Australia’s Port of Melbourne and China’s Port of Shanghai have joined forces to establish a green shipping corridor.

The ports formalized their partnership with a memorandum of understanding (MoU) signed on October 19 in China, culminating from a nearly two-decade-long partnership between the Port of Melbourne and Shanghai Municipal Transportation Commission (SMTC), which commenced in 2006.

The joint initiative, supported by the C40 Cities Climate Leadership Group (C40), will bring together Port of Melbourne and SMTC in response to the Clydebank Declaration and the broader decarbonization of the maritime supply chain.

As part of the agreement, the ports intend to:

• Collaborate with industry partners – including Shanghai International Port Group (SIPG), COSCO SHIPPING Lines, HAMR Energy, and ABEL Energy – to explore avenues to implement measures to reduce the environmental impact of the shipping industry.
• Focus on environmentally sustainable practices, such as the adoption of cleaner technologies, use of renewable energy sources, and implementation of best practices to minimise the ecological footprint of shipping activities.
• Work closely with shipping lines seeking to promote the adoption of clean fuels, to increase the usage of clean-energy-powered ships operating between Shanghai and Melbourne.
• Explore opportunities with energy suppliers to accelerate breakthroughs in production technology, improve efficiency and cost control, and establish an integrated supply chain system covering production, transportation, and storage to boost low-carbon fuel supply capacity.

According to the Port of Melbourne, China is its largest trading partner, accounting for 50% of total container imports and 20% of container exports. With the high volume of trade between both ports, this partnership has the potential to provide material benefits for the environment, the Australian port stated.

Saul Cannon, Chief Executive Officer of Port of Melbourne, commented: “This MoU is a significant development in our work towards decarbonising the supply chain. Given Australia’s position as an island-nation that heavily relies on sea freight, we have a key role in global efforts to decarbonise shipping.

“As Australia’s largest container port working together with the world’s largest container port, we are well-placed to lead by example towards a greener future for our industry. We look forward to working with our industry partners to progress this initiative.”