - four years ago.

“As with the acceleration of digitalisation, the adoption of remote

“It is becoming so difficult and expensive to attract competence that it is not sustainable for the business long-term,” Schou relays. “Several peer companies are already moving, or will move, lower-level jobs out of Singapore, so this is not a possibility, but is now a reality.”

Any loss to the Singapore economy as a result is for the government to address,” the ASP boss reckons.

reticence for doing lower paid roles. This is fine, it’s a free market,” Borcoski says.

6 Maersk fixes Singapore methanol fuel supplies

27 Keppel Offshore & Marine and Sembcorp Marine merger deal agreed

10 Ezra Holdings’ judicial managers file to place the company in liquidation

12 Wilhelmsen Ship Management takes 80% stake in Ahrenkiel Tankers

9 First reports of a major off-spec bunker scandal break

4 Singapore signs up to the Clydebank Declaration, a shipping green corridor movement

8 Swire Shipping appoints Jeremy Sutton as its new managing director replacing James Woodrow

13www.splash247.com 2022 REVIEW

9 K Line shifts managementtankertoSingapore

7 Strategic Marine acquires local shipyard

January February March April May June

20 Hafnia swoops for Scorpio’s LR1 fleet

15 Advance Container Lines ceases offering services as part of the ongoing restructuring of parent, Pacific International Lines

28 Swire Shipping buys Westwood Shipping Lines

Excellence. Integrity. Independence.

1 Pacific International Lines appoints Lars Kastrup as CEO

3 Singapore and Rotterdam move to establish world’s longest green corridor

1 Jurong Port appoints Terence Seow as its new CEO replacing Ooi Boon Hoe

1 Prime minister Lee Hsien Loong officially opens Tuas Port

July August September October November December

5 Quah Ley Hoon steps down as chief executive of the Maritime & Port Authority of Singapore, replaced by Teo Eng Dih

7 Fleet Management links with Marubeni for new shipmanagement unit in Singapore

15www.splash247.com 2022 REVIEW

25 Tim Hartnoll venture acquires Bengal Tiger Line and Caribbean Feeder Service

26 Giant R&D ocean basin facility opens at the National University of Singapore

· SAFETY · COMPLIANCE · EFFICIENCY · INNOVATION ·

The giant port has been built with long-term vision through to 2050 with an ultimate capacity of 65m teu, roughly twice last year’s throughput. Its

17www.splash247.com PORT

Peter Voser, group chairman of PSA International, said, “This is a momentous occasion and we are thrilled to transform our vision into reality. Tuas Port is where we can help to realise the immense potential of Singapore as a trade hub for the world, and where our people’s passion for excellence meets higher purpose.”

Lee, who during his 18 years in charge of Singapore has shown a strong maritime interest, spent plenty of time being shown around the high tech facilities of PSA’s newTheflagship.firstthree berths have been operational for a number of months, with two more due to come onstream soon. This new site is a petri-dish for port innovation which will be viewed very closely by competitors in the years ahead.

Lee said at the opening ceremony, Tuas “will reinforce Singapore’s status as an international maritime centre, and enable many related industries to flourish.”

ressed in a pink shirt prime minister Lee Hsien Loong headed out to the western edge of the republic on September 1 for the official opening of Tuas Port, the giant, multibillion dollar facility that has been a decade in the making and promises to set the bar very high for all future port developments around the world.

As the nucleus of Singapore’s maritime and logistics value chain, Tuas Port is poised to offer a comprehensive suite of value-added port services and innovative cargo solutions by leveraging technology andTanautomation.ChongMeng, group CEO of PSA International, said, “By dovetailing our port operations with the greater ecosystem in Tuas and through collaborating with like-minded partners for integrated intermodal solutions,

development also sees a wholesale shift of boxes from downtown to newly reclaimed land in the west of the republic. The shift will free up prime waterfront land from Shenton Way to Pasir Panjang for the future Greater Southern Waterfront.

is expected to be the world’s largest fully automated container terminal in a single location.TuasPort will encompass an extensive and well-connected supply chain and logistics ecosystem in the Tuas area –along Singapore’s western seaboard.

PSA’s brand new flagship facility is up and running, a marker for other ports around the world

Tuas Port has 23 m of draft alongside, with a total berth length of 26 km. At present, 500 staff are working on site at Tuas Port, with the terminal being progressively developed in four phases. When fully operational in the 2040s, it

Tuas officially opened

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PORT

Jurong Port

we can better navigate the growing complexities of global supply chains.”

19www.splash247.com

Another interesting development was the decision to team up with advanced air mobility infrastructure developer and drone operator Skyports to explore the development of ship-to-shore infrastructure.

and power generation major JERA to jointly explore establishing a 100% ammonia direct combustion power plant and encourage ammonia demand to be ready for ammonia bunkering in the The trio plan to build the 60 MW gas turbine combined cycle plant on Jurong Island, which houses the country’s chemical and energy industries.Theproject aims to supply green electricity and also develop an

SINGAPORE’S JURONG PORT, a wholly-owned subsidiary of JTC Corporation, appointed Terence Seow as its new chief executive officer from September 1, succeeding Ooi Boon Hoe. The port handles bulk, breakbulk and containerised cargo.

ammonia bunkering terminal for ships as part of Singapore’s goal of achieving net-zero carbon dioxide emissions by 2050.

“Being closer to the port means faster and cheaper port services. This means more efficient production, and quicker turnaround for their products to be exported to international markets. Sectors such as advanced manufacturing, cold-chain, e-commerce, and logistics will benefit the most,” prime minister Lee added.The

Skyports and Jurong Port have commenced joint studies to determine the feasibility and development of plans for cargo drone delivery operations and related infrastructure. The trials are being carried out simultaneously with ongoing port operations. At the same time, Skyports is leading in the engagements with relevant public sector organisations, regulators, and private entities to further the development of critical regulatory frameworks for the deployment of large-scale cargo drone delivery services.

Tuas will enable many related industries to flourish

country has also just announced that full maritime 5G coverage will be available at major anchorages, fairways, terminals, and boarding grounds by mid2025.

It’s been a busy year for the ongoing transition of the port. It partnered up with subsidiaries of Japan’s multinational engineering firm Mitsubishi Heavy Industries

Ship Management Marine & Technical Services CrewMarineManagementLogistics Safety Efficiency Compliance enquiry@aspships.com www.aspships.com

During her tenure at the MPA, Quah worked with the Singapore Maritime Foundation to establish the Global Centre for Maritime Decarbonisation (GCMD) with private sector partners. For her contributions to the maritime sector, Quah was awarded the Medal of Commendation by the National Trades Union Congress (NTUC), and also the Legion d’Honneur by the French government for her work in keeping Singapore’s port and services open during covid, and enhancing maritime ties with France.

‘We will continue to strengthen our value propositions’

uah Ley Hoon stepped down as chief executive of the Maritime and Port Authority of Singapore (MPA) earlier this month, having held the position since the start of 2019. Her role has been taken by Teo Eng Dih, who was previously with the Ministry of Defence and has been a board member at Jurong Port since 2019.

Quah Ley Hoon reflects on her time in charge of the republic’s port authority

“We will continue to strengthen our value propositions to make Singapore the port of choice, a thriving international maritime centre and the voice for our maritime community,” Quah tells Splash.

The MPA was established in 1996, with the mission to develop Singapore as a premier global hub port and international maritime centre (IMC). It has many roles including port authority, port regulator, port planner, IMC champion, and national maritime representative.

In one of her final interviews before stepping down, Quah assesses the state maritime Singapore is in before passing the baton on to her successor.

21www.splash247.com MPA

into maritime artificial intelligence and cybersecurity.“Singapore will continue to work closely with like-minded global partners and industry players to advance our digitalisation and decarbonisation efforts to strengthen the global supply chain resilience and make international shipping more sustainable,” Quah says.

“Singapore has developed a comprehensive shipping centre and a vibrant marketplace, comprising international shipping groups, shipping arms of commodity traders, and maritime service providers such as marine insurers, ship financiers, shipbrokers and maritime law firms.,” Quah says. Singapore’s maritime ecosystem includes over 170 international shipping groups, and a diverse range of maritime service providers.Looking at the areas where the citystate could up its game, Quah says MPA is keen to grow the ship finance side of maritime, particularly on the green side of the business. Singapore will also continue to build up the future fuel landscape through R&D development, trials, and deployment. In terms of digitalisation, Quah says Singapore is moving more

Singapore is keen to grow the green ship finance side of the business

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is to identify the suite of skills required for new talent, and how to reskill the existing workforce,” Tan says.

Recently, SMF also partnered with two local lines, Pacific Carriers Limited (PCL) and Pacific International Lines (PIL), to enhance the attractiveness of maritime jobs through a job redesign pilot to assess ways to enhance workforce productivity and improve talent attraction and retention. The findings and learning from the pilot will be synthesised into a maritime workforce transformation guidebook.

