Randy Selvaratnam became Chief Commercial Officer for Singapore-based regional logistics provider, Swire Shipping, in June 2024. In this interview, he speaks with Business Advantage PNG about the prospects for growth in shipping volumes in and out of PNG, rising freight costs and the move to sustainable biofuels.

Swire Shipping’s Randy Selvaratnam

Business Advantage PNG (BAPNG): What trends are you seeing from the resources sector in terms of shipping volumes to and from PNG?

Randy Selvaratnam (RS): Volumes have been fairly stable for some time now. In the absence of any major developments, further progress on planned LNG projects may serve as a catalyst for future growth.

“The global container shipping industry is facing multifaceted challenges with rising demand, geopolitical tensions and environmental issues.”

As the projects come along, we are able to cater to that through the various parts of our business, and obviously, the Papua LNG project is a key one.

BAPNG: What are the key issues impacting Swire Shipping’s cost of freight into PNG?

RS: The global container shipping industry is facing multifaceted challenges with rising demand, geopolitical tensions and environmental issues.

Freight spot rates are on the rise and delays and congestion are being observed at ports around the world.

This has been particularly evident in the Asian ports recently, where congestion has caused disruptions in shipping schedules and delays which could potentially impact deliveries into PNG.

Swire Shipping’s Honiara Chief. Photo Credit: UWL/Swire Shipping

BAPNG: What are your current planned investments in the PNG market?

RS:  We understand the importance of service and reliability for customers, which is why in 2023 we launched our first ever fixed-schedule weekly service which connects PNG and the Pacific Islands with Southeast Asia, Europe, India and the Middle East.

We have two other fixed fortnightly services we offer into Papua New Guinea that come out of China and then we also have a fixed fortnightly service that runs out of Australia.

BAPNG: How is Swire Shipping addressing ESG (environmental, social and governance) concerns?

RS: At the moment, our focus is on operational efficiencies across the fleet and in the use of energy-efficient technology that allows us to reduce emissions.

Over the past seven years, we have invested in a modern, environmentally responsible fleet.

We have been looking to provide pathways for customers through practical, verifiable and cost-effective means, and have since developed the Swire Shipping Green Voyages Program, which will offer customers the ability to abate the carbon emissions of their cargoes by using sustainable biofuels.

Recently we completed a sustainable B24 biofuel (which contains 24 per cent used cooking oil methyl ester) trial in the Transpacific Sun Chief Express Ocean service, which is projected to reduce well-to-wake emissions to our customers by an estimated 15 per cent.