Connecting to the World: Singapore as a Hub Port - Civil ...

Singapore was the first country in Southeast Asia with a container port, which has since grown to become one of the busiest and most connected ... ASingaporeGovernmentAgencyWebsite FontresizerA FontresizerA FontresizerA MobileMenu Search LearningatCSC Ethos KnowledgeHub WhoWeAre Fellowships OrganisationalStructure OurPartners JoinUs Help INNxCSC LXPlaybook INNFacilities ContactINNxCSC Search SearchBox Search Home Ethos ConnectingtotheWorld:SingaporeasaHubPort Article ConnectingtotheWorld:SingaporeasaHubPort Singapore’ssuccessasamajorglobalmaritimehubistheresultofboldvision,nationaldetermination,andassiduousplanning. ChristlLi DatePosted 6Jul2018 Issue Issue19,8Jul2018 Topics Productivity Innovation Economics Technology Digitalisation DataAnalytics FromitsestablishmentasaBritishtradingpostintheearly19thcenturytoitsgrowthintoaglobaltranshipmenthub,thedevelopmentofSingapore’sporthasbeensynonymouswiththemodernhistoryoftheislandcity-state,andtheforesightexemplifiedbyitsleaders. Thedecisiontakenin1969tobuildSingapore’sfirstcontainerterminalinTanjongPagarpropelledSingaporefromasmallportintothegloballeague.SingaporewasthefirstcountryinSoutheastAsiawithacontainerport,whichhassincegrowntobecomeoneofthebusiestandmostconnectedintheworld,withlinkstomorethan600portsacross120countriesworldwide.Annually,morethan130,000shipscallatSingapore. WhileSingapore’sgeographicallocationatthecrossroadsofimportanttradelineshasbeenfavourable,itspre-eminenceasaglobalhubporthasnotbeenbychance.Strategicvisionandleadership,withthecouragetomakebolddecisions,havebeenvitalinenablingSingaporetostayreadyforthefuture,beapacesetter,reapfirst-moveradvantages,andthriveinadynamicglobalindustry. VisionandDecisiveness:Stayingaheadofthecurve Inthe1960s,containerisationdisruptedtheshippingindustry—muchlikehowonlineshoppingandthird-partyhailingappsdisrupttheretailandtaxiindustriestoday. ReadMore VisionandDecisiveness:Stayingaheadofthecurve Inthe1960s,containerisationdisruptedtheshippingindustry—muchlikehowonlineshoppingandthird-partyhailingappsdisrupttheretailandtaxiindustriestoday.Butthe1969decisiontobuildacontainerterminalinSingaporewasahugerisk. Atthattime,itwasunclearwhethertherewouldbedemandforcontainershippingalongtheEuropeandFarEastroutethatSingaporeserved.However,thealternativewasanevenbiggerrisk:becomingobsoleteandirrelevantifcontainershippingweretobecometheprevailingmodeoftransportingcargobysea. Singapore’sfirstcontainerterminalatTanjongPagar,whichopenedin1972,allowedustocatchthewaveofcontainerisationbeforetherestoftheregion.Hadwewaitedforcontainerisationtotakeoffbeforemakingtheinfrastructuralinvestment,wewouldhavelostthisfirst-moveradvantage. Close KeyElementsofaSuccessfulPort Singapore’sstrategicvisionforitsporthasbeenaboutensuringthe3CsofConnectivity,Capacity,andCompetitiveness. Connectivityisameasureofthefrequencyandrangeoffeederanddeep-seaconnections.Connectivityiskeyforshippers,andSingaporeoffersahighlevelofconnectivityastheprimarytranshipmenthubintheregion.ByanchoringkeyshippinglinesandalliancesthatplythemainshippingroutefromAsiatoEurope,andestablishingastrongcomplementaryfeedernetworktosmallerportsintheregion,Singaporehasbuiltupareliableanddenselyconnectednetwork.Weareabletohandleincreasinglyfragmentedanddispersedconnectionsacrossshippinglinesandfeeders