Malaysia Should Establish Green Shipping Corridor to Accelerate Maritime Industry’s Green Transition – Expert

KUALA LUMPUR, Oct 10 – Malaysia should establish a green shipping corridor to accelerate the maritime industry’s transition towards greener operations through closer coordination between the government and industry players, said an expert.

Orkim Bhd non-independent executive director and chief executive officer Captain Cheah Sin Bi said the corridor would provide a practical starting point for decarbonising shipping by aligning vessel investments, alternative fuel choices and bunkering infrastructure along established cargo routes.

“If we want the industry to move to green shipping, the challenge is determining what types of ships to build to comply with upcoming regulations and which alternative fuels to use, whether methanol, ammonia, electricity or biofuel.

“But if we establish a green shipping corridor and know that ports such as Penang Port and Port Dickson have methanol bunkering facilities, for example, ship operators could build dual-fuel methanol ships,” he said.

Cheah said this during a panel discussion titled “Strengthening Malaysia’s Downstream Petroleum Value Chain and Identifying Gaps and Enabling Factors”, organised by Maritime Network Sdn Bhd and Universiti Malaysia Terengganu (UMT) here today.

However, he said a lack of coordination could create challenges if ports developed bunkering facilities for a different fuel after operators had committed to specific vessel technologies.

“If we build dual-fuel methanol vessels but Port Dickson or Penang Port subsequently develops an ammonia bunkering hub, that would create a mismatch. 

“Therefore, the choice of fuel and the supporting infrastructure must be aligned from the outset,” he said.

Meanwhile, UMT Faculty of Maritime Studies Associate Professor Dr Masha Nur Salsabiela Menhat said Malaysia should focus not only on attracting more bunker suppliers but also on building a reputation for reliable, transparent and high-quality services.

She said the country’s competitiveness depended not solely on pricing but also on the overall value and confidence it offered international shipping operators.

“We have to focus on transparency and trust in the bunkering business. Ship owners and operators need clear information about fuel specifications, pricing, quantity, quality and delivery arrangements.

“Additionally, bunker fuel quality is one of the main factors that ship owners and operators look at, as it is extremely important. Contaminated fuel or fuel that does not meet the exact specifications may cause operational problems for the vessel,” she added.