Zaitoun Green Shipping chief executive and president of the International Maritime Consortium Mohammed Zaitoun has emphasised the importance of efficiency in the market as IMO 2020 approaches
He said “We are moving rapidly towards IMO 2020 and the shipping industry needs to keep up its pace to align itself with the new regulations and the future. There is a call for change that needs to be addressed in the industry; more shipowners and decision makers need to diversify their business models to stay ahead of the curve, maintain their sustainable growth and preserve their continuity in the market.”
He was speaking at the ninth Gulf Intelligence Energy Market Forum held 30 September - 1 October 2019. The forum’s theme was ‘IMO2020- Megatrends and the Energy Transition’ where key industry players and decision makers shared their insights on the topic during sessions and roundtables.
Commenting on his participation, Mr Zaitoun said “I’m here today… to emphasise the importance of the efficiency of vessels being manufactured in the market. The consumer needs to be aware of the technicalities of the ships they are purchasing including high standard shipbuilding processes, and efficient and profitable assets. At Zaitoun Green Shipbuilding, we aim to be among the few who stay ahead in the market through creating high utilisation eco-efficient vessels.”
Mr Zaitoun said “According to market research, LSFO is priced around US$200-300 per barrel. This is an alarming indicator for shipowners and calls for immediate action. Keeping sustainable standards in the shipbuilding process is a key differentiator when it comes to achieving greater efficiency and maximising performance on large merchant vessels.
“Ships are responsible for more than 18% of some air pollutants. Therefore, there is a need to change the ships being built to be more sustainable and proactive towards environmental compliance. According to a report from the European Union, international shipping contributes to 2.5% of global greenhouse gas emissions annually, and it is predicted to rise between 50% and 250% by 2050.”
He said that conferences, workshops and forums are being held across the UAE to prepare for IMO 2020 and the future of LNG fuels and cleaner energy forms.
Mr Zaitoun commented “These changes need to be applauded, as they are efforts in which other vital parties shall collaborate with the government such as shipowners, decision makers, key players and investors in the market. These entities need to carry out the needed tangible actions to tackle the market challenge of producing cleaner energy, in addition to the financial institutions that should change their finance methods to enhance maritime investment. Eco-efficient vessels demand a premium price at newbuild stage, are more likely to be chartered, maintain asset value over time, have a longer lifespan and ensure profitability.”
Zaitoun Green Shipping has initiated a sustainable and green initiative through the International Maritime Consortium to ensure the efficiency of ships and create a new business model for the market. The company contributed to the construction of the world’s greenest ultra large container vessels. Zaitoun Green Shipping said the vessels resulted in 60% lower CO2 output per TEU compared to other large container vessels in the market.