Sunday, October 26, 2025

US $20B backing, stability key to Argentina’s mining push


Argentine President Javier Milei with US President Donald Trump. (Image courtesy of US embassy in Argentina.)

Argentina’s push to unlock vast lithium, copper, oil and gas reserves depends on President Javier Milei’s political stability and continued support from the United States, analysts say.

As voters prepare to head to the polls, Milei’s administration faces a critical test. Experts at RXN Group’s “Election Day Argentina: Milei, Minerals, and Money” briefing warned that Sunday’s election could determine whether the president consolidates power or plunges the country back into political and market turbulence.

Milei rose to power on a wave of outsider appeal but without an established political base. His coalition, La Libertad Avanza, remains fragile, and a 14-point defeat in Buenos Aires province exposed the limits of his combative style. “Milei understands he must now build consensus,” said political reporter Gabriel Ziblat. “He can’t govern by aggression alone.”

Despite the political uncertainty, Argentina’s economy has shown rare signs of stability. The US Treasury’s $20-billion support package underscores Washington’s strategic bet on Milei’s reforms and the country’s mineral wealth. “It’s a major wager,” said Ryan Berg of the Center for Strategic and International Studies. “If Argentina succeeds, it could become the model for deeper US partnerships across Latin America.”

Analysts cautioned that a loss of more than 10 points could trigger market volatility and weaken Milei’s congressional leverage. Even a narrower setback, however, may leave him able to govern—if he moderates his tone and delivers economic results.

Lithium, oil and gas

For investors, Argentina’s natural resources remain a powerful draw, provided infrastructure and political stability catch up. “The provinces are where the real opportunities lie,” said Argentine journalist Guadalupe Vázquez. “But none of it works if the macroeconomy collapses.”

Ziblat argued that credible macroeconomic management and deeper provincial engagement from foreign investors, especially from the US, will decide whether the mining sector accelerates or stalls. Berg described Washington’s $20-billion Exchange Stabilization Fund commitment as both a strategic gamble on Milei’s reform path and a signal that Argentina can offer predictable conditions for large-scale projects. Confidence, he noted, is crucial in mining, where long lead times and heavy capital costs demand policy continuity.

Not since the free-market revolutions of 1990s Eastern Europe has a leader attempted to rewrite the investment playbook so completely, and so quickly, as Milei. Already, he’s witnessed the $4.1-billion BHP (ASX: BHP) and Lundin Mining (TSX: LUN) tie-up over Filo Corp. in the country, as well as Rio Tinto’s (ASX: RIO) $6.7-billion purchase of Arcadium, which has two of its three lithium projects in Argentina.

Infrastructure, however, remains the sector’s main bottleneck, the panellists said. Many high-grade deposits sit far from paved roads and export hubs, inflating costs and slowing timelines. Analysts pointed to the revival of the Belgrano Cargas state-owned freight network, now moving to tender with open-access rules that allow mining firms to operate their own trains, as evidence that the government is prioritizing logistics to connect northern mining provinces with ports.

Integrating rail into mining production enables the sector to move large volumes of raw materials and key components required for the installation and operation of mining projects, a costly process demanding major investment, they said.

Clear rules

Regulatory stability is emerging as the other critical pillar. The government’s Regime for Large Investments (RIGI) seeks to anchor multibillion-dollar projects with tax and legal certainty while promoting coordination with provincial governors, who control key mining permits under Argentina’s federal system. Panellists said US firms should “go local,” following China’s province-level strategy that has led to swift deals often bundled with infrastructure.

If the current policy mix endures, analysts expect an industrial and export surge led by the Vaca Muerta shale formation. Oil alone could generate about $30 billion annually within five years, which is roughly on par with Argentina’s historic soy exports. Shale gas, lithium and potential copper output could further strengthen the country’s role in global energy transition supply chains.

However, market jitters over exchange-rate policy and election outcomes can quickly unsettle financing conditions, panellists warned. Sustained coalition-building and disciplined communication will be as vital as the legal framework itself.

The consensus: Argentina’s geology offers a rare opportunity, but only consistent rules, reliable infrastructure and a durable US–Argentina alignment will turn resources into revenues. 

Without those, investors may look to Chile or to Chinese-financed projects that move faster from pit to port.

 

Royal Navy Starts Trials with Repurposed PSV Transferred from RFA

Royal Navy minehunter Stirling Castle
Stirling Castle now underway for the Royal Navy after a transfer from the RFA (Royal Navy)

Published Oct 26, 2025 3:08 PM by The Maritime Executive

 

The former commercial vessel that was repurposed in 2023 by the Royal Fleet Auxiliary as a “mothership” to host various autonomous minehunting systems has now resumed operations for the Royal Navy. HMS Stirling Castle sailed for the first time under the trademark White Ensign as a Royal Navy warship after a difficult period with the RFA.

The United Kingdom government acquired the ship in 2023 at a cost of $50 million from the Norwegian company Island Offshore. She had begun life as an offshore support vessel named MV Island Crown, built by Vard in 2013. Measuring 317 feet, the ship offered services in the oil and gas and wind sectors. 

Following her acquisition by the Ministry of Defence, she underwent conversion at HM Naval Base Devonport, where she was transformed into a vessel dedicated to support mine hunting missions under the operations of RFA, a civilian-manned naval auxiliary fleet that provides logistical and operational support to the Royal Navy and Royal Marines.

Due to insufficient manpower as well as reports in the media of mechanical problems, Stirling Castle, however, only completed a few missions and spent much of her time idle. Navy Lookout reported in August 2024 she had been idled due to problems with her deck crane. In July 2025, she was formally commissioned into Royal Navy service. 

According to the Royal Navy, the past four months have been instrumental in preparing the ship for her new role. Her 55 crew, alongside RFA personnel, are said to have worked tirelessly to prepare the ship for sea, conducting essential maintenance, safety checks, and training to ensure she was ready for operations. With those checks and sea safety training now complete, she was ready to take on her role in the Royal Navy as a minehunter.

