Captain Andre LeGoubin, President, The Nautical Institute,

Captain John Lloyd, CEO, The Nautical Institute,

Captain Yves Vandenborn, Honorary President, The Nautical Institute, Singapore Branch,

Ladies and Gentlemen, Cadets,

1.             I fondly recall speaking at this same conference, and meeting many of you, back in May 2019. That was more than three years ago – three years and eight months to be exact. In the past years, the maritime world has been through a lot – move to from high to low sulphur fuel, COVID-19 pandemic, progress in digitalisation and decarbonisation. 

2.             Three and a half years on, we are here today to celebrate your golden anniversary of 50 years. A couple of weeks ago, we celebrated the containerisation of 50 years in Singapore, and this morning we visited Tuas Port for the official launch. Over the last 50 years, The Nautical Institute has made important contributions to develop maritime professionals, promote best practices and safety, and facilitate the exchange of information and ideas on nautical science. The Nautical Institute’s Singapore Branch also contributes actively to working groups, coordinates maritime training programs and engages maritime students on opportunities in the sector.  My heartiest congratulations to the Nautical Institute and on behalf of MPA, congratulations on achieving this very important 50-year milestone!

3.             I am therefore very honoured to give the keynote address today. I would like to share on three aspects. 

1. First on the global disruptions and trends. 
2. Second on the 3D strategies of shipping – Disruption, Decarbonisation and Digitalisation, which I will add a T -talent.
3. Third on how we can move forward with 3Cs – connections, collaboration and commitment.

Global Disruption

4.             First on global disruptions and trends. This must be top on everybody’s mind today.   It affects all our bottom-line. Just as we thought we might have come out of the worst of COVID pandemic, we now potentially face a global economic downturn or worse, a recession. The Russia-Ukraine war has further exacerbated supply chain disruption – food and energy prices have risen. Decisions by the US Fed will affect how economies respond. Rising inflation, rising interest rates and for some devaluation of exchange rates are worrying indicators.   

5.             At the same time, climate change impact is fast affecting many parts of the world. We witnessed how wildfires ravaged Europe, then droughts in one part of the world and severe floods in another. Geo-political risks are not to be ignored too.

6.             These are global challenges. At the company and individual levels, we need to plan for possible scenarios, what each scenario implies, hedge the risks, and if possible, and I would urge the courageous ones to find the silver lining. At the global levels, we will need to continue to focus on global solutions. In shipping, we have seen some companies have vertically integrated focusing on supply chain or technology; some have invested ahead. First movers must continue to take the lead, and willing partners must come together to nudge the adoption of new solutions together. Would you not say that during this pandemic, while all sectors go into a slowdown or even a standstill during the lockdown, one sector prevails – shipping!  Our sector remains resilient, and beyond doing our role of ensuring that goods flow around the world by our 1.8m seafarers to 8b world population on more than 63,000 vessels. And our sector continues to transform and change.

Transformation amidst disruption

7.             Transformation – this brings me to the second part of my speech. When I first joined MPA, my team and I laid out three key priorities for Maritime Singapore – 3Ds - disruption, digitalisation, and decarbonisation. This year, we added a T – Talent. Let me elaborate.

Disruption

8.             Low sulphur fuel and new technology such as 3D printing and additive manufacturing were what we had in mind when we planned for disruption. Little did we realise that the pandemic would hit us in full force, and in a “marathon” manner. 

9.             However, COVID also presented a time of strong tripartism – one pillar we hold dear in Singapore. We came together during crisis and put in place robust precautionary measures at our port terminals and port waters which allowed Port of Singapore to remain open 24/7 and play the role of catch-up port. Crew changes and its safe corridor, priority vaccination of front-line maritime workers, $36m Maritime Singapore Together Package for our companies and seafarers, contactless port operations, paperless port clearance and bunkering operations would be strong memories we will all keep. I also hope we will remember the spirit, the will, the determination, and the agility behind because that would be what bring us through in all future pandemics and crises.

