Singapore - A Global Maritime Hub

[huaiwei]

The Port of Singapore

A total of 142, 745 vessels called at our port with a shipping tonnage of 970 million gross tonnes, making Singapore the world's busiest port in terms of shipping tonnage in 2002.

For container traffic, Singapore handled 17 million TEUs (Twenty-foot Equivalent Unit) in 2002.

The Singapore Registry of Ships, which is currently the 7th largest in the world is also the largest registry in Asia with a young fleet of an average age of 11 years and has more than 3,300 ships aggregrating more than 23 million GT. Singapore is also ranked 9th in the United Nations Conference on Trade and Development's (UNCTAD) 2000 ranking of maritime nations in terms of ownership of the world's shipping fleet by deadweight tonnage.

Singapore remains the top bunkering port in the world, having supplied 20.1 million tonnes of bunkers in 2002.

http://www.skyscrapercity.com/photopost/data/2/103port.jpg

"For several years now, Singapore has been the World's Busiest Port in terms of shipping tonnage. Our port contributes 5 % to our Gross Domestic Product, by no means a small contribution."

- Minister for Communications, Mr. Mah Bow Tan at the Launch of MPA (23 April 96)

The Port of Singapore has played a critical role in the Republic's transformation into a global trading power. Its strategic geographical location is one of the crucial factors that have made Singapore into the global hub for shipping that it is today. Other contributory factors include a strong and stable government, good infrastructure, a transparent legal system and state-of-the-art telecommunications.

The port's location at the crossroads of the main shipping routes has facilitated the Republic's development into a principal centre for shipping activities in Southeast Asia. It is a focal point for some 200 shipping lines linking Singapore to more than 600 ports in over 120 countries worldwide. There are about 1,000 ships in the port at any one time.

These ships can look forward to a variety of services, including cargo handling, warehousing, distribution, bunkering and ship supplies. Where necessary, the port also provides pilots and tugs to ships who may not be familiar with Singapore's waterways. The Port also provides round the clock security, environmental control and fire-fighting services at its six terminals at Tanjong Pagar, Keppel, Brani, Pasir Panjang, Sembawang and Jurong. These terminals can accommodate all types of vessels - container ships, bulk carriers, cargo freighters, coasters and lighters.

Depending on their cargo, these vessels will either call at the oil terminals run by the petroleum companies or the terminals managed by the PSA Corporation Limited and the Jurong Port. PSA Corporation operates the terminals at Brani, Keppel, Pasir Panjang, Sembawang and Tanjong Pagar, which deal in container and conventional cargo. It also runs the Singapore Cruise Centre, the cruise hub of the Asia Pacific for passenger liners as well as regional and domestic ferries. Jurong Port, which handles conventional and bulk cargo, comes under the purview of the Jurong Town Corporation (JTC). The Port of Singapore is overseen by the Maritime and Port Authority of Singapore (MPA), which acts as the sole regulatory body for the Republic's port and maritime affairs.

A free port with minimal tariff protection, Singapore is well poised to take advantage of the ASEAN Free Trade Area (AFTA) which is expected to come into effect by the year 2003.

[huaiwei]

http://hope.nyc.ny.us/~lprimak/Albums/20030414-Images/203.jpg

http://community.webshots.com/s/image3/4/14/11/18441411DQBeACMGDp_ph.jpg

Keppel distripark, just next to the Keppel Harbour:

http://web.singnet.com.sg/~jingye/j-p7.jpg

[huaiwei]

PASIR PANJANG TERMINAL (PPT) AND SERVICE FACILITY, SINGAPORE

In 1993, PSA (Port of Singapore Authority) started constructing a new container terminal at Pasir Panjang (located approx. 7 km west of the company's other container terminals). This new, $7 billion terminal, represents an immense expansion of PSA's container port. When fully completed in 2009, it is expected to raise SPA's container handling capacity by a further 18 million TEUs/year. The terminal's first four berths (of the planned 26) opened in 1998, with two more berths becoming operational by the time of the terminal's official opening in March 2000.

PROJECT RATIONALE

Singapore remains the paramount hub location for the shipping industry in the Asian region. According to the company no other port offers the variety of services to shipping lines and the level of efficiency needed to make the largest ships cost-efficient. PPT is confident that it will attract the larger generation of 6,000 TEU container ships, since it is among the only ports where they can be serviced. While container ships get bigger and the hub and spoke system further develops, PSA's hub is also said to be able to serve the biggest ships most efficiently. The company promises that as long as big shipping lines continue to arrive at Singapore, feeder lines depending on them will also follow.

PPT is operated as one integrated facility together with Brani, Keppel and Tanjong Pagar Terminals to provide customers with fast, flexible and reliable world-class service. Pasir Panjang is a new generation port which has invested in the latest information technology to create new innovative port facilities, enabling the needs of present and future customers'to be met without a corresponding increase in costs.

The official opening of Pasir Panjang Terminal was thought well timed as the first three months of 2000 saw a surge of container traffic worldwide. There is a renewed sense of optimism in the global and regional economies as the uncertainty cast by the Asian economic crisis has disappeared. Trade has rebounded as economies in the region regain their competitiveness and as consumers' spending increases.

PROJECT CHARACTERISTICS

The current facilities at PPT, including its six berths are part of PSA's $7 billion investment in PPT as part of a multi-phased project, which is to be phased in during the coming years, with an estimated completion date of 2009.

At PPT, shipping companies' current and future new-generation vessels are assured of even higher productivity levels as they get serviced by PPT's ultra-modern post-Panamax quay cranes, which can efficiently service vessels with 18 rows of containers across. PPT's remote-controlled Bridge Cranes can stack containers 9 high.

Customers can expect high increases in productivity and a shorter turnaround time with PPT's advanced features. Its newest generation of port equipment and technology will further enhance shipping lines' competitive edge in serving customers. These include remote controlled Bridge Cranes with each operator able to handle up to four Bridge Cranes, and quayside cranes with an outreach of 55 metres. Being a greenfield development, PPT is custom-built and has tremendous potential to enhance its operations and productivity through automation. Also, it is integrated with Brani, Keppel and Tanjong Pagar Terminals to provide vessels with the same level of world-class service, regardless of the terminal at which they are berthed. With the capacity to handle up to 1 million TEUs per berth per annum, and with 15-metre drafts, this allows PPT to handle the largest vessels in the world.

The terminal is situated on 84 hectares of land with 2,145 metres wharf length. It has 24 quay crane (QC), 44 bridge cranes (BC), 15 Rail Mounted Gantry cranes (RMG), 14,000 ground slots on its stacking yard, 1000 reefer points and 12 container gates.

http://www.port-technology.com/projects/pasir/images/1_pasir_panjung.jpg
A Maersk ship in Singapore; Maersk has set up its own terminal in Pasir Pelepas, thereby lessening its use of the Singapore port.

http://www.port-technology.com/projects/pasir/images/2_pasir_panjung.jpg
Another Maersk ship unloading in Singapore. Most of the cargo that enters the port by sea also leaves the port by sea.

http://www.port-technology.com/projects/pasir/images/3_pasir_panjung.jpg
The Singapore facilities can handle even the largest ships.Investment in a new terminal has been necessary because of growing traffic.

http://www.port-technology.com/projects/pasir/images/4_pasir_panjung.jpg
Location map for Pasir Panjung.

PASIR PANJANG TERMINAL (PPT) - SPECIFICATION
Key Data
Start year: 1993
Project type: Port Terminal and Service Facility
Location: Pasir Panjang, Singapore
Region: South East Asia
Estimated investment: $7 billion
Completion: 2009
Key Players
Port Owner & Finance: Port of Singapore Authority (PSA)
Size
Land Area: 87 Hectares
Wharf Length: 2,145 metres
Berths: 6 (26 when project is completed)
Volume (TEU): 1 million (18 when the project is completed)
Quay Cranes: 24
Bridge Cranes: 44
Rail Mounted Gantry Cranes: 15
Stacking Yard: 14,000 ground slots
Reefer points: 1000
Container Gates: 12

[babystan03]

Jurong Port

Jurong Port is a key bulk and conventional cargo gateway in Singapore, with 23 berths serving over 7,000 vessels every year. The Port is also into container-handling with super post-panamax quay cranes and rubber-tyre gantry cranes.

Jurong Port is Singapore's only dry bulk cargo-handling port. It's also:

the world’s largest common-user cement terminal, with a capacity in excess of 4 million tonnes a year.

Singapore’s largest multi-storey, drive-up warehouse – Jurong Logistics Hub

Singapore's deepest berth depth of up to 16 metres, catering to vessels of up to 150,000 deadweight tonnes.

It's location:
http://www.jp.com.sg/location/img/maps.jpg

Logistic support for Jurong Island:
http://www.jp.com.sg/location/img/jl.gif

Jurong Logistics Hub – Singapore Largest Drive-up Warehouse

Jurong Port has developed Jurong Logistics Hub to meet the logistics needs of customers.

The hub is a multi-storey drive-up warehouse which allows
45-foot containers to be trucked to every level, right to the doorsteps of customers and under all weather conditions.

http://www.jp.com.sg/logistic/img/pic2.jpg

It is strategically located , just minutes away from the Port, Jurong Island,
Jurong Industrial Estate and Tuas industrial zone.

http://www.jp.com.sg/logistic/img/pic1.jpg

The ultra-modern warehouse comprises 118,000 square metres of warehouse space and 6,200 square metres of office space. Jurong Logistics Hub's customers include multi-national corporations and logistics providers such as Sony, Volvo, Translink, Loreal, Dell Computers and LTH.

World's Largest Common-User Cement Terminal

Jurong Port's Cement Terminal, commissioned in 1997, is the largest common-user cement facility in the world. The facility is installed with specialised cement handling system to provide integrated support to the Singapore cement industry. Customers enjoy economies of scale, greater efficiency and cost savings, they can also fully focus on their core activities, leaving the discharge and delivery operations from vessels to silos entirely to the Port.

http://www.jp.com.sg/cement/img/cementsilos.jpg

The Terminal has an annual handling capacity of over four million tonnes. It is well-supported by two dedicated berths of 40,000 deadweight tonnes capacity each and three sophisticated screw-type unloaders. Currently, the Terminal houses six companies with twelve cement silos of 300,000 tonnes in total storage capacity.

The Terminal also uses the latest technology, of an enclosed air-slide conveyor system to ensure a pollution-free environment.

[huaiwei]

Jurong Port really needs to grow faster to be a viable competitor to PSA.

I heard or read from somewhere that a new major port may appear at the newly reclaimed lands in Tuas. Perhaps it is room for a major expansion of Jurong Port? :?

[babystan03]

Jurong Port really needs to grow faster to be a viable competitor to PSA.

I heard or read from somewhere that a new major port may appear at the newly reclaimed lands in Tuas. Perhaps it is room for a major expansion of Jurong Port? :?

Possibly.......then it would emerge a true competitor for PSA....... :yes:

[RafflesCity]

An aerial view of the port
http://img43.photobucket.com/albums/v133/RafflesCity/port.jpg

[jasonwa]

I'm actually an Australian Merchant Seafarer. I work on Merchant Ships and also upon Oil Rigs. Have visited Singapore hundreds of times, Jurong, Loyang and the old Favorite Sambuwang(sp?) port areas. Gotta say love the way the ports are set up, and the support ability to get work down 24/7 is great. Always a pleasure to work there.

[zergcerebrates]

I thought HK was the busiest. Anyways, if Thailand decides to proceed with its plan of cutting a canal through its bottom area near Malaysia then Singapore would be in trouble. Shipping lanes would pass through there instead because its a shorter route, thus benefiting Thailand.

[huaiwei]

I thought HK was the busiest. Anyways, if Thailand decides to proceed with its plan of cutting a canal through its bottom area near Malaysia then Singapore would be in trouble. Shipping lanes would pass through there instead because its a shorter route, thus benefiting Thailand.
Please read http://skyscrapercity.com/showthread.php?t=115095.

We were refering to the world's busiest port, which includes container traffic as one subset of the whole picture.

As for tha Kra canal, it is a far more complicated affair then imagined by the layman. The latest developments have it that they decided to build two ports and an overland link between the two instead.

[babystan03]

I thought HK was the busiest. Anyways, if Thailand decides to proceed with its plan of cutting a canal through its bottom area near Malaysia then Singapore would be in trouble. Shipping lanes would pass through there instead because its a shorter route, thus benefiting Thailand.

Seem like they talk about the Kra thing for a long, long time already........even my grandparents knew it........

[huaiwei]

Muahaha! :D

It is true indeed that it has been an idea which has spanned a very long time....a century or more even, although it has not always been due to global trade of coz. ;)

[RafflesCity]

Yawn...

anyway with the latest surge in shipping traffic this month who knows Singapore may just overtake HK.

[huaiwei]

Hahaa...dont think so lah. The upsurge is a global phenomenon, and most ports in this region have seen a sudden upward spike in traffic.

We might slowly narrow the gap thou, especially with the kind of regional developments happening in the vicinity of each port. ;)

[RafflesCity]

they'll also need to fend off mounting competition from rapidly-developing ports like Shenzhen

anyways......

more pics of SINGAPORE
http://www.diff.net/media/2002_03_12_Singapore_exploring/img_3784.medium.jpg
http://www.diff.net/media/2002_03_12_Singapore_exploring/img_3787.medium.jpg
http://www.diff.net/media/2002_03_12_Singapore_exploring/img_3747.medium.jpg

[huaiwei]

Thanks for the photos raffie! ;)

You know of any good sources for more photos like these? We seem to be rather lacking in Pasir Panjang photos...they have pretty impressive structures there!

[heirloom]

nice to hear something from someone actually in the business of shipping

[huaiwei]

nice to hear something from someone actually in the business of shipping
Huh? Who?

[heirloom]

I'm actually an Australian Merchant Seafarer. I work on Merchant Ships and also upon Oil Rigs. Have visited Singapore hundreds of times, Jurong, Loyang and the old Favorite Sambuwang(sp?) port areas. Gotta say love the way the ports are set up, and the support ability to get work down 24/7 is great. Always a pleasure to work there.

this one

[huaiwei]

Oh..strangely I overlooked that post! :bow:

[babystan03]

AUG 8, 2004
Berth of a nation
By Nicholas Fang

Two 30-somethings have a lot to celebrate this year. National shipping line Neptune Orient Line turns 35, while the nation hits 39. Both have charted successful courses through choppy seas. The Sunday Times finds out why NOL is a company going places.

GO BACK to when the idea of Neptune Orient Lines (NOL) was first floated in the 1960s, and you'll find that, like Singapore, the company started small, yet ended up becoming a global player.

It's quite an achievement - but amid all the razzmatazz of National Day celebrations, it's one that is easy to overlook. Images of endless stacked containers on a dock and distant dots of ships queuing to unload their cargo hardly make you reach for the champagne.

Yet those containers represent piles of money earned from soaring freight rates. Those queues of ships show trade at an unprecedented high.

Behind that routine portside bustle is a company raking in big bucks. And what's good for the company is good for the country.

Just how NOL has done Singapore proud is a moving story - not only literally - and all the more interesting for being closely linked to the Republic's own history.

Just last month, the shipping line launched a book entitled Beyond Boundaries, in which former top executives and other employees recounted its growth from a fledgling line with a handful of ships in 1968 to the industry leader it is today.

One of the key figures in the early history of the now-corporate icon is also a central figure in Singapore's leadership - Prime Minister Goh Chok Tong, for whom this is the last National Day at the country's helm.

As Singapore prepares for a new era, NOL last week experienced its own winds of change.

Singapore's investment company Temasek Holdings made a takeover offer for the remaining shares of NOL it does not already own.

But as the saying goes, one of life's constancies is change.

At the crossroads

IN FACT, it sounds as if NOL's creation was a bit of a calculated gamble, aimed at benefiting from Singapore's location at a major crossroads of the world.

Mr Goh, who joined NOL as planning and projects manager in 1969 and was its managing director when he entered politics in 1976, recalled the ups and downs of the early days of the company in the foreword to Beyond Boundaries.

'NOL's original mission was to facilitate Singapore's industrial development by carrying a share of our trade at fair freight rates,' he said. 'We also thought that, in times of crisis, Singapore would need its own ships to carry essential cargoes.

'The early days were difficult, as the company literally struggled to stay afloat. But the dedicated staff never lost faith.

'Today, NOL is a publicly listed multi-billion dollar corporation with a network of services and offices spanning the globe.'

To achieve this, NOL was hiring employees from all over the world decades before the phrase 'foreign talent' reared its head.

The company's first managing director, Mr M.J. Sayeed, was talent-spotted by the Government while he was the Pakistan National Shipping Corporation's commercial manager in 1968.

Many other members of top management since then have been brought into the company from overseas, including Danish former top man Flemming Jacobs.

The company's policy of tapping foreign talent led detractors to quip that NOL stood for 'No Orientals Left', but Mr Goh at an earlier National Day Rally pointed out that, without solid talent at the helm, NOL could very well stand for 'No One Left'.

NOL group president and chief executive officer David Lim told The Straits Times in a recent interview he shied away from looking at the company's talent requirements in terms of 'ratios and numbers'.

Global yet local

'It becomes a self-defeating paradigm to begin to think in terms of ethnic composition.

'We're always going to find we will need people who are good at certain parts of the system, and we will need other people with exposure to certain regions and their understanding of business practices there. And then we will need people who have more global experience and who have an understanding of how strategy is played out on a global scale.'

However, Mr Lim also recognised the need for NOL to remember its origins: 'If I had 'No Orientals Left', then I think the company would have lost something, because our roots are Singaporean, and every company needs its roots. But we cannot be just Singaporean and at the same time aspire to be an international company. You have to be international in your flavour and character.'

He also said the company's talent requirement had evolved over the years.

'Mr Sayeed and his colleague Mr Soli Setna were some of the first people to join the company from overseas and they were the people who gave us the expertise we lacked from the beginning and got us started.

'Then, of course, we took those ideas and began to shape them in our own way to suit our own conditions.

'But now we're really using talent in an ongoing effort, and no longer in teacher-student kinds of relationships, but more in an integrated approach.'

Mr Lim said this change mirrored a similar shift in Singapore's wider development over the years.

'We started by following other people and learning the tricks of the trade, so to speak.

'But for the next phase of our growth, we are going to have to innovate and not just follow or copy, but come up with new ideas which are relevant, useful and create value so people will come to us.'

Starting out as a small player in the industry with a paltry number of ships in its infant fleet, NOL faced an upstream battle in its early years to gain credibility among the European-dominated shipping conferences and groupings which controlled the bulk of international trade. One of the first major steps it took to establish itself on the global stage was to distance itself from its reputation as a 'national carrier'.

In Beyond Boundaries, Mr Teo Yak Long, who was the company's liner chief in the 1980s, said NOL's early efforts to expand its operations in the United States faced obstacles from regulations governing the activities of 'controlled carriers'.

In the book, Mr Teo says: 'The US considered NOL a national carrier so we were on the list of 'controlled carriers'.'

The book said consultants and lobby groups in the US then recommended that the Government's stake in NOL be cut to boost the chances of getting access to US markets. Sure enough, when Temasek's stake was whittled down to just over 30 per cent, NOL was taken off the list.

Full steam ahead

PART of the effort to make NOL a more commercial entity was its 1981 initial public offering, which made it one of the very first government-linked companies selected for listing. But probably the most significant step the company took towards propelling itself into the shipping industry's big league was the bold acquisition of American liner company APL in 1997.

The deal, which cost a whopping US$825 million (S$1.4 billion), was widely criticised as having been too expensive, which NOL has vehemently disputed.

Former NOL chairman Lua Cheng Eng said that, while it was true the company paid a high premium for APL, the purchase was not limited to the shipping unit, but also came with terminal operations, logistics and a special 'double-capacity' container stacking operation.

That peak was followed almost immediately by a trough: an industry-wide downturn which plunged APL knee-deep into red ink.

But things have turned around since then and the APL acquisition is regarded as a major step forward.

Mr Lim said in the interview that NOL had, through strategic moves such as buying APL, moved beyond the initial obstacles and boundaries it faced in its early days, much as Singapore as a nation had established itself on the world stage.

'We started small but we have grown beyond the constraints of our borders and have gone out to play in the world arena and become an international player,' he said.

Hope floats

HE ALSO said the next few years will involve the hurdling of yet another boundary for NOL as it seeks to keep up with the changing demands and needs of its customers around the world.

'Now we are looking at a different boundary. The bulk of our business is shipping and the bulk of our profits comes from shipping.