“Taking Stirling Castle out of lay-up and getting her back into service in just four months has demanded extraordinary things from my team,” said Commanding Officer, Commander Phillip Harper. Stirling Castle, he notes, recently sailed for the first time for the Royal Navy. She is undertaking a series of trials and assessments, as well as conducting training.

When fully operational in the coming weeks, the ship is expected to significantly enhance the Royal Navy’s mine hunting capabilities. Specifically, she will be carrying high-tech equipment, including autonomous surface and underwater vehicles, for specialist mine hunting operations primarily in UK waters. 

Stirling Castle was part of an effort launched by the Royal Navy to move away from traditional minehunting. A year ago, the Royal Navy disbanded its autonomous systems testing team and folded its functions into the fleet, ending a decade of R&D effort. Stirling Castle will now use cutting-edge technology and act as a mothership for an array of remotely operated and autonomous systems that will scour the vast UK waters looking for mines.

Later this year, Stirling Castle will undertake operational sea training, including with the vessel’s autonomous surface and underwater vehicles. Currently, the ship is still in her original blue and white colors, but the Royal Navy reports there are plans in the future to have the ship repainted in gray, the color of Royal Navy ships for more than a century.

NGOs Sue to Protect Whales from Ships Docking in California’s Ports

Whales are dying preventable deaths It shouldn’t take another lawsuit to force federal officials to fulfil mandated duties

San Francisco Bay
San Francisco Bay

Published Oct 26, 2025 7:36 PM by The Maritime Executive

 

The never-ending controversy over commercial ships' threats to endangered whales and other species in the Californian waters has flared up again after conservationist groups sued the Trump administration for failure to protect the mammals.

With reports showing that at least 10 gray whales have been killed by probable ship strikes in the San Francisco Bay Area so far this year, while several more whales have died from undetermined causes, the Center for Biological Diversity and Friends of the Earth now wants the courts to compel the administration to impose strict navigation rules to contain strikes from ships docking in California’s major ports.

The lawsuit filed against the National Marine Fisheries Service and the U.S. Coast Guard also targets air pollution from vessels. The case will be heard in the U.S. District Court for the Northern District of California.

The non-governmental organizations (NGO) argue in the lawsuit that California’s shipping lanes overlap with important feeding grounds for blue, fin, humpback, and Southern resident killer whales, as well as critically endangered leatherback sea turtles.

Owing to the failure by the federal agencies to reroute lanes or impose restrictions on ship speeds, the suit argues that the number of fatal ship collisions with the endangered species has been on the rise. Records show that ship strikes are now the leading cause of death for blue and fin whales off the California coast, besides being the second-largest mortality source for humpback whales. Between July and November, ship strikes are believed to cause over 80 deaths of large whales annually.

Considering the carcasses of whales and sea turtles killed by collisions often sink before stranding or washing up ashore, it is estimated that the actual number of ship strikes could be 10 or 20 times higher than the documented strandings suggest.

The NGO also contends that apart from causing deaths, underwater noise pollution and risks of oil spills also threaten the survival of the mammals. It cites the Southern Resident killer whales, which need to echo locate prey but noise pollution interferes with their communication and can mask sounds for hunting. In effect, reduced prey availability has become one of the primary threats to their sustainable existence.

“Commercial shipping is proving deadly to whales and sea turtles, but it doesn’t have to be that way if federal officials get their act together,” said David Derrick, Center for Biological Diversity staff attorney. “Rerouting and slowing ships in hotspots can prevent strikes, curb noise and air pollution and save endangered marine life”.

He added that the Trump administration is legally required to look at how to minimize harm to whales and sea turtles, and officials need to take this problem seriously and make a plan.

In filing the lawsuit, the two NGOs have been emboldened having won another lawsuit in December 2022 in which the courts admonished the federal agencies for failure to protect endangered whales from being struck by ships using ports in the Los Angeles, Long Beach, and San Francisco Bay regions. The ports of Long Beach and Los Angeles alone record about 4,000 vessel calls annually. 

Despite the high numbers of commercial ships in the California waters, existing designated shipping lanes route shipping traffic through several “hot spots” where whales congregate, including the Santa Barbara Channel and the northern approach to the San Francisco Bay. For this reason, the agencies are being accused of failure to implement measures, including imposing mandatory speed limits to reduce ship strikes and cut down on air pollution.

“Whales are dying preventable deaths,” said Hallie Templeton, Friends of the Earth legal director. “It shouldn’t take another lawsuit to force federal officials to fulfil mandated duties to assess and manage risks to whales from shipping traffic, yet here we are.”

Saudi’s RSGT Finalizes 30-Year Lease of Djibouti’s Tadjourah Port

Djibouti port Tadjourah
The port was developed to provide Djibouti with a modern facility (Tehnital)

Published Oct 26, 2025 6:40 PM by The Maritime Executive

 

The Middle East-based terminal operators continue to expand their footprint in Africa, with governments in the region opening ports to private investors. Last week, Saudi Arabia’s Red Sea Gateway Terminal (RSGT) signed a 30-year concession agreement with Djibouti Ports and Free Zones Authority (DPFZA) to operate and develop the Port of Tadjourah. The concession builds on a memorandum of understanding (MoU) signed by the two parties in March. The MoU set out cooperation between Djibouti and Saudi Arabia in the maritime and logistics sectors.

Tadjourah port was commissioned in 2017 as part of Djibouti’s government plan to expand transport infrastructure in northern Djibouti. The port was also built to facilitate potash exports from Ethiopia, mined in the Danakil Depression of the Afar region. Other Ethiopian general cargo exports processed at the port include livestock and sesame.

Under the 30-year concession deal, RSGT has pledged to transform the Port of Tadjourah into a multi-purpose terminal of choice in the region. The operator projects that in the next few years the port will reach a handling capacity of five million tons per year, enhancing its status as a gateway for Ethiopia’s general cargo imports and exports.