“The competition for talent is keen. If the maritime sector wants to continue to draw talent, we must be adaptive,” Tan says, concluding: “We will continue to ensure that Singapore remains relevant and dominant in an industry that is constantly evolving.”

Tan attributes much of the rise of maritime Singapore to the strong publicprivate partnerships, something that neatly chimes with her career switch.

After more than three decades working for the government Beng Tee Tan moved to the private sector last year. She’s still determined to ensure Singapore maritime evolves

After more than 30 years working for the state, since January 2021, Tan has headed up the SMF, a private sector led group aiming to develop and promote the republic as an international maritime centre.Asthe industry transforms, in response to global developments, maritime Singapore must continue to keep pace and continue to be agile, she says in

“Two areas that we could focus on would be in ship finance and in growing Singapore as the location for solution providers be it for technology or business,” Tan says.

New role, same ambition

conversation with Splash.

Much of the SMF’s focus this year has been in nurturing new talent. In April the Maritime Just Transition Task Force founded by the International Chamber of Shipping, the International Transport Workers’ Federation and the UN Global Compact welcomed the SMF as its first public programme partner. The task force was convened to ensure fair and equitable green transition for workers, communities and all nations as shipping decarbonises.

“We recognise that sustainable shipping requires a workforce equipped with new skills. A key challenge therefore

If the maritime sector wants to continue to draw talent, we must be adaptive

23www.splash247.com SMF

ew people are more responsible for the rise of Singapore to its preeminent position on the world maritime map as Beng Tee Tan. In her role at the Maritime & Port Authority (MPA)and latterly as executive director of the Singapore Maritime Foundation (SMF) - Tan has helped land many of the most important shipping and trading firms into the Lion Republic, creating a near perfect, all encompassing maritime hub.

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Top 5 Singapore Shipowners by Value (USD Bn) Top 5 Singapore Shipowners by Number of Vessels Most CargoSingaporeanValuableOwnedVessel Source: VesselsValue September 2022 Eastern Paciﬁc Shipping PIL Miclyn Express Offshore X Press Feeders Hafnia 14285747168 Value: USD 256.72 mil Size: 20,388 TEU Age: 3.73 years Singaporean Owned Fleet by Vessel Type ofNumberVessels Total(USDValueBn) 966 Tankers 578 Bulkers 378146585ContainersOffshore132LPGSmallDry 23 Vehicle1333Carrier14LNGRo-RoReefers Eastern Paciﬁc Shipping $14.88 $4.30$4.77$4.87$3.52XAAPILETPLPress Feeders Total2,868Number Fleet$85.85Value $22.07 Tankers $15.33 $1.56$1.69$1.96$5.61$29.93BulkersContainersLPGSmallDryVehicleCarrierLNG$1.45Ro-Ro$0.33Reefers$5.92Offshore Vessel name: Ever Gifted Vessel type: ULCV Owner: Grace Ocean Investment Operator: Evergreen Marine Corp

In container shipping’s record earnings period, Singapore’s top containerline, Pacific International Lines (PIL), has enjoyed a rejuvenation, having earlier been bailed out by the nation’s sovereign wealth fund.

At the Posidonia trade fair this June the Idan Ofer-led company signed a memorandum of understanding with South Korean shipbuilder Hyundai Heavy Industries for a landmark ammonia dualfuel gas carrier. The vessel will be the first to be equipped with a MAN Energy Solutions G60 two-stroke dual-fuel ammonia engine, with a delivery date as early as 2025.

One brand that faded from view as PIL shuffled its structure was Advance Container Lines, which ceased to operate as PIL feeder brand from the middle of March.

s ever it has been a busy year for one of Singapore’s largest maritime conglomerates, BW Group.The Oslo-listed product tanker specialist of BW Group, Hafnia, launched a chemical pool with US owner Transportation Recovery Fund (TRF) as its first member.

of the company, two years into his spell with the firm. He has previously served as CEO of APL, and held many senior positions at CMA CGM. His career started with AP Moller-Maersk.

BW Digital surfaced this year with the acquisition of Hawaiki Submarine Cable Limited Partnership and International Connectivity Services Limited (Hawaiki). BW Digital has also partnered with Chile’s state-owned entity Desarrollo País for the development of the Humboldt cable

27www.splash247.com LINES

system, which will connect Sydney to Valparaiso.

Eastern Pacific

With this chemical pool, Hafnia furthered its overall pool management offering, which also saw the Mikael Skov-led company launch an LR2 pool earlier in the year in the product tanker segment, together with Reederei Nord and Chartworld.

In July PIL placed an order at Yangzijiang Shipbuilding in China for the construction of four 8,000 teu dualfuel containerships. The vessels will initially be powered by liquefied natural gas (LNG), but will also be equipped with an ammonia intermediate ready fuel tank, which makes it possible to retrofit the vessels to run on ammonia when the technology is commercially available.Thenewbuilding order follows PIL’s contract in March this year to build four ammonia-ready 14,000 teu vessels, which will become the largest boxships in the company’s fleet and the first to run on LNG.

In March, Hafnia sealed a $414m sale and leaseback deal with ICBC Financial Leasing to finance the acquisition of 12 LR1 product tankers from Scorpio Tankers.BWis involved in gas, crude, product, offshore, wind and plenty more besides.

Eastern Pacific has been making plenty of headlines in 2022. In May, it snapped up four LNG carriers from ING that were previously owned by Russia’s Sovcomflot for just over $700m.

PIL

On July 1, Lars Kastrup was made CEO

Also of note this year, PIL joined the Washington-based liner lobby group, the World Shipping Council (WSC).

What Singapore’s top shipping companies have been up to in 2022

Busy expansion

IMC Shipping also brought Vincenzo De Falco onboard from Louis Dreyfus Armateurs to head the group’s Solution Shipping division, as part of a broader strategy to bolster its shipping services capabilities. He has been tasked with leveraging IMC Shipping’s expertise in project management, transhipment services and supply chain management.

Berge Bulk

Meanwhile, Swire Projects, part of Swire Shipping, entered into a long-term agreement with shipowner R. Braren for the charter of three handysize multipurpose (MPP) vessels. These vessels will service customer requirements in bluewater trades, carrying project, breakbulk and unitised cargoes.

The news comes hot on the heels of Berge Bulk’s announcement that it will equip its 2018-built newcastlemax bulker Berge Olympus with BAR Technologies’

Swire Shipping promoted Jeremy Sutton this summer from COO to take over from James Woodrow as the line’s new managing director.

Swire Shipping

X-Press Feeders has made some interesting, pioneering green choices of late. It signed up this year for Value Maritime’s carbon capture feature and clean-loop systems, which will be installed onboard two feeder boxships. The carrier is also interested in nuclear propulsion and has ordered some methanol-powered newbuilds.

X-Press Feeders

IMC

Singapore-based IMC Shipping has been bolstering its top management significantly this year.

LINES

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Tim Hartnoll-led private equity venture HICO Investment Group bought Bengal Tiger Line (BTL) last month as well as acquiring a majority shareholding in Caribbean Feeder Service in the latest chapter of container consolidation. HICO was formed by the Hartnoll family last year. Other interests include Britoil Offshore Services and UK-based atomic propulsion specialist CORE POWER. The Hartnolls also run X-Press Feeders, the world’s 17th largest liner, as part of their Sea Consortium empire.

FSL

Few dry bulk companies in the world are doing more to slash their current carbon footprint than Berge Bulk - indeed the company’s goal to become carbon neutral by 2025 at the latest marks it apart from most shipping companies in the world, not just from within the dry bulk sector. Berge Bulk has also committed to developing and deploying commercially viable deepsea zero-emission vessels by 2030.

a new service from Vietnam to Seattle in partnership with a top 20 Americanowned freight forwarder, UWL.

Swire has made a big impact on the transpacific container tradelane this year, buying US-based Westwood Shipping Lines from J-WeSco, a subsidiary of The Sumitomo Warehouse Co. It also launched

The move to expand FSL’s business scope would include other maritime assets, floating and offshore energy and infrastructure assets that are more industrial in nature, such as gas, floating solar photovoltaic and others.

Michael Holm joined as managing director, IMC Dry Bulk. He now works alongside commercial directors, Kim Tae Kyun and Keith Denholm, to execute on IMC’s asset-light strategy and grow its operating and liner businesses.

First Ship Lease Trust (FSL) is looking to expand its portfolio with an eye set on renewables and energy-related offshore assets that generate long-term cash flows andTheincome.Singapore-based tanker owner said that volatility and fierce competition, among other things, make it difficult to develop a competitive advantage in existing shipping markets.

wind propulsion technology WindWings.