'But the world is changing and I think, if you project 10 or 15 years into the future, shipping lines are going to have to rethink their basic offerings to the customer.'

He believes customers are becoming increasingly interested in a 'total transportation solution' which will necessarily involve elements of logistics.

'So we begin to see our universe as not just shipping, but global transportation and logistics. Our logistics operations give us that make-up and certain advantages over lines that have not yet developed these capabilities.

'So that's how we're positioning ourselves. If you want to take a parallel with Singapore, we can see that we've already moved beyond the early paradigms of being a production centre.

'We've moved to become an innovation hub, a talent hub and a service hub. Manufacturing and production are still a core capability for the Republic, just as shipping is for us and must remain so for many more years to come.

'But you have to add on other things because that's the way the world is progressing.'

Mr Lim said NOL will endeavour not to lose 'its nerve or its verve' as it seeks to retain and improve on its world-leading position within the industry.

When asked if he is ever concerned that the company could slip back into the red despite the current boom, Mr Lim said the risk is always there.

'But we will be among the last to slip into the red because we have learnt how to run a very lean ship.'

Copyright @ 2004 Singapore Press Holdings. All rights reserved.

AUG 8, 2004
Thinking outside the container

SHIPPING companies have to move with the times too.

Mr David Lim believes customers are becoming more interested in a 'total transportation solution'.

'So we begin to see our universe as not just shipping, but global transportation and logistics. Our logistics operations give us that make-up and certain advantages over lines that have not yet developed these capabilities,' he said.

This is a scenario that has been played out on a bigger scale in Singapore.

Said Mr Lim: 'If you want to take a parallel... we can see that we've already moved beyond the early paradigms of being a production centre. We've moved to become an innovation hub, a talent hub and a service hub.'

Just as shipping remains a core capability for NOL, manufacturing and production have that same importance for the country, he said.

'But you have to add on other things because that's the way the world is progressing.'

Copyright @ 2004 Singapore Press Holdings. All rights reserved.

AUG 8, 2004
Global employees for a global leader

NOL was hiring employees from all over the world decades before the phrase 'foreign talent' was bandied about.

The company's first managing director, Mr M.J. Sayeed (right), was talent-spotted by the Government while he was the Pakistan National Shipping Corporation's commercial manager in 1968.

Many other members of top management have been brought into the company from overseas since then, including Danish former top man Flemming Jacobs.

NOL chief executive officer David Lim said the changing relationship between foreign experts and Singaporeans in the company reflects a similar shift in Singapore's wider development over the years.

'We started by following other people and learning the tricks of the trade, so to speak.

'But for the next phase of our growth, we're going to have to innovate and not just follow or copy, but come up with new ideas which are relevant, useful and create value so people will come to us,' he said.

Copyright @ 2004 Singapore Press Holdings. All rights reserved.

[heirloom]

Maritime services: Can S'pore wax as London wanes?


Areport released in London last week painted a gloomy picture for those who hope the UK capital will maintain its position as a global leader in maritime services indefinitely.

The report, The Future of London's Maritime Services Cluster, was published by the Corporation of London which had commissioned Fisher Associates to examine the threats to 'London's position as the world's pre-eminent provider of maritime services'.


The report concluded that London is the world's biggest maritime services centre with more than 1,750 firms participating in maritime activity from a London base, providing ship-broking, insurance, legal and other services.


That could change, and rapidly. It appears that 98 per cent of those surveyed for the report agreed London is the pre-eminent maritime service provider now, but 59 per cent believe London will have lost its pre-eminence in 10 to 20 years' time.


One reason that could happen is the development of Singapore as a vibrant shipping services hub. To be fair, the report has mentioned quite a few other budding maritime centres too.


It highlighted the intentions, strengths and government support of various international cities 'actively seeking to usurp London'. It noted that Shanghai, Hamburg, Singapore, Piraeus, Hong Kong, Monaco, New York, Oslo and Rotterdam all have competing maritime service clusters looking to lure business away from the London cluster, taking with it the benefit London makes to the UK's balance of payments by export of knowledge and services.


The reason for the disquiet at this prospect in the UK is obvious; combined net overseas earnings from maritime services and UK shipping totalled 2.2 billion in 2002 with this figure set to rise following record ocean freight rates in the past 12 months.


Singapore has long aspired to bring together maritime service providers as a 'cluster' and to considerable extent it is achieving this goal. The London report also highlighted the importance of the cluster approach.


'In London, a geographic concentration of interconnected companies, specialised suppliers, service providers and firms in related industries comprise a classic cluster, with depth of capability and breadth of services offered. Strong cluster forces hold it together, and its existence attracts more service providers and users of those services. And yet the cluster may be pushed apart by cost pressures. London is a high-quality but high-cost environment, in an industry where margins are key,' the report said.


It warned the London Maritime community that 'outside influences are looking to pull the cluster apart by offering seemingly more cost-effective centres such as those in the Far East'. The report quoted one respondent as saying: 'The balance of shipping is now in the Far East. They have increasing fleets, increasing investment in shipping and supportive governments.'


Fisher Associates put forward a number of possible strategies to try to counter the trend but most could probably only slow down the relative decline of London.


There is one suggestion, though, that makes some sense. The report argued for a strategy of involvement in emerging competing clusters overseas. This might prevent any one competitor from gaining dominance at London's expense, the report claimed.


Another way of putting that is to say that in the future there will be a number of significant maritime centres, partly competing with and partly complementing each other.


Given that world trade and thus the shipping industry are still expanding, the development of competing shipping centres is not a zero-sum game. Maritime centres like Singapore should start to grow and the relative importance of London may recede but that does not mean that London will necessarily wither away. In actual fact, several London-based companies and institutions have been pursuing a policy of decentralising to regional centres such as Singapore for years.


As more and more tonnage is owned in Asia, there will soon be little room left for global players who try to operate from a single, centralised base. In this connection it will be interesting to see how the freight futures market develops. Singapore ought to be in a good position to be at the centre of an Asian freight futures market. And the most effective way would probably be to do so in collaboration, rather than direct competition, with London which has developed a lot of experience in this sector.


As in other shipping service markets, the trick will be to identify where both sides can benefit from working together.






http://business-times.asia1.com.sg/mnt/media/image/launched/2004-08-11/sf11-201235.jpg
Singapore (above) ought to be in a good position to be at the centre of an Asian freight futures market. And the most effective way would probably be to do so in collaboration, rather than direct competition, with London which has developed a lot of experience in this sector.

[babystan03]

AUG 17, 2004
S'pore may be next maritime services leader
By Alfred Lee

LONDON - Singapore has been named as the city most likely to usurp London as the world's leading maritime services centre, according to a survey of international shipping industry experts.

The research was commissioned by Maritime London (ML), a powerful organisation dedicated to maintaining and enhancing London's position as the premier centre for ship broking, legal facilities, insurance, banking and other maritime services.

A hard-hitting report by ML just released said that London remained the top maritime services centre - but warned that it was in danger of losing its crown in the face of aggressive overseas competition.

Over 100 key representatives from the global shipping industry, including leaders from all fields such as owners and operators, were asked in the survey which centre they considered most likely to take over from London as the world's leading maritime services hub.

Singapore came out on top in the poll with 22 per cent of the votes; Shanghai was second with 21 per cent; Hong Kong was third with 10 per cent while New York received 9 per cent of the votes, Dubai, 8 per cent and Piraeus, Athens, 7 per cent.

Norway and Frankfurt were also mentioned.

Those who voted for Singapore cited as their reasons the growth in regional economies, leading to increased trade and ship ownership in the Far East and the strong commitment and backing of the Singapore Government for the maritime services industry. The other reasons: lower costs compared with those in London, a well-educated workforce and good living conditions and infrastructure.

Shanghai was seen as the future world shipping leader by experts, who cited the growth in the Chinese and Southeast Asian economies, expanding fleets and investment in shipping by the Chinese government and private sector, cheap labour costs, and supportive local and central governments.

Hong Kong had the advantage of a huge volume of regional trade and established maritime industry facilities but some experts criticised the high costs.

New York received votes because of the growing US shipping industry, the strength of the American economy and its streamlined financial and business services.

Dubai was favoured for massive investment by its government, the quality of life, low cost of labour and ease of doing business.

Of all the centres seen as threats to London's position as the world's maritime hub, Singapore was ranked by the experts as having the government most supportive of the shipping industry.

London was said to have the least government support.

ML chairman Richard Sayer said: 'The British government should support us more. A number of foreign countries are putting a lot of weight behind promoting their own maritime centres and we would be foolish if we ignored that.'

ML fears that the global maritime services centre could move in 10 to 20 years from London to somewhere in Asia because 40 per cent of the world's ships are already owned in the Far East.

It said London's weaknesses were unfavourable tax measures, high property and salary costs, poor transport infrastructure and lack of government support, even though 14,200 people were employed in the city's maritime services industry.

Copyright @ 2004 Singapore Press Holdings. All rights reserved.

[babystan03]

Business Times - 03 Sep 2004

PSA service, efficiency shine in eyes of top shipping executives

Int'l advisory board lauds its handling of heavy traffic

By GEORGE JOSEPH

(SINGAPORE) PSA International has scored highly for its service levels and productivity in the eyes of some of the world's top container shipping executives, winning praise for its handling of customers during the current trying period of port congestion and delays in the global supply chain.

In an endorsement of PSA's efficiency and productivity, they said Singapore continues to be an important port of call in the global shipping network and an important hub for the Asia operations of many shipping lines.

The industry chieftains are from among the 15-member PSA International Advisory Council, who are here to discuss directions and trends in the global maritime and shipping industry.

'PSA continues to grow its profile as a significant and important partner to liner operators, both through engagement in Singapore and increasingly also through terminals internationally,' said Knud E Stubkjaer, CEO of Maersk Sealand, referring to PSA's extensive global network of 17 port projects in 11 countries, besides its flagship operations in Singapore.

But the Maersk chief's comments take on special meaning, holding out the possibility that the Danish line, which he himself acknowledged had relations with PSA that go a long way back to 1975, would sooner or later have more of its vessels calling Singapore.

Maersk Sealand pulled out the bulk of its services from the Singapore port over unhappiness with PSA rates and its inability to secure dedicated terminals here.

While the line's move to the neighbouring Malaysian Port of Tanjung Pelepas sparked government and public scrutiny of PSA's business model, it has still maintained some services here.

Shipping sources say increasing volumes of containers are being barged and transported daily to Singapore from Pelepas to capitalise on PSA's better connectivity.

Mr Stubkjaer said Maersk's link with PSA has continued ever since the first call in 1975 by one of its ships. With their 'joint focus on quality, reliability and with a continued mindset for innovation' both sides could continue to build up many aspects of their businesses, he said.

Mr Stubkjaer was previously Maersk Sealand's managing director in Singapore and is now partner of A P Moller, the parent company of the carrier.

Another top shipowner, Japan's Mitsui OSK Lines (MOL), is also represented in the council comprising the CEOs of shipping lines. MOL's deputy president and CEO, Hiroyuki Sato, said he found PSA as competitive as the best among the ports of the world.

'Singapore is one of the major hub ports for MOL where it operates its own feeder services and common feeder service as well. Singapore is also a strategic location for our logistics businesses which add value to our liner business,' he said in a statement that PSA released yesterday of the council members' views on their working partnerships with the terminal operator.

For PSA, the statements of confidence are reassuring. They come at a time when the port is stretched to its limits handling rising cargo volumes brought about by booming exports from China to Europe and the US.

With shipping lines benefitting from record increases in freight rates and Asian shipments forecast to grow another 16 per cent this year, major ports in Europe and the US west coast are getting choked.

Container ships are waiting two days and more to get into port to discharge their cargo, causing a backlog in transhipment hubs like Singapore.

But Singapore's own Neptune Orient Lines, too, was fully satisfied with PSA's handling of the 'mini crisis' which shipping circles describe as a 'happy problem', with PSA chalking up record volumes.

NOL group president and CEO David Lim commended PSA's outstanding service to customers and its 'tireless efforts to continuously improve and stay ahead of the increasingly complex and expanding demands brought about by the growth of world trade'.

Copyright © 2004 Singapore Press Holdings Ltd. All rights reserved.

[huaiwei]

But the Maersk chief's comments take on special meaning, holding out the possibility that the Danish line, which he himself acknowledged had relations with PSA that go a long way back to 1975, would sooner or later have more of its vessels calling Singapore.
Very interesting point there! :D

[babystan03]

Business Times - 14 Sep 2004

Shell may go solo on US$1b petrochem plant

Bukom project may go ahead even if Sumitomo decides not to join in

By RONNIE LIM

(SINGAPORE) Shell Chemicals may go it alone on a third US$1 billion, one-million-tonnes-a-year petrochemical cracker here if long-time Japanese partner Sumitomo Chemical decides not to join in.

The partners operate two existing crackers on Jurong Island, but Sumitomo said in May that it was deferring its decision on a third aimed at the fast-growing China market.

The Economic Development Board has been lobbying hard for another cracker to boost Singapore's attractiveness as an oil hub. And Shell now believes the economics of the project have strengthened.

China's huge demand plus the cost-competitiveness of the project - it will be built on an empty plot alongside Shell's Bukom refinery, from which it can tap 'cost-advantaged' feedstock, including heavier fuels - are major plus factors.

Shell Chemicals executive vice-president (business units & procurement), Tan Ek Kia, said yesterday that Shell has completed a feasibility study on the new Bukom cracker and the next step is the 'definition phase, which includes more detail design and refinement and more precise cost estimate'.

There are several options for the project, Mr Tan said. 'One is that Shell Chemicals will move into the next phase alone.'

'The most attractive point is that the plant will be able to use various feedstock, based on full integration with the existing Bukom refinery, he said. 'This will generate cost competitiveness.'

Co-location will also result in synergies in fixed costs and capital expenditure, compared with constructing a standalone cracker.

Although Shell could move alone, Sumitomo may still have a role. The two companies are discussing 'possible areas of cooperation on how to move the Singapore project forward,' a Shell Chemicals spokesman told BT yesterday. For instance, Sumitomo could take part in downstream - or secondary - plants if not in the main cracker itself.

Sumitomo was initially warm on the cracker, but put the idea on the back burner as it studied whether to participate instead in a US$4.3 billion petrochemical complex at Rabigh, Saudi Arabia, with Saudi Aramco.

The main downstream product from the Bukom cracker - which would be Singapore's fourth, including ExxonMobil's - would be monoethylene glycol (MEG), an intermediate used to make products from polyester fibres to plastic water bottles and engine coolants. There is growing demand for MEG in China.

Bukom's outgoing manufacturing director, Tom de Jong, said in Shell's latest newsletter that the integration of the island's refining and chemicals manufacturing operations would lead to more projects and make Bukom a world-class site.

This would be like ExxonMobil's petrochemical plant, which is fully integrated with its Ayer Chawan refinery.

Under its overall Asia-Pacific strategy, Shell Chemicals' immediate focus will be on the start-up at end-2005 of its joint venture US$4.3 billion Nanhai petrochemical complex with Chinese partner CNOOC - one of China's largest.

Its entire output is expected to be consumed domestically, with about half in Guangdong alone.

Shell's Mr Tan has said previously that there has been a 'major global shift in demand for petrochemicals from the US and Europe to the Asia Pacific and especially China.'

And projections of this growing Chinese demand favour the planned Bukom cracker.

In Singapore and China, Shell has focused investment on new petrochemical capacity for products such as styrene monomer, propylene oxide, ethylene oxide/glycol, polyols and monopropylene glycol (MPG) - all of which are experiencing rapid regional demand growth.

In China, for instance, styrene monomer demand rose 500 per cent to 10 million tonnes per annum between 1986 and 1999, while demand for polyols/MPG is growing by some 9 per cent per year.

Shell says there is no time-line for its decision on the Bukom cracker, which the spokesman said would be more 'driven by economics' - but a confluence of factors indicate that this might just come around end-2005.

That is when its Nanhai project will have started up, and also when Sumitomo will decide - one way or the other - whether to join Shell for another Singapore cracker.

But as construction takes three to five years, the Bukom cracker won't come on line until about 2008 at the earliest.

Copyright © 2004 Singapore Press Holdings Ltd. All rights reserved.

[babystan03]

SEPT 14, 2004
Shipping industry must work closer with govts as global trade surges
To plan for growth and to increase the capacity of infrastructure as there may be more congestion and delays, working with governments is essential: NOL chief

By Nicholas Fang

THE burgeoning global economy and surging international trade are likely to cause greater congestion at ports around the world, making it necessary for the shipping industry to work with governments in order to avoid hampering future growth, said a top shipping executive.

Neptune Orient Lines (NOL) chief executive officer David Lim said: 'The release of new productive resources into the global market economy means that we will see growth across all industries for a long time.'

'From Berlin to Beijing, erstwhile command-and-closed economies have now yielded to market forces and have opened up,' he said. This has released new productive resources and created large consumer markets that will drive trade and investments for many years to come.

China alone had added 1.3 billion people to the global market, more than the populations of the United States, Canada, the European Union and Japan combined, Mr Lim noted.

He was delivering the keynote address at an international marine insurance conference in Singapore yesterday.

'Globalisation has led to an increase in foreign investment flows and trade. This change is also irreversible,' he said, adding that these changes had far-reaching consequences for the shipping industry.

'We need to plan for growth. Almost every major port around the world is experiencing delays and congestion.

'We must take urgent action to increase the capacity of infrastructure - through new buildings and high productivity. In this regard, governments and local communities have a big role to play.'

He said that national governments had a difficult but necessary task of balancing local interests, such as those of environmental groups concerned about the stress placed on wildlife by increased infrastructure development, with those of the wider national good.

'Industry too has a part to play by working in closer cooperation among ourselves, and with our business partners, to get more productivity out of existing facilities and infrastructure.'

He also urged shipping lines to find new approaches to deal with the cyclicality that has long characterised the industry.

'In the past, the shipping industry relied on its ability to fix prices, or coordinate capacity, to stabilise prices. Over time, competitive pressures and new regulatory approaches have muted such practices.

'But regardless of what regulations prevailed, freight rates have ridden up and down like a ship in heavy seas.'

In order to improve this situation, he urged shipping lines to be 'measured and circumspect in responding to market signals' and respond appropriately to supply and demand conditions.

Copyright @ 2004 Singapore Press Holdings. All rights reserved.

[babystan03]

SEPT 14, 2004
Asian shippers form group to fight unfair pricing
By Azhar Khalid

ASIAN customers of shipping lines which are unhappy about monopolistic freight pricing practices have formed an industry grouping, the Asian Shippers' Council (ASC), to seek more regulatory protection and champion their cause.

The Federation of Asean Shippers' Council (FASC), the apex organisation for shippers' groupings in the region, launched the ASC at its 27th annual general meeting (AGM) held here yesterday.

The FASC, formed in 1976, includes shippers' groupings from Singapore, Indonesia, Malaysia, the Philippines and Thailand. These five countries are also members of the newly formed ASC. Each council in the respective countries represents manufacturers, suppliers and firms that use shipping lines to transport goods.

FASC chairman John Lu, who is also chairman of the Singapore National Shippers' Council (SNSC), said at the AGM that the role of the ASC is to 'integrate shippers' councils in all of Asia into a single entity'.

'The formation of ASC is a milestone for the shippers' movement - Asian shippers can now speak with one voice,' he added.

The membership of the ASC will also include shippers' councils from elsewhere in the region such as China, Taiwan, Hong Kong, Macau, India, Bangladesh and countries in the Oceania region, he said.

More details about the ASC and its structure will be unveiled today.

Mr Lu said Asian shippers suffer from monopolistic practices adopted by liner conferences, which refer to groupings of major container shipping lines.

'They form cartels and dictate pricing. I hope leaders of the liner conferences would recognise the Asian shippers' situation and stop their unfair practices,' he said.

He reckoned the liner conference system has been the single-largest obstacle to a normal relationship between shipping lines and shippers. He said that one of the ASC's objectives is to 'provide regulatory protection for shippers against such unfair practices'.

The Minister of State for Finance and Transport, Mrs Lim Hwee Hua, who was the guest of honour at the ASC's launch, urged the council to 'continue to promote free trade and the efficient carriage of goods under the ambit of the World Trade Organisation'.

To further help shippers, SNSC and PSA Corp launched an 'e-freight centre' to conduct their business through the Internet. 'This will simplify the cargo-booking process for shippers, resulting in significant savings on time and costs,' said Mr Lu.