“The collaboration between RSGT and DPFZA in the development of the Port of Tadjourah will further consolidate Djibouti’s strategic position as a leading logistics and maritime hub in the Horn of Africa and the Red Sea,” said DPFZA.

In addition, the RSGT concession comes at a time when there are plans to expand multi-modal connections to Tadjourah port. Last week, the Ethiopian Railway Corporation announced plans for a $1.58 billion standard-gauge railway intended to connect Northern Ethiopia to the Red Sea ports of Tadjourah, Assab, and Massawa. These ports offer the closest sea access for Ethiopia’s Afar and Tigray regions, which are seeing growth in the potash mining sector.

The proposed extension of the railway to Tadjourah port is part of the existing Ethiopia-Djibouti line, completed in 2017. The route is currently served by the Tadjourah-Balho-Mekelle highway. The northward expansion of the Ethiopia-Djibouti railway to reach Tadjourah will go a long way in accelerating growth for the port. 


Seattle's Cruise Season Ends with Record Passenger Numbers

Port of Seattle

Published Oct 26, 2025 9:29 PM by The Maritime Executive


[By Port of Seattle]

The Port of Seattle announced today the completion of the 2025 cruise season. The record cruise season delivered an estimated $1.2 billion in regional economic benefit, while providing more than 5,120 individuals direct and indirect jobs throughout the season. The season also saw a record number of passengers and sailings, plus significant shore power use by ships in berth:

  • 298 total ship calls across 8 home port cruise brands operating 14 different ships
  • 1.9 million revenue passengers
  • 2025 set a new record with 65% of ships utilizing shore power at berth as the Port approaches the 2027 date for 100% utilization by homeported ships
  • The Port supported Carnival Corporation in the first biofuel demonstration project in the Seattle cruise market, testing biofuel bunkering on three Holland America Line sailings
  • Cruise ships made 23 sailings to destinations other than Alaska including Mexico, Hawaii, New Zealand, and Asia, plus coastal cruises along the Pacific Northwest

“Seattle set new standards this season on environmental sustainability and economic development by focusing on a shared vision across the Port and our cruise partners,” said Port of Seattle Executive Director Steve Metruck. “We are not just preparing for the future — we are building it. With major infrastructure investments we are preparing for the 2027 requirement that all home port ships connect to shore power at the dock. Through our Pacific Northwest to Alaska Green Corridor and partnership work we are advancing market development for alternative maritime fuels such as green methanol and renewable biodiesel. Our cruise line partners are making deeper investments locally as well to expand economic activity, the impact of which we estimate to be worth $1.2 billion each year. We end this season in a very strong position and look forward to an even better 2026.”

During the season, the Port was proud to welcome Cunard’s Queen Elizabeth for its first Seattle home port season. Queen Elizabeth, whose maiden call was on June 12, operated 11 roundtrip voyages out of Seattle and will return in 2026.

“Seattle is a premier home port for unforgettable Alaska cruise experiences, and the cruise industry is proud to bring significant economic impact to the region while showcasing the Pacific Northwest’s beauty, attractions, local businesses, and stunning new Waterfront Park,” said Sally Andrews, Vice President of Communications for Cruise Lines International Association (CLIA). “As the 2025 season ends, we celebrate another successful year of collaboration, innovation, and advancing sustainability goals.”

This year also marked the first time shore power was available at all three cruise berths. Sixty-five percent of ships plugged into the shore power, up from 42% in 2024, avoiding an estimated 1.67 tonnes DPM (diesel particulate matter) and more than 6,185 tonnes of CO2e from emissions. This shore power utilization demonstrates how the Port and its cruise line partners are meeting the evolving environmental needs and capabilities of the cruise industry.

Seattle continues its Port Valet program, which transfers bags directly from cruise ships to SEA, giving cruise visitors an opportunity to explore Seattle’s unique sights, sounds, and flavors before they head to the airport. This year, the service handled over 200,000 bags, allowing thousands of cruisers to enjoy the city luggage-free. Looking ahead, the 2026 cruise season will feature two new homeported brands when Virgin Voyages Brilliant Lady and MSC Cruises Poesia arrive in Seattle. A preliminary 2026 cruise schedule is available for download from the Port’s website.

The products and services herein described in this press release are not endorsed by The Maritime Executive.

 

Report: Japan and U.S. to Sign Memorandum on Shipbuilding Cooperation

Imabari Shipbuilding
Japan and the U.S. will cooperate on a shipbuilding and repair cooperation (Imabari Shipbuilding)

Published Oct 26, 2025 5:38 PM by The Maritime Executive


Japan is prepared to sign a memorandum with the United States providing additional details on the investment in shipbuilding that was continued in the countries trade talks. The Yomiuri Shimbun news outlet reports the signing is likely to happen on Monday, October 27, time to Donald Trump’s visit to Japan, which will also see the two countries’ leaders sign a memorandum for greater cooperation.

Japan committed to an investment of $550 billion in the United States during its prolonged trade talks with the Trump administration. Like South Korea, Japan dangled investment and cooperation with its shipbuilding industry as one of the elements to win a more favorable trade agreement. While Japanese shipbuilding has seen its market share slip dramatically in the past two decades, it still remains the world’s third-largest shipbuilder, and the government is providing financial support for projects developing new technologies for shipping.

The Yomiuri Shimbun reports the new agreement calls for the formation of a Japan-U.S. shipbuilding working group that will focus on investments that can be made to make the shipbuilders more efficient and competitive. They call for considering standardizing ship design and parts, and possibly having Japan design parts that could be produced in the United States. By standardizing designs, they propose that the countries could repair each other’s ships.

Another part of the cooperation focuses on new technologies. The report cites the use of AI to improve ship design and functionality.

