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THE ‘GREEN’ SHIFT Marina lays down groundwork for PHL maritime industry to begin to go ‘smokeless’ by Q1 2023
I
By Rory Visco
N September of last year, the Maritime Industry Authority (Marina) crafted what would become the country’s National Strategic Action Plan (NSAP), which the agency dubbed “Green Maritime Philippines: Protect and Conserve.”
According to Marina Shipyards Regulation Service (SRS) Director Engr. Ramon Hernandez, the NSAP was created “in order to ensure full and effective implementation of relevant marine environment protection standards in the country, particularly on decarbonization.” He said during the “Collaboration on the National Roadmap Study on Decarbonizing Pathways for Freight Transport in the Philippines,” a stakeholder workshop hosted by the Department of Transportation (DOTr), the plan will act as the roadmap in Marina’s implementation of the “marine environment protection conventions enrolled as Program 10 in the 10year Maritime Industry Development Plan (MIDP).” The initiative was developed by the Organization for Economic Cooperation and Development (OECD), in connection with its Sustainable Infrastructure for Low-Carbon Climate Resilient Development in Asia program that seeks to help countries such as the Philippines, Southeast and Central Asia, shift towards cleaner energy,
transport and industrial systems. Is the Philippine maritime industry ready and able to comply with this global low-carbon initiative? Are its seafarers ready as well to embrace this change by increasing their level of competence? Would they still get that “top-ofmind” preference among shipping firms around the world?
Decarbonization and digitalization: a snapshot
ACCORDING to Carl Schou, President and Chief Executive Officer of Wilhelmsen Ship Management, the International Maritime Organization (IMO) has already declared its target of reducing emissions by 50 percent come year 2050. Thus, the shipping industry will shift its fleet to low- or zeroemission fuel types in the future, ships that will operate on various fuel types like liquefied natural gas (LNG), methanol, ammonia and hydrogen. “Very soon, we will be operating in a multifuel environment as opposed to what we have today, which is one type of fuel oil. At this juncture, there are many variable
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factors that may impact the future fuel demand and supply. This situation has created much uncertainty in the entire maritime value chain. The ripple effect is felt by all stakeholders in the maritime sector from engine makers, shipyards, shipowners to ship financiers,” Schou said in reply to questions from the BusinessMirror. On the other hand, he said digitization changed the competence requirements of seafarers and technical employees onshore. With more sensors installed onboard, data is utilized for monitoring leading performance indicators to improve vessel efficiency. Hence, he said that data sensemaking skills have become an essential competence when it comes to managing ships. Schou added that the upcoming regulation on EEXI (Energy Efficiency Existing Ship Index) and CII (Carbon Intensity Indicator), which will be implemented next year, will see further importance of digitization where monitoring emissions is a crucial factor for compliance.
Are shipping fleets embracing these trends?
HE said that as a ship manager, Wilhelmsen works with ship owners that have varying speeds in embracing decarbonization and digitization so there is no one size that fits all owners’ perspectives on these topics. “When it comes to decarbonization, there is no question of non-compliance as the consequences could be costly and severe. The upcoming rules are mandatory,” he emphasized. However, Schou expressed
optimism that the 2050 target is achievable. He said they saw some regulation tightening already to support this goal and feels that they are on the right track. He said the regulation’s implementation would impact everyone, which will make it a level playing field for all. However, he emphasized that the IMO implementing measures to ensure a globally effective and equitable transition so no one gets left behind in the shift that will prove to be crucial. “There is no doubt that the world is facing an existential challenge due to climate change caused by emission release. Shipping, like many other industries, must play its part in reducing emissions. IMO, the governing body for the global shipping industry, has reacted to the challenge and has passed a number of regulations to curb the emission releases.” In terms of ship design and expenses, Schou said the building of ships operating on alternative fuel would certainly differ from conventional ships in many aspects such as technical specification that maximizes energy efficiency, optimized design philosophy for bunker containment system and other aspects that will change relative to safety and risk assessment. Regarding cost factors, just like any other industry, production cost will initially be high. However, once economies of scale are achieved, Schou expects costs to normalize.
ing to the International Chamber of Shipping (ICS), the global trade association for shipowners and operators, boasts of the largest supply of ratings or skilled seafarers in support roles, and the second largest supplier of officers. Schou said having the right competence to operate ships powered by new technology is crucial, especially so when it comes to operating alternative-fuelled vessels. He explained that adaptation in human behaviors and processes must be done to address any potential safety issues when handling the new bunker. “Our first LNG/dual-fuel vessel will enter our management in
the first quarter of next year. We have begun training some of our Filipino seafarers for the certification required to operate these vessels and so far, we have not experienced any issue and have successfully grown a healthy pipeline of seafarers with such competence,” Schou pointed out. He said that Wilhelmsen has its own training center in the Philippines, and by being a member of the Norwegian Shipowners Association, they have access to utilize the Norwegian Training Center located at the Mall of Asia Complex in Pasay City, Manila. “Therefore, we are well prepared for future training needs.”
Bright future for Pinoy seafarers
DESPITE the emergence of these trends, this spells a bright spot for the Philippines which, accord-
n JAPAN 0.3930 n UK 66.3062 n HK 7.5152 n CHINA 8.1743 n SINGAPORE 41.4460 n AUSTRALIA 37.0432 n EU 57.7296 n KOREA 0.0412 n SAUDI ARABIA 15.7045
Source: BSP (October 21, 2022)