This follows the deal announced in November 2021 for the long-term charter of six MPP heavylift vessels with Nordic Project and Finance.

Berge Bulk has contracted a British maker of rotor sails, Anemoi Marine Technologies, to supply and fit two of its bulkers with wind-assisted propulsion.

In addition to being an early adopter of wind-assisted propulsion technology, Berge Bulk’s commitment to becoming carbon neutral by 2025 at the latest, includes solar power trials, investments in advanced atomic power solutions for shipping and offering clients an option for carbon neutral cargo delivery via offsets.

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While Singapore’s local offshore community is now feeling more buoyant, not everyone was able to stick around for the belated party.

“The acquisition of this versatile vessel is an important milestone in POSH’s transformation into a future-ready, sustainable solutions provider for the global energy sector,” noted Low Soon Teck, CEO of POSH.

31www.splash247.com OFFSHORE

“The upturn of 2022 already feels more entrenched and broader-based than the aborted gains of 2018/19,” commented Stephen Gordon, Clarksons Research’s managing director.

POSH said the addition of the 119 m long vessel, to be renamed POSH Deep C, will complement the existing fleet with capabilities including subsea installation works and turnkey towage and installation services for the floating offshore wind and energy sector.

The Clarksons Offshore Index has reached a seven-year high of 80, supported by increasing offshore activity and the multi-year impacts on fleet supply of consolidation, restructuring, limited newbuilding and ongoing removals.

The deal added 50 vessels to the Tidewater fleet making it the world’s leading OSV operator with a fleet of 174 vessels.Interms of key developments among the offshore players still standing in Singapore, PACC Offshore Services Holdings (POSH) has been expanding its fleet. It recently acquired a multipurpose

Houston-headquartered OSV owner Tidewater paid $190m to acquire offshore vessel operator Swire Pacific Offshore, a subsidiary of Swire Pacific Limited.

Global offshore drilling rig activity has bounced back to levels last recorded seven years ago. In late July, the Clarksons Research index of overall offshore drilling rig utilisation reached 85% for the first time since 2015. The active offshore rig count stood at 508 units on July 25, 2022, up by 8% since the start of the year, according to data from Clarksons’ research

Jackup utilisation is currently at 85%, with global demand up 5% since January 2022. Floater utilisation has also increased significantly in 2022, reaching 83% by late July, owing to increased market activity in the US Gulf, West Africa, and Brazil, where the number of active units rose to 57 by early July.

Despite recent oil price softening on fears of inflation-induced recession, Clarksons’ projections suggest utilisation across the offshore fleet will improve further.

At the start of the year two names who had been part of the offshore firmament for a long time were liquidated. Both Ezra Holdings and liftboat operator Ezion Holdings had been unable to attract new investors, each having been under judicial management for a number of years.

Another famous name in Singapore offshore circles also departed, but for different reasons.

“Utilisationunit. gains have generated rig market improvements, with our Clarksons rig rate index already up by 32% yearover-year to 104 points by the end of June – though it was still 38% below the start of 2014,” remarked Gordon.

offshore construction vessel from Norway’s BOA Offshore.

POSH is part of the Kuok Group, with a diversified fleet of around 70 vessels. Also of note this year, POSH partnered with Aberdeen-headquartered mooring and marine service specialist First Marine Solutions (FMS) to explore growth opportunities for floating offshore wind in Europe, one of many notable shifts within the Singapore offshore community to embrace wind.

For those still standing in Singapore there’s finally a brighter future for offshore Back in the frame

The deal follows POSH’s earlier move to shift its renewables focus away from operational support in the fixed wind

fter a brutal decade Singapore’s offshore community has been able to glimpse a richer future, with a pick up in activity and a more optimistic global picture.

International Registries Singapore Pte. Ltd. in affiliation with the Marshall Islands Maritime & Corporate Administrators singapore@register-iri.com www.register-iri.com

Thefarms.partnership will see both companies co-develop drones customised for deployment in the Asia Pacific, to send supplies and critical items to offshore wind installations. F-drones, which has been developing drones to deliver cargoes of up to 100 kg over 100 km, will offer its drone technology expertise, while Marco Polo Marine will provide technical operating and commercial capabilities in the offshore wind sector.

Elsewhere, Singapore-based Vallianz joined forces with Dutch shipbuilder and designer Royal IHC for the design and construction of a next generation service operation vessel (SOV) to support the operations and maintenance of offshore wind

The latest order will increase MEO’s crew boat fleet size to over sixty-five units, deployed in Southeast Asia and the Middle East, affirming the group’s status as the region’s largest crew boat operator.

Theboats.vessels are based on Penguin’s proprietary Flex-42X and Flex-40X designs and are set to deliver between 2023 and 2024. MEO said the Flex crew boats are designed as multi-role crew change vessels, capable of executing a variety of missions, including offshore crew change, security and escort, search and rescue, firefighting and medivac.

Marco Polo Marine has also teamed up with compatriot autonomous drone startup F-drones to co-develop what it said are the world’s first large-scale, electric aerial delivery drones for offshore wind

The SOV and CSOV will be able to accommodate up to 60 persons and up to 110 persons respectively. The SOV will function as a mother ship for wind turbine technicians performing maintenance and service work at offshore wind farms, while the CSOV is designed to support commissioning works during the construction of offshore wind farms, as well as their maintenance operations.

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market into the development of the fastgrowing floating wind sector, with the sale of the Taiwanese offshore wind unit PKR Offshore.Meanwhile, Singapore-based offshore vessel owner Miclyn Express Offshore (MEO) has spent 2022 pressing ahead with its fleet rejuvenation programme having placed an order at compatriot Penguin Shipyard for five new executive crew

OFFSHORE

The 173.6 m long vessel will be driven by a hybrid power system consisting of alternative dual-fuelled engines and a fully-classed battery energy storage system. In addition, it will sport the customised Ulstein HX120 design, which is said to contribute to reduced energy consumption.Finallyinour roundup of local names in the sector, offshore vessel player and shipyard Marco Polo Marine has teamed up with ship designer Seatech to codevelop two new specialised offshore wind service, operation and maintenance vessels.

The vessel will be constructed at Vallianz’s shipyard in Batam, Indonesia and managed by Hamburg-based ship manager Bernhard Schulte Shipmanagement.Vallianzhasalso moved to design and build a hybrid heavy transport vessel

suite of daughter craft, elevator towers and skidding systems, and feature hybrid battery-based energy storage systems (ESS), enhanced automation, and drone-equipped capabilities. These features should cut fuel consumption and emissions by up to 15% to 20% as compared to a non-diesel electric hybrid vessel, the company noted.

(HTV) for the offshore wind industry. The company has joined forces with ship designer Ulstein, Canadian energy storage specialist Shift Clean Energy, and class society Bureau Veritas as part of the project.TheHTV will be able to carry cargoes of up to 32,000 metric tonnes and deployed for transportation of structures such as monopiles, jackets, transition pieces and turbine blades to support offshore wind farm projects, as well as heavy structure modules for LNG and carry out floatover operations of offshore structures, Vallianz said.

The MP S80-20 service operation vessel (SOV) and the S83-21 commissioning service operation vessel (CSOV) have been designed to service the global offshore wind farm market. The vessels will be equipped with a full

Designedfarms. by Royal IHC, the battery hybrid SOV features advanced levels of integration and autonomy with high operational efficiency that will, according to Vallianz, make the vessel the first of its kind in the industry. The SOV has been designed to be ready for “true zero emission operations” by using a full battery offshore charging system and alternative fuels for propulsion without sacrificing operational functionality.

alent has been, is, and is likely to remain a major challenge for those involved in maritime in Singapore.

TALENT

Many in maritime are struggling to find the right calibre of employee. How to fix this?

The available workforce

“Currently the pool of local talents available in the market has not reached an optimal level for a competitive labour market,” concedes Carl Schou, president of Wilhelmsen Ship Management. As a result, Schou says he sees the same people job hopping, and with every move there is an expectation of a salary/benefit increase of 20% to 30%.

“Ministers know that Singapore talent isn’t there and some companies are putting roles into Dubai instead due to better flexibility. Singapore wants to keep its number one top spot so flexibility is a must together with a drive to make the

“This should be a dynamic process,” Borcoski says, adding that at the same time the government should be clear as to why this is necessary and adjust local training and education initiatives where this will help plug the skills gap.

maritime industry more attractive to the Singaporean community,” Carter tells Splash.David Borcoski, CEO of ASP Ships Group, urges the Singapore government to recognise where talent shortages exist and quickly adjust immigration policies accordingly.