The Japanese government has called for large investments into its shipbuilding industry. Last week, the country’s shipbuilders’ association, which represents 17 leading companies, said the companies were prepared to invest approximately $2.3 billion using their own financing. They are calling for the government to provide the remainder to reach the goal of a $6.5 billion investment in the industry by 2035.

The government views shipbuilding as a critical sector. It is anxious to combat China’s dominance of the sector, and working with the U.S. could help to increase market share. The U.S. Navy has occasionally used Japanese shipyards to make repairs on vessels. Japan’s Mitsubishi Heavy Industries highlighted in May 2025 that it was completing the first large-scale maintenance contract bid on and won for a U.S. Navy vessel. It was part of the Navy’s strategy to make more repairs locally for forward-deployed vessels.

Japan remains a builder mostly of containerships, dry bulk, and tankers, with it receiving approximately 8 percent of global shipbuilding orders in 2024. 


Hyundai and HII Expand Relationship Targeting US Navy and Commercial Ships

Inglass Shipbuilding Mississippi
HII's Ingalls Yard in Mississippi is the focus on the opportunities for the US Navy and comemrcial shipbuilding (HII)

Published Oct 26, 2025 12:52 PM by The Maritime Executive


HD Hyundai Heavy Industries, South Korea’s largest shipbuilder, and HII (Huntington Ingalls Industries) signed an agreement designed to further expand their cooperation in shipbuilding and repair, as they target the U.S. Navy and commercial shipping. It is the next step in support of a relationship was launched this year, designed to take advantage of the opportunities in South Korea’s Make American Shipbuilding Great Again initiative.

HII and HHI signed the agreement at the Asia-Pacific Economic Cooperation forum to advance their joint objectives in the shipbuilding dialogue between the United States and South Korea. As part of the trade negotiations, South Korea pledged earlier this year to invest $150 billion in the U.S. shipbuilding industry as part of a larger $350 billion investment to support the United States. South Korea’s HD Hyundai and Hanwha Ocean are the two shipbuilders moving most aggressively to capture the opportunities.

Hyundai and HII cite the exploration of joint investments to strengthen and expand U.S. shipbuilding as one of their key goals. They are also discussing “strategic teaming” opportunities and plan to collaborate on engineering, R&D, and technology implementation. 

“This marks the beginning of deeper collaboration between not only our companies, but each of our countries, that will support enduring changes to military and commercial shipbuilding in America,” said Eric Chewning, HII’s executive vice president of maritime systems and corporate strategy. “We look forward to working collaboratively with HHI, the U.S. and South Korean governments, and with our customers to transform the U.S. shipbuilding industrial base and enable accelerated throughput in our shipyards.”

The agreement follows an announcement that the two shipbuilders were jointly pursuing the assignment for the U.S. Navy’s next-generation logistics ship. The Navy recently released a request for proposals for the design contract. 

They look to leverage HII’s strong relationship with the U.S. Navy and HHI’s track record of building auxiliary vessels. The South Korean company highlights that it delivered its first auxiliary vessels, HMNZS Endeavour in 1987 and the new HMNZS Aotearoa in 2020, both to the Royal New Zealand Navy. Hyundai also cites three Cheonji-class and one Soyang-class auxiliary ships supplied to the South Korean Navy.

The two companies announced their partnership in April, reporting they would be focusing on best practices to improve cost efficiency and shorten construction schedules. They have also said they were exploring opportunities to expand U.S. shipbuilding capacity for national security, and HD Hyundai has been reported to be considering buying a U.S. shipyard.

Hyundai says it is committed to strengthening the U.S. Navy Indo-Pacific in-theater ship lifecycle support. After being certified in 2024 to bid in the U.S. Navy’s MRO (Maintenance, Repair, and Overhaul) business, HD Hyundai began its first repair assignment in September 2025 on the support ship USNS Alan Shepard at its HD Hyundai Mipo yard in Ulsan, South Korea.


HD KSOE Awarded DNV AIP for SMR-Powered Container Vessel Design

DNV HHI AIPI ceremony

Published Oct 26, 2025 8:37 PM by The Maritime Executive

[By DNV] 
 
Classification society DNV has awarded HD Korea Shipbuilding & Offshore Engineering (HD KSOE) an Approval in Principle (AiP) for a new 15,000 TEU container vessel design powered by Small Modular Reactor (SMR) technology. The presentation was attended by Sungkon Han, Executive Vice President of the Green Energy Research Lab at HD KSOE, Geir Dugstad, Technical Director at DNV, and Ole Christen Reistad, Senior Principal Researcher and nuclear research lead at DNV, who discussed the outcome of the project and the potential for nuclear-powered shipping at DNV’s Busan offices.

The design demonstrates the application of SMR technology in a 15,000 TEU container vessel, capable of operating at 24 knots. The vessel concept incorporates a supercritical CO?-based power generation system, which can provide higher thermal efficiency and a reduced equipment footprint compared to conventional steam-based systems. DNV has reviewed the conceptual design of the nuclear-powered ship in line with the relevant rules and regulations and the safety levels as outlined in SOLAS Ch. VIII and the IMO Code of Safety for Nuclear Merchant Ships.

Dr. Kwangpil Chang, CTO of HD KSOE, commented on the project: “This SMR-powered container vessel concept represents a key milestone in our efforts to explore alternative fuels for decarbonizing shipping. The design focuses intensely on the safety of the vessel and advancing the propulsion system in the application of SMR technology. In addition, we have developed a novel shielding and containment system, which is designed to maintain reactor safety and vessel survivability even in the event of collisions, groundings, or sinking accidents. We will continue to collaborate with global partners to advance marine nuclear technologies.”

During the development of the ship design concept, the DNV team worked closely with HD KSOE to assess the vessel’s overall safety and the design of the advanced power generation system. This review includes the vessel’s main functions, power supply and overall approach to safety. In May 2025, HD KSOE and DNV also conducted a HAZID (Hazard Identification) workshop at DNV’s headquarters in Oslo to identify potential risks and accident scenarios for nuclear-powered vessels and to guide improvements in the design.