. Long-term,strategicportplanningmustensurethattheportcanprovideadequatecapacitytomeetthedemandsofkeyshippinglinesandtheiralliancepartnersinsizeableblocksofvolume.Thismeansbeingabletoberththeirvesselsandconductcargooperationsefficiently.Scale,andtheavailabilityofspacetogrowtheport,areessentialforretainingSingapore’sedgeinconnectivityandnetworkstrength.Shippinglinespreferpartneringwithportsthatcanaccommodatetheirlong-termgrowthplans.Adequateportcapacityandoperationalcapabilitytokeeppacewithshippinglines’demandsprovidecertaintyanddistinguishSingapore’sport.TogetherwithSingapore’scompetitiveadvantageinconnectivity,assuranceofcapacitygoesalongwayinhelpingPSAtoinknewjointventures1withleadingshippinglinesandsecurelong-termcommitmentsinSingapore. Creatingvalueforkeystakeholders2orbetteringourbusinessproposition(e.g.,byleveragingtechnologytodelivermoreefficientservice)isvitaltosharpeningcompetitiveness.Singapore’svaluepropositionisthatofa“catch-upport”thatoffersshortertransittimesandenablesvesselstomakeupfordelaysupstream.Deliveringefficientserviceinanoptimummannerhelpsshippinglinesreducecosts.Tothisend,Singaporehascontinuallyinvestedintechnologyandinnovationtoextractproductivitygainsandenhanceourcompetitiveness. CateringtoGrowth ThedecisiontoexpandPasirPanjangTerminalin2004providedthenecessarycapacitytocatertogrowthincontainerthroughput. Withthis,Singaporehasbeenabletomaintainitspositionastheworld’sleadingtranshipmentport.Inaddition,ithasenabledSingaporetoanchorglobalshippinglinessuchasChina’sCoscoandFrance’sCMACGM,bothofwhichhavejoint-ventureagreementswithPSAtooperateberthsatPasirPanjangTerminal.   Newportcraneswillallowforremotemonitoring,supervisionandcontrolofupto5cranes. Source:PhotocourtesyofPSACorporationLtd Inaddition,greaterconnectivity(i.e.,moredeep-seaandfeederconnectionsfromtheport)enhancestheproductdiversitythattheportsupports,addingvalueandimprovingcompetitiveness.Byofferingtop-notchproductivityandunrivalledconnectivityonanunmatchedscale,Singapore’sporthasbecomeacriticalnexusintheglobalsea-tradesystem.3 NewSystems Inplaceofconventionalrailmountedgantrycranesthatareindividuallymanned,PSAhasintroducednewsystemsatPasirPanjangTerminalthatenableasinglecraneoperatortoremotelymonitorandcontroltheoperationsofuptofivecranes.   Byofferingtop-notch productivityand unrivalledconnectivity onanunmatchedscale, Singapore’sporthas becomeacriticalnexus intheglobalsea-trade system. ShippingLandscapeToday Anincreaseinscale Shippingalliancestodayhavebecomelargerasshippinglinesconsolidate.Shippinglinesaredeployingmegavessels4(i.e.,avesselwithacapacityinexcessof10,000twenty-footequivalentunits,orTEUs)onmajortraderoutes.Underpinningthesetrendsistheindustry’sbeliefthatsizeandscaleareprerequisitesforsurvival,andthatsmallerplayerswillbehardpressedtoout-pricelargeralliances.Theincreasinguseofmegavesselsandconsolidationofshippinglinesintoeverlargerallianceswillaccentuatepeakvolumesandincreasethecomplexityoftranshipmentoperations.Ananalogywouldbeabiggroupofdinersshowingupatarestaurantatthesametimeanddemandingtobeseatedtogether.Consequently,atranshipmenthub’sabilitytoaccommodatelargeralliancesandtheirmorecomplextranshipmentconnectionswillbecriticaltoitssuccessorsurvival.Portsthatfailtoinvestincapacityinanticipationofdemandwillfinditchallengingtodeliverthehighservicelevelsthathavecometobeexpected. Digitalrevolution