Advertisement

Hong Kong warned fuel slug may turn lines away

Shipping firms seek extension of subsidies for switch to cleaner marine fuel, saying a new law will widen the cost divide with Shenzhen

Reading Time:2 minutes
Why you can trust SCMP
Shipowners estimate that changing over to the cleaner fuel will add up to US$1.5 million to a line's annual fuel bill. Photo: K.Y. Cheng

Ships calling at Hong Kong will face higher costs when legislation requiring vessels to switch to cleaner marine fuel upon berthing is passed next year.

Advertisement

Some carriers may, as a result, switch to neighbouring ports in Shenzhen.

To prevent this, shipowners said, the government should consider extending a scheme that subsidises shipping lines – many of which are expected to suffer losses this year – for the extra cost of the clean fuel.

However, a government official said, an extension is unlikely.

The city has been in talks with the Shenzhen government to create a low-emissions zone in the waters around the Pearl River Delta, but steps taken by its mainland neighbour remain based upon voluntary action by carriers.

Advertisement

Hong Kong is taking a tougher line and will require vessels to use extra-low-sulphur diesel upon arriving at berths at Kwai Chung Container Terminal from January 2015.

Advertisement