Copyright @ 2004 Singapore Press Holdings. All rights reserved.

[babystan03]

Business Times - 16 Sep 2004

easyJet boss eyes budget cruise line

He is also scouring region's cities for properties to set up budget hotel chain

By VEN SREENIVASAN

(SINGAPORE) Having made his mark in Europe with low-cost airline easyJet, Stelios Haji-Ioannou now plans a Singapore-based budget cruise business. And the 37-year-old entrepreneur is also scouring regional cities including Singapore for properties for an Asian budget hotel chain.

Mr Haji-Ioannou's London-based easyGroup has already acquired a 170-passenger cruise ship that will be retrofitted at Keppel group's Singapore yard. Keppel Corp spokeswoman Wang Look Fung confirmed yesterday that her company is having discussions with easyGroup.

Mr Haji-Ioannou said the vessel, formerly an Italian luxury cruise-liner called Renaissance 2, will head for the Mediterranean in February 2005 to become the first ship on the easyCruise.com fleet.

The young businessman, who comes from a Greek shipping family and whose business card reads Serial Entrepreneur, founded easyJet - Europe's second-biggest low-cost airline - in 1995 when he was 28. Since then, his easyGroup has ventured into myriad travel-related businesses, such as car rental, coaches, Internet cafes and credit cards, among others.

Speaking to reporters yesterday on the sidelines of a talk organised by travel research company MarketShare, Mr Haji-Ioannou, explained his plans for easyCruise. 'Our ships will ply the Mediterranean during the five months of the European summer,' he said. 'However, during the winter months, while most other Mediterranean cruise operators head for the Caribbean, our ships will head to Singapore. Singapore is a natural base (for regional budget cruises).'

He said easyCruise ships will be 'modern, casual and minimalist' and will cater to youngish travellers who enjoy on-shore holidays in more than one destination.

Then in an obvious reference to incumbent Star Cruises, he added: 'The authorities should welcome the fact that there will be no gambling. We won't have casinos - only cruises.'

Besides budget cruises, Mr Haji-Ioannou aims to build a region-wide chain of budget hotels via a franchise arrangement. 'There is very real demand for good-class budget hotels in across Asia-Pacific,' he said. 'That is my message for people in Asia who have real estate suitable for conversion (to budget hotels). We can combine forces.'

The easyHotel.com website features the new Kensington, London hotel, which will be ready by Spring 2005. The website describes the hotel as 'no-frills, low-cost accommodation on the basis of book early, pay less' - a concept that will soon arrive in Asia.

But Luton, UK-based easyJet, whose 92 aircraft fly to 52 European destinations, has no plans to expand its air operations to Asia, Mr Haji-Ioannou said.

Copyright © 2004 Singapore Press Holdings Ltd. All rights reserved.

[heirloom]

sounds exciting! wonder what the destinations will be!

[huaiwei]

Hua! From budget aviation to budget shipping!!! :eek:

[babystan03]

Business Times - 17 Sep 2004

Call for common shipping body to boost business

Joint effort seen necessary to market S'pore as a maritime centre

By GEORGE JOSEPH

(SINGAPORE) A common platform has to be found for the various trade associations within the shipping industry in Singapore to come together and be the catalysts for business development for their members.

A working group on the promotion of cooperation within the maritime industry has proposed that a key to Singapore being an international maritime centre is for the local industry to create 'vibrant business opportunities'.

The joint industry group can look for new markets and undertake market studies to achieve this, said prominent shipping lawyer Jude Benny, chairman of the working group set up by the Maritime and Port Authority of Singapore.

'Working together has never been the traditional role of the smaller groups, who are disadvantaged when they work on their own. 'The working group felt that the vibrancy of the maritime sector could be increased with greater dialogue and exchange of ideas.

'Currently, many business opportunities are being pursued individually, with larger projects out of the reach of SMEs. With the right platform, resources and funds can be pooled and put to better use, and smaller companies can have a chance to participate in major projects,' said Mr Benny.

'Somebody needs to drive the project-platform. We think the Singapore Maritime Foundation (SMF) can facilitate such activities,' he added.

Trade associations are the main drivers for cooperation within a cluster but what is lacking now, according to members of the working group, is inter-cluster cooperation.

Besides the dominant Singapore Shipping Association, the maritime industry here has spawned various other smaller trade associations representing the clusters in the wider industry.

They include the Association of Singapore Marine Industries, the Singapore Maritime Employers Federation, the Singapore Logistics Association, the Singapore National Shippers' Council and three professional groups representing marine engineers, ship masters, and others representing from ship chandlers to ship brokers and tug and motor launch owners.

The Singapore Shipping Association itself was the result of the merger of five marine-related associations, when trade groups representing shipowners in the local and regional trades, foreign shipowners, motor launch operators, shipping agents and brokers, hauliers and barge and tug operators came together in 1985 under one umbrella group.

SSA executive director Daniel Tan welcomed the proposal, saying it was a good idea for the industry to have some cohesion. 'There must be someone who can consolidate the work of the various groups rather than we duplicating our efforts,' he said.

The working group recommended that the SMF act as the voice of the industry and provide the platform for inter-cluster cooperation.

The SMF, it said, can promote the industry through government trade missions and seek out overseas business projects that a consortium of Singapore-based groups can bid for.

The group also proposed that the SMF conduct a study to find out the reasons why foreign shipowners and other maritime-related companies had set up their businesses here and then join up with them to market the local industry overseas.

Copyright © 2004 Singapore Press Holdings Ltd. All rights reserved.

[babystan03]

Business Times - 22 Sep 2004

S'pore can still count on marine industry

Republic a world leader in repair and supporting industries

By GEORGE JOSEPH

(SINGAPORE) Singapore's $4 billion marine industry, which provides jobs for 34,000, is very much alive and thriving, so it's time to drop the label that it's a sunset industry, an industry leader said yesterday.

'The industry has remained viable and relevant to the Singapore economy, and it continues to be an important partner to the international shipping and offshore communities,' said Association of Singapore Marine Industries president Heng Chiang Gnee.

The industry withstood the 1998 Asian crisis and the subsequent years because it had internationalised the nature of its business and today continues to be one of the key stable and growing industries in Singapore, he said in a keynote address at the opening of Martech 2004, an international conference and exhibition on marine technology.

'I hope the performance of the industry in recent years has convinced people that the marine industry is not a sunset industry,' he added.

Going back over two decades when government officials and industry observers labelled the marine industry a 'sunset' one without any future, he said the world recession in the mid-1980s hit it hard, with some of the small shipyards and marine companies closing down.

Other industries then were perceived to be more hi-tech and capital intensive, compared to the labour-intensive marine sectors.

But the willingness to restructure and adapt to changing market conditions brought about 'profound changes' in culture and a transformation of the industry, that had begun in the 1980s, continued through the 90s and well into the millennium, Mr Heng said.

Shipyards and marine companies responded to higher operating costs and intense global competition through innovative propositions to customers and the use of new technologies.

'Besides adopting new technologies to improve their engineering and production processes, our companies have developed proprietary designs and strong project management knowhow in executing contracts in excess of $1 billion,' said Mr Heng, who is also deputy chairman of Sembawang Shipyard.

Over the years, the industry developed strengths in ship repair, ship conversion, rig building and offshore engineering, shipbuilding and supporting industries.

Today, Singapore is a leading player in the world's ship repair business, commanding about 20 per cent of the total repair market for ocean-going vessels.

In the area of ship conversion, Singapore yards have played a major role in the conversion of tankers into more floating production storage and offloading (FPSO) platforms and vessels, which are highly specialised projects requiring strong engineering and project management capabilities, he said.

Singapore today enjoys a dominant two-third market share of the world's FPSO conversions volumes.

Similarly, Singapore is the global leader in the building of jack-up rigs and gained a strong foothold in this market because the local yards are the only ones in the world with their own proprietary designs of rigs, jacking and fixation systems.

While Singapore is still a relatively small player in shipbuilding, the marine supporting industries have grown in tandem with the activities of the shipyards. This has brought hundreds of multinational and local companies into the industry providing a comprehensive range of marine products and services.

Mr Heng said the industry must continue to build new competitive strengths, bring in more talent and work as an integrated maritime community, strengthening Singapore's position as an international maritime centre.

Copyright © 2004 Singapore Press Holdings Ltd. All rights reserved.

[huaiwei]

Similarly, Singapore is the global leader in the building of jack-up rigs and gained a strong foothold in this market because the local yards are the only ones in the world with their own proprietary designs of rigs, jacking and fixation systems.
I think the part on the "jack-up rigs" is probably the most surprising of all. I say one of those being built while visiting Jurong Island last year!

[babystan03]

Business Times - 23 Sep 2004

China's appetite for oil offers opportunity for S'pore refiners
But consultants say opening up of market will challenge Singapore's position as regional oil trading hub

By RONNIE LIM

IS China an opportunity or a threat? It's both, say China watchers at an oil conference here. The ever-growing Chinese appetite for oil will continue to offer opportunities for Singapore's oil industry, although the Chinese threat, including to Singapore's role as a regional oil trading hub, grows, as China continues to liberalise its oil market.

'Ever-growing Chinese demand, especially for diesel and gasoline, means this will stay ahead of Chinese refinery capacity,' Shen Ping, general manager of C1 Energy, a China energy intelligence company, told BT yesterday, saying this spells continued market opportunities for Singapore refiners, even with new Chinese capacity coming up in the next six years.

But in a bid to provide better oil price discovery in the China market, C1 Energy plans to introduce by year-end an alternative to FOB Singapore pricing, on which most trades there are currently based. She said that this will be the C1 Huangpu US$ index, which will be based on oil prices ex-Huangpu, which is a big port in the country's south.

Consultant Ng Cheng Cheong from Sagitinc.com says this ex-Huangpu CFR (cost plus freight) pricing will mean less arbitrage opportunity for traders using FOB Singapore prices, but on the other hand, it will offer clearer pricing for negotiating Chinese deals.

But the bottom line will be that such moves - including last month's opening of the Shanghai oil futures exchange - which are integral to the liberalisation of the huge oil market there, means that Singapore's position as a regional oil trading hub will increasingly come under challenge, he feels.

Ms Shen Ping, in her presentation to the Asia Pacific Petroleum Conference, said that Chinese refineries - with capacity of six million barrels per day (mbd) - are currently running at a 95 per cent rate this year and have little room to expand their output, despite strong demand. It will not be until after 2006 that significant new Chinese capacity of 8.2 mbd will be added, she said.

Another challenge which the Chinese industry faces is inadequate logistics infrastructure. She cited instances like difficulty transporting diesel by rail from north to south, and bottlenecks, like a VLCC (very large crude carrier) at Qingdao having to wait 15 days to discharge its cargo.

On long-term trends, she sees Chinese oil demand continuing to grow strongly in coming years. Fuel oil imports will continue to stay strong in 2005, with China also increasing its crude oil imports to meet both strong domestic demand, as well as its build-up of strategic oil reserves to insure itself against supply disruptions.

For instance, the recent Yukos stoppage of crude oil exports 'has had some impact on China's northern refineries', she said, referring to the Russian oil company's suspension of oil exports to China National Petroleum Corp earlier this week as a result of Yukos's tax problems with the Russian government.

China is also moving to diversify its crude sources, and reduce its reliance on Middle East crudes, by importing oil from West Africa, Latin America and Russia, she said. 'A lot of Chinese companies are also investing in upstream (exploration/production) companies overseas,' she added, saying this was another way to diversify supply.

Copyright © 2004 Singapore Press Holdings Ltd. All rights reserved.

[babystan03]

Time is GMT + 8 hours
Posted: 23 September 2004 1551 hrs

Singapore reviews port charges to maintain position as bunkering hub
By Jennifer Alejandro, Channel NewsAsia

SINGAPORE : The Maritime and Port Authority is reviewing the port charges for bunkering at anchorages other than the special bunkering anchorages.

Transport Minister Yeo Cheow Tong announced this at the 13th Singapore International Bunkering Conference held on Thursday.

Mr Yeo also says the MPA will implement new initiatives to upgrade the bunkering industry.

These initiatives aim at preparing the local bunkering industry to meet the revised international standards for tankers.

Supplying fuel to ships, or bunkering, is an important sector of Singapore's Maritime Industry generating revenues of up to S$13.6 billion annually.

In the first day of the Singapore International Bunkering Conference, Mr Yeo announced the Maritime and Port Authority's bunkering plans to keep up with the latest international standards.

Mr Yeo said: "One of our top priorities is to provide assurance to our global customers that the bunker fuel supplied in our port is of a high standard. We cannot afford malpractices to smear the good reputation of our industry. This explains the Singapore government's tough stance towards recalcitrant offenders and substandard bunker suppliers."

In his opening address, the minister said that continuous improvement and close cooperation with the industry is key to ensuring that Singapore remains the world's bunkering port of choice.

One of the new measures to be implemented by the MPA is the "Gate System" for bunker tankers.

Mr Yeo said: "This system will set age limits and other conditions for the issuing of new bunker tanker licenses and for the phasing-out of existing harbour craft carrying heavy grade oil."

Also, the Special Bunkering Anchorage scheme was extended in March this year.

This means a stay in the Singapore port for less than 24 hours will enjoy more than 50 percent in dues concessions.

Copyright © 2004 MCN International Pte Ltd

[huaiwei]

I once had the impression that "bunkering" meant berthing...coz it sound like the "bunk"....as in the ship berths and bunks in the port! :D

Seems like ships like to suck so much oil from here thou, when we dont produce a single drop of it!

[ignoramus]

One disturbing question: Why do both Singapore & Hong Kong both claim that they are the world's busiest ports? I know they are as according to different measures but what are they and which one is the more internationally accepted and sensible measure?

I thought that bunkering was berthing too... and I thought Star Cruises was Singapore owned, until I realized its Malaysian...

[huaiwei]

One disturbing question: Why do both Singapore & Hong Kong both claim that they are the world's busiest ports? I know they are as according to different measures but what are they and which one is the more internationally accepted and sensible measure?

I thought that bunkering was berthing too... and I thought Star Cruises was Singapore owned, until I realized its Malaysian...
No, Hong Kong cannot claim to be the busiest port by any measure. They are the world's busiest CONTAINER port, but not the overall one. I am sure you are aware that maritime shipping includes other forms of converying cargo, including bulk, tankers, and so on.

Therefore in this sense, Singapore can indeed lay claim to be the world's busiest port, but this is challenged by Rotterdam, coz they use different measures as you say. The issue is more of that between Singapore and Rotterdam then, and not Hong Kong. The latter is only played up because of the usual rivalry between the 2 cities? :D

[ignoramus]

No, Hong Kong cannot claim to be the busiest port by any measure. They are the world's busiest CONTAINER port, but not the overall one. I am sure you are aware that maritime shipping includes other forms of converying cargo, including bulk, tankers, and so on.

Therefore in this sense, Singapore can indeed lay claim to be the world's busiest port, but this is challenged by Rotterdam, coz they use different measures as you say. The issue is more of that between Singapore and Rotterdam then, and not Hong Kong. The latter is only played up because of the usual rivalry between the 2 cities? :D

Hmmmmm...I learn something new everyday...too bad it ain't related to my studies......

What do you mean conveying cargo by bulk?

[huaiwei]

Hmmmmm...I learn something new everyday...too bad it ain't related to my studies......

What do you mean conveying cargo by bulk?
Well.....they cant be putting cars in containers right? :D Same for grain, for water, for oil....these are usually convered in bulk carrier or other specificallly designed ships loh.

As for Star Cruises, yeah I notice lots of Singaporeans think it is Singaporean....even Malaysians!!! But all along I knew it cant really belong to us, because it seems like the Lee dynasty never speaks about it in the same breathe as Creative tech!

[ignoramus]

Now that you mentioned it I say to myself ''DUH!''...

Star Cruises seriously needs to rebrand itself as a Malaysian company...they do the work and Singapore gets the reputation?! How did we ever think it was Singaporean...

But seriously Star Cruises is a true success story of Malaysia that it should be proud of...amidst the Proton drama mama headlines...

[heirloom]

it doesnt matter really.. if being thought of as singaporean gives them more revenue, why not?

[babystan03]

it doesnt matter really.. if being thought of as singaporean gives them more revenue, why not?

Haha....I guess in business we have to be realistic sometimes.......

Anyway, anyone been on the star cruise b4?? How is it??

[huaiwei]

Haha....I guess in business we have to be realistic sometimes.......

Anyway, anyone been on the star cruise b4?? How is it??
I hadent...almost had a chance, but didnt in the end. :D

[babystan03]

I hadent...almost had a chance, but didnt in the end. :D

Haha...ok....I heard it's quite value-for-money......:yes:

But then with budget airlines, seems like the competition is fiercer.....

[huaiwei]

Haha...ok....I heard it's quite value-for-money......:yes:

But then with budget airlines, seems like the competition is fiercer.....
Please lah....who will take a cruise line as a "point-to-point" form of transport, when it is mainly a destination in itself? :D

[babystan03]

Please lah....who will take a cruise line as a "point-to-point" form of transport, when it is mainly a destination in itself? :D

Nobody will lah......But then I was comparing the price of boarding the cruise Vs the cost of taking a budget airlines to some places for tour.....

[babystan03]

Business Times - 04 Oct 2004

PSA set to keep world No 2 title

It's far more risk averse than other leading operators, says Drewry report

By DAVID HUGHES IN LONDON

(SINGAPORE) The gap between the top four global port operators and the other players in the market is set to widen as they continue to expand through acquisitions, new development and greater involvement in partnerships, according to a new report.

The Annual Review of Global Container Terminal Operators 2004 also predicts Singapore's PSA Corp will keep its second place although APM Terminals will be hard on its heels.

Hong Kong-based Hutchison Port Holdings is by far the biggest international terminal operator, handling 41.5 million TEUs (twenty foot equivalent units) last year.

PSA Corp was second with 28.7 million TEUs, APM Terminals - part of the AP Moller Maersk group - came third with 21.4 million TEUs and P&O Port handled 16.0 million TEUs.

Fifth-ranked Eurogate and sixth-placed Cosco handled 10.8 million TEUs and 7.4 million TEUs respectively with Evergreen seeing volumes of 6.7 million TEUs.

Seven companies have volumes in the 3.1 million TEUs to 6.5 million TEUs range, which are the one per cent and 2 per cent market share levels.

This latest study from UK-based Drewry Shipping Consultants said that the most significant effect on the league table of global port operators has been the increase in carrier-stevedore partnership arrangements. This has seen both Mediterranean Shipping Company (MSC) and Cosco using their considerable interests in container shipping to achieve greater terminal control.

The report's editor, Eleanor Hadland, said: 'Strategic partnerships have been the key to achieving growth for the two highest climbers in the Drewry league table in 2003.

In previous years the top operators - Hutchison, PSA Corporation, APM Terminals and P&O Ports - have been able to develop the largest and most geographically widespread portfolios through mergers and acquisitions and green field developments.'

'MSC, on the other hand,' she notes, 'has made the biggest leap forwards in 2003, leveraging its position as the second largest shipping line to negotiate operating partnerships with many of its existing terminal service providers - for example SSA Marine in Long Beach and TN in Le Havre.'

According to Drewry, the combined terminal throughput of Cosco and its part-owned affiliate Cosco Pacific has also made significant progress during the past year, with volumes growing by 50 per cent in 2003, to 7.4 million TEUs.

The two top players Hutchison and PSA have both seen their shares of the market drop slightly, Hutchison from 13.3 per cent to 13.1 per cent and PSA from 9.5 per cent to 9.1 per cent.

Nevertheless, Drewry noted that each company consolidated its position during 2003, for example by increasing their respective shareholdings in key European subsidiaries ECT and Hesse-Noord Natie.

Commenting on PSA, Drewry said that it is far more risk averse than the other leading operators, having divested its terminal interest in both Aden, Yemen, and Pipavav in India in the past year.

The report said that PSA's future expansion plans focus on its home port operations in Singapore, and it will also invest in the Duerganck dock development at Antwerp.

Noting that Cosco 'persuaded PSA to sign the first ever dedicated terminal agreement at Singapore', Drewry said it expects similar agreements to be made with other lines as the South-east Asian operator seeks to protect its volumes from lower-cost Malaysian competitors.

Drewry said that China continues to drive the growth in global port throughput and forecasts that by 2009, the Far East region will account for almost 40 per cent of total world port volumes.

Reflecting concerns voiced throughout the container shipping industry in recent months, the study said that demand will outstrip supply in the region within five years unless additional projects are launched.

