Towage market: opportunities and growth outstrip industry challenges

In a lively opening session, Adani Ports and Special Economic Zone chief executive for international ports and harbour services Nicolai Friis said the fundamentals of the towage market are strong, with positive demand and areas open for local operators.

The need to reduce emissions is driving changes in technology in newbuilds, but vessels still need to safely and effectively tow and manoeuvre ships in ports.  

“Technology is changing and owners need to keep up with this,” said Mr Friis. “Green tugs will be part of goals to lower emissions in the supply chain.”

He expects India to become a frontrunner in building green tugs as the nation’s government is pushing operators to source vessels from local shipyards. 150 new tugs may be needed in the next 10 years in India – and most could be built in domestic shipyards with low-emissions technology.

HFW partner Ian Chung expects there to be opportunities for local tug owners in markets where there are cabotage and crewing regulations and infrastructure investment.

“There will be more terminals and ports built and more areas to operate,” he said. “There will be more local content issues covering customs, people, equipment, etc, so it will be harder to transfer assets and it becomes more expensive to operate in some countries.”

Mr Chung said having relationships with local authorities will be important as they could offer exemptions for operating more efficiently and finding local solutions. But as regulations become stricter, there will be “less exemptions available in different jurisdictions, making it harder to bring in assets and move them across jurisdictions.”

Caterpillar global segment manager for tugs and inland waterways Andreas Perez opened the ITS Convention by explaining how tug operators face unique challenges when it comes to decarbonisation.

“Efforts to lower emissions cannot compromise the priorities of safety, reliability, efficiency and cost effectiveness for the diverse set of jobs that tugs perform,” he said.

Caterpillar is making significant investments in new propulsion systems facilitating fuel flexibility, increased operational efficiency and reduced emissions.

“Over the past 20 years, we have invested more than US$30Bn in research and development to deliver innovations and solutions tailored to maritime applications that support vessel operators,” said Mr Perez.

Riviera’s Asia Maritime Webinar Week will be held 24-26 June focusing on the costs of emissions trading systems compliance, onboard carbon capture technology and welding safety under the new SIRE 2.0 regime. Use this link for more information and to register for these webinars