- The estimated value of the bunker fuel market for the whole world is about USD 110 billion a year in 2020.
- The minister emphasized the government’s commitment in supporting Malaysian companies and tanker owners.
- The huge potential growth of bunkering activities in Malaysia can contribute to the country’s economy, especially as a catalyst for a more dynamic maritime ecosystem.
Several discussions and engagement sessions have been held between Malaysia’s Ministry of Transport, the Marine Department, Malaysia Shipowners’ Association (MASA) and the Sabah Sarawak Shipowners Association (SSSA) to discuss reforms to build Malaysia as a bunkering hub, says Malaysia’s Transport Minister Anthony Loke.
Malaysian bunkering industry new reforms
He made the announcement during the signing of a Memorandum of Understanding (MoU) between Malaysia Shipowners’ Association (MASA) and Malaysia Bunkering Association (MBA) attended by Manifold Times on Friday (5 May).
Loke said several agreements have been reached to improve the bunkering industry in Malaysia:
- The government will redouble efforts to ensure that all obligations and conditions under the International Convention for the Prevention of Pollution from Ships or MARPOL are implemented, including the use of double-hull double-bottom ships in order to improve the bunkering industry competitiveness and environmental sustainability.
- For tankers with single-hull double-bottom delivered before July 1996, they are allowed to carry oil and their operation can continue subject to the following conditions:
1) The tanker must be less than 5,000 tonnes deadweight;
2) Not allowed to carry heavy grade oil (HGO);
3) Restricted to navigate within Malaysian waters only; and
4) The ships must be classified with any Organization recognised by the Malaysian Marine Department with the appropriate Class Notation.
- For tankers delivered after July 1996, those tankers with 600 deadweight and above must comply with the requirements contained in Regulation 19, MARPOL ANNEX I before they can be registered as Malaysian vessels
- The aforementioned terms and conditions will come into force through a new Malaysia Shipping Notice (MSN) which will be issued by the Malaysian Maritime Department in this month, which is May 2023, and is expected to come into force on 1 June 2023.
- These policies take into account the needs and wishes of industry players in Sarawak and Sabah, as well as inland areas or islands where they use small vessels and usually consist of single hull vessels or licensed boats.
Potential of bunkering activities
He added the huge potential growth of bunkering activities in Malaysia can contribute to the country’s economy, especially as it can be a catalyst for a more dynamic and competitive maritime ecosystem.
“The estimated value of the bunker fuel market for the whole world is about USD 110 billion a year in 2020. With a growth of 4% annually, the size of the bunkering market will reach USD 160 billion in 2030,” he said.
Government’s support
The minister emphasised the government’s commitment in supporting Malaysian companies and tanker owners especially those who are willing to invest capital in double hull double bottom vessels and modern equipment that can offer high quality bunkering services in line with Malaysia’s goal of becoming a world-class bunkering hub.
Sustainable shipping
He also urged all parties to take bold steps in investing and participating in the green fuel wave which will lead to new lucrative opportunities.
“The development in sustainable shipping fuel such as methanol which are produced by renewable energy will become more rapid in the coming years,” he said.
Did you subscribe to our Newsletter?
It’s Free! Click here to Subscribe.
Source: Manifold Times
