Wedoany.com Report-Oct. 22, Australia’s Port of Melbourne and China’s Port of Shanghai have established a green shipping corridor, formalized through a memorandum of understanding (MoU) signed on October 19 in China. The agreement builds on a nearly 20-year collaboration between the Port of Melbourne and Shanghai Municipal Transportation Commission (SMTC), which began in 2006.

Supported by the C40 Cities Climate Leadership Group (C40), the initiative aligns with the Clydebank Declaration and global efforts to decarbonize the maritime supply chain. The partnership will focus on reducing the environmental impact of shipping while promoting sustainable trade between the two ports.

Under the MoU, the ports plan to collaborate with industry partners including Shanghai International Port Group (SIPG), COSCO SHIPPING Lines, HAMR Energy, and ABEL Energy. The joint effort aims to explore practical measures for cleaner shipping operations, including the adoption of renewable energy, cleaner technologies, and best practices to minimize ecological footprints.

The ports will also work with shipping lines to promote the use of clean fuels, encouraging higher deployment of low-emission vessels operating between Melbourne and Shanghai. Additionally, the initiative seeks to engage energy suppliers to advance production technologies, improve efficiency, and establish an integrated supply chain system covering fuel production, transportation, and storage, with the goal of increasing low-carbon fuel availability.

China is Melbourne’s largest trading partner, accounting for 50% of container imports and 20% of container exports. The high volume of trade between the ports means the partnership has the potential to deliver significant environmental benefits, according to the Port of Melbourne.

Saul Cannon, Chief Executive Officer of Port of Melbourne, said: “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.”

The partnership reflects both ports’ commitment to sustainable shipping practices and contributes to broader international efforts to reduce emissions in maritime transport. By focusing on clean fuels, renewable energy adoption, and efficient operational practices, the green corridor is expected to promote a lower-carbon shipping route while supporting continued trade growth between Australia and China.

The MoU marks a milestone in port collaboration, providing a model for similar initiatives globally, and underscores the role of major ports in enabling sustainable maritime logistics and supporting long-term environmental goals.