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If the maritime sector wants to continue to draw talent, we must be adaptive

“This phenomenon cannot continue if the expectation is for businesses to flourish in Singapore,” Schou says, adding: “We hope to see some relaxation in foreign employment requirements as a

Reasons Tay gives are what he describes as the “great resignation wave”, combined with people still expecting

The Lion City was, in building its international maritime centre, flexible and pragmatic regarding employment passes. Today, that situation has changed. The granting of work visas has in the past been to some extent driven by compensation levels, with thresholds applied. With the situation changing, there is concern that there might be a local labourCaracrunch.Carter, who heads up Halcyon Recruitment’s Asian operations, says companies have been lobbying the Maritime and Port Authority (MAP) to get the Ministry of Manpower to have more flexibility.

the hybrid work arrangement they had during covid. Moreover, companies have started hiring again, hence more tempting jobs are being advertised. The whole controversial issue of employment passes is one that Tay reckons will affect local maritime businesses in the long run.

Jason Tay, who founded local recruitment outfit Direct Search Global, agrees with Carter, saying: “Finding the right talent is definitely a challenge now.”

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For maritime, there is a need to increase awareness in order to attract more new entrants into the industry, says Dr Shahrin Osman, regional head of maritime advisory for class society DNV.

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seafaring background.

technology, and with ambitious sustainability goals, the demand for talent is much broader, and potentially more attractive for young new jobseekers, says Joanna Soh, vice president at local tech vendor, i03.

Rajesh Unni, the founder of Synergy Marine Group, reckons there is an imagination gap for shipping in Singapore rather than a talent gap and employers need to tackle this head-on.

Steps are also being made to attract more talent focusing on skills development and in line with the industry’s sustainability and green goals. Singapore is leading the charge as is evident from the city-state’s involvement in the the Maritime Just Transition Task Force, which was founded by the International Chamber of Shipping, International Transport Workers’ Federation and the UN Global Compact.

“To achieve the goals of sustainable shipping, there is a definitive need for new skills and re-adjustment or retraining of the existing workforce. The government is aware of this and is taking adequate measures to close these gaps,” SohYessays.we are, exclaims Quay Ley Hoon, the outgoing chief executive of the Maritime and Port Authority (MPA).

“With the accelerated growth in technology and sustainability projected in the next five years, job seekers can expect exciting opportunities in maritime Singapore,” Quah insists.

more sustainable approach for business to grow and continuation of generating more jobs for the local economy.”

One “easy” solution to overcome the shortage of local personnel with sea experience, according to Philippe Lecloux, group head of marine at Aderco, is to tinker with the country’s national service set-up. Two years off for national service disconnects maritime academies from sea jobs - much of the time working in the military could be better spent onboard a merchant ship, Lecloux suggests.

“Many of the roles in shipping and shipmanagement now are more akin to tech jobs. We have smart systems, fleets, and ships. An IT or engineering background is, in many ways, just as useful as having spent 10 years on a ship,” Unni argues.

With shipping now embracing

“This imagination gap is not about there being a lack of talent available locally, it is our failure to tap into the labour that is available - that is the problem,” Unni explains, going on to hit out at shipping’s lack of diversity.

“For too long, we’ve taken the easy option of employing those with a seafaring background. These are, of course, predominantly males. It is now more difficult to get visas for these people in Singapore,” Unni points out, saying there’s a need now to employ more people in our industry who don’t have a

“Not a lot of parents and young job seekers know what maritime roles really entail so maritime is not seen as sexy enough,” Osman reckons. Unlike in Europe, in Singapore, they often don’t consider it a sophisticated, technical sector.Tochange this, Osman says a major mindset shift needs to occur so that people can finally see the abundance of opportunities that exist within maritime and are coming into play with rapid technological transformations.

“Once we generate more interest, we can then generate more supply by having university students gravitate towards maritime studies at a younger age,” Osman says.

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39www.splash247.com COVID

“Our ability to keep our ports open while keeping our workers and Singapore safe over the pandemic period was only possible due to the strong tripartite partnership between the government, industry and unions,” says Quah Ley Hoon, the outgoing chief executive of the Maritime and Port Authority (MPA) of Singapore.TheMPA established the Shipping Tripartite Alliance Resilience Fund (STAR Fund) with the Singapore Shipping Association (SSA), unions and international organisations to ensure that crew changes are conducted safely amongst seafaring nations.

The pandemic brought to the forefront

Carl Schou, president and CEO of Singapore-based Wilhelmsen Ship Management, praises the MPA for being proactive and reaching out to the industry at an early stage to find ways to cooperate and find a solution to allow crew changes.

Vinay Gupta, managing director of local ship manager Union Marine Management Services (UMMS), reckons that in general Singapore authorities handled the covid crisis “pretty well” and other jurisdictions could learn and follow from them.

How can Singapore keep shipping flowing smoothly in the event of another global health crisis?

“It is no doubt that a crisis so huge would take anyone by surprise and any amount of future planning and

Lessons learned from the pandemic

To do this, the first global groundup tripartite initiative on crew changes developed a CrewSafe audit programme with more than 40 accredited facilities in crew source nations to provide control checks for crew change processes across quarantine, medical, and testing facilities.

the importance of shipping and seafarers, argues Beng Tee Tan, the executive director of the Singapore Maritime Fund.

It might seem a long time ago now, but Singapore came in for repeated flack for its initial ‘cake and eat it’ attitude towards seafarers with many Splash readers hitting out at the republic’s “deliberately obstructive” crew repatriation rules, something that took more than a year to smooth out.

could have been a global hub for crew changes during covid and instead the considerable local assets went unused,” he laments.

At the height of the frustrationback in June 2020 - Kuba Szymanski, secretary-general of InterManager, told Splash:“Singapore and Dubai have always been saying we’re the best hubs in the world, we’ll do anything for you but when the difficult times hit they have proven to be lacking.”

“I don’t think any other country did this - at least so early in the pandemicand this is what makes Singapore such an attractive place to be. They are very solution-oriented,” Schou says.

“Singaporecrisis.

the covid crisis from a maritime point of view, specifically seafarers. As such a crucial global hub port, the city is a vital conduit for crew changes.

eptember 2022 seems a very far cry from the summer of 2020, a period of time where seafarers were rightly railing against the flip-flapping inaction of many maritime administrations around the world as the crew change crisis became acute.

It was not just Singapore - most nations struggled to come up with smooth, well thought out procedures in the first year of the pandemic. It’s telling, however, that in a poll carried by Splash earlier this year, asking readers which port handled the pandemic the best, Singapore came away empty handed.

David Borcoski, CEO of ASP Ships Group, tells Splash that the MPA and government should be much “bolder” in a future

There are plenty of lessons to be learned for Singapore authorities from

“We need to continue building on this awareness and to give seafarers due respect and ensure their physical and mental well-being,” she says.

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Looking from Hong Kong, a city still bedevilled by strict covid protocols, Kishore Rajvanshy, the veteran managing director of Fleet Management, is full of praise for how Singapore handled the pandemic.“Thegovernment implemented concrete steps to ensure that the port remained open and maritime trade never stopped during the major outbreaks,” Rajvanshy relates. These initiatives included contactless cargo, bunkering and delivery options. In addition, remote inspections by class, managers and service providers became the new normal.

Rajesh Unni, CEO of Synergy Marine Group, says that while he would have liked procedures to have moved more swiftly, Singapore was able to mobilise stakeholders in key industries like maritime far quicker than in most jurisdictions.“Thelessons learned about how to effectively manage a pandemic that threatens trade – which is Singapore’s lifeblood – have been well learned here, which I don’t think is something we can necessarily claim is true of everywhere,” UnniFromsays.a tech vendors point of view, Morten Lind-Olsen, the CEO of Dualog, reckons the pandemic has been a great boost forward in bringing ship and shore closer.

A REPORT PENNED by the Hamburg School of Business Administration for the International Chamber of Shipping (ICS) published in April looked at the impact of covid on shipping, seafarers and the maritime labour markets, offering some practical solutions for the“Ensuringfuture. quality labour is the responsibility of employers, unions, national and international regulators. Due to the substandard treatment of seafarers, during the pandemic, the shipping industry is experiencing

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authorities could pre-assign a handful of hotels dedicated to accommodating seafarers, Soh advises. By doing so, it can mitigate the spread, be quick to execute an isolation exercise, and hence, reduce the need to deny entry to disembarking seafarers.“Throughout the pandemic, Singaporean authorities collaborated with international authorities and managed to bring the situation locally under control,” relates Dr Shahrin Osman, regional head of maritime advisory for class society DNV. To better manage future crises, Osman says this needs to continue, and the engagement needs to be deepened.

notable shortages in the workforce, which is expected to increase and place the supply chain under even greater strain,” the report stated. Lack of appreciation for the strategic role of seafarers in facilitating world trade meant that they were not prioritised early enough for access to testing facilities and covid vaccinations. The nature of the global shipping industry requires better international coordination between international organisations, national governments, and other stakeholders to address similar crises in the future, the ICS report urged, going on to warn

For seafarers, Osman reckons the biggest challenge has been keeping up with varying vaccination policies, which has disrupted their ability to freely disembark at different ports.

preparedness would be tested only in real life scenarios,” Gupta points out.

