With an average of 120,000 vessel calls, from tankers and bulk carriers, to container vessels and ferries – adding up to a combined tonnage of over 3 billion gross tonnes annually, the Port of Singapore is the busiest transshipment container port in the world, accounting for one seventh of global transhipment volumes.
The Port is critical to Singapore; and to the lives and livelihoods of all Singaporeans. It connects Singapore to the world, to resources, markets, and to global trade, PM Lawrence Wong said.
During the covid pandemic, our port stayed open to turn cargo around and provided the much needed connectivity to the world, thus contributing to the stability of global supply chains.
We also facilitated crew changes at a time when other countries were initially unwilling to, thus allowing ships to sail, cargo to move and seafarers to return home.
Now, our port is doing better than ever, said PM Lawrence Wong.
But the long arc of global history is full of stories of ports that have flourished and thrived for decades, only to decline amidst changing circumstances, he added.
So we cannot take success for granted and we cannot be complacent, said PM Wong.
Because we has no hinterland of our own, we must remain plugged into global supply chains, so that ships – be it container vessels, tankers, or bulk carriers – will continue to call in our waters, and everyone around the world will see value in connecting with Singapore, PM Wong explained.
And that means that we must continually invest, not just in the Port of Singapore, but also in value-added capabilities, so that we can keep on adapting and staying abreast of changing trends.
The Port of the Future
Today, container ships can carry up to 25,000 containers compared to 500 to 800 containers in the 1950s. Shipping alliances are also becoming mega alliances.
That means two things for us.
First, ports need to have extensive infrastructure and capabilities to handle large ships efficiently, as well as the large number of containers on these ships.
Second, ports must also demonstrate value-add to shipping alliances, to attract the large fleets of vessels they operate.
That is why we are expanding our capacity to meet the demands of the shipping industry, said PM Wong.
When fully completed in the 2040s, Tuas Port will be the world’s largest fully automated port, capable of handling 65 million TEUs annually.
The Port will be able to handle increasingly complex and voluminous transactions, with efficiency and precision.
Speaking at the Groundbreaking of PSA’s Supply Chain Hub @ Tuas on 18 October 2024, PM Wong said PSA Supply Chain Hub will also further improve Tuas Port’s competitiveness, by enhancing our ability to handle cargo shipments, not just containers, but shipments.
The Supply Chain Hub will also introduce new capabilities and differentiate itself from its peers in other ports through technology. These facilities will allow the Supply Chain Hub to process higher-value cargo, like pharmaceuticals which require temperature-controlled storage, and chemicals which require specialised handling.
Currently, businesses that want such services would have to truck their cargoes out of the Port – which incurs duties – then truck it back to the Port for shipping again. This takes time, and it adds up to additional costs.
The Supply Chain Hub will provide all these new capabilities under one roof, within the same Free Trade Zone, allowing businesses to enjoy these value-added services, faster and more seamlessly.
Tuas Port will be a convenient and efficient one-stop shop, not only for their physical goods, but also as a control tower for businesses to manage their inventory and global supply chain flows.
To deal with the increased complexity of maritime activities, MPA is developing new systems to enhance navigational safety, and improve operational efficiency within the Singapore Strait and our port waters.
Multi-generational project
Tuas Port is a muti-generational project. By now, 10 berths are opened. Work has begun on the Supply Chain Hub of PSA.
“But we are not done yet,” said PM Wong.
“There will be many more developments in the coming years – to ensure that Tuas Port can continue to serve the largest container vessels and orchestrate end-to-end supply chain solutions,” he said.
“We aim for Tuas Port to be the port of the future – setting new standards for innovation, sustainability and connectivity.”