10.          We also pushed forward to transform the sector with innovative solutions. MarineTech solutions have become more mainstream, and the MarineTech sector is showing great promise. Google Cloud estimated that venture capital funding for Marinetech doubled between 2020 and 2021, reaching USD $11.3 billion. Some real-life examples:

1. Instead of boarding ships physically, surveyors can now conduct simpler surveys remotely.
2. Drones are being used to make shore-to-ship deliveries more efficient. Since the Maritime Drone Estate was launched in April last year, MPA has facilitated more than 200 drone flights for shore-to-ship delivery. 

Digitalisation

11.          Shipping was already being digitised, but the momentum on digitalisation was accelerated during COVID.

1. Fortunately for MPA, we launched digitalPORT@SG^TM before COVID struck. It consolidated 16 different forms across multiple agencies into a one-stop digital platform for port clearance. This paperless port clearance, which came in handy during the pandemic, also saved an estimated 100,000 man-hours for the industry each year. Can you imagine if we have more of such projects moving forward, how much more efficient the sector can be?

2. More exciting plans are underway. For those of us who were at the International @ Sea Conference would have heard Senior Minister of State Chee Hong Tat announced that we would increasingly adopt 5G in our port waters. There are many regulatory sandboxes and trials that we would like to do in our waters. For example, the VHF Data Exchange System, or VDES. The next generation automatic identification system (AIS) will address bandwidth limitations and enable seamless data exchange for e-navigation. By improving the capacity, reliability and security of ship-to-ship and ship-to-shore data exchanges, VDES has the potential to improve navigational safety in busy waters.

3. digitalPORT@ SG^TM Phase 2 have begun. When launched, it will facilitate just-in-time marine services such as bunkering and repairs, by providing port stakeholders with real-time information to better coordinate, plan and allocate resources. This will be coupled with active anchorage management system and with the use of AI, we hope to reduce the risk of contact or collision.

4. We will also push ahead with electronic bunker delivery notes, or e-BDN. It is estimated that digitalisation of bunker delivery and documentation processes could save the bunker industry up to 39,000 man-days per year.

Decarbonisation

12.          Third D - decarbonisation.

The Maritime Singapore Decarbonisation Blueprint 2050 maps out Maritime Singapore’s ambitious plans ahead.

1. We have committed to a multi-fuel bunkering transition. In fact, transitionary fuels, such as LNG and biofuels, are already available in the Port of Singapore. MPA is working with the Global Centre for Maritime Decarbonisation and four industry-led green-shipping consortiums, to support the development of standards and supply chains for greener fuels such as methanol and ammonia. MPA has also co-funded three industry consortiums, to demonstrate the commercial and technical viability of full-electric harbour craft. I hope the scene of our vessels in the port water will change gradually yet drastically over the next 30 years.

2. Beyond greener fuels, MPA is also supporting our port terminals to achieve net zero carbon by 2050 and growing the availability of green maritime services such as carbon accounting and green financing. 

Talent Development

13.          On top of the 3Ds, we have put T-Talent back into focus. Our workforce must develop new knowledge and skills in tandem. We need to continue to attract talent into our sectors and strategise together how to develop the competencies and training of our onshore and offshore talent.   MPA and SMF, together with our unions and industry associations, are looking for like-minded partners to work with us to tackle this challenge statement and co-create plans. 

Looking Ahead 

14.          Moving forward, we need to move from Ds to Cs. – Connections, Collaboration and Commitment.

Connections

15.          We should not be looking at 3Ds on its own.  In fact, we need to see how to achieve innovative digital solutions, disruptive decarbonisation technologies, decarbonised digital solutions, and digital decarbonised approaches. 

1. For instance, as we develop smart ships fitted out with IoT sensors that allow enhanced data collection and optimisation, we need to identify the appropriate emissions-related data to collect given environmental regulations, and consider how vessels operating on future-fuels might be designed differently from the vessels of today.