Quite so, concurs Henrik Hyldahn, the CEO of ShipServ. “The covid-19 pandemic highlighted – and accelerated – the importance of digitalisation in overcoming challenges related to communications and driving efficiencies, transparency and resilience within the supply chain,” he says.

For seafarers, better international collaboration will help establish a standardisation of requirements that crewing management companies need to comply with, the DNV executive suggests.

Practical advice

“If the Singaporean authorities are able to ease and affix some of these requirements by working in sync with their international partners, then they can create a greater sense of certainty and stability for seafarers,” Osman concludes.

Jason Tay, managing partner of local HR firm Direct Search Global, urges owners, managers and regulatory bodies to work together to better manage future crises.

Joanna Soh, vice president at another maritime tech vendor, i03, says processes must be put in place to ease the impact of future disruptions on crew and their families.TheMinistry of Health should enforce a standard procedure for testing and treatment of crew, Soh suggests. The

COVID

“In the future,” he says, “all parties can plan and implement solutions based on a fully digital integrated ship.”

More pressure from shipowners, quick turnaround of crew change, improved quarantine facilities, and better use of port agencies are all on Tay’s list to help with crew change.

about the growing shortages of staff at sea.“Over the last two decades, the seafarer labour market has gradually turned from supply-driven to demanddriven. While a longstanding shortage of officers is increasing, oversupply of ratings is also decreasing,” the study warned.

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What Keppel’s marriage to Sembcorp Marine means for the future health of shipyards in the Lion Republic

theLohcombination.ChinHua, CEO of Keppel and chairman of Keppel O&M, said, “The signing of a win-win agreement on the proposed combination of Keppel O&M and Sembcorp Marine marks a strategic milestone for the offshore & marine sector. It brings together two leading O&M companies in Singapore to create a stronger player that can realise synergies and compete more effectively amidst the energy transition. Together with the resolution of Keppel O&M’s legacy rigs, this is a major step forward in Keppel’s

The combination is based on a 50:50

43www.splash247.com SHIPYARDS

fter almost one year of negotiations and more than a decade of speculation, Keppel Corporation and Sembcorp Marine reached an agreement in April for the S$8.7bn ($6.29bn) combination of Keppel Offshore & Marine and Sembcorp Marine creating a mega yard entity in Singapore.

Singapore’s state-owned fund Temasek will hold 33.5% and be the largest shareholder of the new enlarged entity.

The way ahead

THIS FEBRUARY STRATEGIC Marine completed the acquisition of a significantly larger shipbuilding facility in Singapore in a move that is expected to boost its shipbuilding capacity and product range. The Singapore-based shipbuilder has acquired the fixed infrastructure as well as the lease of the shipyard at 5 Benoi Road and has completed the lease transfer from JTC Corporation, the lessor of the shipyard.

said Chan Eng Yew, CEO of Strategic Marine, adding that the shipyard is already in discussions with existing and new clients on several projects and that is looking to convert these discussions into contracts in the next few months.

enterprise value ratio between Keppel O&M and Sembcorp Marine, and after taking into account the respective capital structures of the two companies and other factors, the agreed equity value exchange ratio will result in Keppel shareholders owning 56% of the combined entity and Sembcorp Marine shareholders owning 44%.

The two parties have been in negotiations since June last year, when a memorandum of understanding was signed to enter into exclusive negotiations to combine.

Strategic Marine moves into larger premises

The facility that features a 5,000 dwt dry dock and a 6,000 dwt slipway, will see Strategic Marine scale up shipbuilding capabilities and expand to deliver larger vessels and execute vessel repair and maintenance services. The shipyard added the capacity will also be greatly increased with a 105m long dry dock facility and a slipway.“Thisnew development immediately increases our operational footprint,”

Keppel O&M’s legacy rigs and associated receivables will not be part of

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David Borcoski, CEO of ASP Ships Group, argues Singapore should focus on the higher end, technologically complex shipbuilding and repair business. The maritime sector can also support smaller ship repair and building business in Batam and other nearby yards with services, equipment and expertise, he suggests.Rajesh Unni, who heads up Synergy Marine Group, agrees with his shipmanagement counterpart at ASP on the need for Singapore to concentrate on high value-added niche projects.

Cheng Peng Tan, executive director of SMI, said that the project could potentially be the first of its kind in the world, if successful. Kuok is onboard as an industry partner and will collaborate with NTU in providing both cash and in-kind contributions for the “Carbonproject.capture and storage (CCS)

The deal is subject to regulatory approvals, while shareholder approvals will be sought in the fourth quarter of 2022.

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Tan Sri Mohd Hassan Marican, chairman of Sembcorp Marine, said, “The proposed combination marks a major milestone in Sembcorp Marine’s strategic business transformation journey since 2015 to stay resilient amid dramatic changes in our industry. Sembcorp Marine and Keppel O&M are Singapore’s homegrown marine icons. I am confident the combined entity, with its larger operational scale, broader geographical footprint and enhanced capabilities, will create a leading Singapore player to capitalise on the opportunities in the offshore and marine, as well as the renewable and clean energy sectors.”

SHIPYARDS

Don’t compete for run of the mill type newbuild or conversion projects

SINGAPORE’S KUOK GROUP is participating in a new project to develop shipboard post-combustion carbon capture technologies.

The project, called “Application of Carbon Capture Technology for the Reduction of GHG Emission from Ships”, has been awarded by the Singapore Maritime Institute (SMI), backed by funding from the National Research Foundation Singapore (NRF), under the Maritime Transformation Programme.

Vision 2030 journey, as we simplify our business and sharpen our focus on providing solutions for sustainable urbanisation.”

newbuild or conversion projects more easily and cost-effectively completed elsewhere where labour costs are lower,” Unni advises, adding that blocks or modules could be fabricated in yards in neighbouring countries such as Indonesia and Malaysia and then barge them to Singapore for assembly and commissioning.Areportpublished by local bank UOB Kay Hian at the end of August was bullish on prospects for the nation’s top two yards.The rig market, particularly the semisubmersibles segment, has continued to gain strength this year with higher utilisation and day rates, the report pointed out.

has been identified as a potential abatement technology to reduce GHG emissions in the transitional period to a low-carbon economy. Such collaboration with key industry players like Kuok is highly valuable, as we jointly develop a meaningful and innovative solution,” noted Professor Dr Jasmine Lam, centre director of the Maritime Energy & Sustainable Development Centre of Excellence at NTU.

PaxOcean, one of Kuok Singapore Limited’s maritime group businesses, will be working with Nanyang Technological University Singapore (NTU) on a 30-month project led by Professor Wang Xin, chair of the School of Chemical and Biomedical Engineering at NTU.

PaxOcean works on carbon capture tech

“Don’t compete for run of the mill type

Nagi Hamiyeh, head, portfolio

development group, Temasek, commented: “We expect the combined entity to be well-positioned to achieve the necessary scale and synergies to become more competitive and to build a sustainable orderbook amid the changing global energy environment. This is also well aligned with our objective to catalyse the transition of our portfolio companies towards a net zero world.”

AXSMarine Trade Flows demonstrates for example that shipments of Urea, Sulphur, Petcoke, Potash and Cement all together account for 3.73% of the Drybulk commodities shipped by sea worldwide in 2021. It provides very granular data supporting this reality. The corresponding number of voyages for these commodities represented only 8.17% of all laden legs. Are these good enough and reliable drivers and your best choice for a proper reading of the market?

I saw a graph that seemed accurate…

THE RISKS OF FALSE PROMISES IN THE DIGITAL WORLD

First year First two years Within five years Within ten years Within 15 years PERCENTAGE OF STARTUPS RATESFAILURESTARTUP 0% 25% 50% 75% *Source: explodingtopics.com/blog/startup-failure-stats ADVERTORIAL

Selecting the right shipping software shares some characteristics with online shopping – you filter through competing products, check out prices, analyze reviews, you take the merchant’s words for what they’re trying to sell you, and you reach a rational decision where to best spend your money. However, it’s usually easy to identify you’ve been scammed online. Reaching the same quality assessment about shipping software requires to spend way more of your time, a non-refundable commodity. Moreover, making the wrong choice can expose your company to stormy waters.

Be careful as you might have been taken for another ride, hooked on limited data displayed on a Base 100, a trick used to hide a lack of quality data coverage. A typical graphical display showing variation percentage that can be very misleading.