Geir Dugstad, Technical Director at DNV, commented: “Shifting environmental requirements and advances in technology are reigniting interest in nuclear propulsion as a potential solution for maritime decarbonization. But with little recent experience in utilizing nuclear power for cargo vessels, this AiP represents an important first step in building the technical verification process for nuclear-powered vessels. We are very pleased to award KSOE this new AiP, which is the well-deserved result of an intensive and productive cooperation, which we look forward to continuing as this exciting technology continues to develop.”

DNV recently released a new white paper on the potential of nuclear vessels for commercial shipping. It examines the reactor technologies, vessel construction and operation, fuel management, waste handling, and the oversight of nuclear supply chains.

An Approval in Principle (AiP) is an independent assessment of a concept within a defined framework of requirements. It confirms the feasibility of the design and verifies that no significant technical barriers exist to its implementation.
 

The products and services herein described in this press release are not endorsed by The Maritime Executive.



 

After Tumultuous Week, IMO Makes Progress on Decarbonization

IMO headquarters
IMO's working group appears to have restored progress on the Net-Zero Framework (file photo)

Published Oct 26, 2025 4:22 PM by The Maritime Executive

 

The IMO’s International Maritime Organization’s Intersessional Working Group on Reduction of Greenhouse Gas Emissions from Ships wrapped up a week of closed-door meetings with observers agreeing there had been progress and a promising outlook for the future. Observers said the working group had been able to rise above the rancor of the prior week’s special session of MEPC (Marine Environment Protection Committee) and get back to work on the Net-Zero Framework.

“We observed constructive participation from all parties — including those with prior concerns — which led to real progress on key technical guidelines,” said Dr. Annika Frosch, Research Fellow at UCL Shipping and Oceans Research Group. “Even previously contentious topics, such as the Net Zero Fund, experienced broad and active involvement from many delegations, helping to clarify priorities like establishing the Governing Board and fundamental principles to guide the fund’s future work.”

Many others, especially in the NGO community, expressed a renewed sense of optimism at the close of the working session on Friday, October 24. Delaine McCullough of the Clear Shipping Council highlighted that it had become clear that the adjournment was “just a postponement and not the end” of the framework. Emma Fenton, Senior Diplomacy Director at Opportunity Green, noted that countries had come together to work on the supporting guidelines that will provide the much-needed clarity.

The week before, member states that had supported the Net-Zero Framework in April 2025 moved away, and became cautious, in part due to strong pressure and threats from the United States and others. Saudi Arabia had joined with the United States, pressuring the member states before Singapore tabled the adjournment to give the IMO more time.

Many had left the first session, saying the IMO was giving confusing signals and creating more problems than solutions for the industry. Many wondered if the framework would even be adopted, or if it was the first step in its death knell. Even those who believed there would be progress had to concede that the regulation was now likely not to come into force till January 1, 2029. 

“Understanding what happened at the IMO in October and why is now central not just for any chance of future adoption, but for just and equitable climate action generally,” commented Dr. Tristan Smith, Professor of Energy and Transport at UCL Shipping and Oceans Research Group. “This lost momentum can be recovered, but we have taken a step closer to the abyss that is dangerous climate change.”

The working group tackled the key challenges in the framework, and while there were no formal decisions, observers are saying there was steady progress in the discussion of the details for the implementation. Hot topics included how the regulation should incentivize energy transition, how the fund should be set up, and how the lifecycle and sustainability of different fuels should be evaluated and certified. Lifecycle analysis was widely discussed, and support seemed to be emerging to support differentiating rewards for different fuels. The role of biofuels was also a key topic. 

Wind propulsion was also back in the spotlight, notes Anaïs Rios, Shipping Policy Officer for Seas at Risk.  The International Windship Association highlights strong momentum for wind-assisted propulsion, reporting that there are nearly 100 large vessels with wind propulsion, representing around five million DTW. They expect the fleet will roughly double in the next 12 months and that this momentum will carry into the framework discussions. Similarly, John Maggs, Clean Shipping Coalition’s Representative at IMO, is calling for transforming the CII into an energy efficiency powerhouse to get shipping’s climate action back on course.

Christiaan de Beukelaer, Senior Lecturer in Culture and Climate at the University of Melbourne and an IMO observer, noted that the obstructionist states in the first week opposed adoption due to a lack of detail, and the second week opposed discussing details ahead of adoption. However, “under the conciliatory guidance of Working Group Chair Sveinung Oftedahl, the vast majority of delegations in the room worked on ensuring that the IMO can deliver on its unanimously-adopted 2023 GHG Strategy through the Net-Zero Framework. This made the saboteurs sound like a broken record, which the room quietly ignored."

The feeling was that the workgroup moved forward, “moving past obstruction and into real progress,” said Jamie Yates, Climate & Renewable Energy Manager for Pacific Environment. Natacha Stamatiou, IMO GHG Lead, Global Shipping for the Environmental Defense Fund, agreed, noting, “Luckily, this week, more voices joined the conversation, and the discussions took on a constructive and more respectful tone. It was a meaningful step toward rebuilding the confidence, transparency, and integrity we need to deliver the pollution cuts future generations deserve.”

Despite the sense of progress, much remains to be done, with many noting the Net-Zero Framework hangs in the balance. The IMO is scheduled to meet for a two-part summit in April 2026, including the next session of the Marine Environment Protection Committee. The goal is for MEPC to finalize important decisions with another round of negotiations. The adjournment calls for the member states to reconvene in October 2026.


