Chavalit Frederick Tsao: Driving Maritime Decarbonization and Blue Economy | Multinationals on China
SFC Correspondent Lu Taoran, Li Deshangyu
The global shipping industry is undergoing a profound green revolution. As a vital component of the maritime economy, the green transition of shipping is directly linked to the achievement of global carbon goals.
TPC (Tsao Pao Chee), a shipping family enterprise with Chinese origins, rooted in Singapore, and spanning over a century, is now steered by its fourth-generation leader, Chavalit Frederick Tsao. Unlike companies focused on short-term returns, TPC approaches its industrial layout with a sustainability mindset, making climate action a core strategy.
How can the shipping industry break through the bottleneck of traditional fuel emissions to achieve a sustainable transition? How does a century-old family enterprise of Chinese origin leverage its competitive edge in the green shipping transformation? Addressing these questions, Chavalit Frederick Tsao, Chairman of TPC and Founder of OCTAVE, spoke with the 21st Century Business Herald.
Tsao stated that the sustainable and green transformation of the shipping industry is challenging. It requires generational efforts through strategic investments and internal governance optimization, while also moving beyond single technological fixes to drive a systemic shift across the entire maritime industrial system based on the blue economy concept. TPC is promoting change across multiple dimensions, including fuel technology, vessel efficiency, global collaboration, and maritime funds, with deep participation from the Chinese market being crucial.
Beyond greening its core shipping business, TPC has continued to expand its investments in China, covering ESG-related sectors like new energy, wellness, and agricultural technology. Tsao emphasized to the 21st Century Business Herald that TPC looks forward to deepening policy communication with China, hoping for more green incentives targeting international shipping companies to further increase investment.
Aligning with China's Development Direction
Multinationals on China: With over a century in maritime and industrial sectors, what changes in China's economic development have you witnessed as the fourth-generation leader?
Chavalit Frederick Tsao: Having been in China for over 40 years, I've witnessed its development. The international shipping market has continuously evolved, and China's role has become increasingly important globally. Against the backdrop of today's unprecedented changes, the shipping industry is vastly different, requiring us to constantly assess the situation, adopt flexible, forward-looking investment strategies, and align with global trends.
TPC's direction is clear: to conduct business in line with the Chinese government's plans. Following China's development direction, helping solve practical problems, and promoting connectivity across industrial chains are core to TPC's strategy. In investment, we focus on wellness, medicated food, rural revitalization, and supporting Chinese companies going global, adhering to the logic of following national development for common prosperity. For a company, sailing with the national "fleet" is safer than going it alone.
Multinationals on China: Are TPC's strategic advantages in Singapore and Hong Kong related to its industrial chain layout?
Chavalit Frederick Tsao: Our advantage rests on three strategic pillars. The primary one is deepening our presence in China. In April last year, we officially rebranded as TPC (Tsao Pao Chee), signaling a return to our founding roots and our long-term commitment to China. This positioning allows us to leverage the advantages of our Singapore and Hong Kong platforms to connect domestic and international resources.
Secondly, our core shipping business naturally synergizes with the Belt and Road Initiative, particularly the Maritime Silk Road. Our century-long experience gives us unique sensitivity to industry cycles, enabling us to capitalize on strategic opportunities presented by the Belt and Road Initiative.
Most importantly, through generational accumulation, we have built a complete industrial chain in shipping and industry, complemented by a global resource network spanning capital, industry, and logistics from Singapore and Hong Kong. This integrated capability allows us to quickly respond to Chinese companies' overseas expansion needs and match them with international market resources.
Blue Economy Aids Shipping Decarbonization
Multinationals on China: As a core "going global" sector, what are TPC's specific practices in sustainability?
Chavalit Frederick Tsao: Sustainable shipping requires a systemic blue economy approach. The maritime industry is far more complex than land-based industries, involving shipping, oil/gas, ports, fisheries, and seabed mining, all affected by buoyancy, waves, wind, and currents. This complexity necessitates that maritime enterprises lead this transformation.
We are collaborating with a renowned European maritime fund to launch Asia's first maritime fund, promoting Asian values of harmony and cooperation. This platform, rooted in collaborative culture, is attracting global participants to build an Asian-led sustainable development model. Participation is expected to grow significantly. Official efforts alone cannot achieve deep global synergy; China needs more private sector involvement.
Multinationals on China: With IMO's 2050 net-zero target and China's "dual carbon" goals, is TPC focused on carbon neutrality? What are its innovative plans?
Chavalit Frederick Tsao: The green transition is difficult and requires sustained investment and internal governance improvements.
In shipping, we focus on green fuels like biofuels, green ammonia, and green methanol. We are also advancing vessel technology and equipment investment, including sails, electrification, offshore wind power, marine robotics, and AI applications to reduce costs and improve efficiency.
Leveraging our strategic resources, we serve Chinese companies with strong technology and supply chains for overseas expansion. Compared to the fast-evolving EV sector, shipping changes slower due to high concentration, large asset investments, and high barriers, necessitating leadership from major players. We are launching a "Maritime Fund" to focus on cutting-edge maritime technologies globally.
Confident in Chinese Supply Chains Serving Global Markets
Multinationals on China: What "dual carbon" and sustainability-related investments does TPC have in China?
Chavalit Frederick Tsao: TPC's core business is shipping and industry. Domestically, we have established industrial bases in locations like Lianyungang and Zhoushan; internationally, we are centered in Singapore, covering Southeast Asia. These form the foundation for promoting the industry's green transition.
We are confident in Chinese supply chains' ability to serve global markets. We aim to capitalize on "leapfrog" opportunities from innovations like AI, using our Singapore and Hong Kong hubs to bring Chinese advantages to the world.
In investments, we focus on six pillar industries, building a multi-layered portfolio from early-stage VC to late-stage PE, direct, and co-investments. Additionally, TPC independently operates the "OCTAVE" brand, promoting wellness and sustainable living. We are actively seeking strategic investments in health consumption, healthcare, and Traditional Chinese Medicine, revitalizing century-old brands through platform-based integration.
Multinationals on China: Sustainable investment is "patient capital." How does TPC balance its risks and returns?
Chavalit Frederick Tsao: Our strategy rests on three pillars.
First, capital alignment: Our family capital allows us to evaluate returns over decades, fitting the long-term nature of sustainable investment.
Second, unique perspective: We evaluate investments not just financially but also for strategic synergy with our group's transformation. For example, assessing a battery recycling project involves its technology and how it enhances our overall new energy industry layout.
Third, deep focus on "dual carbon": We invest in the circular economy, including battery recycling and synthetic biology for material regeneration. We also continue investing in new energy, supporting both early-stage potential and scaling mature technologies through Chinese supply chains. This integration of investment and industry allows us to pursue long-term value while achieving economic benefits.
Establishing Platforms to Support Chinese Companies Going Global
Multinationals on China: How does TPC use its strengths to help Chinese companies expand overseas?
Chavalit Frederick Tsao: In April, I founded the "Conscious Economy Alliance" in Hong Kong to promote an economic model centered on holistic well-being and sustainable value. The alliance focuses on 12 key sectors, serving as a platform connecting Hong Kong businesses with the Greater Bay Area and ASEAN markets. Through a strategy of "integrating northward, expanding southward," it will deepen synergy with the Belt and Road Initiative.
We provide not just capital but also support building overseas capacity using our industrial land reserves in Southeast Asia, and help establish global distribution through joint ventures to convert technological advantages into market success.
The core value lies in precisely matching Chinese companies' tech strengths with global supply chain needs, sharing long-term returns through investment partnerships and value co-creation.
Multinationals on China: China's Ministry of Ecology and Environment established the "Belt and Road Green Development International Alliance." You emphasize "communication." What are your expectations?
Chavalit Frederick Tsao: Successful green cooperation under the Belt and Road requires multi-stakeholder synergy, for which effective communication is essential. We hope to establish regular dialogue mechanisms with relevant ministries through forums and roundtables.
We wish to share our practical experience and needs in green shipping tech and low-carbon overseas investments. We also seek deeper understanding of policy directions and industry consensus to ensure our actions align with the Belt and Road Initiative.
We ultimately hope to form a virtuous cycle of "policy guidance + corporate practice + capital support," integrating government planning, corporate innovation, and financial resources to advance Belt and Road green cooperation. This collaborative model can reduce risks for companies going global and enhance China's voice in global green governance.
Chief Producer: Zhao Haijian
Supervising Producer: Shi Shi
Editor: Li Yinong
Reporter: Lu Taoran, Li Deshangyu, Intern Fang Zhengjie
Video Editor: Cai Yutian
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Produced by: Southern Finance Omnimedia Group
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