What does this have to do with shipping?

Iron ore represents the lion’s share of Dry Bulk cargo carried by sea, accounting for 26.7% of all Dry Bulk commodities transported in 2021. Attempts to use the outcome of an automated reading tool to monitor the market can probably give you a 6% market coverage of the Dry Bulk commodities shipped by sea. Big players like Vale, FMG, BHP, Rio Tinto and other miners rarely blast their private cargoes via email circulars. According to several renowned and experienced Capesize shipbroking companies, Cape cargoes quoted via email only represent about 15% of what is actually moving.

The latest smoke and mirrors

A true Market Monitoring solution like AXSMarine Trade Flows delivers in addition much more than an email parsing service. The depth of data comprises years of actual ship and commodity movement history including predictions of ship and cargo destinations. This is going way beyond just looking at a fraction of market emails to drive surface conclusions. Any snorkeling or scuba diving experience tells you how different reality is compared to the blurry view from the surface. And as you may have noticed, the more adverse the winds, the blurrier the surface.

Who determines what a false promise is?

Capitalizing on its 22 years of experience and selfpowered business model, AXSMarine has created a very comprehensive and widely used set of tools and data for demanding shipbrokers, charterers, shipowners, analysts and many other industry participants.

Recent software providers are making bold claims about what their products are supposed to deliver. Unfortunately, these are often unattainable due to tech-stack limitations and/or because the data lacks accuracy and depth to support the promises.

Startup failure rates*

Any email content extraction automated tool, promoted as an alternative to AXSReader and Market Monitoring tool, you’re being taken for a ride. Email parsing software, as its name suggests, automates the process of translating raw text into actionable vessel supply/ demand data. It’s no new concept, rather a service provided by AXSMarine for the past 12 years, used by 100’s of companies saving them an average of 60 mins person/day, processing 300 million emails per year and guaranteeing privacy of customers’ data. Yet, this remains very far from providing the transparency required to build yourself a competitive edge.

Whether you are a direct shipping player, a commodity trader, an analyst, a quantitative or hedge fund, you care about best possible signals and must act with caution to make the bestinformed decisions.

Ultimately, only you can appreciate the value received for what you’ve paid. If you don’t want to be left having wasted your time and financial resources on a dud or a dead-end, you can always rely on people with the know how-to deliver according to expectations. AXSMarine has pioneered digitalization in shipping and has experienced the early 2000’s Dotcom Boom, seeing companies promising the unachievable, burning investors’ cash and eventually being washed away by reality.

If you’re not paying much or even nothing for a service or product, this translates that you and your data are the product aimed at serving interests that may well not be yours.

Surely, you’ve heard this story before, or if unfortunate, you’ve experienced it firsthand. Browsing the Web, you find a product that is marketed as better and cheaper than other similar ones. It’s all catchy, looks great and you go for it. The item eventually arrives, you’re excited, open the box, and find… a low quality and non-robust product which doesn’t match the attractiveness that triggered your purchasing decision.

Singapore has encouraged the digitalisation of shipping for several years now. Splash assesses what the tangible local benefits have been

47www.splash247.com DIGITAL

ingapore was ranked number one under maritime innovation by the Menon Economics-DNV Leading Maritime Cities of the World report in January 2022 and it is little surprisethe investment and joined up thinking between government and the private sector has ensured the republic is well ahead in shipping’s headlong rush to digitalise.Tohelp maritime companies get started on their digital journey, the Maritime and Port Authority (MPA) launched the Maritime Digitalisation Playbook (MDP) in June 2020 with the Singapore Shipping Association and Infocomm Media Development Authority. The MDP has helped companies to formulate their digitalisation roadmaps, guide execution and benefit from maritime digital platforms.Incentives are also provided to encourage maritime SMEs to embark on their digitalisation transformation. To ensure that digital solutions are

In partnership with the Port Innovation Ecosystem Reimagined at PIER71, the MPA has been consolidating problem statements from the industry through the Smart Port Challenge since 2017, and nurturing marine tech start-ups to address these challenges through reimagining tech.

A means to an end

(CoEs). The CoEs have built up their deep domain expertise in ports modelling and simulation, maritime navigation and operation safety, maritime energy and sustainability and maritime autonomous surface ships capabilities. It has also developed a wide range of technologies for the maritime sector, such as the simultaneous removal of sulphur oxides and nitrogen oxides emission, optimisation and deployment of automated guided vehicles for container terminal operations, and virtual reality technologies for training of high-risk scenarios.Inrecent years, the Southeast Asian country has seen the private sector playing a role in incubating and nurturing maritime technology start-ups. An example is the Eastern Pacific Shipping Techstars programme, which identifies, cultivates and mentors technology start-ups to catalyse solutions to make shipping safer, more secure and more sustainable.

To build up a sustainable local pool of research specialist manpower, the Singapore Maritime Institute, with the support of the MPA, has funded four maritime research centres of excellence

accessible by SMEs, the Sea Transport Industry Digital Plan provides co-funding to support the adoption of pre-approved solutions.TheMPA has expanded the Sea Transport Industry Digital Plan in 2022 to ensure that over 3,000 SMEs in all subsectors of sea transport such as ship chandlers, shipbrokers, marine surveyors, shipmanagement, and ship operators, will be eligible to apply for co-funding for digital transformation projects.

“With successful digitalisation, Singapore can transition from a manualintensive to analytics-intensive reality, therefore moving up the value chain,” Osman says.

All of Singapore’’s digital initiatives received an accelerator in the form of a global health scare.

as the Just in Time Planning and Coordination Platform which facilitates optimal arrival and departure of vessels to and from the Port of Singapore and enables faster ship turnaround times as well as reduces dwell time at the anchorages before berthing. This is achieved through the use of artificial intelligence in the optimisation and scheduling of port resources. The SGDigital port is also expected to serve as a one-stop marketplace that can integrate with port and marine service providers to enable seamless access to services for customers and port users.

There have been many initiatives launched in the maritime sector such

“There is a first mover advantage in this sense from being located here. We get to try these solutions first and we can learn these lessons before others,” Unni says.

“The covid-19 pandemic has accelerated the adoption of new technologies and digitalisation by many businesses within the maritime industry who have recognised the opportunities of increasing efficiencies and transparency, and utilising data to drive informed and better decision making,” says Henrik Hyldahn, the CEO of ShipServ.

Many pioneering initiatives developed on home soil have now been adopted around the world, but as Rajesh Unni, CEO of Synergy Marine Group, points out, those located in Singapore have benefitted first.

Morten Lind-Olsen, CEO of Norwegian software developer Dualog, reckons the Singaporean government has been a “frontrunner” when it comes to digitalisation.

“Ensuring good infrastructure and useful information for everyone to share globally is more important than ever,” he says, pointing out: “The assets are sailing globally and the future challenges are not limited to a specific region or country. Think global and share.”

In addition, digitalisation allows for greater automation and hence enables easier decision making for all stakeholders, promoting the creation of data-smart organisations.

DIGITAL

Think global and share

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Dr Shahrin Osman, regional head of maritime advisory for class society DNV, believes Singapore’s national focus on digitalisation can encourage people from analytics and other data adjacent fields to leverage their skills into entering the maritime industry.

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“When it comes to recruiting digital natives locally, we think there is a good competitive labour market in this area,” says Carl Schou, the president of Wilhelmsen Ship Management. Singapore

Vinay Gupta, managing director of Union Maritime Management Services, argues it’s important shipping understands why it ought to embrace technology.“Digitalisation is a means to an end and not an end in itself– it provides solutions for the problem that exist and makes the existing operations more efficient and transparent,” Gupta says, adding: “Once the local workforce comes to a point where they understand the challenges being faced by the industry and has the ability to find an efficient solution, I believe we will see more digital start-ups.”

DIGITAL

companies are not able to justify a dollarvalue immediate cost savings, which is what they look for when adopting digital solutions. Thus, benefits such as safety, welfare and preventive maintenance are often overlooked. Additionally, many digital solutions companies lack realenvironment test bed vessels to perfect their solutions, needed to validate their efforts and create value. The government can assist, she suggests, by exploring the possibility of bringing in test bed vessels for companies to ensure their solutions are robust and specifically suited for the maritime industry.

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Since digitalisation requires more complex skillsets, which Singapore has in abundance, it creates job opportunities for locals, Soh Nevertheless,says.she says a few challenges still exist. One such example is that many

Singapore can transition from a manual-intensive to analytics-intensive reality

has developed an ecosystem that is conducive for local start-ups to thrive and a platform for foreign investments to fund these start-ups, Schou adds.

iO3 is one such example of a local digital start-up. Joanna Soh, vice president at the digitalisation platform, can see a few obvious benefits from when she and her team began.

