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SAFETY4SEA

IBIA: Key priorities to shape the bunker industry’s future positively

by Alexander Prokopakis
January 10, 2024
in Opinions
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As the new Executive Director of IBIA since September 2023, Alexander Prokopakis refers to key priorities on the agenda, highlighting that a multifaceted approach addressing technological, regulatory, and operational aspects as well as collaboration are vital for a more sustainable future. In this regard, IBIA will focus on improving transparency and member services.

Furthermore, Alexander Prokopakis emphasized the need to delve deeper into the specifics, particularly the formulation of regulatory provisions, during the next IMO MEPC discussions regarding marine fuels. Addressing the finer details is crucial for stakeholders to fully grasp and prepare for the implications related to the implementation of mid-term measures aimed at reducing greenhouse gas (GHG) emissions from vessels, he argues.

SAFETY4SEA: What are the top priorities on your agenda taking the helm as Executive Director of IBIA?

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Alexander Prokopakis: The IBIA Board and Chair direct and guide our overall strategy, I am keen to enhance stakeholder and membership engagement. This involves cultivating relationships with essential stakeholders, such as industry participants, governmental entities, and environmental groups, while encouraging open dialogue and teamwork to tackle shared issues. Additional focal points encompass industry advocacy, environmental sustainability, and technology integration. Prioritising transparency and improving member services is also vital. These efforts aim to provide superior support to our members, fostering an environment conducive to expanding our membership base.

S4S: What will be the biggest challenges for the maritime industry from your perspective? How these will affect the industry and how are you preparing to face them?

A.P.: From my perspective, the maritime industry faces several critical challenges, each requiring strategic foresight and a well-prepared approach. The key challenges include:

  • Decarbonisation: The increasing emphasis on sustainability and the global commitments to reduce carbon emissions have placed the maritime industry under immense pressure. Adhering to stringent decarbonisation goals requires significant investments in alternative fuels, propulsion systems, and energy-efficient technologies. My approach to addressing this challenge involves staying abreast of advancements in clean energy solutions, fostering collaborations with green technology innovators, and developing a comprehensive roadmap for the gradual transition to eco-friendly practices.
  • Regulations: The maritime industry operates within a complex web of international and national regulations that are subject to frequent updates. Navigating this regulatory landscape demands a proactive approach to compliance. I emphasize maintaining a robust understanding of current and upcoming regulations.
  • Safety : Safety remains a perennial concern in the maritime sector. Mitigating risks requires a multifaceted strategy that encompasses rigorous training, technology integration for real-time monitoring, and a culture of continuous improvement. Training and upskilling of seafarers and shoreside workers will become increasingly critical if we are to avoid bottlenecks to decarbonization. Our commitment to safety is paramount and we need to keep delivering the message of Safety First.
  • Cybersecurity: With the increasing digitalisation of maritime operations, cybersecurity has emerged as a serious The industry is vulnerable to cyber threats that can compromise vessel operations, data integrity, and overall security. I advocate for the rapid progress of digitalisation in the bunker and shipping industry.

In anticipation of these challenges, we at IBIA are consistently engage in industry research, collaborating with regulatory bodies, and actively seek partnerships with experts in sustainability, safety, and digitalisation.

S4S: Are you satisfied with progress made towards maritime decarbonization so far? What would you like to see up to 2030?

A.P.: It is unrealistic to think that maritime decarbonisation can go any quicker. The unanimous adoption by IMO Member States of the 2023 IMO GHG Strategy with a “net-zero” goal “by or around” 2050 is a remarkable achievement and demonstrates significant progress to date when you consider that 10 years ago there was no agreed international GHG reduction target for shipping and IMO had suspended discussion of an economic instrument for reducing emissions from shipping.Looking ahead to 2030, I anticipate the adoption of a global GHG fuel standard, entered into force and implemented along with a global measure agreed that closes the cost gap between hydrocarbons and zero/near-zero carbon fuels.