Shippers at the Helm

Driving the Integration of Energy and Transport for a Fossil-Free Future

illustration digital shipping
Illustration: Sandra Haraldson, RISE

Published Oct 26, 2025 10:06 AM by Mikael Lind et al.


by Mikael Lind, Wolfgang Lehmacher, Sandra Haraldson, Tony Ehrs, Johan Englund, Cecilia Gabrieli, Patrick Mattsson, Krister Rosendahl, and Pernilla Åström 

 

When the hybrid ferry Aurora Botnia departs Umeå for Vaasa, it carries more than passengers and freight. It carries a glimpse of the future. Powered by a combination of electricity supplied by energy companies in Sweden and Finland and Liquefied BioMethane (LBM) from Gasum, it is one of the world’s most energy-efficient vessels, particularly when the large batteries are installed in 2026. However, its success depends not only on propulsion technology, but also on coordination.

Each voyage requires a delicate synchronization between energy supply, transport scheduling, and port operations. Electricity availability must match berthing windows. Fuel logistics must align with the vessel's turnaround schedule. Shore power capacity, local grid balance, and fueling of LBM are all part of the same choreography. Aurora Botnia is, in other words, not just a ship. It is a system in motion - a living example of how the future of transport is inseparable from the future of energy.

Aurora Botnia by the numbers: Dual fuel Wärtsilä 31DF engines operating on LNG/LBM with battery hybridization for port approaches and manoeuvres on the Vaasa–Umeå route, including shore power capability to minimize auxiliary emissions in port; operator dossiers confirm hybrid operations and LBM/LNG provisioning supporting energy efficiency gains versus conventional RoPax tonnage. Wärtsilä and Wasaline have announced a significant upgrade to extend the battery capacity from 2.2 MWh to 12.6 MWh, billed as the world’s largest marine battery-hybrid system in operation. This upgrade further improves fuel and emissions intensity, with commissioning planned for early 2026.

 

At the same time, shippers - the organizations that depend on reliable, efficient, and sustainable transportation to move goods end-to-end across various modes of transport - are becoming increasingly vocal in demanding reliable, transparent, and fossil-free logistics. They are not just customers; they are the driving force behind the next generation of integrated transport systems. Initiatives such as the Virtual Watch Tower (VWT) have emerged to respond to these demands, providing shared visibility and actionable insights that help align logistics performance with energy.

The fragmentation paradox

Across the world, the race toward fossil-free logistics is accelerating. Electrification, hydrogen, biofuels, e-fuels, methanol, and ammonia are advancing on multiple fronts. Yet behind the impressive progress lies a persistent paradox: we are decarbonizing in silos.

Each mode of transport - maritime, road, rail, aviation - is pursuing its own technological pathway. Energy producers and grid operators are pursuing their own decarbonization agendas, while the interfaces between these systems, the points where energy meets mobility, remain underdeveloped.

This fragmentation leads to systemic sub-optimization. Renewable electricity is often produced in surplus in regions with limited charging needs or storage capacity, while energy-intensive logistics hubs experience shortages. Similarly, hydrogen corridors are being planned without alignment with freight flows, and charging networks are expanding independently of logistics corridors.

Analyses from the International Transport Forum, the European Transport Forum, and EU TEN T planning bodies confirm this: energy and transport transitions are unfolding under separate governance and data frameworks. The result is a mismatch between where fossil-free energy is available and where it is most needed, leading to delays, inefficiencies, and higher emissions than necessary.

EU law now explicitly tackles energy transport alignment through the Alternative Fuels Infrastructure Regulation (AFIR), which sets binding minimums for recharging and refueling on core networks, directly linking infrastructure deployment to transport demand across corridors. TEN T policy complements AFIR by embedding alternative fuel deployment along core and comprehensive corridors, elevating nodes like ports and airports as energy hubs rather than mere transit points; expert briefs, such as ICCT’s Review of the AFIR Proposal, urge synchronized AFIR–TEN T implementation to ensure that corridor-level energy availability tracks freight flows and modal interfaces, and that coordination may be data-driven. The CDES (Collaboration and Digitalization for balanced Economic and Societal value) approach emphasizes that collaboration and digitalization must walk hand in hand to create value. Digitalization without collaboration risks reinforcing silos; collaboration without digitalization lacks operational leverage. Together they generate:

•    Economic value, as demonstrated by pathways for efficiency and predictability when collaboration frameworks and digital tools are combined, according to UNCTAD’s guidance on CDES design and governance in transport logistics.
•    Societal value, such as emission reductions and improved energy utilization, being achieved through trusted data sharing, enabling synchronized operations across nodes and modes, as highlighted by UNCTAD’s CDES blueprint for transport.

This dual value creation forms the foundation for integrating transport and energy systems into one shared ecosystem.

Digital twins for the integrated system

Bridging the gap between physical operations and digital decisions requires a unifying layer that links real-world events to computational insight. Digital twins provide that layer by fusing live operational data with dynamic system models to simulate, predict, and optimize performance over time.

A digital twin enables the dynamic simulation of complex systems, providing decision support for optimizing operations using near-real-time data. When applied across sectors, digital twins make interdependencies visible, measurable, and manageable, illustrating, for example, how changes in energy availability, weather, or vessel schedules affect emissions, delivery times, and infrastructure loads. In this way, digital twins become the bridge between energy intelligence and transport intelligence. They transform fragmented data streams into actionable insights, enabling coordination across modes, nodes, and energy sources.

Digital twins: quantified benefits. Independent analyses of end-to-end supply chain and transport twins report material performance uplifts. Typical results include up to 20% improvement in delivery promise attainment, labor cost reductions of nearly 10%, and measurable reduced carbon impacts when paired with predictive optimization, illustrating why twins are shifting from descriptive to prescriptive control layers. Neutral sector conveners similarly flag digital twinning as a lever for navigating disruption and reducing CO2 in logistics and shipping, reinforcing the case for cross-sector twins that span energy and transport.

 

In the Nordic region, several initiatives - such as Digital Twins for Multipurpose Ports - are already exploring how data from shipping, rail, road, and local energy networks can be combined to support system-level decision-making. 

