Key Points
- The study projects that the Saldanha Bay to Rotterdam iron ore route will start using cleaner fuel by 2029.
- Developers plan new hydrogen and ammonia projects that will support local bunkering and long term fuel supply.
- European climate rules push ship operators toward cleaner fuels and strengthen the corridor’s business case.
A study by the Global Maritime Forum shows that the iron ore route between Saldanha Bay and Rotterdam could begin using cleaner fuel by 2029.
Full decarbonisation is possible by 2035. The route would rank among the first green shipping corridors that link the Global South and the Global North.
The study was completed with a consortium formed in 2023. It includes Anglo American, CMB TECH, Freeport Saldanha, VUKA Marine and ENGIE. The corridor connects Kumba Iron Ore’s Northern Cape mines to Europe through Saldanha Bay.
Saldanha Bay is preparing for green hydrogen and green ammonia production. These projects will support future bunkering operations.
Rotterdam will handle early ammonia bunkering because it already has safety rules in place. Saldanha Bay plans to supply all vessels locally by 2035 as its infrastructure expands.
Shanon Neumann of Freeport Saldanha noted that the phased plan offers shipowners and fuel producers a timeline they can plan around. Neumann added that early projects will move faster if public and private financing work together to ease investment risks.
Hydrogen Projects Set to Meet Demand
Projects near Boegoebaai, Saldanha and Walvis Bay could meet the corridor’s fuel needs. Demand may reach twenty two bulk carriers each year by 2035. Strong demand would help developers secure long term contracts and support new hydrogen investments.
The study says tax incentives, tariff reductions and dedicated financing could strengthen South Africa’s place in the global bunker market.
The hydrogen sector could add more than three percent to national GDP by 2030. Shipping and steel are expected to be the first major buyers.
A green corridor would support skills development and create new opportunities around the hydrogen industry. It would also help secure Saldanha Bay’s role as a key export port for iron ore.
Europe’s FuelEU Maritime program and the Emissions Trading System will reduce the cost difference between ammonia and traditional fuel. The International Maritime Organisation is also working on a net zero framework that will set future standards.
Local Policy Support Still Needed
Marieke Beckmann of the Global Maritime Forum noted that national and local policies will guide the pace of adoption. European rules already push the industry toward cleaner fuel, but local incentives would help the shift take hold.
The study lists several steps that need attention. These include fair contracts across the value chain, government support and early investment in port upgrades linked to the hydrogen hub.
If the plan succeeds, the corridor could become a model for zero emission shipping and help attract major investment to the hydrogen sector.
The Global Maritime Forum is an independent non profit organisation founded in 2017. It works with industry leaders to promote sustainable growth in global shipping. Its headquarters is in Copenhagen.
Freeport Saldanha is South Africa’s first freeport and operates inside the Port of Saldanha Bay. It targets maritime, energy, logistics and engineering activity and aims to draw responsible investment that benefits the local region.
