A year following the signing of the memorandum of understanding to establish a Green and Digital Shipping Corridor, the Maritime and Port Authority of Singapore (MPA), Port of Los Angeles, and Port of Long Beach have concluded a comprehensive baselining study. This study forecasts numerous benefits, including more green jobs, improved local community health, and economic advantages for participating nations. It emphasizes the increasing demand for zero- and near-zero emission fuels and highlights the benefits of decarbonizing shipping routes between these nations.
Commissioned by C40 Cities and the ports and conducted by the American Bureau of Shipping, the study analyzed maritime trade flows between Singapore, Los Angeles, and Long Beach. It provided a baseline of activities and energy demand requirements for vessels operating on the corridor through to 2050. The study estimates the quantity of near-zero and zero-emission fuels required for this traffic, considering factors such as fuel production costs and availability. Port of Los Angeles Executive Director Gene Seroka emphasized that achieving the required reductions in greenhouse gas emissions will necessitate coordination and commitment from both public and private stakeholders across the maritime and goods movement industries.
The study highlights the potential socioeconomic impact of transitioning to zero- and near-zero emission fuels and leveraging digital solutions. At full implementation, the corridor could create over 700 new job opportunities in zero and near-zero emission fuel production and improve local air quality. These estimates support findings by C40 and other organizations, indicating that activities undertaken through green shipping corridors can accelerate wider decarbonization across the maritime industry and unlock health benefits for local communities.
As vital nodes on the trans-Pacific shipping lane, Singapore, Los Angeles, and Long Beach play crucial roles in the maritime sector’s green and digital transition. They are members of C40’s Green Ports Forum, actively championing ambitious green shipping corridors. The corridor partners underscore their commitment to data-driven decision-making through the study, utilizing its insights to guide their actions in pursuing the partnership’s decarbonization objectives.
Key findings of the study include:
- Vessels operating on the corridor represent 7% of the world’s container trade.
- The projected annual energy demand of vessels on the corridor is estimated to be approximately 60,000 terajoules.
- Shipping demand on the corridor is estimated to be around 850,000 tons of methanol and 160,000 tons of ammonia annually by 2030.
- The transition to zero- and near-zero emission fuels could potentially create approximately 700 jobs in the production and supply chain of such fuels by 2030.
The corridor partners convened the first in-person stakeholder meeting during Singapore Maritime Week 2024, focusing on developing green and digital solutions within the corridor. This initiative underscores their dedication to fostering collaboration and innovation in the maritime industry.