Commenting on the situation in South Asia, Drewry said 'bureaucracy continues to reign supreme as operators struggle through lengthy concession bids'. It observed that because congestion is common at India's major ports, terminal operators and carriers are looking to see if minor ports have the potential to offer better services.

Outside Asia, Drewry said, the global operators are turning their attention to the emerging Eastern European market to provide future growth opportunities.

Copyright © 2004 Singapore Press Holdings Ltd. All rights reserved.

[szehoong]

Haha....I guess in business we have to be realistic sometimes.......

Anyway, anyone been on the star cruise b4?? How is it??


Been on SuperStar Pisces before (wayyyy back in 1995).....it was amazing! :okay:

We board it from Star Cruises Terminal at Port Klang and our destination port-of-call is Phuket. The destination isn't as exciting as being on the ship itself - there are just so many things to do! ....actually the best thing is absolutely NOTHING to do - enjoying the sea breeze on the open deck or just eat to your heart's content! .........your meals and your accommodation are taken care of so nothing much to worry too ;)

Aboard SuperStar Pisces they give ya 3 meal vouchers (for breakfast, lunch and dinner - all buffet). But on SuperStar Gemini ......the restaurant is 24hrs and you could basically go eat anytime of the day - unlimited :eek:

[szehoong]

Nobody will lah......But then I was comparing the price of boarding the cruise Vs the cost of taking a budget airlines to some places for tour.....


Actually when you're on a cruise, the destination is just a bonus. Some people wouldn't wanna go on land to the port-of-call as they enjoyed it more on board. Anyway a tour of the destination are usually separate charge ;)

If you really wanna go to a place....then better you take the plane. Usually a cruise would only do a brief stop at any one place :)

[szehoong]

Now that you mentioned it I say to myself ''DUH!''...

Star Cruises seriously needs to rebrand itself as a Malaysian company...they do the work and Singapore gets the reputation?! How did we ever think it was Singaporean...

But seriously Star Cruises is a true success story of Malaysia that it should be proud of...amidst the Proton drama mama headlines...


Actually the Star Cruises logo is essentially Malaysian......it follows along the lines and the colours of the Jalur Gemilang (Malaysia's flag) ;)

Furthermore Star Cruises' first cruise ship are named Langkapuri Star Aquarius - a very 'Malay' name if you asked me :)

I previously have no idea most Singaporeans tot it was a Singaporean company but most Malaysian knew it was a Malaysian cruise line owned by the Lim family of the Genting fame.

Apart from that, Star Cruises own 3 terminals in Malaysia and one in Thailand and had its Training & Simulator Centre and Cruise Ops HQ at Port Klang.

I think one of the reason why most Singaporeans tot it is Sg-owned is because inside the ships operating within S E Asia, only USD and Singapore Dollar are accepted ;)

[babystan03]

Business Times - 05 Oct 2004

GM's Asian logistics unit thrives

It cites S'pore's competitive costs, infrastructure and skilled workforce

By NANDE KHIN

GENERAL Motors Corporation's (GM) distribution and logistics management unit for the Asia Pacific region - GM Overseas Distribution Corporation (ODC) - remains very much a thriving business in Singapore.

And Singapore remains the best location for such regional distribution operations, said Ali Pandir, managing director of GM ODC.

A large part of GM's functions in Singapore has been in the form of this automobile parts and vehicle distribution company - a fact that has been largely overshadowed by GM's announcement in June that its Asia-Pacific headquarters would be shifted from Singapore to Shanghai.

'We have a much larger parts business here in Singapore. GM ODC is the company that does all the transactions here. The headquarters was just a representative office,' Mr Pandir told BT, adding that the expected revenue for GM ODC this year is close to US$200 million.

GM has been using Singapore as a regional distribution hub since 1972, when GM ODC was set up - the first automobile company to carry out its distribution operations from Singapore.

Since then, GM Corp has, a number of times, questioned whether Singapore - which is perceived to be a high-cost country - is the best location for a logistics distribution hub.

'We carried out studies in 1993, 1997, 2001 and last year to validate whether the regional logistics hub of GM should stay here. Or is there any other country where the cost is lower or the service is better?'

And in all these studies, the outcome was that Singapore is still the best location.

'Despite perceptions to the contrary, Singapore is still very competitive cost-wise. And this is thanks to the Jurong Town Council and the Economic Development Board. They have provided us with a very cost-competitive facility.'

Other facilities with the same convenience and amenities in countries such as China, Malaysia and Thailand are either of the same cost or more expensive, added Mr Pandir.

Also, the infrastructure in Singapore is ideal for the logistics services and none of the other regional countries can provide that same level of infrastructure.

'The whole island of Singapore is like a free-trade zone and we can bring materials in and out of the country easily, whereas in other countries, even if we operate within a free-trade zone, we still have to go through lots of customs and bureaucratic procedures.'

Mr Pandir also said that the high-speed communications here is a big plus point. 'None of the other countries in our studies came close to Singapore's efficiency.'

Last but not least, the workforce here is very skilled and experienced. 'We have a US$200 million business handled by just 65 people. That is extremely lean. It is nearly impossible to put together such a team we have here in GM ODC in another country.'

The fact that the workforce here is multicultural and multilingual and that foreign talent who can speak a whole host of Asian languages can be easily found helps too.

All these justify the higher labour costs in Singapore and Mr Pandir cited an example of how the customs clearance in Singapore is done online by one employee in GM ODC, a procedure which the MD said would take about five people to do in, say, China.

In its earlier studies, GM looked at all the countries in the region. 'Of course, there are other developed countries like Japan and Australia. But Japan is much more expensive than Singapore and Australia is geographically remote. Other countries were emerging markets, lacking the infrastructure and provision of services.'

Last year's study looked at closer competition from Malaysia's Port of Tanjung Pelepas and free-trade zones in Thailand. But Mr Pandir said: 'Both quantitative and qualitative studies research showed that in terms of service, cost, infrastructure and people, Singapore was the best.'

And so it is that GM ODC stayed on in Singapore for the past 32 years. The company acts as a distribution centre for the spare parts of GM vehicles to the region. GM ODC also oversees a second line of business called ACDelco, which is an after-market parts distributor for various makes of cars, not only GM cars.

GM's Chevrolet and Opel cars to Singapore, Malaysia, Brunei and the Pacific Islands are also distributed by GM ODC. GM hopes to make Chevrolet one of the top five make of cars in Singapore by increasing its market share from 2.3 per cent to 5 per cent.

The company's revenue has grown 10-fold from about US$20 million in 2001 when its business model changed from merely providing physical warehousing to more value-added services three years ago.

The company was reaching the physical limitations set by its 160,000 square foot facility in Benoi Sector. 'Instead of expanding physically in Singapore - which over time may become an expensive place for warehousing, we explored other ways of shipping the parts directly from suppliers to customers,' said Mr Pandir.

Now, about 60 per cent of the shipping of parts is done directly and Mr Pandir said that if warehousing in Singapore becomes more expensive, more direct shipment will be done but the 'whole logistics management will still be done in Singapore.'

Copyright © 2004 Singapore Press Holdings Ltd. All rights reserved.

[huaiwei]

Actually the Star Cruises logo is essentially Malaysian......it follows along the lines and the colours of the Jalur Gemilang (Malaysia's flag) ;)

Furthermore Star Cruises' first cruise ship are named Langkapuri Star Aquarius - a very 'Malay' name if you asked me :)
But how many of us know that ship got this "Langkapuri" thingy in its name? I, for one, dont! :D

[babystan03]

But how many of us know that ship got this "Langkapuri" thingy in its name? I, for one, dont! :D

Never heard of "Langkapuri", I always thought they are called virgin or aries......:lol:

[szehoong]

But how many of us know that ship got this "Langkapuri" thingy in its name? I, for one, dont! :D



Errr.....the fact that it is written on the bow? :D .....and it is advertised BIG BIG in the papers....plus all the leaflets and brochures :)

Anyway years later, they shorten it to just Star Aquarius ;)

It IS the name of the ship.......other Star Cruises ships had shorter names (thank goodness!) like Star Pisces, Megastar Aries, Superstar Gemini, Superstar Virgo etc.....

[szehoong]

Here's some postcard of Star Aquarius:



http://www.simplonpc.co.uk/StarCruises/StarAquarius01.jpg

^^^ This is their first postcard. This image also appears in all early ads ;)




http://www.simplonpc.co.uk/StarCruises/StarAquarius05.jpg

[babystan03]

OCT 9, 2004
PSA container volumes up 19% since Jan
By Nicholas Fang

BOOMING global trade has boosted PSA International's operations around the world, with volumes surging 21 per cent last month and 18.7 per cent for the first nine months of the year from a year earlier.

The company said on its website yesterday that its 17 port projects in 11 countries around the world, including Singapore, handled 24.8 million 20-foot equivalent units (TEUs) or standard containers for the first nine months of the year.

This was an 18.7 per cent improvement over the 20.9 million TEUs handled in the same period last year. For the month of September, PSA handled 2.9 million TEUs.

In Singapore, PSA handled 15.3 million TEUs in the first nine months of this year, a 15 per cent rise compared with last year. Its overseas ports lifted volumes by an even more impressive 25 per cent, to 9.5 million TEUs.

Last month, PSA Singapore experienced a 20 per cent rise in volumes to 1.8 million TEUs, while its overseas operations saw a 22.2 per cent expansion to 1.1 million TEUs.

Surging global trade volumes and a booming Chinese economy had caused delays at PSA's operations in Singapore and at other ports in the region earlier this year.

The port operator has put a range of measures in place to alleviate the congestion, including investing in more staff and equipment, including yard cranes, quay cranes and prime movers.

Separately, PSA's fully owned unit PSA Marine said yesterday it had won an award for a new tug design.

PSA Marine said that its Z-Tech Tug design had clinched the Singapore Design Award for Business Effectiveness.

The award, which is given by the Designers Association Singapore, recognises the effectiveness of good design in boosting profitability and growth, PSA Marine said.

Copyright @ 2004 Singapore Press Holdings. All rights reserved.

[huaiwei]

Errr.....the fact that it is written on the bow? :D .....and it is advertised BIG BIG in the papers....plus all the leaflets and brochures :)

Anyway years later, they shorten it to just Star Aquarius ;)

It IS the name of the ship.......other Star Cruises ships had shorter names (thank goodness!) like Star Pisces, Megastar Aries, Superstar Gemini, Superstar Virgo etc.....
Since I love ships, and I still dunno, this goes to show that something is wrong with the advertising campaign! :D

For how long did the ship have that long name actually?

[huaiwei]

Been on SuperStar Pisces before (wayyyy back in 1995).....it was amazing! :okay:

We board it from Star Cruises Terminal at Port Klang and our destination port-of-call is Phuket. The destination isn't as exciting as being on the ship itself - there are just so many things to do! ....actually the best thing is absolutely NOTHING to do - enjoying the sea breeze on the open deck or just eat to your heart's content! .........your meals and your accommodation are taken care of so nothing much to worry too ;)

Aboard SuperStar Pisces they give ya 3 meal vouchers (for breakfast, lunch and dinner - all buffet). But on SuperStar Gemini ......the restaurant is 24hrs and you could basically go eat anytime of the day - unlimited :eek:
Very important question....food is free flow ah? Do you need to pay anything extra on board? Or its all inclusive when you first bought the tickets?

[szehoong]

Since I love ships, and I still dunno, this goes to show that something is wrong with the advertising campaign! :D

For how long did the ship have that long name actually?


I am not too certain on that.....probably for about 2 - 3 years? :?

I remember they changed it to Star Aquarius a long long time ago.......so probably before the change you din know? :D

[szehoong]

Very important question....food is free flow ah? Do you need to pay anything extra on board? Or its all inclusive when you first bought the tickets?


yea......food all inclusive in the tickets. But there are stalls which sells food (e.g. Haagen-Daz) along the corridors and you'll have to pay for that.

For Star Pisces, food are free flow but for a limited period of time as the opening time window for breakfast, lunch and dinner varies. You need to present your food voucher before entering the restaurant....its buffet for all meals.

As for SuperStar Gemini, the food are absolutely free-flow with no restriction 24 hrs a day! So I guess you might ber interested in this :D .......but please bear in mind that SuperStar Gemini's itenary and on-board activities/facilities aren't suitable for our age-group so you might consider SuperStar Virgo cos Gemini mainly caters for retirees and those whom wanted a slow and relaxing cruise. ;)

However......just for the food.....I dun mind SuperStar Gemini.....provided I have a companion with similar interest so it won't get too bored! :D

[babystan03]

Business Times - 12 Oct 2004

S'pore Aug bunker sales second highest

Sales volumes rise despite higher cargo prices

(SINGAPORE) Singapore bunker fuel sales volume for August recorded a total of 1.979 million tonnes, the second highest on record, the Maritime Port Authority (MPA) said yesterday.

The highest volume was registered in April at 1.985 million tonnes. The MPA started recording bunker sales volume in 1999.

The August total represents a 0.08 per cent growth over the previous month and a 15.7 per cent growth over the same month last year.

This brings the monthly average to 1.922 million tonnes, putting it on track to hit projected annual total of a record high of 23.1 million tonnes, versus the previous year's peak of 20.8 million tonnes.

'We could well see an annual total of more than that as bunker sales volume in the fourth quarter are usually the highest for the year as shipping traffic peaks at that time of the year,' said a Singapore-based bunker trader.

'I wouldn't be surprised if the monthly totals in November and December volumes exceed two million tonnes.'

Traders point out that sales for both 380-centistoke (cst) and 180-cst bunkers, which make up the bulk of the volume, were at similar record high levels despite the average monthly fuel oil cargo prices being at the highest for the year.

In August, the monthly average cargo values for 180-cst and 380-cst were US$193.43 a tonne and US$186.63 respectively.

The month saw the highest ever sales of 180-cst at 266,600 tonnes, up 2.18 per cent from the previous high of 260,900 tonnes recorded in March.

A total of 1.405 million tonnes of the benchmark 380-cst bunker fuel were sold, up 0.13 per cent from the previous month and 10.7 per cent year on year.

'It is quite telling that the sales volumes are high despite cargo prices being as high as they were. August was the month where global crude prices were at a then high level of close to US$50 a barrel and yet that didn't affect the bunker sales,' said another bunker trader.

'Singapore bunker prices have always been higher than our two main competitors in Rotterdam and Fujairah (in the United Arab Emirates). No matter how high the prices are, the same base volumes will be there.'

Traders said the higher volume could be accounted for by the fact that many shipowners built stocks in the earlier part of the month in a rising market.

Singapore is the world's largest bunker port by volume and the industry is worth about US$5 billion. - Reuters

Copyright © 2004 Singapore Press Holdings Ltd. All rights reserved.

[babystan03]

OCT 12, 2004
LVMH company opens logistics base in S'pore
Perfumes and cosmetics unit also given EDB's International HQ award; on the cards are R&D arm and marketing centre

By Lorna Tan

THE sweet smell of success was in the air yesterday, both for Singapore and for one of the world's largest luxury goods firms, LVMH Fragrances & Cosmetics, which opened a major regional warehouse here.

It took LVMH Fragrances & Cosmetics (Singapore) less than three months to decide on the Republic as its second regional logistics hub to serve not only its markets in the Asia-Pacific, but also those in the United States and Canada.

Yesterday, at the warehouse opening, the firm, which boasts more than 50 prestigious brands such as Christian Dior, Guerlain, Givenchy and Kenzo, also received Economic Development Board's (EDB's) International Headquarters award. LVMH's other regional warehouse centre is in France.

The chief executive of a company running one of the group's leading brands, Christian Dior Parfums' Mr Claude Martinez, said that the warehouse hub is just a start.

With the need to customise its product range to suit the needs of its growing Asian clientele, LVMH is considering transferring resources from France to Singapore to offer value-added services.

'In the next one to two years, we are looking into setting up a research and development arm, laboratories and a marketing centre for Asia,' said Mr Martinez.

Mr Jean-Dominique Bosq, operations director of Christian Dior Parfums, said the Republic had several key advantages for the firm.

'Singapore has a strategic central location in Asia and it has the capacity to provide 24 hours transportation capacity.

'Furthermore, the benefits of simple administrative Customs clearance procedures here allow us to aggressively cut the time required to ship our products.'

This is important as perfumes, among LVMH's main products, are classified as 'dangerous goods' because they are flammable and require special authorisation to be transported.

At the signing ceremony yesterday, EDB managing director Ko Kheng Hwa said EDB 'sees opportunities for Singapore to be a major epicentre of the luxury goods and retail market growth in the region and internationally'.

According to market analysts, the global luxury goods industry is set to grow at a compound annual growth rate of 12 per cent to US$100 billion (S$169.3 billion) by 2008 from the current market value of US$70 billion, he added.

Located at Jurong Logistics Hub at Jurong Port Road, LVMH's warehouse will provide distribution, labelling and assembly services.

In a feasibility study conducted in July last year, Singapore came out tops and two months later, LVMH had its staff here looking for suitable premises for the warehouse.

Asia is the fastest-growing region for Christian Dior Parfums which is active in the prestigious cosmetics, skin-care and fragrances markets.

Last year, it achieved sales of 1.2 billion euros (S$2.52 billion), of which over 20 per cent is generated in Asia.

'Sales from Asia has been growing at a rate of 15 to 20 per cent a year. China and South Korea have made their way to Christian Dior's top 10 countries globally, at sixth and ninth position, respectively,' said Mr Martinez.

Copyright @ 2004 Singapore Press Holdings. All rights reserved.

[huaiwei]

I am not too certain on that.....probably for about 2 - 3 years? :?

I remember they changed it to Star Aquarius a long long time ago.......so probably before the change you din know? :D
2-3 years? I think that must be it...its too brief a period for me to remember well I suppose?

[babystan03]

Business Times - 13 Oct 2004

PSA's Semco making waves in world long tow market

Strategy to expand from salvage ops pays off at home and abroad

By GEORGE JOSEPH

(SINGAPORE) PSA Corp's marine services unit Semco is making a name for Singapore in the world markets for long tows and positioning of offshore installations.

The wholly-owned subsidiary of PSA Marine has seen a string of successes with major ocean tow jobs, and the company is on track for record growth this year.

'We have the ability to position a Singapore brand in the niche FPSO tow market and make a name for long tows,' PSA Marine managing director V Sivarajan said in an interview with BT yesterday.

'We are well-positioned now to secure major deals from the world's top fabricators in Korea and China and for jobs from Singapore's own Jurong and Sembawang shipyards,' he said.

Singapore itself is a leading builder of oil rigs and floating production, storage and offloading (FPSO) vessels.

The home-grown company started off as a salvor under SembCorp Logistics (SembLog) and when SembLog decided to exit the marine services sector, it was acquired by PSA Marine for $207.5 million cash in March 2001. It has now expanded from operating tugs and harbour pilotage and salvage operations to become one of the world's leading long-tow specialists with the added capability to position the huge platforms it tows to the precise locations in the seabed required by its clients.

Semco saw a US$220 million turnover last year, recording average annual growth of 7 per cent over the past five years. This year it's on track for recod growth and its orderbooks are full up to the end of next year. It's now chasing a huge long-tow contract, said Mr Sivarajan.

'We made the right move to invest in towing tugs capable of doing these high-value jobs. There has been a surge in offshore oil and gas development. As oil prices rise or as oil supplies dwindle, gas will come in as an alternative,' added Semco general manager Peter Lee.

'Gasfields are coming on stream and closer home we have the Natuna fields and the Sunrise fields off Australia. The oil and gas industry requires very strong marine support work and that's where we come in,' added Captain Lee.

For Semco, its first breakthrough came in 1997 when it did a long tow of the floating storage and offloading vessel Bleo Hom from Ariaki in Japan to Glassgow, Scotland and had been busy since then.

But Mr Sivarajan said nothing could beat its first tow this year - the world's largest FPSO, Kizomba A.

Against strong international competition, Semco secured the contract from a Korean shipyard, for a 90-day tow from Ulsan, passing through the South China Sea, the Sunda Straits and passing the Cape of Good Hope to an oilfield location off Angola, without even stopping for bunkers.

'We were able to do this job as we could deploy our flagships, two 13,600 bhp towing tugs, with two other smaller ones,' Mr Sivarajan said, adding that it was the right decision two years ago to build these big tugs with anchor handling and long-distance capabilities.

'This was crucial for use in securing the world's biggest towage contracts as it demonstrated our capability to tow across difficult waters and long distances,' he said.

