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Mr Yeo Cheow Tong, Minister for Transport, Singapore

Port Position

Moving beyond the physical port, Singapore is developing as an international maritime centre, writes the Minister for Transport

The roots of Singapore’s port go back to the late 14th century, when it was a thriving port several years before the rise of Malacca. Its fortunes dipped from the 15th century to the 19th century, as other ports such as Malacca and Batavia overtook it in importance. The turning point came in 1819, when Singapore was established as a British trading post to rival the Dutch supremacy in South-East Asia. Since then, there has been no turning back for the port of Singapore. It has undergone several transformations, yet has remained the premier port in the region for nearly 200 years.

A premier port
Singapore’s ability to maintain its leading port position is due to its ability to transform and adapt to the rapid changes in seaborne trade. The advent of containerised shipping in the last few decades resulted in shipping volumes increasing at breakneck speed. While a port’s location was considered in the past as the most important factor for its success, this is no longer true. Singapore had to transform itself from an entrepôt port to become a transhipment hub. Our position as a leading transhipment hub today is due to a combination of factors – excellent connectivity, the wealth of value-added services that our port operators provide to shippers and shipping lines, and a pro-business environment.

Leading port: Singapore has maintained its position through its ability to adapt rapidly to changes in seaborne trade

More than 200 lines
Singapore is connected by more than 200 shipping lines to some 600 ports the world over. This excellent connectivity has been a magnet which has drawn shippers and shipping lines to our port. Our efficient and extensive use of IT processes to enhance our services and documentation process has, in the process, shortened turnaround time and saved millions of dollars for shippers and shipping lines. For example, PSA Corp’s PORTNET system provides integrated services to shipping lines, haulers, freight forwarders, shippers and local government agencies. Containers are tracked meticulously, and the system selects the best connections and optimal stacking onboard a vessel. Since 1999, the PORTNET system has moved onto the internet platform, thereby opening its doors to the global shipping and port community.

A pro-business environment
Speedy port clearance and the efficient trade documentation processes of government agencies such as International Enterprise Singapore (IES) and the Maritime and Port Authority of Singapore (MPA) buttress the development of our port. With TRADENET, shippers can submit the necessary trade declarations and get approval within minutes. MPA’s MARINET offers a full suite of marine services at the click of a mouse.

Equally important, these government agencies stay abreast of the industry through regular meetings with the shipping lines to understand the latest industry developments and seek the industry’s inputs in reviewing rules.

The Port of Singapore has maintained its position as the world’s busiest port in terms of shipping tonnage for the last decade. In 2002, it achieved a record shipping tonnage of 971.7m gt, from 142,745 vessel calls. It is also among the world’s top container ports, handling 16.94m TEUs in 2002. The port is also well known for its bunkering activities. Bunker sales for 2002 hit a total of 20.10m tonnes.

Expanding capacity: Singapore wants more transhipment

Singapore as an International Maritime Centre
Going forward, we plan to build on our strength in infrastructure to develop and acquire new competencies in the services area. Only then can Singapore become a vibrant International Maritime Centre (IMC) which boasts a wide range of maritime-related services beyond the confines of the port sector. These services include, amongst others, maritime R&D, maritime training, integrated multi-modal logistics, ship financing, maritime arbitration, ship management, and shipbuilding and repair, to name just a few. Shipping lines that call at Singapore will then not just have an efficient port. Instead, they will have access to a wealth of other high-end maritime services across the entire supply chain.

How do we do this? First, by expanding our port capacity so as to play an even bigger transhipment role. We are open to having more players come into Singapore’s port sector to increase the variety of arrangements for our shipping line customers – from common-user terminals and virtual terminal arrangements served by our existing operators, to dedicated terminals self-managed by shipping lines or run as joint ventures with existing operators. We are refining cost and pricing structures, and simplifying regulatory requirements, to ensure that we retain our cost competitiveness to maintain our pre-eminent status as a regional hub port.

Second, to attract global maritime ancillary service providers to establish themselves in Singapore, we will continue to revise our various incentive schemes, such as the Approved International Shipping Enterprise Scheme and the Approved Freight and Logistics Enterprise Scheme, to ensure that they remain relevant and attractive.

Third, we are committed to enlarging our pool of mari-time professionals, which would be critical to the growth of Singapore as an IMC. The Integrated Simulation Centre (ISC) was launched in April last year. The ISC is one of the most sophisticated maritime simulation centres in the world, and offers a one-stop facility to the port and shipping community to upgrade the knowledge and skills of their personnel. A Maritime Cluster Fund (MCF) was also established in 2002 with S$50m (US$28m) set aside over five years to help local maritime companies to develop their manpower in specialist knowledge and skills, and to develop local training infrastructure and capabilities.

Fourth, we aim to build on Singapore’s expertise as a centre for maritime R&D. Our strategy has been to leverage on our local research institutions and to encourage partnerships between these institutions and the maritime industry. Where possible, we will search for opportunities for our local institutions and companies to collaborate with established foreign counterparts.

Ready to call: Singapore plays host to more than 200 shipping lines connecting with 600 ports worldwide

Major pillar
Singapore’s port and maritime industry has been, and will remain, a major pillar of our economy. We are committed to building on its success to ensure that it remains a premier global hub port and international maritime centre.
The road ahead will be a challenging one. We remain confident that we will overcome the increased competition, the global political and economic uncertainties, and any other obstacles that may come our way. We have tasted both failure and success. We will bear in mind the lessons of the past, which will shape how we face and tackle the future.

Author: Mr Yeo Cheow Tong,
Minister for Transport, Singapore.
Websites: www.mot.gov.sg
www.mpa.gov.sg

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www.mot.gov.sg

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