S4S: What are the key actions to make a step change in shipping industry’s performance across a zero-emission future?

A.P.: Achieving a step change in the shipping industry’s performance toward a zero-emission future requires a multifaceted approach that addresses technological, regulatory, and operational aspects.

Key actions for a step change in the shipping industry’s performance towards zero emission include:

  • Investment in green technologies: To catalyse a step change, substantial investment in research and development of green technologies is imperative.
  • Regulatory advocacy and compliance: Advocate for and actively participate in the development of robust international regulations that incentivise and mandate the adoption of zero-emission technologies.
  • Financing mechanisms for green initiatives: Develop and advocate for financial mechanisms that support the adoption of zero-emission technologies.
  • Lifecycle assessment and circular economy practices: Consider the entire lifecycle of vessels, from design to decommissioning, to minimise environmental impact.
  • Industry collaboration and knowledge sharing: Foster collaboration within the bunker and shipping industry to share best practices, research findings, and innovative solutions.
  • Capacity building and training: The transition to zero-emission technologies necessitates a skilled workforce capable of operating and maintaining advanced propulsion systems.
  • Awareness and stakeholder engagement: Raising public awareness regarding the importance of sustainable bunker and shipping operations and garnering support from various stakeholders, including customers, investors, and the general public.

Undertaking these actions, I believe that the bunker and shipping industry can make significant strides toward a zero-emission future, driving a step change in performance and contributing to a more sustainable and environmentally friendly maritime sector.

S4S: What needs to be further discussed/ clarified at next IMO MEPC with respect to marine fuels?

A.P.: At this point, it’s essential to focus more on the finer details, specifically the drafting of regulatory provisions, of the mid-term measures aimed at reducing GHG emissions from vessels. Without this crucial step, it remains challenging for stakeholders to comprehensively understand and prepare for the implications associated with the implementation of these measures.

S4S: How can industry stakeholders best collaborate in support of sustainable development?

A.P.: Collaboration among industry stakeholders is paramount for achieving sustainable development.  Sustainable development requires a collective effort from industry stakeholders, and effective collaboration can drive meaningful change, this can be achieved in with the adoption of the following strategies:

  • Establishing common goals
  • Open communication channels
  • Cross-sector partnerships
  • Knowledge sharing and best practices
  • Inclusive Decision-making
  • Resource pooling
  • Setting standards and certifications
  • Advocacy and public engagement
  • Long-term commitment

By embracing these strategies, industry stakeholders can form a cohesive and dynamic network dedicated to sustainable development. This collaborative approach not only addresses immediate challenges but also creates a resilient foundation for the industry’s long-term environmental, social, and economic sustainability.

S4S: In your view, what has been a remarkable development/Innovation you have seen on the sustainability front in the maritime industry?

A.P.: Considering that the bunker and shipping industry in general is a slow moving, resilient to change industry, one remarkable development is the increasing adoption of alternative fuels and energy-efficient technologies to reduce the environmental impact of maritime operations like: LNG (Liquefied Natural Gas), hybrid and electric propulsion systems, wind-assist and sail technologies, emission-reducing scrubber systems, smart ship Ttchnologies for efficiency.These developments represent a shift toward a more sustainable and environmentally conscious maritime industry.

S4S: What do you think are the industry’s key strengths and weaknesses? How would you like to see it evolve?

A.P.: Bunker industry’s key strengths include:

  • Critical role in global trade as bunkers fuel the global shipping fleet. The bunkering industry plays a crucial role in supporting global trade by providing the necessary fuel for vessels, enabling the movement of goods across oceans and contributing to the functioning of the global supply chain.
  • Strategic location of bunkering hubs. Bunkering hubs strategically located at major ports around the world contribute to the industry’s efficiency. These hubs serve as key nodes in global maritime routes, providing vessels with convenient access to fuel supplies.
  • Technical expertise. The industry possesses technical expertise in handling and transferring various types of marine fuels. Bunker operators are skilled in ensuring the safe and efficient delivery of fuels to vessels of diverse sizes and types.