Semco succeeded in its early days in the 1980s when, after the Gulf War, there were several salvage jobs. But it is in a sector where growth and future markets cannot be forecast as salvage operations depended on 'incidents'.

Very much aware that shipping is moving into a high-safety and security regime with several new international regulations to keep the seaways clean and safe, Semco changed tack and started looking at more opportunities for towage rather than salvage. It also has oill-spill response capabilities. Capt Lee added that it was reflective of the nature of the business that Semco's salvage operations constituted only 10 per cent of the total volume of its business.

The company is not stopping here. With its fleet of tugs deployed to its limits, Semco has taken the bold step to invest in another two 13,500 bhp salvage towing tugs. With delivery in 2006, it will have a fleet of six of the world's largest ocean going tugs.

Typically there is a lead time of about two years for major long tows. The company gets involved from the time a customer, usually an oil major, starts negotiating with offshore vessel builders. Semco is now booked for a repeat tow in January next year similar to the Kizomba A, for its sister vessel Kizomba B.

Copyright © 2004 Singapore Press Holdings Ltd. All rights reserved.

[huaiwei]

Actually what the fish is a long tow ah? :D

[babystan03]

Business Times - 19 Oct 2004

S'pore refineries still doing well

Instead of seeing softer margins, players find Q3 to be as solid as H1

By RONNIE LIM

SURPASSING earlier expectations, Singapore refineries continued to perform strongly in the third quarter, after a solid first half, and they expect oil product demand and margins to stay robust the rest of this year.

'All the refineries maximised throughput in the third quarter, and expect to run at full capacity the remainder of this year,' Tony Anderson, chief executive of Singapore Refining Company told BT yesterday. 'It has been quite a good year.'

SRC is a 50-50 venture of Singapore Petroleum Company (SPC) and Caltex.

Listed SPC reports third quarter results this Friday, and investors will find out then exactly how good the period had been. For the first half, SPC's net profit quadrupled to $68 million.

While the industry had earlier expected refining margins in Asia to soften in the second half, things have panned out otherwise, at least for the July-September period.

Mr Anderson said that demand proved 'as strong as in the first half', thanks to regional growth, especially from China.

'We expect demand, including from China, to stay strong the rest of this year,' he said, allaying concerns over a slowdown there.

Asked about the impact on refiners of high crude prices - which crossed US$55 yesterday - Mr Anderson said that fortunately, it was accompanied by high prices for products, especially petrol, diesel and jet fuel.

Only prices for fuel oil have lagged, he said.

Agreeing that refineries here enjoyed a strong third quarter, another industry official said that margins are expected to remain 'reasonably high' in the fourth quarter, underpinned by demand from the US and China.

Another factor will be the coming Northern Hemisphere winter, with demand depending on how harsh or mild it will be.

Another source said that margins have overall been 'very positive' in the third quarter, and felt the industry was being 'cautiously optimistic' in its earlier call of softer margins in the second half.

While strong demand for high value-add, middle distillates (like petrol and diesel) means complex margins (profits from running sophisticated plants) have been very good, and simple margins (achieved from basic crude distillation units), while lagging, are 'nonetheless, still good enough'.

The source agreed that all the refineries here are currently operating flat out to meet demand.

This is a marked turnaround from an industry running at half or less its total capacity a year or more ago.

Singapore has 1.365 million barrels per day of refining capacity, with ExxonMobil accounting for 580,000 bpd, Shell 500,000 bpd and SRC 285,000 bpd.

Copyright © 2004 Singapore Press Holdings Ltd. All rights reserved.

[babystan03]

Business Times - 21 Oct 2004

French bank to set up energy desk in S'pore

Calyon to start oil derivatives trading, hedging for Asian customers in Nov

By RONNIE LIM

(SINGAPORE) Amid the current volatile oil prices, Singapore's thriving oil trading hub has attracted another investment bank, Calyon, to set up an energy trading operation here. The French bank chose the Republic over Hong Kong and Tokyo as its Asia-Pacific centre catering to regional customers' needs.

Disclosing this in an interview, Calyon's UK-based global head of commodities, Andrew Gooch, said its Singapore energy desk, which had been in the works for the last two to three years, will start trading oil derivatives and undertake energy risk management, or hedging, for the bank's Asian customers on Nov 16.

Calyon - which stems from a merger of Credit Lyonnais and Credit Agricole Indosuez - will staff its Singapore energy desk with four traders initially - two from London, one from Australia and another from Hong Kong, he said, allaying industry concerns of poaching whenever new players come here.

Why did Calyon pick Singapore?

'The main consideration was to provide our Asian customers with full-day service,' Mr Gooch said, as the addition of Singapore to its London and New York energy desks would enable the bank to provide 24-hour, round-the-clock energy coverage. Without Singapore, it can only, for instance, conduct trades late-afternoon out of London for them.

'With the region continuing to grow in importance, a Singapore energy desk also means we can reach customers as far away as Australia and New Zealand,' he said.

Mr Gooch said the critical mass of traders already here in Singapore was also a big draw.

Singapore, with well over 200 oil trading offices established here, traded US$104 billion in physical oil trades and another US$101 billion in derivatives last year, making it the world's third largest oil trading hub after New York and London.

'Singapore is recognised as a centre of oil trading for the East, and it is important for us to be here. It was our first choice,' he added, saying that Hong Kong and Tokyo were also possibilities which it earlier considered.

Calyon is the latest European investment bank to set up an energy desk here, following others like Dutch bank, ABN Amro, which in August said it was setting up an energy trading operation here by year-end to help its Asian customers hedge against oil price movements.

Mr Gooch said Calyon's Singapore energy desk will assist its Asian customers, including from sectors like utilities, aviation, shipping and heavy industries, to manage their energy risks. It will deal in paper trades of crude oil, as well as of oil products across the board, from jet fuel to gasoline and diesel.

He declined to give specific figures on how much paper oil it expects to trade here, saying only that 'Asia, including China, while still representing a small percentage of its overall energy business, is growing.'

But as one indicator, Calyon's London energy desk currently employs 12 traders, New York has about six, while Singapore will start with four traders. 'The important thing is to establish a critical mass here first, and then develop it from there,' he said.

Copyright © 2004 Singapore Press Holdings Ltd. All rights reserved.

[babystan03]

Time is GMT + 8 hours
Posted: 21 October 2004 2111 hrs

A*STAR opens new R&D centre on Jurong Island for petrochem hub
By Frederick Lim, Channel NewsAsia

SINGAPORE : The Agency for Science, Technology & Research, or A*Star, has opened a new research institute on Jurong Island for the 70 chemical companies located in the island's petrochemical hub.

Called the Institute of Chemical & Engineering Sciences, or ICES, it is the latest of 12 research facilities set up by A*STAR to cater to the R&D needs of different industry clusters.

The chemicals industry is a major contributor to the Singapore economy.

Within the manufacturing sector, it ranks second in importance only to electronics.

Last year, chemical output rose 23 percent to S$39 billion, in spite of rising raw material and energy costs.

But the government wants more than just having chemical companies locate their manufacturing base here.

"The growth of the chemicals industry is fuelled by innovation, and being at the cutting edge of technology. Even a well-established industry like petrochemical faces new challenges and has to continually devise new technologies and new techniques to survive in this competitive environment," said the Trade & Industry Minister Lim Hng Kiang.

So, in the same way that the government has developed a favourable environment for manufacturing, it's now setting up a similar supporting infrastructure to encourage R&D.

"The primary role is to encourage companies to come here to set up research and development; and companies that are doing manufacturing here, to extend their activities, and move from just manufacturing into an added value or higher knowledge-based economy," said Dr Keith Carpenter, Executive Director at the Institute of Chemical & Engineering.

The chemical research institute will have state-of-the-art equipment and laboratories for research, from the test-tube stage to the pilot-plant stage.

It is already collaborating with chemical giants Mitsui and Degussa on R&D projects and expects to get four to five more such jobs by April next year.

Some companies like GE Plastics are considering outsourcing research work to the Institute.

The Institute will also conduct its own industrial research and license out its patents.

Last year, it filed five patents, with four more still to come.

In addition, the Institute will help train researchers.

Currently, it has 117 employees, of whom 95 research and technical staff.

It aims to expand its workforce to 200 by April next year. - CNA

Copyright © 2004 MCN International Pte Ltd

[huaiwei]

Actually all these petrochem hub thingy is kinda confusing being in the maritime hub thread leh. :D

[babystan03]

Actually all these petrochem hub thingy is kinda confusing being in the maritime hub thread leh. :D

Then where do you suggest it goes?? :? :)

[huaiwei]

Then where do you suggest it goes?? :? :)
Dunno leh...that one is not entirely related to maritime mah..unless you refering to the tankers ah? :D

[babystan03]

^
alter the title a little, that should do the trick .........:yes:

Time is GMT + 8 hours
Posted: 29 October 2004 2009 hrs

Singapore pitches itself as trading centre for Norwegian oil and gas

SINGAPORE : Singapore is marketing itself as a potential trading centre for Norway's oil and gas exports to North Asia.

Trade and Industry Minister Lim Hng Kiang made the pitch at a business conference held in conjunction with a visit by Norway's King Harald to Singapore.

Norway is the world's third largest oil exporter and has large natural gas reserves.

Mr Lim says there can be more collaboration in the oil and gas sector, given that Singapore is the most important oil trading centre in Asia, moving some US$200 billion worth last year.

Mr Lim said, "We are now building up our capabilities for the trading of LNG in the coming years. As Norway has large reserves of natural gas, LNG trading will become important to you in the future. Singapore offers an excellent location to supply energy resources to major Asian customers, like China and Japan."

Those attending the conference also heard about an idea to build a floating fuel depot to boost Singapore's energy reserves.

Norwegian shipping company, Hoegh LNG, highlighted the possibility of building an offshore vessel that could both store LNG and convert it, to complement Singapore's power needs.

It could solve Singapore's problem of looking for land to build an onshore regasification facility. - CNA

Copyright © 2004 MCN International Pte Ltd

[huaiwei]

Pretty amazing to know that Singapore has the largest concentration of Norwegian companies outside Norway...despite being on the two opposite corners of the Eurasian landmass! :eek:

[heirloom]

really?

[huaiwei]

really?
Yeah....read that from the news?

[huaiwei]

yea......food all inclusive in the tickets. But there are stalls which sells food (e.g. Haagen-Daz) along the corridors and you'll have to pay for that.

For Star Pisces, food are free flow but for a limited period of time as the opening time window for breakfast, lunch and dinner varies. You need to present your food voucher before entering the restaurant....its buffet for all meals.

As for SuperStar Gemini, the food are absolutely free-flow with no restriction 24 hrs a day! So I guess you might ber interested in this :D .......but please bear in mind that SuperStar Gemini's itenary and on-board activities/facilities aren't suitable for our age-group so you might consider SuperStar Virgo cos Gemini mainly caters for retirees and those whom wanted a slow and relaxing cruise. ;)

However......just for the food.....I dun mind SuperStar Gemini.....provided I have a companion with similar interest so it won't get too bored! :D
Walao eh good life siah! Free flow of food throughout eh? ;) Can I have things to eat at 3am?

[babystan03]

Nov 1, 2004
S'pore oil hub status safe
Republic driven by market forces, unlike Asian rivals, says Platts director
By Erica Tay

ALTHOUGH Singapore has lost its position as Asia's leading oil refining centre, its status as a trading and pricing hub will not come under threat any time soon, according to an oil industry expert.

Despite recent attempts by fuel-importing countries such as China and Thailand to set up oil trading hubs of their own, Singapore will remain Asia's epicentre of oil trading for at least the next five years, said Mr Esa Ramasamy, the Asia director of oil market reporting at the global energy information service, Platts. He was speaking at the Institute of South-east Asian Studies' monthly seminar on energy last Friday.

He told a gathering of oil industry professionals and scholars that Singapore has certain qualities as an oil trading venue that other Asian countries cannot yet emulate.

These include the Singapore Government's hands-off attitude towards the industry, as well as the absence of a national oil company blatantly favoured through preferential policies.

Singapore is currently the world's third-largest oil trading centre after New York and London.

However, China, Japan, South Korea and India have now overtaken Singapore as the region's largest refining centres.

At the seminar - Can Singapore Continue As Asia's Leading Oil Trading And Pricing Centre? - Mr Ramasamy said that recent moves by other Asian countries such as South Korea, Thailand and China to set up oil trading hubs were not real threats.

The Shanghai Commodities Exchange recently launched a fuel oil contract to compete with Singapore.

In addition, Thailand announced plans to build a land bridge linking the Andaman Sea to the Gulf of Thailand, facilitating oil delivery.

However, Singapore will remain the 'nerve centre' of the oil industry, because 'it is the only Asian country where market forces determine industry direction', he said.

He said other contenders had so-called 'national oil companies' that are heavily protected by their respective governments, and this climate of over-regulation puts off foreign players, such as the 200-odd oil trading firms that have set up shop in Singapore in the past two decades.

'Shanghai may have its own oil market, but at the end of the day, it still takes pricing directions from Singapore.'

Also, only Singapore has the right mix of storage facilities, banking institutions, rule of law and political stability that convince oil traders to stay.

However, one thing that could take trading volume away from Singapore is the rising cost of storing oil here.

'Because of high demand and limited capacity, it costs 30 to 40 per cent more to store oil here than in places such as China and India,' he told The Straits Times.

He said the problem of storage capacity shortage can be solved if Singapore and Malaysia build more oil storage farms.

Copyright © 2004 Singapore Press Holdings. All rights reserved.

[huaiwei]

Wah....have I not updated myself, or did so many Asian countries suddenly overtake Singapore in oil refinery produce?

Its not much of a surprise thou. The only reason why we were tops for so long was because no one else was seriously doing it yet! :D

[babystan03]

Time is GMT + 8 hours
Posted: 02 November 2004 1800 hrs

PSA International makes bid for Asia Container Terminals stake: report

SINGAPORE : The Singapore port operator, PSA International, has made an offer to buy a 29 percent stake in Asia Container Terminals, a Hong Kong newspaper has reported.

According to the South China Morning Post, the bid is worth HK$600 million, or about S$133 million.

The stake is currently owned by Hongkong Land Holdings.

Asia Container Terminals is one of five operators of the Kwai Chung container terminals, which handle the majority of Hong Kong's container traffic.

The newspaper quoted sources as saying that PSA had made its proposal a few weeks ago, and that shareholders are now looking at it.

It says the deal will be completed within two weeks.

When contacted, a PSA spokesperson declined comment. - CNA

Copyright © 2004 MCN International Pte Ltd

[babystan03]

Nov 2, 2004
NOL and 13 shipping lines to raise cargo rates to US next year

Carrying a 40-foot container to the US West Coast will cost up to 7.6% more
Seoul - NEPTUNE Orient Lines (NOL), Mitsui OSK Lines and 12 other Asian shipping firms plan to boost freight rates to the United States for a third straight year as demand for Chinese goods increases and fuel costs rise.

The 14-line Transpacific Stabilisation Agreement will raise the cost of carrying a 40-foot container to the US West Coast from Asia by US$285 (S$476), or as much as 7.6 per cent, starting next May, the group said in an e-mail statement.

Rates to the US East Coast and Persian Gulf via the Panama and Suez canals will rise by US$430.

Profits at NOL and Hanjin Shipping have surged as demand for textiles, toys and other China-made goods caused Pacific freight rates to rise by about 15 per cent this year. Demand for cargo space to North America is expected to rise by as much as 12 per cent next year.

'The rise in shipping rates won't have a significant impact on Asian exporters,' said Lehman Brothers Japan senior economist Robert Subbaraman. 'Asian exporters might pass on to the US the rise in costs... I don't think that'll reduce demand for Asian products.'

Shipping companies expect cargo shipments to the US from Asia to expand by between 10 per cent and 12 per cent next year, helped by increasing demand for China-made goods. The shipping lines predicted the same growth rate to the US from Asia this year.

'Nominal increases in ship capacity as new and larger ships are delivered in 2005 to 2006 will be sharply diminished by operating limitations due to congestion,' the group said in the statement. 'That effective capacity is not expected to keep pace with steadily growing cargo demand.'

Asian exports to the US rose 17 per cent in the first eight months of this year to US$344.9 billion, according to the US International Trade Commission.

Chinese exports contributed to the growth, increasing 29 per cent to US$121.5 billion in the same period.

Increasing cargo from Asia, especially China, has strained US ports, rail networks, highways and the Panama Canal, the group said.

'Shippers are experiencing average delays of three to seven days in getting cargo delivered as vessels sit idle at anchor and as containers are delayed in transit or at harbour and inland terminals,' the group said. \-- BLOOMBERG NEWS

Copyright © 2004 Singapore Press Holdings. All rights reserved.

[huaiwei]

The HK port investment will be interesting.....competition with Whompoa right at its turf? :D

[babystan03]

The HK port investment will be interesting.....competition with Whompoa right at its turf? :D

It will be more interesting if PSA gets it........:eek::D

I wonder how big the chance is??

[huaiwei]

It will be more interesting if PSA gets it........:eek::D

I wonder how big the chance is??
No idea siah....now it is making two concurrent bids, and the combined total will give it majority control in the port operator.

That will be interesting to watch! :D

[babystan03]

No idea siah....now it is making two concurrent bids, and the combined total will give it majority control in the port operator.

That will be interesting to watch! :D

It's even more interesting to know that PSA actually has investment in Guangzhou.......doing something very strategic here?? ;)

[babystan03]

4 Nov 04

Big petrochem investments coming to S'pore: Vopak

Terminal operator says petrochem industry showing interest in region

By RONNIE LIM

(SINGAPORE) There is a strong likelihood of new multi-billion dollar petrochemical investments coming to Singapore, with the chemical industry showing renewed interest in the region after earlier focusing on China, a top official with independent terminal operator Vopak said yesterday.

'This is not speculation, as there are good signs that this might happen,' said Carel van den Driest, chairman of Vopak's executive board. 'We are talking to potential chemical customers at this moment, from Japan and the US and even Europe. They are actively looking at developing their downstream chemical production here, provided Singapore ethylene cracking capacity can be enhanced.'

As for investment in the large multi-billion dollar ethylene crackers, Mr van den Driest said: 'A number of big names in the industry are seriously considering this, and there are very strong signs that base chemical production here may be increased substantially.'

Oil majors are trying to extract the highest value-add out of each barrel through better integration of their refineries and petrochemical plants. And this could see ExxonMobil, which operates a US$2 billion ethylene cracker of 800,000 tonnes capacity here, dusting off the cobwebs from previously shelved plans - by a merged Mobil - for a second cracker here.

Shell Chemicals - which with a Sumitomo-led, Japanese consortium operates two ethylene crackers with a total 1.4 million tonnes capacity - will also likely decide by next year, with or without Sumitomo's participation, on another US$1 billion, 1 million tonne cracker here.

Mr van den Driest said the chemical industry is showing renewed interest in Singapore, as South-east Asian economies bounce back and regional demand for chemicals, including from India, increases.

Also, Singapore has become a more competitive investment base, with good support infrastructure ranging from finance and legal to transport and communications. 'That's why it is high on the list for potential new investments,' he said.

This revival of interest in the regional chemical scene is one of the factors behind his optimism that demand for independent oil/chemicals storage will remain buoyant in coming years. This bodes well for Vopak, which is building a fourth terminal, costing S$500 million, on Jurong Island. The new terminal will double its current 9.3 million barrels storage capacity here when completed in 2010.

The other factor is Singapore's booming status as an oil trading hub, which has resulted in strong demand from traders for independent storage.

'It is difficult to say if this is structural or related to current market volatility,' Mr van den Driest said. 'However, we see clear signs that global and regional imbalances in oil product supply and demand, both in quantity and quality, are set to grow for some time to come. So we are pretty optimistic for the future of oil storage.'

This is reflected in expansion plans of other independent terminal operators here, like Oiltanking, as well as in new storage projects planned on Jurong Island by oil traders like Hin Leong, Chemoil-Itochu and Vitol, according to market buzz.

According to Mr van den Driest: 'At the moment, many people are looking at expanding because of the strong market and high volatility. We are aware of quite a few people who are potentially interested in storage activities. This includes very large and successful traders, as, for them, having guaranteed access to storage at acceptable rates is important.'

China threatens S'pore's oil hub status: Vopak

By RONNIE LIM

SINGAPORE'S position as the region's oil hub is 'pretty solid', but the government must continually work on the nation's competitiveness to ensure it stays ahead of emerging rivals, especially China, says top Vopak executive Carel van den Driest.

