One year after 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 completed a comprehensive baselining study. It forecasts more green jobs, health improvements for local communities and economic benefits for participating countries, emphasizing the future demand for zero- and near-zero emission fuels and the benefits from decarbonizing the shipping routes between the nations.
The study, commissioned by C40 Cities and the ports, and conducted by the American Bureau of Shipping, analyzed maritime trade flows between Singapore, Los Angeles and Long Beach, and provided a baseline of activities and energy demand requirements for vessels operating on the corridor through to 2050.
The conclusion of the study follows the successful unveiling of the corridor’s Partnership Strategy at the 28th United Nations Climate Change Conference in December 2023, which outlined the corridor’s goals, partnership structure and governance mechanism. The study estimates the quantity of near-zero and zero-emission fuels required for this traffic by modelling the adoption of zero and near-zero carbon alternative fuels by vessels operating on the corridor through to 2050, considering various parameters such as fuel production costs and fuel availability, and in view of the targets in the 2023 International Maritime Organization’s Strategy on Reduction of Greenhouse Gas Emissions from Ships.
On a practical level, the study highlights the potential socioeconomic impact of transitioning to zero- and near-zero emission fuels and leveraging on digital solutions. Based on the study’s estimates, the corridor at full implementation 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 that activities undertaken through green shipping corridors can accelerate wider decarbonization across the maritime industry and unlock health benefits for local communities and green economy opportunities for participating countries.
As leading global ports, Singapore, Los Angeles and Long Beach are vital nodes on the trans-Pacific shipping lane and are key stakeholders in the maritime sector’s green and digital transition. Alongside 20 leading ports and port cities, MPA, POLA, and POLB are members of C40's Green Ports Forum, a prominent global platform for collaborative climate action that actively champions ambitious green shipping corridors, acknowledging their central role in the ports and shipping sectors’ green transition.
The corridor partners underscore their dedication to a data-driven decision-making approach through the study, utilizing its insights to guide their actions in pursuing the partnership's decarbonization objectives and aligning with the related goals of the shipping sector. Key findings of the study include:
Vessels operating on the corridor represent 7% of the world’s container trade, which is about 1% of Singapore's, 14.5% of Port of Long Beach’s, and 20% of Port of Los Angeles’ traffic.
The projected annual energy demand of vessels on the corridor is estimated to be approximately 60,000 terajoules, equivalent to approximately two months of Singapore’s national electricity generation.
Shipping demand on the corridor is estimated to be around 850,000 tons of methanol and 160,000 tons of ammonia annually by 2030, displacing the equivalent greenhouse gas emissions from almost 320,000 cars annually.
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 partnership convened the first in-person stakeholder meeting of the corridor together with industry value-chain representatives, as a prelude to onboarding stakeholders to the corridor. The meeting was held during Singapore Maritime Week 2024 on April 18.
MPA was established on Feb. 2, 1996 with the mission to develop Singapore as a premier global hub port and international maritime center, and to advance and safeguard Singapore’s strategic maritime interests. MPA is the driving force behind Singapore’s port and maritime development, taking on the roles of port authority, maritime and port regulator and planner, international maritime center champion, national maritime representative and a champion of digitalization and decarbonization efforts at regional and international fora such as at the International Maritime Organization. MPA partners industry, research community and other agencies to enhance safety, security and environmental protection in our waters, facilitate maritime and port operations and growth, expand the cluster of maritime ancillary services, and develops maritime digitalization and decarbonization policies and plans, R&D and manpower development. MPA is responsible for the overall development and growth of the maritime domain and Port of Singapore. In 2023, Singapore’s annual vessel arrival tonnage crossed 3 billion gross tonnage and remains the world’s busiest transshipment hub, with a total container throughput of 39.0 million twenty-foot equivalent units.
The Port of Long Beach is a global leader in operational excellence and top-notch customer service, moving cargo with reliability, speed and efficiency. As the premier U.S. gateway for trans-Pacific trade, the Port handles trade valued at $200 billion annually and supports 2.6 million trade-related jobs across the United States, including 575,000 in Southern California and 1 in 5 jobs in Long Beach. In 2023, industry leaders named it “The Best West Coast Seaport in North America” for the fifth consecutive year. In 2023, the Port handled 8 million twenty-foot equivalent units. In the next 10 years, the Port is planning $2.2 billion in capital improvements aimed at enhancing capacity, competitiveness and sustainability.
The Port of Los Angeles is North America’s leading trade gateway and has ranked as the No. 1 container port in the United States for 24 consecutive years. In 2023, the Port generated $292 billion in trade and handled a total of 8.6 million container units, sustaining its top rank among U.S. ports. The Port remains focused on community investment, commitment to sustainability and environmental leadership, workforce development, and infrastructure improvement. San Pedro Bay port complex operations and commerce facilitate one in nine jobs across the Southern California counties of Los Angeles, Orange, Riverside, San Bernardino, and Ventura.
C40 is a network of nearly 100 mayors of the world’s leading cities working to deliver the urgent action needed right now to confront the climate crisis and create a future where everyone, everywhere can thrive. Mayors of C40 cities are committed to using a science-based and people-focused approach to help the world limit global heating to 1.5 degrees Celsius and build healthy, equitable and resilient communities.