Some key weaknesses are:

  • Quality control and contamination risks. Ensuring the quality of bunkered fuels is a critical aspect.
  • Regulatory complexity. The bunkering industry operates within a complex regulatory framework that includes international and regional regulations. Navigating these regulations can be challenging, and compliance requirements may vary across different jurisdictions, leading to operational complexities.
  • Market volatility and price fluctuations. The bunkering industry is influenced by the volatility of oil prices and market fluctuations. Rapid price changes can impact the financial stability of bunkering companies and create uncertainties for both suppliers and buyers.

To shape the bunker industry’s future positively, I would like to see evolution in the following areas: transition to cleaner fuels, stringent quality control measures, digitalisation for transparency, explore green bunkering initiatives. By evolving in these directions, the bunker industry can build on its strengths, address weaknesses, and become a more sustainable, technologically advanced, and socially responsible global player.

S4S: If you could change one thing across the industry from your perspective, what this would be and why?

A.P.:

  1. Transparency: Transparency can have a huge impact in the bunkering industry due to its role in the global supply chain, the significance of fuel quality, and the potential environmental and financial impacts. In my opinion transparency is crucial for the following reasons.
  2. Customer confidence: Transparent and open communication about fuel specifications, pricing, and the bunker process builds trust with customers. When stakeholders, including shipowners and operators, have confidence in the transparency of bunker operations, it fosters stronger business relationships.
  3. Environmental compliance: Bunker fuels are subject to environmental regulations, and transparent reporting is essential to demonstrate compliance with emission standards. Quality assurance: Transparent reporting on the quality and composition of bunkered fuels is crucial for ensuring compliance with international standards
  4. Mitigating fraud and contamination: Transparency in the bunker process helps mitigate the risk of fraud and fuel contamination.
  5. Regulatory alignment: The bunker industry is subject to evolving international and regional regulations. Transparency ensures that all stakeholders are well-informed about regulatory changes and can adapt their operations accordingly, reducing the risk of non-compliance. Prioritising transparency in the bunker industry is pivotal for its sustainable development, environmental responsibility, and the overall integrity of global maritime operations.

S4S: What is your key message to industry stakeholders to foster a more sustainable future for shipping?

A.P.: As we navigate the complex waters of the maritime world, it is incumbent upon us to chart a course towards a sustainable future. Our actions today will shape the industry for generations to come.  The maritime industry has weathered storms throughout history. Embrace resilience and adaptability as we face the challenges ahead of us. Together, let’s shape a future where the shipping industry is not just a global force for trade but a beacon of sustainability, stewardship, and responsibility.

 

The views presented are only those of the author and do not necessarily reflect those of SAFETY4SEA and are for information sharing and discussion purposes only.

 

IBIA: Key priorities to shape the bunker industry’s future positivelyIBIA: Key priorities to shape the bunker industry’s future positively
IBIA: Key priorities to shape the bunker industry’s future positivelyIBIA: Key priorities to shape the bunker industry’s future positively
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Alexander Prokopakis

Alexander Prokopakis

Alexander is the Executive Director of IBIA. Under the direction of IBIA’s Chair and Board he is leading the Secretariat, heading all the activities of the organization and he is responsible for the overall management of the Association. Alexander was the founder, CEO and the architect of probunkers. Prior to founding probunkers, he served Mamidakis Brothers Group as a senior executive, leading all of the Group’s Shipping, Bunkering and Aviation activities, through its respective companies: JetOil, JetTank and STYGA Compania Naviera. Mr. Prokopakis has over 25 years of professional experience in leadership positions, over which he has attained deep knowledge and expertise mainly in the industry of shipping and bunkering. He is a Graduate of St. John’s University with an MBA in Executive Management and holds a BSc Degree in Business Management from the State University of New York.

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