SMTC To Provide Shore-Power Subsidy

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SMTC offers price discounts to vessels availing cold ironing at their ports

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The Shanghai Municipal Transportation Commission (SMTC) which oversees Shanghai port “Cold-ironing project” has introduced price discount schemes.  The purpose of these schemes is to maximize use of shore power so that they can recoup the project installation cost.  The discounts shall be flexible and matching the current bunker prices prevalent at Singapore.  By ensuring that their cold-ironing sets installed are utilized optimally, the port can avoid building excess facilities in anticipation of future use.

Some of the incentives proposed include:

  • Subsidies in construction fee
  • Regulating minimum usage norms for vessels that plug into the cold-ironing berths
  • Subsidies for power usage costs and setting up costs in accordance with international oil prices

The SMTC expects subsidies covering up to 60 % of the cost for installation of the shore-power facilities.  Half of this shall receive funds from the government’s emission-reduction program while the balance recouped from Port construction fee.

The Chinese Shanghai port in an eco-partnership with the US port of Los Angeles has signed a 3-year shore power development plan.  It is expected to complete the project by 2017.  The LA Port will make the knowledge transfer regarding rules, regulations, policies and standards, rates and incentive programs to promote the cold-ironing program.  The program will extend to develop the Yangshan Deepwater Port (Phase III).

Installation of six cold-ironing sets to power 12 berths to be used at the Yangshan Guandong International Container Terminal and Wusong International Cruise Terminal, according to the project proposal.  Two cold ironing sets have already been installed and are functioning.  More sets shall be commissioned and made available to box ships before the end of 2015.

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