He said that in terms of Vopak's expansion plans, for instance, 'while for the moment, Singapore is more important than China, that may change in future'. Because of the huge and growing mainland market for oil and chemicals storage, 'in coming years, China will be taking a bigger part of Vopak's investment efforts'.

Still, Mr van den Driest sees China playing a different role to Singapore.

'China is very important in both imports and exports of oil and chemicals,' he said. 'But it serves a different function from Singapore's hub function, where oil storage helps cater to supply and demand imbalances. If Singapore continues with the right policies, that hub function will belong to Singapore, and not to China or other South-east Asian rivals.'

Thailand and Malaysia, with its neighbouring Port of Tanjung Pelepas, are among those trying to develop regional oil hubs.

Mr van den Driest, Vopak's executive board chairman, is in Singapore to receive the Public Service Star tomorrow for his contributions to the local economy, including promoting Vopak's investment in one of the first oil storage terminals here in the early 1980s and building this up into its largest terminal in Asia.

He is also Singapore's Honorary Consul-General in the Netherlands and has advised agencies here, such as the Economic Development Board, on how the Republic can strengthen its logistics industry.

Vopak has so far set up five terminals in China - the largest in Shanghai - to cater to the giant China market, although the largest of these is only about a fifth of the size of its Singapore terminals.

As Mr van den Driest noted in Vopak's latest annual report that it will be difficult to establish a strong foothold in China until the market there is liberalised in 2007.

'We have just started operations at a large terminal in the Shanghai area, in partnership with the Shanghai government,' he said. 'While the working conditions there are not easy, we have a strong contract portfolio with Japanese chemical producers, so we are on a solid foundation. '

He noted that Vopak has drawn on Singapore 'know-how', including technical support, to develop its China business, although as 'the business there grows, we will have more know-how on the ground itself, and the reliance on Singapore becomes less'.

One critical shortcoming it has found in China, compared with Singapore, is difficulty in recruiting good engineers. 'They are a bit difficult to find and they are no longer cheap compared with Singapore,' he said.

[huaiwei]

It's even more interesting to know that PSA actually has investment in Guangzhou.......doing something very strategic here?? ;)
Seems like gaining an increasing stake in the Pearl region leh. ;)

[huaiwei]

Singapore widens its lead in the overall busiest port category despite suffering a small drop in its container business in the year 2002. Here is a complete listing:
As for which port is busiest, I have discovered it depends on which source you want to trust. I for one, prefers to trust this one (how's that for a more nuetral view? :D):

Post Industry Statistics: American Association of Port Authorities (http://www.aapa-ports.org/industryinfo/statistics.htm)

AAPA continuously receives requests on how ports rank nationally and internationally. The question is ambiguous, however, since ports can be compared in many different ways - by volume or value of trade, number of cruise passengers, revenues, and storage capacity, as examples.

Moreover, sheer size of a port, in terms of traffic flow, says nothing about productivity, efficiency, or responsiveness to customers. These are just some of the criteria that a shipper might consider in evaluating port performance.

Definitions Pertaining to Statistics

TEU = “Twenty-Foot Equivalent Unit,” a standard linear measurement used in quantifying container traffic flows. As examples, one twenty-foot long container equals one TEU while one forty-foot container equals two TEUs (i.e., 40'÷ 20' = 2).

TONS = A short (or “net’) ton = 2,000 pounds
A long ton = 2,240 pounds
A metric ton = 2,205 pounds

And sourced from their last published statistics: http://www.aapa-ports.org/pdf/rankworld.pdf

Largest seaports of the world

rank. port, country, cargo 2000
1. Singapore, Singapore, 325,591,100
2. Rotterdam, Netherlands, 322,429,000
3. South Louisiana, USA, 222,734,875
4. Shanghai, China, 186,287,000
5. Hong Kong, China, 174,642,000
6. Houston, USA, 173,770,000
7. Chiba, Japan, 169,043,000
8. Nagoya, Japan, 153,370,000
9. Ulsan, South Korea, 151,067,000
10. Kwangyang, South Korea, 139,476,000
11. Antwerp, Belgium, 130,530,626
12. New York/New Jersey, USA, 125,885,000
13. Inchon, South Korea, 120,398,000
14. Pusan, South Korea, 117,229,000
15. Yokohama, Japan, 116,994,000
16. Kaohsiung, Taiwan, 115,287,000
17. Guangzhou, China, 101,521,000
18. Qinhuangdao, China, 97,430,000
19. Ningbo, China, 96,601,000
20. Marseilles, France, 94,097,000
21. Osaka, Japan, 92,948,000
22. Richards Bay, South Africa, 91,519,000
23. Kitakyushu, Japan, 87,346,000
24. Qingdao, China, 86,360,000
25. Hamburg, Germany, 85,863,000
26. Dalian, China, 85,053,000
27. Kobe, Japan, 84,640,000
28. Tokyo, Japan, 84,257,000
29. New Orleans, USA, 82,400,000
30. Dampier, Australia, 81,446,000
31. Vancouver, Canada, 76,646,000
32. Corpus Christi, U.S.A., 75,461,000
33. Beaumont, U.S.A., 75,032,000
34. Newcastle, Australia, 73,871,000
35. Tubarão, Brazil, 73,182,000
36. Tianjin, China, 72,980,000
37. Port Hedland, Australia, 72,914,000
38. Hay Point, Australia, 69,379,000
39. Le Havre, France, 67,492,000
40. Port Kelang, Malaysia, 65,227,000

note: cargo = cargo volume in metric tons.

Largest containerports of the world

rank. port, country, containers 2000
1. Hong Kong, China, 18,098,000
2. Singapore, Singapore, 17,086,900
3. Busan [Pusan], South Korea, 7,540,387
4. Kaohsiung, Taiwan, 7,425,832
5. Rotterdam, Netherlands, 6,274,556
6. Shanghai, China, 5,613,000
7. Los Angeles, USA, 4,879,429
8. Long Beach, USA, 4,600,787
9. Hamburg, Germany, 4,248,247
10. Antwerp, Belgium, 4,082,334
11. Tanjung Priok, Indonesia, 3,368,629
12. Port Kelang, Malaysia, 3,206,428
13. Dubai, UAE, 3,058,886
14. New York/New Jersey, USA, 3,050,036
15. Tokyo, Japan, 2,898,724
16. Felixstowe, UK, 2,793,217
17. Bremen Ports, Germany, 2,712,420
18. Gioia Tauro, Italy, 2,652,701
19. San Juan, Puerto Rico, 2,333,788
20. Yokohama, Japan, 2,317,393
21. Manila, Philippines, 2,288,599
22. Kobe, Japan, 2,265,992
23. Yantian, China, 2,139,680
24. Qingdao, China, 2,120,000
25. Laem Chabang, Thailand, 2,105,262
26. Algeciras, Spain, 2,009,000
27. Keelung, Taiwan, 1,954,573
28. Nagoya, Japan, 1,904,663
29. Oakland, U.S.A., 1,776,922
30. Colombo, Sri Lanka, 1,732,855
31. Tianjin, China, 1,708,000
32. Charleston, U.S.A., 1,629,070
33. Genoa, Italy, 1,500,632
34. Seattle, U.S.A., 1,488,020
35. Le Havre, France, 1,486,108
36. Tacoma, U.S.A., 1,376,379
37. Barcelona, Spain, 1,363,695
38. Cristobal, Panama, 1,353,727
39. Hampton Roads, U.S.A., 1,347,364
40. Melbourne, Australia, 1,327,789

note: units are in TEU's (Twenty Feet-Equivalent-Units).
Some newer info for the above table. Shanghai has overtaken South Louisiana go be the 3rd busiest port, while Ningbo lept from 19th to 10th. Tianjin fluttered from 36th to 17th.

Largest seaports of the world - 2002

rank. port, country, cargo 2002
1. Singapore, Singapore, 335,156,100
2. Rotterdam, Netherlands, 321,851,000
3. Shanghai, China, 238,606,000
4. South Louisiana, USA, 196,445,000
5. Hong Kong, China, 192,510,000
6. Houston, USA, 161,190,000
7. Chiba, Japan, 158,929,000
8. Nagoya, Japan, 158,020,000
9. Kwangyang, South Korea, 153,447,000
10. Ningbo, China, 150,000,000
11. Ulsan, South Korea, 148,412,000
12. Inchon, South Korea, 146,181,000
13. Busan, South Korea, 143,772,000
14. Guangzhou, China, 140,395,000
15. Antwerp, Belgium, 131,629,626
16. Kaohsiung, Taiwan, 129,414,000
17. Tianjin, China, 129,000,000
18. New York/New Jersey, USA, 122,103,000
19. Qinhuangdao, China, 121,152,000
20. Qingdao, China, 120,000,000
21. Yokohama, Japan, 118,072,000
22. Dalian, China, 107,538,000
23. Hamburg, Germany, 98,272,000
24. Marseilles, France, 92,261,000
25. Dampier, Australia, 92,228,000
26. Osaka, Japan, 86,499,000
27. Kitakyushu, Japan, 84,249,000
28. Tokyo, Japan, 82,945,000
29. Port Kelang, Malaysia, 82,271,000
30. Port Hedland, Australia, 81,758,000
31. Richards Bay, South Africa, 81,509,000
32. Kobe, Japan, 78,601,000
33. Beaumont, U.S.A., 77,990,000
34. New Orleans, U.S.A., 77,163,000
35. Newcastle, Australia, 76,887,000
36. Shenzhen, China, 75,882,000
37. Tubarão, Brazil, 75,865,000
38. Hay Point, Australia, 74,672,000
39. Huntington, U.S.A., 73,590,000
40. Amsterdam, Netherlands, 70,417,000
41. Le Havre, France, 67,698,000
42. Corpus Christi, U.S.A., 65,362,000
43. Itaqui, Brazil, 64,942,000
44. Novorossiysk, Russia, 63,291, 000
45. Vancouver, Canada, 62,801,000
46. Long Beach, U.S.A., 61,615,000
47. Baton Rouge, U.S.A., 54,997,000
48. Gladstone, Australia, 54,466,000
49. Plaquemines, U.S.A., 53,661,000
50. Santos, Brazil, 53,474,000

note: cargo = cargo volume in metric tons.

Largest containerports of the world

Shenzhen made a splashing debut at number 6, while Tanjung Pelepas came in at 22 and Guangzhou at 28 for the first time!

rank. port, country, containers 2002
1. Hong Kong, China, 19,144,000
2. Singapore, Singapore, 16,941,000
3. Busan [Pusan], South Korea, 9,436,000
4. Shanghai, China, 8,620,000
5. Kaohsiung, Taiwan, 8,493,000
6. Shenzhen, China, 7,614,000
7. Rotterdam, Netherlands, 6,515,000
8. Los Angeles, USA, 6,106,000
9. Hamburg, Germany, 5,374,000
10. Antwerp, Belgium, 4,777,000
11. Port Kelang, Malaysia, 4,533,000
12. Long Beach, USA, 4,524,000
13. Dubai, UAE, 4,194,000
14. Yantian, China, 4,181,000
15. New York/New Jersey, USA, 3,749,000
16. Qingdao, China, 3,410,000
17. Bremen Ports, Germany, 3,032,000
18. Gioia Tauro, Italy, 2,954,000
19. Felixstowe, UK, 2,750,000
20. Tokyo, Japan, 2,712,000
21. Tanjung Priok, Indonesia, 2,680,000
22. Tanjung Pelepas, Malaysia, 2,660,000
23. Laem Chabang, Thailand, 2,657,000
24. Manila, Philippines, 2,462,000
25. Tianjin, China, 2,410,000
26. Yokohama, Japan, 2,365,000
27. Algeciras, Spain, 2,234,000
28. Guangzhou, China, 2,180,000
29. Kobe, Japan, 1,993,000
30. Jawarlal Nehru, India, 1,967,000
31. Nagoya, Japan, 1,927,000
32. Keelung, Taiwan, 1,919,000
33. Ningbo, China, 1,860,000
34. Valencia, Spain , 1,821,000
35. Colombo, Sri Lanka, 1,765,000
36. Xiamen, China, 1,750,000
37. Le Havre, France, 1,172,000
38. Oakland, U.S.A., 1,708,000
39. Melbourne, Australia, 1,600,000
40. Charleston, U.S.A., 1,593,000
41. Genoa, Italy, 1,531,000
42. Osaka, Japan, 1,515,000
43. Tacoma, U.S.A., 1,471,000
44. Barcelona, Spain, 1,461,000
45. Vancouver, Canada, 1,458,000
46. Seattle, U.S.A., 1,439,000
47. Tanjung Perak, Indonesia, 1,418,000
48. Piraeus, Greece, 1,405,000
50. Jeddah, Saudi Arabia, 1,367

[RafflesCity]

Gateway India

Zeroing in on the India-Singapore shipping route proved lucrative for Orient Express Lines, as JEAN CHUA finds out

BY focusing on the Indian subcontinent, Orient Express Lines (Singapore) has been able to grow from handling 148 20-foot equivalent units (TEUs) in August 1999 to delivering about 12,500 TEUs monthly this year. Among the feeder operator's customers are the world's biggest shipping companies - Maersk Sealand, Evergreen Marine and APL.

'We go where the cargo goes and we tailor-make our services to suit our customers' needs,' said managing director Mahesh Sivaswamy. 'That's how we remain competitive and differentiate ourselves.'

OEL (Singapore) was set up in July 1999 by Mr Sivaswamy as the Singapore offshoot of Orient Express Lines, based in Dubai. At that time, he was running the Indian operations of Orient Express and saw that Singapore was quickly becoming 'possibly the strongest hub port in the world'. 'Our strength is that we know the Indian subcontinent very well; we specialise in it,' said Mr Sivaswamy. 'And Singapore is one of the most important hub ports in the world. Cargo to and from the subcontinent needs to be connected to Singapore.'

The Singapore operations grew quickly and are now an indispensable part of OEL with 25 employees. The privately held, family-owned business is part of Transworld Group, founded by Mr Sivaswamy's father in 1977 as an agency that 'represented the shipping interests of various major shipping lines in India'. The agency expanded and created other units that represented Malaysian International Shipping Corp, Dongnama Line, United Arab Shipping Co, Ignazio Messina & C, CMA-CGM-The French Line, The Australian National Line and Balaji Shipping.

The group went on to add logistics, ship management and ship repair services to the business and feedering services in 1983 with the establishment of Orient Express Lines. The mission of Orient Express was to provide a common carrier feeder service in the region. Mr Sivaswamy and his older brother took over the feeder operator in 1989 after their father passed away, and set up an office in Dubai. Soon they had built a network of services between the Gulf, India and Pakistan. The Colombo-India services soon followed.


Surviving and thriving

After setting up the Singapore office, Mr Sivaswamy launched a service to Bangladesh and one to the west coast of India in 2000. Today, Orient Express operates more than a dozen services and has space-sharing arrangements with other feeders, covering the Gulf, the Indian subcontinent and South-east Asia. From Singapore, Orient Express serves the East coast of India, Bangladesh, Burma, Malaysia and Indonesia.

Mr Sivaswamy started a ship-owning business, Shreyas World Navigation, in 2001. It now owns three container ships which are registered in Singapore and fly the Singapore flag. It also charters ships that can carry about 1,200 TEUs - 'smaller boats', he calls them. 'The big shipping lines own ships that can carry 80,000 TEUs,' he said.

Mr Sivaswamy has said that establishing a firm presence in Singapore has not been easy; it is a very competitive market. 'It has been challenging but thankfully, we were recognised by the government under the AIS (Approved International Shipping) Enterprise scheme in 2001,' he said.

Last month, OEL (Singapore) was also awarded the PSB ISO 9000 certification, which puts the company on par with international ones. 'We have been working very hard on the quality issue, so this certification is a real honour,' he said.

The ability to survive and thrive depends on one's ability to meet customers' needs, Mr Sivaswamy said. He said that when Maersk - a customer of 15 years - made known its intention to move its operational hub to Tanjung Pelapas in Malaysia, Orient Express added a service to the port. 'There was actually a lot of pressure from the authorities not to shift to Pelapas, but that's what our customers need and we will go with them, even if it means losing some privileges here.'

'Success revolves around our people' is something Mr Sivaswamy swears by. He says he gives staff complete independence to make decisions and everyone works as a family.

While the company has achieved some success, Mr Sivaswamy says there is still a lot more to be achieved. 'Our primary goal is to do well in the subcontinent,' he said. 'There are still plenty of opportunities there.'

[redstone]

PSA sure is expanding fast!

[huaiwei]

Interestingly, raffie posted an article about Shanghai overtaking Rotterdam. I wonder where does Singapore stand in this case?

[babystan03]

Interestingly, raffie posted an article about Shanghai overtaking Rotterdam. I wonder where does Singapore stand in this case?

I supposed that depends on which set of statistics they're using.......:lol:

I guess Singapore will most probably remain first or second(though not everybody agrees)???;)

[huaiwei]

Irconically, the Dutch reluctance in posting the source of their statistics is begining to cause me to wonder. I cant remember where I found the info explaining the differing standards of measure used, but I was actually thinking the Dutch method seems more "accurate"! :D

[babystan03]

According to PSA website http://www.internationalpsa.com/ .......the container handled in Singapore for Jan-Oct has reach 17.1 million TEU......:eek:

[babystan03]

Some regional news......

This story was printed from TODAYonline

Will Bush help build the Kra Canal?

If he chooses to make the fight on terror his legacy, S'pore may lose its maritime hub status

Wednesday • November 10, 2004

FOUR more years of United States President George W Bush may not be all good news for Singapore.

Yes, Singapore benefited under the first Bush administration. Perhaps in return for its strong support of the Iraq war, Singapore became the first nation in Asia to sign a free trade agreement with the US.

This could go a long way towards helping to boost Singapore's economy.

It would be logical to assume that Singapore's good relations with the second Bush administration will be equally beneficial. Such expectations would be right — in the short term.

Mr Bush is gearing up for his "war on terror'', a key platform that got him the mandate this time round. Singapore can be expected to play a prominent role in this fight. Such cooperation is likely to result in greater mutual benefits for the US and Singapore over the next four years. In the long run, however, things may not be so rosy, as US interests may not necessarily coincide with those of Singapore.

This divergence of interests may arise should Mr Bush — as part of his campaign to fight global terrorism and foster even better ties with China — decide to help build the Kra Canal in Thailand.

The Kra Canal would allow most of the ships to avoid plying the Malacca Strait, a potential route for a terrorist attack, and also provide a 1,000km shortcut.

But the canal would also mean that some maritime traffic would bypass Singapore, resulting in the erosion of its status as a maritime hub and loss of some income from servicing the 50,000 or so vessels that call here every year.

Mr Bush, in his second four-year term, faces the old "gun or butter" dilemma faced by Lyndon B Johnson (LBJ) during the Vietnam war era: Should money be used for the economy or to finance a war? LBJ tried tackling both and ended up succeeding with neither.

Which path will Mr Bush chose?

Judging by what he has done in the past three years, will Mr Bush continue to seek to cover all three issues: Keep the economy going, send more troops to Iraq and get tougher on whom he considers terrorists?

If, indeed, he wants to accomplish all three objectives, he would need to foster closer ties with China.

The American economy thrives on consumption. US consumers buy cheap goods imported from China and China in turns uses the money received to buy US-dollar assets, in effect financing the deficit spending of the US government and the consumers so that they can buy more from China.

For this virtuous (or perhaps, vicious) circle to continue unimpeded, China's burgeoning economy must have an uninterrupted supply of oil.

China, now the second-largest oil importing country in the world, imports most of its oil from the Middle East and those imports pass through the Malacca Strait before reaching their destination.

Interruption of the flow through the strait by accident, sabotage or terrorist attack, could derail the Chinese economy, which is said to run on a reserve of less than two weeks.

This, in turn, would affect the US economy and Mr Bush's war on terrorism.

The strait's littoral guardians Malaysia and Indonesia — with the exception of Singapore — are not keen on a US naval presence.

From the American perspective, a more permanent solution would, therefore, be to bypass the Malacca Strait altogether through the construction of the Kra Canal, a multi-billion-dollar project once considered too expensive.

Today, things have changed.

America has the money to help finance the project. Thailand also has an urgent agenda to eradicate Islamic insurgency in the south of the country.

The question now is whether Mr Bush will give his personal backing to such a massive project.

In his second, and last, term, he will be tempted, like so many American presidents before him, to leave a lasting legacy.

The Kra Canal could be that memento.

