Green shipping corridors (GSCs) are the passages leading the maritime sector into a more sustainable and hopeful future. Most significantly, GSCs create special economic zones at sea to build an enhanced ecosystem for the adoption of sustainable technologies, green fuels and innovative business models.
Koh Shu Yong, director of global sustainability, American Bureau of Shipping (ABS), said GSCs foster cleaner transportation routes because the process is like a chain reaction, which literally would create a value chain that eventually leads to a sustainable future. At the start, they “present opportunities for commitment across the value chain, which is an integral aspect of any green corridor,” he said. This allows stakeholders to collaborate, especially at the intersection of their operational boundaries.
Koh Shu Yong, director of global sustainability, ABS. Photo credit: ABS
“Following that, this interaction will improve interoperability and may initially lead to boundaries blurring. Eventually over a period, the entire corridor will operate as a system which not only helps in maritime decarbonization, but also leads to economic opportunities,” Koh explained. These collaborations are the foundations of open dialogues among the stakeholders in a “trusting environment with well-defined contracts to prevent any issues at the interface between the stakeholders.”
Taking advantage of these open dialogues, stakeholders can leverage adopting environmental cleaner shipping practices in reducing emission. “Improve the relationships along the value chain with customers, suppliers, investors and communities by aligning sustainability goals and expectations,” Koh said. In return, businesses can hope to strengthen individual companies’ reputation, minimize risks and foster long-term sustainability and competitiveness.
However, the question always begs: how profitable is this? Afterall, profitability is always the crux of businesses. Costs of a green transition are a realistic and burdensome concern. With that, Koh said there are several initiatives which boost benefits, and they involve the use of “energy efficient technologies which may lead to cost savings in the long run through reduced energy consumption with reduced fuel consumption and optimizing routes.”
Operating within the GSC context, Koh continued, can showcase businesses’ competitive edge and commitment towards sustainability, essentially differentiating themselves from competitors.
To achieve the effective development of GSCs, alternative fuel pathways and port infrastructure, with the quantification of energy, is an important determining criterion.
“This will be based on the evolution of the route, vessel utilization, vessel engine type and size,” said Koh. He added that the “fuel producers in the consortium of project developers will need to calculate the alternative fuel demand based on the fuel characteristics.”
Green corridor consortium should help fuel producers by guaranteeing long-term demand to allow for capacity development and corner the supply. “This could be the most critical part of the development of the corridor, since fuel supply is at the underlying foundation of a green corridor,” said Koh. With GSCs, it will simultaneously encourage the development of port infrastructure, such as bunkering and shoreside infrastructure, and skill development of operators.
The last pillar that would facilitate or hinder the growth of GSCs are government regulations and policies. “This development and introduction of policy and regulations are catalysts for enabling these large initiatives (in covering) multiple stakeholders across different sectors of the economy,” he said. Therefore, top-down support and rigorous implementation of environmentally-friendly strategies cannot be lackluster.
Photo credit: iStock/ NanoStockk