These twins simulate the interdependencies between energy consumption, renewable energy availability, and logistics performance, allowing actors to ask:

•    What happens to delivery precision if renewable energy supply is constrained, or differently put, what will be prioritized?
•    How can energy and transport resources be reallocated to reduce emissions during disruptions?
•    Where should new infrastructure be prioritized to create the most excellent system-level benefits?

By integrating these perspectives, digital twins enable co-optimization between actors, balancing delivery precision, climate impact, and cost across entire supply chains.

Digital twins evolving into system demonstrators

At higher maturity, digital twins operate as collaborative decision environments that combine real-time telemetry, what-if simulation, and predictive and prescriptive analytics to anticipate disruptions and help co-optimally manage performance; in this role, they can function as system demonstrators.

Practical experience from Sweden shows that such demonstrators can serve as innovation testbeds for the broader transport ecosystem. These system demonstrators bring together technology developers, port authorities, energy companies, and logistics operators to jointly test new, collaborative, data-driven approaches to working together. Meeting the combined goals of decarbonization, resilience, and efficiency requires a holistic approach that connects energy, transportation, and digital systems, rather than siloed optimization. In practice, leading logistics initiatives deploy testbeds to validate that twin-enabled collaboration accelerates disruption recovery and dynamically reveals decarbonization levers across partners, helping optimize system-wide.

The new role of transport nodes

Ports illustrate this transformation well - not because they are unique, but because they reveal how transport, energy, and digital infrastructures converge. Historically, ports were designed to coordinate transport: the meeting point between sea, land, and logistics. In a sustainable transport system, they must evolve into both energy nodes and digital nodes. Today, a port cluster includes not just stevedores, terminal operators, and shipping lines, but also energy utilities, grid managers, fuel suppliers, and data providers. These actors collectively balance vessel calls, cargo flows, and energy supply. The same logic applies to airports, railway yards, and dry ports-any transport node where multiple modes, stakeholders, and energy carriers converge.

At these nodes, the coordination of energy is becoming as critical as the coordination of cargo. Power distribution, hydrogen supply, and biogas availability must align with transport demand and timing. This requires shared situational awareness and dynamic decision-making across institutional boundaries. Recent work highlights that shared visibility across the supply chain is essential for efficiency and resilience, not merely as a technical issue, but as an organizational and governance requirement with guided and trust-based data sharing.

This expanded role is not optional in Europe: AFIR mandates minimum recharging and refueling capabilities across core networks, effectively recasting ports, airports, and urban nodes as both energy distribution assets and transit assets. TEN T then operationalizes corridor-level planning so that energy infrastructure and freight flow co-evolve, reducing the risk of stranded capacity or localized shortages.

Federated data sharing - the Virtual Watch Tower approach

Such coordination cannot be achieved solely through technology. It requires a governance model that enables trusted data sharing across organizations that may otherwise compete. The VWT initiative provides this model. It is shipper-driven, designed to give those who request and depend on transportation, primarily cargo owners and freight forwarders, with greater end-to-end visibility and reliability in their logistics chains. Built on principles of federation, neutrality, and minimal data exposure, VWT enables actors to share primary data, namely timestamps, energy use, emission metrics, and operational events, without losing ownership or confidentiality.

The federation focuses on timestamps, status events, and energy attributes mapped to shipment itineraries, with latency thresholds aligned to operational decision windows. Interfaces expose only necessary fields under participant control to preserve ownership and confidentiality. This approach supports live twin services without requiring full dataset replication, thereby reducing the integration burden while enabling shared situational awareness.

 

At the core of VWT’s architecture lies VWTnet, a distributed digital infrastructure that enables individual actors to exchange selected data elements related to their operations, contextualized as itineraries of shipments. This infrastructure captures both planned and actual movements and operations, as well as contextual updates. These data feeds enable the creation of a digital twin as a service, providing a live representation of the supply chain that continuously reflects its current state.

Through VWT, shippers gain shared visibility that accounts for both logistics constraints and energy availability, providing early awareness of potential disruptions and opportunities to utilize fossil-free energy more efficiently. The VWT infrastructure includes an expanding app space, where services such as emission calculation, disruption prediction, and performance benchmarking can be delivered directly to transport buyers and operators.

Program notes from research actors indicate that AI-assisted curation and signal extraction from heterogeneous sources are used to understand disruption risk and extract performance insights for logistics decision-makers.

Applied to the integration of energy and transport systems, the VWT’s federated data-sharing and governance principles ensure that energy providers, logistics operators, and authorities can coordinate in near real-time, securely, responsibly, and with direct value for shippers seeking resilient and sustainable logistics chains.

 How nodes and corridors become chains

The Kvarken region, situated between Sweden and Finland, demonstrates how this coordination logic can be applied in practice. The ports of Umeå and Vaasa, together with Wasaline, energy companies, and technology partners, are planning to develop a digital twin demonstrator that connects maritime and ship operations, rail and road transport, and regional energy systems.

When a vessel like Aurora Botnia approaches the harbor, the digital twin synchronizes its arrival with berth availability, readiness of shore power and LBM fueling, and inland cargo transfers. If a disruption occurs, such as a delay on the rail network, a temporary grid constraint, or a limited LBM supply, the system simulates alternative scenarios in real-time. Such corridor-scale synchronization aligns with AFIR’s intent to ensure a minimum level of renewable energy infrastructure where traffic is heaviest, making the Kvarken demonstrator a plausible archetype for scaling along core routes. 

The same coordination logic can be scaled along entire corridors, linking multiple ports, terminals, airports, and energy nodes into a continuous chain. Ultimately, the goal is to create an end-to-end energy-and-transport digital twin that provides a shared situational picture for all actors involved. This is more than a technological ambition; it is a systemic one. By directly connecting energy generation, distribution, and consumption with transport planning, operations can transition from reactive adjustments to proactive orchestration.

