Melbourne and Shanghai seal green link

THE PORT of Melbourne has inked an agreement with China’s Shanghai to establish a Green Shipping Corridor between the two ports.  

The agreement was formalised at the 2025 North Bund Forum in Shanghai on Sunday [19 October] and is a joint initiative, supported by the C40 Cities Climate Leadership Group (C40).  

It brings together Port of Melbourne and Shanghai Municipal Transportation Commission (SMTC) in response to the Clydebank Declaration and the broader decarbonisation of the maritime supply chain.  

Under the Memorandum of Understanding (MoU), the parties will seek to:  

• Collaborate with industry partners – including Shanghai International Port Group (SIPG), COSCO SHIPPING Lines, HAMR Energy, and ABEL Energy – to explore avenues to implement measures to reduce the environmental impact of the shipping industry. 
• Focus on environmentally sustainable practices, such as the adoption of cleaner technologies, use of renewable energy sources, and implementation of best practices to minimise the ecological footprint of shipping activities. 
• Work closely with shipping lines seeking to promote the adoption of clean fuels, with the goal of increasing the usage of clean-energy-powered ships operating between Shanghai and Melbourne. 
• Explore opportunities with energy suppliers to accelerate breakthroughs in production technology, improve efficiency and cost control, and establish an integrated supply chain system covering production, transportation, and storage to boost low carbon fuel supply capacity. 

Saul Cannon, Port of Melbourne CEO, 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,” Mr Cannon said.  

China is Port of Melbourne’s largest trading partner, accounting for 50% of total container imports and 20% of container exports.  

With the high volume of trade between both ports, this partnership has the potential to provide material benefits for the environment,” PoM said. “This milestone is a culmination of a nearly two-decade-long partnership between Port of Melbourne and SMTC, which commenced in 2006.”