Digitaldevelopmentsarepoisedtotransformtheentireglobalmaritimeindustry,includingtheport.PSAinvestsintechnologyasamultiplierofcapacity,toboostproductivityandimproveportoperations.Aidedbytechnology,advancedplanningandoptimisationofequipmentdeploymentwillfacilitatetheseamlesstransferofcontainersfromvesseltowharf,andthentotruckandyard,andviceversa.HarnessingautomationwillalsoincreasePSA’scompetitiveness.Forinstance,insteadofprimemoverdrivers,automatedguidedvehicles(AGVs)willferrycontainerboxesaroundourportatthenewTuasTerminal. ForSingaporetostayaheadofthecurve,flexibilityandopen-mindednessinenactingbusiness-friendlyregulationsandexperimentingwithnewideasandtechnologiesareessential.Forinstance,theMaritimeandPortAuthorityofSingapore(MPA)proactivelyexperimentswithdigitalisationinitiatives,adoptinga“regulatorysandbox”approachinwhichtrialswithnewtechnologiesmaybeobservedincontrolledenvironments.Thisenablesregulatorstobeup-to-speedwhenintroducingnewregulationsandcapturingfirstmoveradvantages.PSAandMPAhavealsoestablishedlivinglabstofacilitatethetest-beddingofnewtechnologies,withaviewtofuturelargescaledeploymentatTuas.Theseinitiativeswillhelppromotecutting-edgeinnovationandbuildupcompetenciesinportdevelopment. TheBroaderEconomicImportanceofSingapore’sPort Singaporeiscommittedtosustainingthegrowthofourportbecausethisisanindustrycriticaltooureconomy. OurleadingpositionasanInternationalMaritimeCentre(IMC)isbuiltuponourstatusasatoptranshipmenthub.StronglinkagesandahighdegreeofcomplementaritybetweentheportandtheIMCmeanthattheportisthedrivingforcebehindSingapore’svibrantmaritimesectorandeconomyatlarge—itanchorsshippinglinesinSingapore.OnceshippinggroupsestablishoperationsinSingapore,thereisastrongerimpetustoshifttheirotherfunctionsandactivitiestoSingaporetoo.Byencouraginggreater“stickiness”ofshippinggroups,theporthashelpeddrawinotherinternationalmaritimecompaniesprovidingessentialservicestosupporttheshippinglines.Inturn,thishashelpedspawnawiderecosystemofmaritimeserviceprovidersincludingbunkering,shipbroking,shipfinance,martimeinsurance,aswellasmaritimelawandarbitration,amongstothers. ProjectSAFER GiventheneedtoensurenavigationalsafetyasSingapore’svesseltrafficgrows,ProjectSAFERisacollaborationbetweenMPAandIBMResearchtodevelopandtest-bednewanalytics-basedtechnologiestoimprovemaritimeandportoperations. ReadMore ProjectSAFER GiventheneedtoensurenavigationalsafetyasSingapore’svesseltrafficgrows,ProjectSAFERisacollaborationbetweenMPAandIBMResearchtodevelopandtest-bednewanalytics-basedtechnologiestoimprovemaritimeandportoperations. TheSAFERsystemcanautomateandincreasetheaccuracyofcriticaltasksthatformerlyrepliedonhumanobservation,reporting,VeryHighFrequency(VHF)reportinganddataentry. ExamplesincludeAutomatedMovementDetectionandUtilisationPrediction. Close Beyondthemaritimesector,theportalsosupportsotherindustries.Ourpositionasaleadingtranshipmenthubandwell-connectedportanchorsthegrowthofSingapore’slogistics,manufacturingandwholesaletradesectors.Asahubport,Singaporeisabletoofferahighdegreeofconnectivityandcompetitiveshippingratestoanextensiverangeofplayersacrossthelogisticssupplychain.Superiormaritimeconnectivitysupportsthemanufacturingsectorbycontributingtotheeaseandaffordabilityofimportingrawgoodsandexportingmanufacturedproducts.Accesstotheconnectivityaffordedbyourportisacriticalconsiderationinwholesaletradeandlogisticscompanies’decisionstobelocatedinSingapore.Today,weseeglobalshippingandlogisticsplayerstappingonSingaporeasabaseforregionaloperations. ThetwinpillarsofMaritimeSingapore—ourhubportandIMC—accountforthelion’sshareofMaritimeSingapore’s7%contributiontoGDPandemploymorethan170,000peopleinSingapore.Theport,inparticular,isasourceofgoodjobsforlocals—thepercentageoflocalsemployedbytheportsectorisconsistentlyhigherthanthenationalaverage.ThepercentageoflocalsintheportsectorholdingPMET(Professionals,Managers,ExecutivesandTechnicians)positionsalsofaroutstripsthenationalaverage. AnchoringMaersktoSingapore TheportplayedasignificantroleinanchoringtheMaerskGroup’sshippingandrelatedservicesinSingapore. ReadMore AnchoringMaersktoSingapore TheportplayedasignificantroleinanchoringtheMaerskGroup’sshippingandrelatedservicesinSingapore.MaerskstartedoutusingSingaporeasitstranshipmenthub,subsequentlyexpandedthebreadthofitsoperationsinSingapore,andeventuallyestablisheditsregionalheadquartershere.Today,SingaporeistheMaerskGroup’slargestbusinessoperationscentreoutsideDenmark,withabout650employees.Itperformsglobalandregionalfunctionsfor13businessunitsthatspanthecontainer,drilling,tanker,towageandsalvage,andterminalsbusinesssegments.Besidestheport,theconducivebusinessframeworkenvironmentinSingaporeisakeyfactorwhichcontributestoitsgrowth. Close LookingAheadtoTuas Bytheearly1980s,itwasapparentthatSingapore’sfirstcontainerterminal,TanjongPagarTerminal,wouldbeoperatingatmaximumcapacitybythe1990sandwouldnotbeabletohandletheenvisagedgrowthintradevolumes.BeyondtheCityTerminals(TanjongPagar,Brani,andKeppelTerminals),plansweremadeforportexpansionatPasirPanjang.By2000,Singapore’scontainerthroughputhadreached17.1millionTEUs.CityplannerswerealreadylookingaheadtotherelocationofthecontainerportasthenextchapterinSingapore’smaritimestory.ThedecisiontoconsolidatetheportatTuaswithaplannedcapacityofupto65millionTEUswasmadewithaneyeonthefuture.Havingsufficientcapacityinasingle,contiguouslocationaffordsSingaporeacriticalcompetitiveadvantage—itprovidesgreatereconomiesofscaleandalsoeliminatestheneedforinter-terminalhaulage.Inaddition,thecertaintyofincreasedcapacityatTuasprovidesassurancetoshippinglinesandalliancesthatSingaporecanaccommodatetheirgrowthoverthelongterm.ThishelpspositionSingapore’sportmorecompetitivelyamidstincreasedcompetition. GOSHO—world’slargestgrabdredgercurrentlydeployedatTuasforreclamationworks Source:MPA TuasTerminalisexpectedtobethelargestcontainerterminalintheworldinasinglelocation.Itisdesignedwithfinger-shapedpierstoyieldhighercapacityberthsbymaximisingusableberthlengthandenhancingutilisationintensity.Beyondberthdesign,theconstructionofTuasTerminalisalsorecord-breakinginseveralaspects.Forexample,eachofthecaissonsthatformthepermanentwharfstructureis28metrestall(about10storeyshigh)andweighstheequivalentofaround8,000cars—thesecaissonsdesignedforthefirstphaseofTuasTerminalareamongstthelargesteverusedintheworld.Inaddition,theworld’slargestgrabdredger,theGOSHO,hasalsobeenmobilisedforreclamationworks—itcanfillanOlympic-sizedswimmingpoolwithjust15grabs! Unlikeotherports thatarecompletely outofboundsto thepublic,Tuas willincorporate elementsof community