Towards fossil-free logistics

The energy transition is not only about replacing fossil fuels with renewable energy sources. It is about using fossil-free energy intelligently. Fossil-free energy is a limited and variable resource; its value depends on timing, location, and coordination. A fully fossil-free transport chain will require that energy distribution is managed in the same way as multimodal transport coordination. The availability of electricity, biogas, hydrogen, methanol, or e-fuels must be aligned with logistics demand patterns, just as cargo transfers are synchronized between ships, trains, and trucks. In this sense, the next generation of digital infrastructure is not about moving more data but about driving the right data between the right actors at the right time.

Replicable beyond the Nordics

Replicability hinges on two enablers: digital twin operating models that translate multi-actor data into prescriptive decisions, and corridor policies that require energy and transport co-planning across nodes, as seen in emerging EU practices. Industry conveners continue to document cases where twinning improves disruption navigation and sustainability KPIs, suggesting transferability to major gateways with similar multimodal complexity.

What is now being tested in the Nordics can have global relevance. Recent developments in the region’s maritime energy transition demonstrate how policy, industry, and research actors are aligning toward integrated, fossil-free corridors, marking an evolution that underscores both the opportunity and the urgency to coordinate transport and energy systems more systematically.

The ambitions voiced during COP26 and reaffirmed at subsequent climate dialogues highlight that decarbonizing transport requires collaboration across value chains, not only within individual sectors. Maritime corridors are an important starting point, but to truly achieve fossil-free logistics, the same coordination must extend beyond ports and shipping - linking maritime, road, rail, and air transport with the energy systems that power them.

Every major trade corridor - from Singapore to Rotterdam, from Los Angeles to Hamburg - faces the same dual challenge: decarbonizing transport while securing sufficient fossil-free energy.

By adopting a federated, data-driven approach, global supply chains can turn complexity into resilience. Each transport node, whether a port, airport, or rail hub, can consume digital twin services built on top of the wider Virtual Watch Tower network. This architecture enables an Internet of Virtual Watch Towers, allowing different actors - including transport buyers, transport operators, and terminal operators - to use digital twin technologies for decision-making, performance optimization, and sustainability management.

A call to collaboration

The coming decade will determine whether we can transition from fragmented to integrated transformation. The technology exists. The digital-twin logic is proven. The VWT governance model demonstrates how collaboration can be effective.

In the 20th century, ports were developed to facilitate the coordination of cargo between ships, trains, and trucks. In the 21st century, we must build digital corridors that coordinate energy and transport together, driven by those who depend on them most. Only then can we unlock the potential of fossil-free energy, turning electrons and molecules into motion, efficiently, resiliently, and sustainably, across the global supply chain. 

Cargo owners must continue to lead for transformation to take hold. Their expectations for fossil-free, predictable, and data-driven logistics are what motivate transport and terminal actors to align and invest. By engaging directly in initiatives like the VWT, shippers help create the demand conditions for collaboration, turning visibility into reliability and sustainability into competitiveness. By combining cargo owner-led federated data sharing with AFIR/TEN-T corridor requirements in procurement and partnership terms, buyers can hardwire energy-transport co-optimization into daily operations at ports, airports, and rail nodes.

 

About the authors

Mikael Lind is the world’s first (adjunct) Professor of Maritime Informatics engaged at Chalmers and Research Institutes of Sweden (RISE). He is a well-known expert frequently published in international trade press, is co-editor of the first two books on Maritime Informatics and is co-editor of the book Maritime Decarbonization.

Wolfgang Lehmacher is a global supply chain logistics expert. The former director at the World Economic Forum and CEO Emeritus of GeoPost Intercontinental is an advisory board member of The Logistics and Supply Chain Management Society, an ambassador for F&L, and an advisor to Global:SF and RISE. He contributes to the knowledge base of Maritime Informatics and co-editor of the book Maritime Decarbonization.

Sandra Haraldson is Senior Researcher at Research Institutes of Sweden (RISE) and has driven several initiatives on digital collaboration, multi-business innovation, and sustainable transport hubs, such as the concept of Collaborative Decision Making (e.g. PortCDM, RailwayCDM, RRTCDM) enabling parties in transport ecosystems to become coordinated and synchronised by digital data sharing.

Tony Ehrs is Freight Director at Wasaline, leading the company’s cargo operations, sales, and cargo strategy. With extensive experience in the industry, he brings deep expertise in maritime logistics, freight operations, and customer relations, combining strategic insight with hands-on industry knowledge to enhance efficiency and service performance.

Johan Englund is responsible for public Affairs for Sweden at the Finnish energy company Gasum. He has been active within the Nordic energy industry for the last 20 years. Johan's primary focus lies within the realm of regulation and policy concerning gas, gas infrastructure, and biomethane development in the maritime, industrial, and land traffic sectors.

Cecilia Gabrieli is a Senior Researcher at SINTEF Energy Research in Norway. She has led several initiatives on maritime energy transitions, and integrated energy systems in ports (e.g., Interport). During many years she has been active in SINTEFs prioritised research area on mobility. 

Patrik Mattsson, CEO of Kvarken Ports Umeå and Umeå Hamn AB, brings over two decades of experience in maritime and logistics operations. He drives the transition toward fossil-free and digitally integrated logistics, using digital twins and data sharing to improve precision, reduce emissions, and turn sustainability into a competitive advantage.

Krister Rosendahl is Head of Purchase & Logistics at Olofsfors AB, leading strategic procurement, production planning, and transport logistics. With extensive experience from major industrial companies such as Volvo Trucks, Komatsu Forest, and BAE Systems Hägglunds, he combines technical insight with project management expertise to optimize manufacturing and supply chain efficiency.

Pernilla Åström is Logistics Developer and Deputy GM Logistics at Komatsu Forest AB. She works with logistics development in the forest machinery industry, focusing on transport. With long-standing experience in transport requirements, she supports the development of sustainable and efficient logistics solutions.
 

The opinions expressed herein are the author's and not necessarily those of The Maritime Executive.