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Transforming shipping operations from traditional milk runs to electronic boats, while decreasing carbon emissions, should offer tangible economic advantages, assertions PaxOcean CEO.

Tan Thai Yong, CEO of PaxOcean and head of Singapore's Coastal Sustainability Alliance, discusses the hurdles confronted in implementing eco-friendly strategies for seafreight logistics on our platform.

Decarbonization of the marine logistics industry should provide measurable financial advantages, as...
Decarbonization of the marine logistics industry should provide measurable financial advantages, as demonstrated by transitions from traditional 'milk runs' to e-boats, according to PaxOcean's CEO.

Transforming shipping operations from traditional milk runs to electronic boats, while decreasing carbon emissions, should offer tangible economic advantages, assertions PaxOcean CEO.

The maritime industry is under increasing pressure to lower its carbon footprint, particularly Scope 3 emissions. In response, Kuok Maritime Group (KMG) is spearheading a significant step towards decarbonizing the marine logistics sector in Singapore with the trial of an electric supply boat.

The trial, named the "milk run" concept, aims to implement combined deliveries for vessels, a shift from the current single point-to-point voyages. This trial features Singapore's largest electric supply boat, the PXO E-Supply Boat named *Voltai*. The initiative is part of a one-year program developed through a collaborative effort called the Coastal Sustainability Alliance, led by KMG. Seven major ship agencies and one chandler have signed Letters of Intent to utilize *Voltai* for deliveries to seagoing vessels.

The trial prioritizes "milk run" operations, where lightboat operators make multiple stops to supply various vessels in one run, helping to maximize efficiency and sustainability. Initially, deliveries will focus on non-urgent supplies, such as food rations planned ahead by onboard chefs, with time-critical goods like medications excluded to ensure smooth operations and manageable logistics.

As the trial progresses, coordination with government agencies and regulators is underway to establish industry norms and operational windows, avoiding clashes with vessel refueling or bunkering activities. The immediate priorities of the Coastal Sustainability Alliance, led by Tan Thai Yong, include gaining operational knowledge from e-supply boat trials and promoting the usage of electric boats.

The trial is intended to reduce annual carbon emissions equivalent to taking about 100 petrol cars off the road. As the trial advances, there are plans to expand the types of goods delivered and potentially scale the concept further.

The pressure on the global maritime industry to decarbonize has intensified due to regulatory measures and initiatives from various countries. For instance, China has launched an initiative requiring international ship owners to report their carbon emissions, and the European Union Emissions Trading System (EU ETS) is being extended to include maritime transport, starting with a phased approach from 2024.

KMG has been actively trying to reduce its carbon footprint by optimizing voyage routes and using cleaner fuels. In line with this, KMG is considering using only electric harbour tugs for its Singapore shipyard and lobbying for the construction of more electric tugs.

The MPA regulatory push is seen as helpful in encouraging players to electrify their operations, but industry demand will be critical for long-term success. The Port of California, for example, is very strict, with no diesel generator use within harbour limits.

However, challenges for operators with the implementation of the milk runs include juggling and optimizing routes, and managing expectations for arrival timings. Compliance with decarbonization regulations is complex due to varying standards for different jurisdictions. Despite these challenges, the "milk run" trial by Kuok Maritime Group marks a significant step towards a sustainable future for the maritime industry.

  1. The trial of an electric supply boat, Voltai, by Kuok Maritime Group (KMG) is a significant step towards corporeate responsibility and energy transition in the maritime industry, as it aims to lower carbon footprint, particularly Scope 3 emissions.
  2. The Coastal Sustainability Alliance, led by KMG, is focusing on promoting the usage of clean energy and sustainability by expanding the types of goods delivered and potentially scaling the milk run concept, aiming at net zero carbon emissions.
  3. The global maritime industry's decarbonization efforts are being driven by regulatory measures and initiatives from various countries, such as China's carbon emissions reporting requirement and the European Union Emissions Trading System's (EU ETS) extension to maritime transport.
  4. Sustainability and sdg in the maritime industry are being facilitated by technology, as entities like the Port of California are enforcing strict regulations, like no diesel generator use within harbour limits, encouraging operators to implement electric operations for a more sustainable future.

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