OGVs that utilize shore-power when calling Shanghai will receive a flexible price discount based on Singapore bunker pricing.
Shanghai, in an effort to reduce shipping emissions, will be implementing an incentive scheme for ocean-going vessels (OGVs) calling the port to use shore-power, Lloyd's List reports.
Under the plan, which has been issued by the Shanghai DRC, Transport Commission, and Finance Bureau, vessels that utilize shore-power at the port will receive a flexible price discount based on Singapore bunker pricing.
Two shore-power facilities instalments have already been launched in two terminals, Shanghai Guandong International Container Terminal and Wusongkou International Cruise Terminal, with facilities expected to be made available to ocean-going boxships before the end of 2015.
Shanghai Municipal Development & Reform Commission says the port will receive subsidies covering up to 60 percent of the cost for installation of the shore-power facilities, half of which will come from a government emission-reduction program, the rest from the port construction fee.
The port will reportedly receive subsidies covering up to 60 percent of the cost for installation of the shore-power facilities
The government will also reportedly sponsor port operators for maintaining the shore-power equipment through a subsidy of Yuan0.07 ($0.01) per kwh.
The incentive plan was said to have been developed after a thorough study on the cases of Los Angeles, Hamburg, and Shenzhen, which all run similar programs.
The move comes as shipping emissions come under increased focus in China.
In June, it was reported that Hong Kong's under-secretary for the environment Christine Loh said that a potential low-sulfur zone to be established in the Pearl River Delta (PRD) has a high chance of success.