b'28American Journal ofTransportation ajot.comSoutheast Asian ports hopeful of post- Bidens Buy Clean policy pandemic surge in breakbulk demandshould boost domestic steelASEAN ports are growing, and breakbulk is a big contributor. U.S. industry emits less carbon than global alternatives.By Manik Mehta, AJOT By Peter Buxbaum, AJOTInSeptember,theWhiteFederal construction spend-Now that the lockdowns and restrictionsAfterthepandemicdownturn,SoutheastHouse announced that the fed- ing represents billions of dollars linked with the pandemic are being graduallyAsiaappearstobeonthepathtobecomingeral government will prioritizeannually. During the 12 months relaxed or even phased out in many parts of theone of the worlds fastest recovering regions thepurchaseoflow-carbonending August 2022, total fed-world, Southeast Asian ports are hoping thatMalaysias GDP, for example, rose 14.2% in thematerials for federal construc- eralconstructionamounted this will give a strong impetus to cargo traffic,July-September 2022 period from a year ago,tion projects. That is likely toto$25billion,accordingto including the breakbulk segment.according to Bank Negara Malaysia - and somebenefit the steel industry in theCensusBureaustatistics,up Indeed,manyinSoutheast Asiadiscernpundits predict that Southeast Asia is well posi- United States, which produces2.8% from August 2021. The apropensitytowardsbreakbulk,heavylifttioned to drive growth in the cargo sector. steel with a lower carbon foot- BidenadministrationsBuy cargo,etc.,ascostsofcontainershipmentsSoutheast Asia has major energy sector- print than some internationalCleanpolicywillalsocover have soared exacerbated by supply chain dis- related projects that are either in the pipelinealternatives. federally-funded projects, such ruptions that have caused considerable distressoralreadycompleted;theseareexpectedtoGlobally, the steel indus- as the $120 billion in infrastruc-to both shippers and their importers.benefit the breakbulk segment.These projectstry,whichproduces1.9bil- turespendingbeingadmin-For some of us shipping to the U.S., the one example is Singaporean developer Sun- lion metric tons of crude steelisteredbytheDepartmentof chaos and long delays in shipment clearancesseaps floating solar farm and energy storageannually, is responsible for 3.7Transportation.Theprogram atsomeAmericanportsgaveussleeplessfacility on the Indonesian island of Batam - aregigatons of direct and indirectalso intends to draw in state and nights and there was a general feeling that weconsidered to be crucial for generating strongcarbon dioxide emissions, orlocal government construction, have to look for alternatives that would ensuredemand for breakbulk handling.10%ofthetotal,mostlybywhich accounted for over $330 smoothtrading,saidMarkNguyenwhoseThe Philippine conglomerate Ayala is build- using blast furnaces that burnbillionbetweenSeptember company organized shipments from Vietnaming five wind farms in Vietnam. The projects, tocoal to produce iron and steel.2021 and August 2022. to the West Coast last year.be developed by its subsidiary AC Energy, areMostdomesticsteelmak-expected to deliver a combined capacity of 440ersuseelectricarcfurnacesi nflationr eductiona cte nergys ectorg rowth megawatts once fully operational. As turbine(EAF)toprocessrecycledTheInflationReduction Experts predict that growth in Southeastand project sizes grow, we expect an increasesteel, accounting for the lowerAct, which passed Congress Asiasenergysectorwilldrivebreakbulkin demand for all types of multipurpose ves- emissions.Decarbonizationand was signed by President demand with operators relying on heavy liftsels and general cargo ships, predicts OscareffortsareongoingfortheJoe Biden over the summer, servicesandcomplexlogistics,asthemari- Guzman, Filipino analyst who closely monitorssteelindustryglobally,andprovided $4.5 billion in fund-time dedicated Wallem Ship Agency has beenenergy trends in Southeast Asia.furtherinnovations,suchasingtotheGeneralServices saying. Demand for wind turbines is expectedusing hydrogen as a steelmak- Administration,theDepart-toremainstrong,eventhoughsomebottle- o VercoMingb ottlenecks ing fuel and refining iron orementofTransportation,and necks in traffic would continue to push freightBut many also see challenges facing break- electrochemically,areonthethe Environmental Protection rates in the ASEAN (Association of Southeastbulk operators in the region. Though significanthorizon,andcouldbecom- (POLICYcontinued on Asian Nations) region. 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