In an interview with Maritime Fairtrade, Leif Trana, Norway’s ambassador to Singapore, said the cooperation between Norway and Singapore in the maritime industry is strong and mutually beneficial. He believed the partnership will become stronger moving forward.
Both countries share a deep commitment to advancing maritime technology, sustainability, and trade and the partnership, with Norway’s rich maritime history and innovation, and Singapore’s strategic position as a global maritime hub, focuses on innovation, green shipping, digitalization, and port development.
What is your view of the economic health of Asia’s maritime industry in 2024?
The sector is inherently global. That being said, many of the global maritime powerhouses are found in Asia, and they are well positioned to continue growing as the global maritime industry continues to expand.
Global maritime trade experienced a 2.4 percent growth in 2023 and was anticipated to expand by two percent in 2024, with an average annual growth rate of 2.4 percent projected through 2029. Demand for bulk commodities such as iron ore, coal, and grains remains steady, while container trade, which saw minimal growth of just 0.3 percent last year, is expected to rebound gradually.
However, the sector continues to face challenges from geopolitical tensions, conflicts and trade disputes, which are disrupting supply chains and increasing operational expenses. In 2024, these disruptions contributed to higher freight rates and extended shipping routes, leading to increased fuel consumption and higher carbon emissions. The shadow fleet remains a serious concern for the industry.
Despite these challenges, the maritime industry remains on a growth trajectory, though the road ahead is marked by uncertainty and the need for increased adaptability.
What is your view on Singapore’s investment and incentives to electrify and decarbonize ship operations?
I do think Singapore is on the right track when it comes to the changes needed to electrify and decarbonize ship operations. Singapore has established a clear and comprehensive roadmap for decarbonizing its maritime sector, as outlined in the Maritime and Port Authority’s (MPA) Maritime Singapore Decarbonization Blueprint.
This strategy has already yielded notable progress, including the launch of a number of electric vessels that are either in operations or undergoing commercial trials. Norwegian companies have played an important part in this progress and see a great potential in the Singapore market.
Singapore’s limited domestic renewable energy resources pose a challenge for producing green marine fuels locally, increasing the need to establish a supply chain to import these fuels from other countries.
However, Singapore has made strides in alternative marine fuels, with active research, feasibility studies, and bunkering operations focused on methanol, ammonia, and biofuels.
Carbon capture and storage (CCS) technologies are also beginning to take shape. A noteworthy example is Norwegian shipping company Solvang ASA, which is retrofitting one of its vessels with an onboard CCS system at Singapore’s Seatrium shipyard — a significant milestone for this space.
However, global investments in green marine fuels remain insufficient. The development of a sustainable supply chain for alternative fuels, the availability of renewable energy sources, and the establishment of carbon capture infrastructure all require significant funding.
These challenges call for extensive research and development, as well as collaboration between governments, industry stakeholders, and financial institutions to bridge the gap.
How can Singapore’s maritime industry learn from Norway?
Singapore and Norway bring complementary strengths to the maritime industry, creating valuable opportunities for collaboration and knowledge exchange with each other.
Norway, with its rich maritime heritage and access to North Sea resources, has established itself as a global leader in green maritime innovation. As one of the world’s top ten ship-owning nations, it continues to play a significant role in advancing sustainable shipping technologies.
In contrast, Singapore is a critical hub for global trade, home to one of the world’s busiest ports and a regional base for leading shipping companies. Its strategic location and commitment to modernizing maritime infrastructure have made it a key player in international shipping.
Both countries share a forward-looking vision focused on digitalization, modernization, and decarbonization, ensuring their maritime sectors remain competitive and future-ready.
A good example is Singapore’s Tuas Mega Port, recognized as one of the world’s most automated and technologically-advanced ports, setting new benchmarks for efficiency, sustainability, and innovation
Norway has also been a long-standing partner of Singapore’s MPA, with Kongsberg Norcontrol’s Vessel Traffic Services (VTS) system supporting Singapore’s maritime operations since 1990, exemplifying decades of successful collaboration.
In what ways can Singapore and Norway grow business opportunities in the maritime industry?
The ongoing digitalization and decarbonization of the maritime sector present significant opportunities for innovation and collaboration between Singapore and Norway. Singapore is renowned for its shipbuilding capabilities and port infrastructure, while Norway boasts a strong pool of vessel owners eager to explore green technologies. Norwegian companies are at the forefront of maritime innovation, offering solutions such as autonomous underwater hull cleaning, air lubrication systems, electric propulsion, and remote operations centers.
Additionally, during the recent Singapore Norway Innovation Conference, Norwegian companies signed multiple Memorandum of Understanding (MoU) and Letter of Intent (LOI) with harborcraft consortiums in Singapore to advance sustainable maritime solutions.
For example, Yinson Green Technologies Pte Ltd signed MoUs with Zeabuz AS and Evoy AS while Lita Ocean Pte Ltd, and SeaTech Solutions International (S) Pte Ltd signed an LOI with Pascal Technologies AS and Evoy AS.
Norwegian firms are also partnering individually with Singapore-based shipowners, providing tailored digital and decarbonization technologies that enhance operational efficiency and environmental performance.
These partnerships highlight the potential for continued collaboration in the coming years, leveraging the strengths of both nations to drive sustainable growth in the maritime industry.
With the conclusion of COP29, how do you think it will affect the maritime industry in Singapore and Asia?
While the COP29 is the most important event for the international community as we try to limit the climate change resulting from the emission of greenhouse gases (GHG) to the atmosphere, the main focus on this COP was financing and not further updates on countries’ plans to limit their emissions. Those limits will be the main focus of next year’s COP in Brazil.
For shipowners and maritime businesses, the more relevant forum for their discussion on decarbonization is the International Maritime Organization (IMO), particularly the Marine Environment Protection Committee (MEPC) meetings.
The MEPC meetings in 2025 will focus on the approval and adoption of mid-term measures aimed at reducing GHG emissions from ships and will impact decisions taken by shipowners on their shipbuilding and decarbonization strategy.
There is also increasing demand from cargo owners and charterers for sustainable shipping solutions, driven in part by the need to report Scope 3 emissions. This demand will influence the direction of shipowners and the broader maritime industry. Regulation, particularly in the EU, will also give the maritime industry clear incentives to continue their decarbonization work.
Additionally, shipowners and maritime businesses will face challenges from geopolitical tensions and trade sanctions, which are likely to impact the sector’s operations and growth. So, while the COP was a very important meeting, it might not be of the same magnitude of importance for the maritime industry as decisions taken at the IMO and other global trends discussed above.
Photo credit: Norway embassy in Singapore. Leif Trana, Norway’s ambassador to Singapore.