integration. Productivityimprovementsinportoperationsarealsocriticaltomeetdemandsiderequirements(e.g.,cateringtomegavessels)andaddressSingapore’sperennialsupply-sideconstraints(i.e.,landandlabourscarcity).Notably,large-scaledeploymentofAGVsaswellasautomatedyardandquaycranesatTuasTerminal,allofwhichwouldberemotelyoperatedfromacontrolcentre,willimproveportproductivity. PSAcontinuestoharnessdataandtechnologytooptimiseturnaroundtimesandfacilitatejust-in-timeportcalls,withaviewtosustaininghighberthandyardproductivity.Today,PSAisalreadyachievinghigherandconsistentberthproductivitythroughintelligentplanningandautomation.PSAworkswithkeycustomerstodevelopprotocolsforvesselstowage(placementofcontainersonvessels)tofacilitateoptimalcontainerloadinganddischargingrates.Lastbutnotleast,PSAhasalsobeenactivelyworkingwithplannersofshippinglinestospreadoutcargovolumessuchthatmorecranescanbedeployedtominimiseeachvessels’turnaroundtime. GiventhescaleandcomplexityofTuasTerminal,theNextGenerationPort2030(NGP2030)InitiativeisamultiagencyeffortledbyMPAtocreateanintelligentandsustainableportatTuasthroughimprovingspaceutilisation,land-use,productivityandefficiency.Unlikeotherportsthatarecompletelyoutofboundstothepublic,Tuaswillincorporateelementsofcommunityintegration.TheTuasTerminalgateway,whichwillbetheinterfacebetweenareasinsideandoutsidetheport,willbeamulti-purposecomplexwithofficesandevenamaritime-themedvisitors’gallery.Agenciesarealsoworkingtogethertoensureaccessibilityforportworkerstoandfromhometowork. NextGenerationPort2030Initiative:Tuas,anIntelligentandSustainablePort ForthedetailedinfographiconthecapabilitiesofTuasTerminal,clicktheimageabovetoviewthePDF.   Conclusion Beyondournaturalattributes,Singapore’sdevelopmentintoaglobalhubportwithinourfirst50yearsofnationhoodisnoaccident.Theunparalleledscaleandconnectivitythatwehaveassiduouslycultivated,underpinnedbysolidoperationalcapabilities,haveenabledustodelivercompellingvaluetoshippinglines.Forward-lookingleadership,coupledwiththecouragetotakebolddecisions,willenableSingaporetocontinuecapitalisingonitshard-wonadvantagesinthiseraofglobalisedcompetitionbetweenmajorhubportstoattracttranshipmentbusiness. ABOUTTHEAUTHOR ChristlLiisSeniorManageratthePortPolicyDivisionoftheMaritimeandPortAuthorityofSingapore.ShewasformerlywiththeSeaTransportDivisionattheMinistryofTransport. NOTES Forinstance,PSAsignedajointventureagreementwithCMA-CGMin2016,whileCoscoexpandeditsSingaporejointventurewithPSAin2017. Keystakeholdersincludeshippinglines,cargoowners,andfreightforwarders. The2014OECDreport“TheCompetitivenessofGlobalPort-Cities”citedSingaporeasthenumberoneportintheworldaccordingtoitsthreemeasuresof“centrality”withintheglobalsea-tradenetwork. ThelargestmegavesseltodayistheOOCLHongKongwithacapacityofover21,000TEUs.Shippinglineshaveplacedordersfor22,000TEUcontainerships. BacktoEthoshomepage Moreinthisissue Article DevelopingaLiveableandSustainableSingapore Article Integrity:FundamentalsforSingapore'sGovernanceSuccess Article PublicTransportPlanningandtheTechnologicalRevolution Article TheFutureofHeartlandLiving CivilServiceCollege Learning Programmes LearningatCSC Help AboutCSC WhoWeAre JoinUs RentAFacility Newsletter Getthelatestprogrammesandknowledgeontopicsofyourchoice. Subscribe ContactUs Feedback ShareYourViews@REACH ReportVulnerability PrivacyPolicy TermsofUse RateThisSite LastUpdated6Jul2018 Copyright©2018CivilServiceCollege.Allrightsreserved. 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