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How Singapore is working with the industry to foster shipping’s carbon transition

The global shipping community must work together

hipping is undergoing its greatest transition in a century, and Singapore is determined to be a central thought leader for the greening of theWhileindustry.the likes of Scandinavia and Japan positioned themselves early on as shipping decarbonisation pioneers, Singapore has latterly come to join the ranks, with government and private industry joining forces to make the Lion Republic, the world’s largest bunkering hub, a petri-dish for some of the most exciting green shipping experiments in the“Withworld.climate change on the global agenda, decarbonisation has become a top priority for the shipping industry, and maritime Singapore is committed towards decarbonising the maritime industry,” says Quah Ley Hoon, the departing chief executive of the Maritime and Port Authority (MPA) of Singapore.

decarbonisation strategy and priorities, through the Maritime Singapore Decarbonisation Blueprint 2050 released in March this year. Developed by the MPA in consultation with industry partners, it provides a roadmap to help the sector achieve International Maritime Organization’s 2050 target of reducing total annual greenhouse gas emissions by at least 50% compared to 2008 levels.

‘Partnership is key in the decarbonisation journey’

Singapore has mapped out its maritime

53www.splash247.com GREEN

The MPA will commit additional funds of least S$300m ($214m) to support the decarbonisation efforts in seven key areas: port terminals; domestic harbour craft; future marine fuels, bunkering standards and infrastructure; the Singapore Registry of Ships (SRS); international efforts including IMO; research and development andtalent; and carbon awareness, carbon accounting and

green financing.

The greening of the Singapore Registry of Ships (SRS), which is recognised as one of the top five ship registries globally with more than 4,000 ships aggregating over 93m gross tonnage, is a key initiative under the Maritime Singapore Decarbonisation Blueprint. To help shipowners enhance their commercial attractiveness of decarbonising their fleet, SRS became the first ship registry in the world to introduce green notations for vessels in November 2021.

Vessels exceeding the requirements of IMO’s Marpol Annex VI Phase 3 Energy Efficiency Design Index (EEDI) targets by 10% or more will secure a 50% reduction on initial registration fees (IRF) and a 20% rebate on the annual tonnage taxes (ATT). Already registered ships that comply will

L e a r n m o r e: d nv.c o m /m a r i t i m e Fo r t h e m a r i t i m e i n d u s t r y, t h i s i s m o r e t ha n a m o m e n t o f c hang e. I t ’s a t ime f o r t r an s f o r ma t io n Never have the decisions it f aces been so complex Nor their consequences ever mat tered more A s a trus ted voice of the indus tr y, we help decision makers throughout the maritime world to make purposef ul and as sured choices. From regulator y compliance, nex t generation f uels, ves sel and operational optimization, to in depth advice and insight, explore our solu tions.

T UR N

IN TO CONF IDENCE

U NCER TA IN T Y

also get a 20% rebate on the ATT.

A demonstration of this commitment to work together with industry is the founding of the Global Centre for Maritime Decarbonisation (GCMD) in August last year together with six founding partners - BW Group, BHP, Eastern Pacific Shipping, Foundation Det Norske Veritas, Ocean Network Express and Sembcorp Marine - to identify decarbonisation pathways, formulate standards, deploy solutions, finance projects, and identify business opportunities for the industry by fostering collaboration across the sectors. Professor Lynn Loo moved from

Singapore and Rotterdam have joined forces to develop the world’s longest green shipping corridor

The year-long project started last month with a consortium made up of 18 industry partners.TheMPA joined the Castor Joint Development Project Initiative in February 2021 to provide insights on safety issues and ammonia bunkering procedures from MPA’s experience as a leading bunkering hub. Members of the initiative include MISC, Lloyd’s Register, MAN Energy Solutions, Samsung Heavy Industries, Yara International and Jurong Port, with the group aiming to develop and deploy a first ammonia-powered tanker by 2025. Ammonia bunker barges are also being developed by Singaporean companies.

The MPA also signed three memoranda of understanding (MoU) earlier this year with two green shipping consortiums to establish an integrated ammonia fuel

Meanwhile, ships that use liquified natural gas (LNG) or fuels with a conversion factor lower than LNG as their primary fuel, such as bio-LNG, biomethanol, and bio-ethanol, will get a 75% and 50% discount on the IRF and ATT, respectively.“Partnership is key in the decarbonisation journey. The global shipping community must work together,” Quah insists.

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Princeton University in the US to head up the new green shipping centre. Among many projects recently launched by the centre is a drop-in biofuels pilot project to establish an assurance framework for ensuring the supply chain integrity of current and future green marine fuels.

supply chain and establish a platform for the parties to exchange views and harmonise ammonia bunkering safety guidelines.DuringSingapore Maritime Week in April this year, Minister for Transport and Minister-in-Charge of Trade Relations, S Iswaran, announced that Singapore will join the Clydebank Declaration for Green Shipping Corridors. The Clydebank Declaration aims to establish green shipping corridors between ports by deploying zero-emission vessel technologies on voyages, or alternative fuel and charging infrastructure in ports. As a follow up to this, in August Singapore and Rotterdam joined forces to develop the world’s longest green shipping corridor for low and zero carbon shipping.“When it comes to decarbonisation and sustainability, there has been significant development in Singapore within the last couple of years,” says Dr Shahrin Osman, regional head of maritime advisory for class society DNV. DNV set up its regional centre of excellence in maritime decarbonisation and autonomy in Singapore, as a recognition of the importance of Singapore’s role within the global maritime ecosystem.

GREEN

four years ago,” Vis said.

Jonathan Arneault, co-founder of another bunker checker, FuelTrust, compared the fuel scandal in Singapore to the one in Houston in 2018.

It has been a volatile year at the world’s largest bunkering hub

Dr Ram Vis, a bunkering expert and owner of Viswa Labs, echoed the VPS call to use technology to better document and analyse risk in the supply chain.

Fuel tester VPS quickly recommended gas chromatography mass spectrometry (GCMS) screening as the most effective method of detecting chemical contaminants in bunker fuel including chlorinated hydrocarbons.

and PetroChina, resulting in damage to fuel injection pumps, injectors, filter elements and purifier systems with many ships breaking down.

Bunker prices entered record territory for much of the year, and the price gap between high and low sulphur oil - often referred to as the Hi5 - was widest in Singapore, due to very tight availability of VLSFO, something that saw ships swerve past the republic for supplies this summer.Itwas not just high prices owners had to contend with when coming to fuel up in Singapore. In March, Splash broke the story of a sprawling contaminated bunker scandal, which ultimately affected 200 ships, with the subsequent legal battles likely to run for years. However, the swiftness with which authorities dealt with the issue was remarkable.

In August the Maritime and Port Authority of Singapore (MPA) decided to suspend Glencore’s bunker licence for two months after a fuel contamination probe had been carried out.

The MPA ultimately laid the blame for the contamination outbreak on suppliers from the Middle East.

t’s been a tough year for Singapore’s bunkering industry, yet ultimately one where being proactive ought to be praised.Theworld’s largest bunkering hub has had to fight extreme price volatility as well as one of the worst off-spec scandals in more than a decade.

Chlorinated compounds were found in many samples of fuel sold by Glencore

“Four years later, the lawsuits from Houston are still ongoing, and we’re just realising the financial impact that a single batch of bad fuel can have on the industry,” Arneault said.

MPA’s investigation found that despite records between March 21 and 23 showing high concentration levels of chlorinated organic compounds in fuel Glencore purchased, it continued to supply contaminated bunkers to vessels in the Singapore port from March 22 to April 1.

Glencore also sold the fuel to Petrochina for further trade in Singapore, but no action was taken by the MPA as PetroChina promptly stopped delivery of the contaminated fuel by March 19, once it received its own test results showing that the fuel it supplied was contaminated.

56 Singapore Market Report 2022

The fuel was traced back by the MPA to fuel purchased by Glencore in January and February this year. Glencore had

Lessons learned for the future

“The bunker quality problems give a feeling of déjà vu from an organic chlorides contamination in 2001, and more recently what we saw in Houston

(MOU) with Singapore-based bunker vessel operator Hong Lam Marine and classification society Bureau Veritas to jointly develop an ammonia bunker vessel

A recent Blue Insight study assessed

Finally,design.inthis new fuels roundup six companies, including Danish carrier Maersk, have formed a partnership that aims to establish Asia’s first green e-methanol plant which converts captured biogenic carbon dioxide (CO2) into green e-methanol. The pilot plant will be set up in Singapore pending successful conclusion of feasibility studies by the end of 2022 and forms another part of the global fuelling jigsaw for Maersk’s raft of methanol-fuelled boxships under construction in Asia.

estimation for critical infrastructure, such as ammonia storage tanks and bunkering vessels.

scale and the essential role it plays in supporting global maritime trade, much of it is still steeped in old-fashioned, outmoded operational practices. There is a continuing lack of transparency in the way marine fuel is delivered. This has to change,” argued Kenneth Dam, global head of bunkering at TFG Marine, in a post on the company’s website this summer. TFG Marine is a joint venture between Trafigura and John Fredriksen founded two years ago. Dam urged other leading bunkering hubs to follow the lead of Singapore and get mass flow meters installed as soon as possible.