The writer is a freelance journalist.
If you have a view on this, email news@newstoday.com.sg

Copyright MediaCorp Press Ltd. All rights reserved.

[huaiwei]

According to PSA website http://www.internationalpsa.com/ .......the container handled in Singapore for Jan-Oct has reach 17.1 million TEU......:eek:
Hmm..is that a unprecendented record or something?

[redstone]

Waste money on a war for what?

[huaiwei]

Waste money on a war for what?
Waste money on war?? :D

Well..sometimes the desired results are not measurable in monetary terms thats why?

[huaiwei]

According to PSA website http://www.internationalpsa.com/ .......the container handled in Singapore for Jan-Oct has reach 17.1 million TEU......:eek:
If you refer to the thread on the busiest ports in the world, I used that figure to predict the full year cargo volume, and we are possibly hitting a super high record this year. :D

[huaiwei]

Super duper huge picture! :D

http://www.diff.net/media/2002_03_12_Singapore_exploring/img_3750.jpg

[huaiwei]

Pasir Panjang Port photos!

http://www.penta-ocean.co.jp/english/works/works_photos/work18_1_3.jpg

[huaiwei]

The same area as a WW2 battleground. :D

http://www.pasirpanjang.org.sg/History1.jpg

[babystan03]

Pasir Panjang Port photos!

http://www.penta-ocean.co.jp/english/works/works_photos/work18_1_3.jpg

That picture looks rather dated......I'm sure it looks larger now......:yes:

[huaiwei]

Haha...very dated...that was during the construction process. Dosent those concrete guideways look so cute thou? :D

[babystan03]

Haha...very dated...that was during the construction process. Dosent those concrete guideways look so cute thou? :D

Yah quite.....:D I always find reclaim land very "cute".....so clear cut.......:lol:

[huaiwei]

hahaha....yeah mah! They look like modern day stonehedge....albeit in long lines lah. :D

[babystan03]

Has the bridge(the one running along telok blangah) open yet??

[huaiwei]

Hahaa...its still stuck! They said they going to resume...but I hardly see much work going on leh...

[babystan03]

Hahaa...its still stuck! They said they going to resume...but I hardly see much work going on leh...

Kaoz......I think they should hurry up......what a waste of space if they are just going to left that idling for years....... :bash:

[huaiwei]

Oh well...once finished, my trip to school might actually be faster, since all those jams at some chocke points would have been somewhat eased.

[babystan03]

Oh well...once finished, my trip to school might actually be faster, since all those jams at some chocke points would have been somewhat eased.

But it'll be ready by next Jan mair??

[babystan03]

PSA's Braní terminal:

http://img99.exs.cx/img99/4750/DSCN32521.jpg

[babystan03]

Singapore Cruise Centre.....(14/11/04)

http://img99.exs.cx/img99/4788/DSCN32471.jpg

http://img99.exs.cx/img99/3834/DSCN32601.jpg

[redstone]

My ship...

[babystan03]

My ship...

Got two leh?? Which one?? Virgo or P&O??

[redstone]

Virgo...

I wanna ride on it again! :D

But not enough money... :(

[babystan03]

Virgo...

I wanna ride on it again! :D

But not enough money... :(

That expensive mair??

[redstone]

Last time I went with my family 200 or 300 something...

I love the strong winds...

[babystan03]

Last time I went with my family 200 or 300 something...

I love the strong winds...

Is the food free flow one?? You went open sea one or go KL-malacca one??

[redstone]

To KL.

At some restaurants, you have to pay, at some it's free flow.


My cruise was super-budget.
All the restaurants we ate it are free restaurants! :(

[huaiwei]

Hm....I often tot all the food outlets on a cruise ship are free leh...so those are the more upmarket ones?

[huaiwei]

Views of the Pasir Panjang Container Terminal

Photographs © George P. Landow.

http://www.scholars.nus.edu.sg/landow/post/singapore/images/harbor/psa1.jpg
Three of the gigantic harborside cranes for the Pasir Panjang container terminal, arrive on a ship.

http://www.scholars.nus.edu.sg/landow/post/singapore/images/harbor/cranes4.gif
A container ship passes the cranes, which are stored before final installation.

[babystan03]

Time is GMT + 8 hours
Posted: 16 November 2004 1856 hrs

PSA Singapore to expand capacity by 57% in 7 years
By Chua Chin Chye, Channel NewsAsia

SINGAPORE: Port operator PSA Singapore is set to expand its container handling capacity here by some 57% within 7 years.

It's aiming to handle some 31.3 million standard containers by the time all its 15 new berths - announced earlier this year - come onstream in 2011.

In the meantime, PSA is already on track to achieving record volumes for this year.
Channel NewsAsia understands PSA could achieve a new record in throughput this year of at least 20 million twenty-foot equivalents or standard containers.

This would surpass its record performance last year.

In 2003, PSA's 37 berths, spread over four container terminals, moved a record 18.1 million boxes.

By October this year, they have already handled some 17.1 million units.

Speaking in Parliament on Tuesday, Minister of State for Finance and Transport Lim Hwee Hua painted a rosy picture for Singapore's future as a shipping hub.

"Our port achieved new records in several areas, such as container throughput, cargo throughput, shipping tonnage, and bunker sales in 2003, and is on track to achieve record breaking performance again this year," she said. "Singapore is well-positioned to capture the increasing trade flows around the region, especially between the Far East and European routes."

And with 15 new berths coming on stream by 2011, PSA could expand its container handling capacity by some 57%, to 31.3 million TEUs.

Singapore is the biggest transhipment hub in the world, connected by some 200 shipping lines to some 600 ports in 123 countries worldwide. - CNA

Copyright © 2004 MCN International Pte Ltd

[redstone]

I can see those cranes from Toa Payoh. :)

[huaiwei]

Huh?! You can see those in Tanjong Pagar or Pasir Panjang??

[huaiwei]

http://www.scholars.nus.edu.sg/landow/post/singapore/images/harbor/cranes1.jpg
The enormous crane used to unload the 20-30-storey cranes. See how it dwarfs the autombiles in the foreground.

[redstone]

Huh?! You can see those in Tanjong Pagar or Pasir Panjang??

Tanjong Pagar, from those 30 storey flats.

And those cranes are how tall?! :eek:

[huaiwei]

Tanjong Pagar, from those 30 storey flats.

And those cranes are how tall?! :eek:
Dunno what is the height in metres leh...but they are quite a sight to behold lah. :D

I didnt know the Toa Payoh 30 floor blocks are completed already?

[babystan03]

November 23, 2004

Go west, Singapore, for maritime growth

Opportunities in India, Africa, Mid-East: expert

By Sarah Ng

SINGAPORE, as a strategic maritime nation, ought to look west to ensure its continued success, a maritime expert said yesterday.

And Professor Shuo Ma, vice-president (academic) at the World Maritime University in Sweden, here on a five-day visit, said Singapore's focus should be the Indian sub-continent, Africa and the Middle East.

Prof Ma, 49, told Streats yesterday: India is growing rapidly in terms of trade, and don't forget Bangladesh, Pakistan and Sri Lanka. Also Africa and the Middle East.

Singapore can attract them with its strategic geographical position, excellent legal system and a good language environment. It is certainly very well-placed to compete and play a bigger role.

These strengths, he added, make Singapore stand out from other players such as Tokyo, China and Hong Kong.

Nevertheless, Singapore still needs to push forward to develop an even broader range of high-quality services.

Prof Ma explained: The industry is moving very rapidly. There's a danger in interpreting what is happening today with old concepts and that's when errors happen.

The industry is no longer just about maritime, but also logistics, legal infrastructures and insurance. Shipping companies and port operators must understand this and see the industry in a much broader perspective.

He added that clients these days demand speed, security and service quality at the lowest prices available.

A case in point was Singapore's loss of Maersk Sealand in 2000 and Evergreen Marine Corp in 2002 to Malaysia's lower cost base at Port of Tanjung Pelepas.

This makes it even more vital for Singapore to compete by having leading-edge IT capabilities, a sophisticated supply chain management, excellent financial and legal services, impeccable maritime security, marine environment protection and a well-educated workforce, said Prof Ma.

In fact, Singapore has been developing these strengths and has been named recently in a survey by the Economic Intelligence Unit as the best place to do business in Asia.

Prof Ma is leading a group of 21 post-graduate students to learn about Singapore's maritime industry. They are hosted by the Maritime and Port Authority of Singapore.

Copyright © Singapore Press Holdings, 2004. All rights reserved.

[huaiwei]

Aiyoh....til now they stil harping over the lost of evergreen and mersk???

Its not like they even feeling a dent from the lost, which is even more amazing!

[babystan03]

Aiyoh....til now they stil harping over the lost of evergreen and mersk???

Its not like they even feeling a dent from the lost, which is even more amazing!

In fact, it seems like they're still growing strongly........maybe the loss do wonders to revamp themselves.......:eek:

[babystan03]

Aiyoh....til now they stil harping over the lost of evergreen and mersk???

Its not like they even feeling a dent from the lost, which is even more amazing!

Instead of harping, why not make some moves to get one of them back??:D

[huaiwei]

In fact, it seems like they're still growing strongly........maybe the loss do wonders to revamp themselves.......:eek:
Hmm..yeah come to think of it, we dont really know if the growth is going to be the same with them still around. The competition has actually resulted in quite a lot of changes, and that has attracted other shippers to use Singapore more, perhaps more then making up for the dissappearence of those two shippers?

[huaiwei]

Instead of harping, why not make some moves to get one of them back??:D
Haha.....mearsk is highly unlikely to come back lah....but Evergreen MIGHT. In fact, I wish poor mearsk will be stuck there for so long, that they will think they made a really bad decision about moving many years ago! :D

[babystan03]

Haha.....mearsk is highly unlikely to come back lah....but Evergreen MIGHT. In fact, I wish poor mearsk will be stuck there for so long, that they will think they made a really bad decision about moving many years ago! :D

Scarly this is a good opportunity for PSA to invest in the port?? :eek:

[babystan03]

November 26, 2004

Port attack will cost $328b

Terrorist strike on port like S'pore's will lead to massive global trade loss, says defence expert

By Khushwant Singh

A TERRORIST attack on a hub sea port or a major sea route would have global repercussions.

To illustrate this, Mr Barry Desker, director of the Institute of Defence and Strategic Studies (IDSS), said yesterday: "It is estimated that the global economic impact of the closure of a major port like Singapore alone could easily exceed US$200 billion (S$328 billion) per year from disruptions to inventory and production cycles." And Mr Cedric Foo, Minister of State for Defence, said: "This makes the maritime domain particularly attractive to terrorists seeking to make a global impact.

"Threats to maritime security, whether through the shutting down of ports or major waterways, can paralyse the international economy."

Both men were speaking at the third conference organised by IDSS and the Royal United Services Institute for Defence and Security Studies (Rusi) at the Pan Pacific Hotel.

The audience included defence officials from Singapore and Britain, security analysts, and representatives of firms specialising in security systems and equipment.

Mr Foo said: "We only need to look back to the events of Sept 11 and the Madrid train bombings of March 2004 to remind ourselves of how our transport infrastructure can be used to perpetuate truly horrific attacks.

"The attacks on the USS Cole in 2000, the French tanker Limburg in 2002, and more recently, the Basra oil terminal in April 2004, demonstrate how maritime targets continue to be at risk from terrorists."

Maritime security takes on an added importance in the region as roughly a quarter of the world's trade and half of all oil shipments pass through the Malacca and Singapore straits on some 50,000 ships each year, Mr Foo said. He warned: "As a natural geographical "choke point', the Malacca and Singapore straits are particularly vulnerable."

He added that Singapore has been encouraged by the growing international consensus on the strategic importance of regional maritime security and the various initiatives that have emerged recently.

He mentioned the launch of the Malacca Strait Coordinated Patrols in July by Singapore, Malaysia and Indonesia, and this year's major Five Power Defence Arrangement (FPDA) exercise, Ex Bersama Lima (which is Malay for "five in unity"), which incorporated maritime security for the first time.

The FPDA comprises Australia, Britain, New Zealand, Malaysia and Singapore.

In an anti-terror drill at sea, the partners applied their air and naval power to hunt down and board a "hijacked ship" in the South China Sea.

The counter-terrorist theme added a new facet to the exercises staged by the 33-year-old defence tie-up as FPDA exercises had traditionally focused on conventional warfare.

Mr Foo also applauded the Regional Cooperation Agreement on Anti-Piracy in Asia to enhance cooperation among 16 countries in the region.

Copyright © Singapore Press Holdings, 2004. All rights reserved.

[huaiwei]

Scarly this is a good opportunity for PSA to invest in the port?? :eek:
Hahah...isnt it true that there was talk of PSA actually investing in PTP in the most extraordinary flip of competitiors turned alliance? :D

[huaiwei]

November 26, 2004

Port attack will cost $328b

Terrorist strike on port like S'pore's will lead to massive global trade loss, says defence expert

By Khushwant Singh

Erm....so are they ready to spend that amoung on anti-terror initiatives? :lol:

[babystan03]

Business Times - 29 Nov 2004

S'pore in the running for 2 big petrochem plants

Shell to decide on next step by year-end; ExxonMobil in talks on possible 2nd plant

By RONNIE LIM

(SINGAPORE) Singapore may yet secure two new petrochemical crackers worth at least US$1 billion each, not counting multi-million dollar investments in downstream chemical plants.

Shell has said it will decide within a month on the next step towards its planned one million tonne ethylene cracker on Pulau Bukom. And ExxonMobil has started exploratory talks with the authorities for a possible second cracker that could be on a site next to its integrated refinery/petrochemical complex on Jurong Island.

If confirmed, the two new crackers - so called because they break down heavier hydrocarbons into lighter products with higher commercial value - would bring the total number here to five. These would boost capacity for ethylene, a major petrochemical that has wide industrial uses ranging from plastics and synthetic fibres to solvents and paints.

ExxonMobil already operates an 800,000 tonne ethylene plant at the Chawan sector of Jurong Island, while Petrochemical Corporation of Singapore - a 50:50 joint venture between Shell Chemicals and a Japanese consortium led by Sumitomo Chemicals - operates two others with a combined capacity of 1.4 million tonnes of ethylene.

'We will make a decision to move on to the definition phase before the end of this year,' Shell Chemicals executive vice-president Tan Ek Kia told BT recently.

A feasibility study has already been completed, and the 'definition phase' involves more detailed design work, including a more accurate assessment of cost, he said.

While Mr Tan did not say so, this is strong indication that Shell is determined to move on with the project, regardless of whether long-time partner Sumitomo joins in.

Sumitomo, which previously was keen on the project, is studying instead whether to participate in a US$4.3 billion complex at Rabigh, Saudi Arabia. Saudi Aramco officials have told BT they expect to complete this study by the second quarter of next year.

Mr Tan said Shell's decision on a cracker here won't depend on what rivals like ExxonMobil will do.

Earlier this month, ExxonMobil chairman and chief executive Lee Raymond confirmed industry buzz that Singapore is 'under consideration' as a potential site for expansion to meet strong regional petrochemicals demand, especially from China and India. This is the same reason Shell wants to build another cracker here.

BT understands that as part of groundwork for a possible second cracker, ExxonMobil has had preliminary discussions with the Economic Development Board as well as with Jurong Town Corporation about a site on Jurong Island.

The company's strategy, as Mr Raymond earlier told BT, is to extract the most value-added from each barrel, through better integration of its oil refineries and petrochemical plants.

With this in mind, ExxonMobil is understood to be eyeing a site 'just across the road' from its integrated Chawan complex. This is at Pesek sector, where the company already has an oil tank farm.

Similarly, Shell plans to build its cracker next to its Bukom refinery, to draw on feedstocks there and better integrate operations for cost competitiveness.

Asked to comment, an ExxonMobil spokesman said: 'We can't talk about our forward business plans at this stage.'

Still, 2005 may be the likely decision year for Shell and ExxonMobil for their Singapore projects, BT understands.

By next year, Shell will know whether Sumitomo will join it for a new cracker here, or if not, maybe in downstream plants associated with the complex. 2005 will also be when Shell Chemicals' US$4.3 billion petrochemicals venture in Nanhai, China - its immediate focus - starts up.

Copyright © 2004 Singapore Press Holdings Ltd. All rights reserved.

[huaiwei]

Thats excellent news nowadays, especially with so much competition breathing up their necks! :eek:

[babystan03]

Business Times - 30 Nov 2004

Titan mulling over oil storage terminal in Singapore

By RONNIE LIM

(SINGAPORE) The Titan Group, which operates floating oil storage facilities at Tanjong Pelepas and Pasir Gudang in Johor, is considering building a storage terminal in Singapore to boost its regional trading activities, which include supplying fuel oil to China.

'We will make a decision on the tank farm within the next year,' chief executive officer Patrick Wong told BT yesterday.

Titan is in talks with the authorities - including on the possibility of shared berthing - for a terminal of 500,000 to 1 million cubic metres, or 3-6 million barrels. This will put it in the league of independent operators here such as Tankstore and Oiltanking, each with about 6.5 million barrels capacity.

While Mr Wong declined to give a figure, industry sources say a 500,000 cu m tank farm, excluding berthing, would cost about S$150 million.

'We want to further strengthen our present team of 10 oil traders here next year,' Mr Wong said. Titan's Singapore operations, which have Approved Global Trader status, expect to double profit to $7-8 million this year, from $4.2 million in 2003. This will come from a 15 per cent increase in oil traded to 4 million tonnes, or 25 million barrels.

Titan is reorganising so that its Singapore operations will become the group's 'brain centre', in charge of oil trading, shipping and bunkering, Mr Wong said. Its listed Hong Kong subsidiary Titan Petrochemicals will handle its China business, including three joint-venture terminals it is building there.

With an eye on the fast-growing China market, Titan - founded in the early 1980s by chairman Tsoi Tin Chun, an oil dealer from Fujian - decided to list in Hong Kong in 2002. Mr Wong said: 'We believe that when China fully opens its oil market in 2006, priority will go to Hong Kong-listed companies.'

This was the rationale behind an internal restructure this month, when Titan Petrochemicals acquired the oil trading business of its Singapore-based parent Titan Oil for US$25 million in new stock from Mr Tsoi.

'China is the main demand centre, and Titan is capitalising on Singapore's infrastructure to cater to the Chinese market,' Mr Wong said.

Titan's logistics business - comprising 27 oil tankers - will be 100 per cent handled out of Singapore, he said. The tankers, including VLCCs, are chartered to customers like regional oil refiners and national oil companies.

Similarly, Titan's oil trading activities and bunkering operations will be based in Singapore.

Copyright © 2004 Singapore Press Holdings Ltd. All rights reserved.

[huaiwei]

Actually dont you think all these news about them parking oil in Singapore makes us appear like a bloating oil bank best for terrorist attacked? :D

[babystan03]

Business Times - 01 Dec 2004

New opportunities for S'pore in LNG supply

By RONNIE LIM

LIQUEFIED natural gas (LNG) that can be shipped in from anywhere will open up new gas supply opportunities for Singapore, which currently pipes LNG from Indonesia and Malaysia, says a member of a consortium shortlisted for a study here.

'The use of LNG, while reducing exposure to oil prices, could however bring new price volatility risks,' Noel Tomnay, engineering firm Wood Mackenzie's principal consultant for the Asia-Pacific, said yesterday.

'But this is not something to be afraid of,' he said. 'It's an opportunity.'

Piped gas from Indonesia and Malaysia is pegged to fuel oil prices, which follow crude oil prices. LNG use would free Singapore from this oil peg, but there could be a different kind of volatility because of various price indices adopted by gas producers, Mr Tomnay said.

Engineering firm Wood Mackenzie, with international legal firm Norton Rose, are partners of a consortium led by Foster Wheeler Eastern, which is vying to conduct an LNG study for the Energy Market Authority (EMA).

Mr Tomnay, who was a speaker at an energy forum yesterday, told BT the bidders have to re-submit tenders to EMA by Dec 15, and the winning group will be selected by January.

The other groups who made the recent shortlist are Shell Global Solutions, Tokyo Gas Engineering, Schlumberger Business Consulting, and Aker Kvaerner Engineering and Technology. The study is expected to be completed within 12 months.

The important question is whether Singapore can reduce the price of imported gas, Mr Tomnay said at yesterday's forum organised by the Institute of Southeast Asian Studies.

One way is to encourage competition between piped gas suppliers, he said, though this may be a bit difficult considering that supply is from a duopoly. There will only be more competition when the two neighbouring countries liberalise gas supply to more players there.