2. Yet another example. Collecting the right data onboard vessels will help in reducing emissions through route and speed optimisation.

3. At the international level, this is why the Port of Rotterdam and MPA signed a Memorandum of Understanding, to establish a green and digital shipping corridor. Addressing both green and digital together, and not just one or the other, was motivated precisely by this need to address interconnections.

16.          Taking such an integrated approach to maritime transformation would mean that our people need to be adaptable and multi-disciplinary. In the future, perhaps cadets from the Singapore Maritime Academy, some of whom are here with us today, would also need to incorporate data analysis, programming, and chemical engineering, in their learning modules to operate the vessels of the future. The industry, training providers, and public sector must work together to identify these future skills and knowledge needs, and provide the appropriate training across all career levels. MPA looks forward to working with like-minded partners on this. In fact, you would be ahead of the curve than some of us, and if you are aware of some of the competencies that you want to develop, we would be more than happy to hear from you to shape your curriculum.

Collaboration

17.          Second C – collaboration. Maritime Singapore has always worked on the fundamental model of partnership and collaboration. And this helped us tide through the crisis and gets reinforced in peace time. 

1. Tripartite partnership whether it is about crew change, vaccination during the crisis, or grooming local seafarers and talent – it has always been a tripartite partnership in Singapore.  It is a model we hold dearly in Singapore. 

2. Private-public-academic partnerships – MPA’s affiliates be it Singapore Maritime Foundation, Singapore Maritime Institute, Singapore Chamber of Maritime Arbitration and the recently set up Global Centre for Maritime Decarbonisation are all examples of such partnership.  We build on each other’s strengths and leverage on our network for Maritime Singapore, and for global shipping agenda.

3. International collaborations, be it bilaterally, multilaterally, or at international platforms such as the IMO, IHO and IALA.  This is especially important when it comes to standards, governance, knowledge exchange. 

Commitment

18.          Finally, commitment. Shipping markets have enjoyed historically strong performance recently, and sentiments for the rest of 2022 or even 2023 remain largely positive. Robust earnings have allowed shipping companies to diversify into adjacent sectors, and have fuelled their investments in innovation, digitalisation, and decarbonisation.

19.          The industry will eventually face headwinds, be it in the form of weakening demand for consumer goods given global economic uncertainty, or in the form of more newbuilds being delivered in the coming years. Even when the circumstances inevitably become more challenging, as a sector, we must remain committed to investing in our future, and continue to pursue the agendas of maritime innovation, digitalisation, decarbonisation, and talent development. 

20.          On our part, Singapore has, and will, remain committed to the maritime industry. We will continue to facilitate the growth and development of all our partners in Maritime Singapore. 

1. Just earlier this morning, Tuas Port was officially launched by Prime Minister Lee Hsien Loong. We currently have three berths operational, and when fully developed in the 2040s, Tuas Port will be the world’s largest fully automated terminal with a capacity of 65 million TEUs. The scale and sophistication of Tuas Port exemplifies our commitment to the international shipping community. We will continue to welcome the world’s largest ships, offer high levels of efficiency and service, and provide the connectivity needed to support global supply chains.

2. As for our international maritime centre, Singapore is committed to staying open, and will continue to welcome businesses and talent from around the world. To ensure that SMEs also receive the support and resources they need, MPA has set up a team dedicated to SME development. They are working closely with the Singapore Shipping Association to plan out what more we can do to support our maritime SMEs.

Conclusion

21.          I spoke about 3Ds+T and how moving forward, we need to look at 3Cs. As this is my last speech I would like to express my heartfelt gratitude to the maritime community. All of you welcomed me to the sector with open arms, and were very generous with your advice, support, and camaraderie. It has also been a pleasure and privilege especially riding through the crisis

22.          I would also like to thank The Nautical Institute, for allowing me to share my thoughts and reflections here today. Congratulations once again on your 50^th anniversary, and I look forward to seeing your contributions in the next 50 years. I wish everyone a fruitful conference.