57www.splash247.com BUNKERS

Alternate fuels

bunker deliveries at Rotterdam and Fujairah, the world’s second and third largest bunkering ports. It concluded that reported VLSFO bunker volumes at these two locations resulted in $250m in operating losses for suppliers across 2021 with bunker buyers being severely short-changed on volumes.

There is a continuing lack of transparency in the way marine fuel is delivered

commitment to use mass flow meters to ensure the right volumes of fuel are actually delivered - a piece of technology very few other bunkering hubs have engaged“Despitewith.the bunkering industry’s

AS BEFITS THE world’s largest bunkering hub, plenty of trials are underway across Singapore to identify what fuels the city-state will be selling in the Singapore’sfuture. Global Centre for Maritime Decarbonisation (GCMD) is leading a consortium of 18 industry partners to launch a drop-in biofuels pilot project with a combined contribution of $18m in cash and in-kind to establish an assurance framework for ensuring the supply chain integrity of current and future green marine

Now plans are well underway to build an ammonia bunker vessel to ensure this new ship fuel type is available at the port by the end of the decade.Others have also moved to establish ammonia bunkering in Singapore. Last May, the Japanese trading house Itochu teamed up with Itochu Enex, Vopak Terminals Singapore, Pavilion Energy Singapore, Mitsui OSK Lines (MOL) and Total Marine Fuels for a joint development study.

TFG Marine, which wants mass flow metes to be made mandatory globally, has joined with 50 other industry participants representing 2,000 vessels to appeal to the Rotterdam and the Antwerp port authorities to follow Singapore’s lead and introduce mandatory mass flow meter delivery in their jurisdictions.

Meanwhile,fuels.some of the largest names in shipping including Maersk and Kawasaki Kisen Kaisha (K Line) are part of a growing consortium which has set out to develop an ammonia bunker supply chain in Singapore. The group launched a feasibility study last year to identify potential ammonia supply sources and indicative costs, as well as undertaking the preliminary design and cost

purchased the fuel through Singaporebased Straits Pinnacle, which had contracted its supply from Unicious Energy. The contaminated HSFO was loaded at the Port of Khorfakkan in the United Arab Emirates (UAE) onto a tanker and shipped to floating storage facilities in Tanjung Pelepas, Malaysia to be further blended. The blended HSFO was subsequently delivered to storage facilities in breakingactionSingapore’sSingapore.swift,comprehensiveinthewakeofthescandaldrewpraise,ashasits

Southeast Asian shipbuilder PaxOcean Engineering has signed a memorandum of understanding

Week Asia 2022 21st Annual Asia’s Largest Shipping Finance Conference New Shipping Horizons and Landscapes 27th & 28th September 2022 Singapore www.marinemoney.com

The first phase of the campaign is fronted by five real-life professionals— data scientist, crew executive, ship

Instead of holding on to their jobs amid the economic turbulence, workers in many markets started to rethink their priorities. An October 2021 Forbes poll of HR leaders seems to suggest that beyond the pay check, employees today are also motivated by intangibles such as personal growth and shared values.

The Singapore Maritime Foundation (SMF) works with both the public and private sectors to attract, engage and grow talent so that together, we can amplify the impact of our voice amid a competitive talent

59www.splash247.com OPINION

As maritime transforms, spurred on by mega trends such as technology and sustainability, and amidst keener competition in the labour market, it is even more important that the industry comes together to attract talent.

financier, asset management executive and shipping lawyer— from across the spectrum of the industry.

conjunction with the industry. Companies that have supported the effort include BHP, CMA CGM, Toll Group, Standard Chartered, Eastport Maritime, Torvald Klaveness and Kanda. For the latest technology case competition SMF launched in August 2022, maritime multinationals—A.P. Moller Maersk, PSA Cargo Solutions and RightShip—are on board as sponsors.

Tan Beng Tee, executive director of the Singapore Maritime Foundation, on how the shipping sector in the Lion Republic goes about sourcing the best and brightest

Maritime offers a compelling value proposition—a purposeful career in a transforming sector at the nexus of world trade and the global supply chain.

Over the past year, more than 300 students signed up for SMF’s case competitions that were organised in

Hence,pool.bringing together HR leaders in Singapore’s maritime community to address issues of common interest and to form connections, along with educators from the tertiary institutions are fundamental to this value chain of talent creation.Oneof the hallmarks that distinguishes maritime Singapore is the strong partnership between the public and private sectors. SMF—founded to be a conduit between both—will continue to work closely with the government and the industry to develop a talent pool to drive the transformation of the sector.

SMFmarket.isworking with the maritime community to refresh the industry narrative and to present it in fresh ways. SMF recently embarked on an “Own Your Future” digital campaign to showcase an industry that is purposeful, exciting, and one that is on the cusp of change.

strange phenomenon happened during the covid pandemic.

This is a challenge no single company alone can address. By coming together, the industry can collectively change perceptions and demonstrates what it stands for.

The campaign transforms these reallife professionals from different parts of the maritime ecosystem into action characters through rich media such as videos and comic strips. The campaign has recast the “staid” and “traditional” sector in new light, and SMF will continue to work with the industry to drive its momentum going forward.

SMF’s partnership with the industry to develop a maritime-ready workforce is reinforced by scholarships and internships, which demonstrates a sector that cares about talent development and one that offers rich experience through coaching and hands-on learning.

At SMF, we recognise the importance of talent professionals who manage the talent

To increase the industry’s visibility to tertiary students—and recognising that young talent must be engaged intellectually—SMF has been working on a series of case competitions to bring the vibrant sector alive to this highly soughtafter demographic.

We welcome companies to join us in this quest.

Attracting maritime talent amidst changing workforce expectations

And with a booming IT sector, a wave of new technology start-ups and with wealth management, investment banking and financial services generally offering fast-track routes to high salaries and the

With world-class educational levels and a truly globalised, open economy, Singaporeans have multiple choices when it comes to jobs.

It’s a credit to Singapore as a nation to see its economy transforming at perhaps a faster pace now than ever before.

It was said in the nineteenth century that to be born an Englishman was to have won the lottery of life. And in many respects, the same can be said of young Singaporeans today.

attendant status that brings, what chance does shipping have in the race for talent?

This debate has to continue - and the balancing act has to work for Singapore to maintain its status as a global maritime centre.

60 Singapore Market Report 2022 OPINION

The Singapore government and various agencies and educational establishments have gone to great lengths to attract young Singaporeans into careers in shipping.Butfor the small pool of Singaporeans entering the jobs market each year, the distractions of higher pay in more ‘fashionable’ industries ensure that shipping remains one of the ‘Ugly Sisters’ as far as career selection is concerned.

Singapore resident Edward Ion from Helix PR on the thorny issue of foreign talent and available local staff

But to set this talent crunch in context,

But sadly, shipping and maritime generally are way down the pecking order for the brightest and most ambitious.

A quick survey of major shipping companies, and maritime service sector firms finds very few Singaporeans in c-suite positions.

The obvious way of sustaining maritime sector growth has traditionally been to attract foreign talent into Singapore and this pool of talent has no doubt been beneficial to the country’s shipping industry.

Us and them

ingapore’s vision to be a leading international maritime centre has always been based on long-term planning.Thevision has spanned decades, not years; the strategy is fairly constant and the planning flexible enough to adapt to short-term twists and turns in both Singapore’s fortunes and those of the global economy.

But as the Lion City recreates itself as a high tech, financial services and wealth management centre, the fight for talent remains a constant thorn in the side of shipping, that most traditional of industries.Itsometimes feels as if shipping is being left behind, out of kilter with the rest of Singapore’s booming, high-tech economy.Afterall, what’s the point of having long-term vision and grand strategy without the people to make them work?

Singapore is one of the world’s great maritime centres and punches well above it weight in global shipping.

just 40,000 or so Singaporean babies are born each year.

But the debate about locals versus foreign talent tends to have an unpleasant undertone and has occasionally produced an ‘us and them’ stand-off in shipping and in other sectors. It’s a touchy political subject.Thegovernment has a tricky balancing act of ensuring enough Singaporeans fill the good jobs that shipping produces while still encouraging the right level of foreign talent.

Singapore Market Report 2022

Articles inside

60 Opinion

Bunkers

Green

SMF

Offshore

Talent

Shipyards

Digital

Port

MPA