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The Maritime and Port Authority of Singapore (MPA) has announced that it will be extending its port dues concession for container vessels, bulk carriers and offshore support vessels (OSVs) until June 30, 2018, but will be withdrawing the relief measures from July 1.

The temporary economic initiatives were rolled out progressively between November 2015 and April 2016, and will continue to be in place during the first half of next year, but the MPA has now urged shipping firms to "ensure that your organisation makes plans for the transition once the relief measures are withdrawn".

Between now and June 30, the Asian port says it will continue to grant an additional 10 percent concession on port dues payable by ocean going container vessels carrying out cargo operations with a port stay of not more than five days.

The extra 10 percent concession is granted on remaining port dues payable after the port dues concession for Green Port Programme (GPP), if applicable, and the existing 20 percent port dues concession for container vessels first introduced in 1996.

The 10 percent concession on port dues payable by bulk carriers carrying out cargo operations with a port stay of not more than five days will also be extended.

The MPA will also be extending the incremental concessionary rate of $0.50 per day for OSVs from the current 90 days to 180 days.

The port authority said the decision to extend the port concessions was "in light of the challenges facing the shipping, bulk and offshore marine industry".

Green Port Programme (GPP)

Launched in July 2011, the Green Port Programme (GPP) offers concessions to ships calling at the port of Singapore using scrubber technology or burning low-sulphur fuels as part of the Maritime Singapore Green Initiative to encourage ocean-going vessels to reduce the emission of pollutants.

Under the GPP, during the entire port stay of five days or less within Singapore port limits (from the point of entry into Singapore port limits till the point of exit), ship will be granted a 25 percent reduction in port dues or a 15 percent reduction while at berth.

To qualify for the 25 percent reduction, ships using approved scrubber technology should maintain its use throughout the port stay. Vessels burning clean fuels should initiate the switch to clean fuels for the main engine and auxiliary engine before entering Singapore port limits and use them throughout the port stay.

To qualify for the 15 percent reduction in port dues, ships using approved scrubber technology should maintain its use while at berth. Ships burning clean fuels should switch to clean fuels for the main and/or auxiliary engine within one hour after completion of berthing. The use of clean fuel should be maintained throughout while the ship is at berth. The switch over from clean fuels should only be initiated one hour before unberthing.

Maritime Singapore Green Initiative

The Maritime Singapore Green Initiative comprises three programmes: the Green Ship Programme, Green Port Programme and Green Technology Programme.

The Green Ship Programme (GSP) encourages Singapore-flagged ships to reduce carbon dioxide and sulphur oxides emissions. Qualifying Singapore-flagged ships can enjoy a reduction of initial registration fees and a rebate on annual tonnage tax.

The Green Technology Programme (GTP) provides a grant of up to 50 percent of total qualifying costs to co-fund the development and adoption of green technological solutions Grants are capped at S$2 million per project, with an increased cap of S$3 million per project for solutions that can achieve more than a 10 percent reduction in emission levels.