Another possibility is for Singapore to become the trading hub when the Trans-Asean gas pipeline grid is fully operational. After all, Malaysia already buys gas from Indonesia, so Indonesian gas could perhaps be supplied to Malaysia via Singapore, Mr Tomnay suggested, though this again depends on market liberalisation.

Copyright © 2004 Singapore Press Holdings Ltd. All rights reserved.

[babystan03]

View of PSA ports from the city area.......(4/12/04)

http://img27.exs.cx/img27/52/s4rdscn35731.jpg

[huaiwei]

Cool! You got this from the Esplanade right? :D

[babystan03]

Cool! You got this from the Esplanade right? :D

Yah......got another one......show it later......:yes:

[huaiwei]

Cool! You got this from the Esplanade right? :D

[redstone]

Why ask again? :lol:

[huaiwei]

Ops...that was an accident. Pressed twice. :D

Anyway, I think those cranes might be gone if they proceed with one of their plans to realign the ECP?

[babystan03]

Yah......got another one......show it later......:yes:

Hmm....can always see quite a number of ships from the benjamin sheares bridge......I supposed they are waiting to come into the port??

http://img22.exs.cx/img22/2061/w7tdscn35791.jpg

[babystan03]

Ops...that was an accident. Pressed twice. :D

Anyway, I think those cranes might be gone if they proceed with one of their plans to realign the ECP?

Realign the ECP?? Never heard that though......How would it affect the PSA's ports??

[redstone]

I wouldn't...

Unless they realign the viaduct....

[huaiwei]

Realign the ECP?? Never heard that though......How would it affect the PSA's ports??
Those particular cranes aer occupying a part of the port which may be reclaimed, if based on earleir plans that is. That seems to be reversed in the latest model thou?

[huaiwei]

Hmm....can always see quite a number of ships from the benjamin sheares bridge......I supposed they are waiting to come into the port??

http://img22.exs.cx/img22/2061/w7tdscn35791.jpg
There isnt much space for ship anchorages loh. :D Anyway, very nice zoom there! Taken from the same location?

[huaiwei]

I wouldn't...

Unless they realign the viaduct....
You wouldnt wat?

[babystan03]

Business Times - 20 Dec 2004

Stars look aligned for PSA's mega listing

A share flotation could come anytime in the next 12 months

By VEN SREENIVASAN

(SINGAPORE) After a three-year hiatus, some market insiders think that the world's second busiest container port could finally be ready for a listing on the Singapore Exchange.

Market talk has it that the port operator has been in discussion with several global investment bankers. Some market insiders even go so far as to speculate that one American house has been appointed to manage the exercise, which sources say could come anytime in the next 12 months.

But when contacted last week, PSA's owner Temasek Holdings would neither confirm nor deny speculation that the port operator could finally be headed for a listing next year.

'As with all transactions which we deal with, we will look at it when it makes commercial sense,' said Eva Ho, spokeswoman for the Singapore investment company when contacted by BT. 'In the case of a (PSA) initial public offering, we would proceed when the market conditions are conducive.'

On the face of it, market conditions appear to be more conducive now than they have been anytime in the last three years.

In the first 10 months of this year, PSA handled 17.1 million containers locally, an increase of 14.3 per cent from a year ago. Meanwhile, its international terminals handled 10.4 million boxes, a 20.8 per cent increase over the same period last year.

The surging volumes have also prompted the port operator to expand capacity. In September, it announced plans to build 10 more berths at its Pasir Panjang Terminal over the next five to seven years.

Expectations of PSA's listing have been building up ever since it was corporatised in 1997.

After PSA appointed DBS Group Holdings, Morgan Stanley Dean Witter and UBS Warburg to handle its IPO in June 2000, the market expected the port operator to float its shares in the following 12 months.

But in May 2002, Temasek announced that it was shelving any listing plans until market conditions were more favourable and PSA had ensured it had 'long-term competitive strategies' in place. The postponement also came after Maersk Sealand moved its transhipment operations to the Malaysian port of Tanjung Pelepas in late 2000.

PSA had been expected to raise as much as $3.75 billion from its IPO, making it Singapore's largest share flotation since Singapore Telecom's $4 billion IPO in 1993.

But the shelving of the IPO has not held back PSA's effort to push ahead with its ambitions for a global footprint.

Not wanting to be dependent only on its Singapore operations, the company has been building up a strong network of overseas ventures which analysts say would boost its standing ahead of a future listing.

To date, it has expanded its overseas operations to 17 ports in 11 countries across Europe, India, East Asia and China which, together, account for half of its total cargo volume.

Its latest acquisition, which it announced just weeks ago, was a majority stake in Hong Kong's Asia Container Terminals for an undisclosed price from real estate developer Sun Hung Kai Properties.

The move gives PSA a critical foothold in the much sought-after container port business in the Fragrant Harbour.

Christopher Wong of Aberdeen Asset Management said PSA has been doing all the right things to position itself for a successful IPO.

'They are making good progress in widening their business reach around the world, while at the same time developing relationships with other global players,' he said.

On the corporate front, PSA has been undergoing a series of restructurings which have made it a more lean and focused port operator. Most involve the hiving off of non-core assets, such as the transfer of its properties to Mapletree in late 2000.

Other non-core assets which were divested include Changi International Airport Services, the Sentosa cable car and the cruise centre operations.

Despite the recent shadow cast over the local bourse as a result of the China Aviation Oil fiasco, the underlying market sentiment in the medium term is significantly better than it has ever been in the last few years.

With the Straits Times Index at its highest levels since August 2000, buoyed by a flight to the safety of blue chips and bellwethers, 2005 may just be the best year on this side of the decade for an eventual listing by PSA.

But market watchers like Aberdeen's Mr Wong think PSA could spring a couple more surprises in the lead-up to an eventual listing.

'There has long been rumours that they could go downstream into some kind of fleet operations,' he said.

'If you look at Europe, this is what players like AP Moller-Maersk and P&O have done. Of course, the fleet business is more cyclical. But if you believe that China and India are the biggest global growth drivers, then freight rates should stabilise.'

There has long been speculation and vague rumours of a possible tie-up between PSA and Neptune Orient Lines, which is 68 per cent owned by Temasek. But some market insiders reject this possibility.

Research house CLSA recently noted that a merger of the shipping giant and port operator may not turn out to be the ideal marriage.

'While NOL stands to gain little, PSA has the potential to lose business as it may be seen giving favourable treatment to NOL,' CLSA said in a report last month.

Copyright © 2004 Singapore Press Holdings Ltd. All rights reserved.

[huaiwei]

But in theory, PSA is already obviously favouring NOL loh! :D

[babystan03]

Business Times - 21 Dec 2004

Singapore slashes some port fees by as much as 50 per cent

SINGAPORE - Singapore will slash some port fees by as much as 50 per cent next year in order to stay competitive.

Transport Minister Yeo Cheow Tong said the reduced rates were to 'further enhance Singapore's port competitiveness.'

He said there would be a 50 per cent reduction in rates for ships docking for repairs lasting more than 95 days.

Passenger carriers weighing more than 300 gross tons visiting Singapore at least six times in six months will receive a 20 per cent rate decrease.

The same reduction applies to car carriers who use Singapore as their transshipment base.

Mr Yeo announced the new rates as Singapore passed the billionth tonnage mark from total ship arrivals.

He said these revisions in port dues are expected to benefit some 4,000 ships annually and save about $2.5 million a year for the shipping community.

When added to the existing 20 per cent port dues concession for container ships, total savings for the shipping community will come up to some S$8 million per annum.

Singapore is the world's second busiest port after Hong Kong but has higher total shipping tonnage.

Singapore has also come under increasing pressure from Malaysia's ports of Tanjung Pelepas in southern Johor state and Westport close to the capital of Kuala Lumpur.

From January to November 2004, Mr Yeo said total cargo tonnage reached 357 million metric tons- a 13 per cent on-year increase.

'The number of oil, gas and chemical tankers calling at our port has also increased. Tankers alone contribute more than 30 per cent to our shipping tonnage.'

Copyright © 2004 Singapore Press Holdings Ltd. All rights reserved.

[skynet126]

What do you guys think the maximum of TEU in the future that Singapore port can hold to the maximum in the future. My guess is that Singapore port hub can hold the max to 60 million TEU. Man if Singapore got more land like deep water strategic locations in Vietnam (Van Phong Bay) or China. With the necessary land to accomondate and advance technology, Singapore port can handle up to 100 million TEU a years, maybe more. Dang that would be humongous :). Who known what the future will withhold.

[babystan03]

Business Times - 23 Dec 2004

Hock Lock Siew
Staying competitive: PSA has its work cut out

By DONALD URQUHART

THE announcement by the Maritime & Port Authority of Singapore (MPA) on Tuesday of a reduction in port dues shows once again the effort that Singapore is making in safe-guarding its maritime competitiveness.

But the move must be understood not only for the limited impact it will have, but the importance of another key player in ensuring Singapore's competitiveness.

Firstly, it's important to underscore that the reduction in port dues is largely symbolic. After all, the reduction will amount to annual savings for shipping lines of only $2.5 million.

As one local shipping representative commented: 'It's welcome, but it won't pay for the party.'

Secondly, the reduction in port dues has virtually zero impact on PSA - both in terms of its everyday operations and its impending IPO - despite the perception among some that it would.

The reason it has no impact on PSA is that container ships have since 1996 been enjoying a 20 per cent concession on port dues.

More importantly, the port dues is peanuts compared to what container lines pay PSA for the lifting on and off of boxes. Consider an average feeder vessel of 1,800 TEU that pays port dues per call of the order of $1,000. PSA's charges for lifting on and lifting off boxes, on the other hand, could amount to over $350,000, based on its rates estimated to be $115 per 20-foot container and $175 per 40-foot container for transhipment cargo.

The MPA's discounts should not, however, be dismissed outright. They do show, once again, that Singapore is prepared to be pro-active and pragmatic in ensuring it does not lose its competitiveness in the shipping world.

The hard lesson of Tanjung Pelepas still reverberates around the island nation and many would agree it is better off because of it.

One fact is indisputable: competition is only going to get fiercer, more sophisticated and more diverse and the MPA can only do so much. This was acknowledged by Transport Minister Yeo Cheow Tong on Tuesday when he referred to the cuts as a 'gesture', but went on to say that for the MPA, 'it is a big gesture, as it is a significant reduction in what the MPA is collecting'.

Clearly a large part of the responsibility for keeping Singapore competitive rests on the shoulders of PSA because of the container sector's pre-eminent position here and the costs inherent in it.

To remain competitive as a container transhipment hub, PSA will have to keep a watchful eye on cost, efficiency and its ever improving competitors.

PSA is estimated to be $50 more expensive per 20-foot box than, for example, Port Klang. The Singapore operator has long justified its higher costs on efficiency and its feeder and mainline connections, but it must be careful not to fall into the complacency that tripped it up once before.

Port Klang is now running at full capacity, just as Port of Tanjung Pelepas and Singapore have been taxed by the surging China cargo volumes, but the environment is volatile and PSA must keep its finger on the pulse of the industry.

As for PSA's IPO, the real issue at the heart of PSA's competitiveness and long-term value to investors is not the discounts given by the port authority, or even the rates it charges for handling boxes in Singapore's docks - although that will always be of some importance.

What will count a whole lot more is its ability to grow its business through global expansion. PSA knows this, and has for a long time. But knowing and doing are clearly two different things, judging from its very mixed success in the international arena.

To its credit, PSA has some prudent and prime investments dotting the globe. It has, however, also missed out on opportunities that would benefit it in the long term.

India is one, where its only significant presence is confined to the moribund port of Pipivav and where it has lost out on a number of bids for key terminal projects along the west coast.

The recent CSX World Terminals bid is another example. Had it succeeded in that bid, it would have acquired a number of terminals around the globe nicely complementing its existing assets. It would also have given PSA a foothold in Hong Kong and additional terminals on the Chinese mainland that it covets.

While MPA and PSA both have a key role to play in keeping Singapore competitive, it's important not to confuse the sometimes overlapping, and at other times very different aims, of the two bodies. For Singapore to thrive as a maritime centre, both must be innovative, pragmatic and daring.

Copyright © 2004 Singapore Press Holdings Ltd. All rights reserved.

[babystan03]

Business Times - 29 Dec 2004

PSA eyes US$1b Panama Canal project: report

It says PSA has made expression of interest in port megaproject

By DONALD URQUHART

(SINGAPORE) PSA International has made an expression of interest in a proposed US$1 billion port megaproject at either end of the Panama Canal, according to an official from the Panamanian Maritime Authority (AMP).

The AMP has begun accepting expressions of interest until end-January for the project which includes building ports at either end of the canal at an estimated cost of US$600 million and US$400 million each.

According to the AMP's planning director Hernando Arias, this first stage in the bidding process has attracted port and shipping lines, including P&O Ports, Maersk Sealand, China Ocean Shipping Co (Cosco), Evergreen and PSA.

A PSA spokesperson declined to comment when contacted by BT yesterday.

Once the first stage ends, interested parties will then be asked to define the areas they would develop and present a business and investment plan with concessions to be issued within two months from that point, according to a report in Business News Americas (BNA).

The development on the Pacific side would be more expensive because of a shallower draft and more ambitious plans which would see a port site covering more than 300 hectares.

'The draft on the Pacific side is fairly shallow and so costs would include dredging as well as landfill, civil works, platforms, cranes, etc,' Mr Arias was quoted by the BNA report as saying.

This portion of the project would likely involve a consortium of four or five companies, he added.

The megaproject would threaten the business of existing ports near the canal, of which there is one on the Pacific Coast at Balboa run by the Panama Ports Company (PPC) in which Hutchison Port Holdings is an investor.

There are also four on the Atlantic coast: Puerto Cristobal also run by PPC, Colon Container Terminal (CCT), Colon Port Terminal (CPT) and Manzanillo International Terminal (MIT).

Two of these terminals - CCT run by Evergreen and MIT - have sought to expand their facilities. Mr Arias was quoted as saying that the existing operators had no objections to the new megaproject as 'Panama is a free, open market and port owners play by free-market rules'.

The maritime authority is also planning to privatise some of its other state-run ports following a US$4 million study by Japan's International Cooperation Agency which recommended an estimated US$63 million in upgrades.

'The procedure will be very similar to that of the megaproject,' Mr Arias said. 'Investors should express interest, present a business plan and solicit the concession,' he said.

The ports under consideration include Almirante, Bocas del Toro, Armuelles, Coquira and La Palma.

Copyright © 2004 Singapore Press Holdings Ltd. All rights reserved.

[huaiwei]

Hoho...I see quite alot of familiar company names in that article above. :D Same few competitors, eh? ;)

[babystan03]

29 December 2004

Star Cruises says it's committed to developing global cruise hub in Singapore
By Michael Lim, Channel NewsAsia

SINGAPORE: Star Cruises says it is committed to developing Singapore as a major global cruise hub.

The statement came in response to a media report saying Star Cruises has proposed a US$1 billion cruise centre in Singapore.

The cruise operator says it is in negotiations with the Singapore government to enhance the cruise facilities here.

But it adds that these discussions are on-going and any reports on likely outcomes are highly speculative.

Star Cruises, the cruise and leisure arm of Malaysian conglomerate Genting, has been steadily growing its operations.

It recently took a 20% stake in Valuair to operate fly-and-cruise holiday packages for passengers in the region.

The deal was in line with its plan to make Singapore a global cruise hub.

So the report of a possible intention to invest US$1b in a new integrated cruise centre at Marina South did not come as a surprise.

But it came on the day Singapore unveiled guidelines for the development on an integrated resort on the island.

According to the report, the Star Cruises project could include a 800-room hotel with convention facilities and casino if approved by the government. - CNA

Copyright © 2004 MCN International Pte Ltd

[babystan03]

Jurong Port Experiences Record Growth

Jurong Port is experiencing record growth in throughput. It is currently handling a monthly throughput of about 76,000 teus, which is an increase of 204 per cent compared to the same period last year.

The strong growth is attributed to new services introduced by existing customers, existing customers phasing in bigger tonnages, and new customers.

http://www.jp.com.sg/update/2004/1004/img/001.jpg
Jurong Port is now thriving with main and feeder shipping lines calling regularly at its Container Terminal.

Since February this year, three new services were introduced by existing customers. These are the Round-the-World (RTW) Service by Norasia, Gold Star Line and China Shipping Container Lines; the Vietnam Thailand Express (VTX) Service by Gold Star Line; and the Haiphong Service by EP Carrier. Existing customers have also been phasing in bigger tonnages, eg. Zim Line’s Asia-Mediterranean-Pacific (AMP) Service started at Jurong Port in 2002 with 2,500 – 3,000 teu capacity vessels and now they are using 3,800 teu vessels. As a result, ZIM Line’s throughput at Jurong Port has grown by 82 per cent since 2002. As for new shipping line customers, Jurong Port has added a few to its fold since late last year and these include New Econ Line, Delmas and United Arab Shipping Co.

Jurong Port is grateful to its customers for their support and is looking forward to building lasting relationships with them.

©Copyright Jurong Port Pte Ltd
Designed by Apex Solutions Pte Ltd

http://www.jp.com.sg/news/news.htm

[babystan03]

Business Times - 03 Jan 2005

NEWS ANALYSIS
Petrochem decision: Shell, EDB take next step

If the parties go ahead, it'll be a multi-billion-dollar investment

By RONNIE LIM

IT'S not in the bag yet: The coming 12-18 months will be crucial in determining whether Singapore can secure its fourth multi-billion-dollar petrochemical investment.

This is the stage when Shell and the Economic Development Board (EDB) - which has just come on board the oil giant's world-scale ethylene cracker project at Pulau Bukom - will spend 'a significant amount', say sources, on detailed design and engineering, and negotiating with potential downstream investors, before they can sign off the final OK.

'There's a definite sense of commitment by the parties,' said Aw Kah Peng, EDB's chemicals cluster director, when asked if EDB's 'collaboration' will help push the project through.

EDB's participation, announced three weeks back on Dec 14, came after Shell's original project partner, Sumitomo Chemicals, dropped the bombshell in May that it would focus instead on a petrochemical cracker it is looking to build in Rabigh, Saudi Arabia with Saudi Aramco.

Undeterred, and spurred by strong regional petrochemicals demand, Shell, with EDB's support, is now advancing its Bukom project from feasibility to 'definition' phase - just one step away from final investment decision, and actual construction.

BT understands the definition phase for Shell's greenfield Nanhai petrochemicals project in China took 12-18 months, which means detailed design and engineering work for Bukom - a 'brownfield' project building on existing infrastructure - could possibly take less time.

The estimated US$1 billion project is meant to benefit from integration with Shell's Bukom refinery. It includes modifications and additions to the refinery, building of a new ethylene cracker (of a proposed one million tonnes), and a new downstream monoethylene glycol plant that will produce intermediates used to make soft-drink bottles and containers, among other things.

The definition phase will involve negotiations with contractors and engineers on how best to configure the project, and discussions with others who may come on board, including more downstream parties to take up the cracker's products.

Only then would come the final investment decision, which could be made before end-2005, or as late as mid-2006, BT understands. Construction of the cracker is scheduled to start some time in 2006, with start-up in H1 2009.

Shell and EDB will also begin detailed discussions early this year on the exact nature of EDB's 'collaboration'.

Asked if EDB was prepared to take an equity stake, Ms Aw said: 'We are keeping our options open. We don't know right now and we haven't ruled this out.'

Years ago, the government took a 50:50 stake to persuade a Japanese consortium led by Sumitomo to build Singapore's first cracker under Petrochemical Corporation of Singapore (PCS), although Ms Aw said the circumstances were different then and that EDB would review the latest Bukom project on its merits. She stressed, however, that the project is important to Singapore, and that EDB 'will work very hard to ensure its go-ahead'.

Shell and the government go back a long way, and it is noteworthy that it was Shell to which the government sold its 50 per cent equity stake in PCS once the latter was in the black.

And Singapore is again 'putting its money where its mouth is', observed an industry official, this time stepping into the void left by Sumitomo.

The Japanese company is opting for Saudi Arabia for its low-cost oil and gas despite heightened risks of terrorist attacks there, although it could still participate in the Bukom project in a downstream capacity, sources say.

PCS operates two crackers on Jurong Island with a total capacity of 1.4 million tonnes of ethylene, while ExxonMobil operates a US$2 billion cracker there of 800,000 tonnes ethylene capacity. But going by world-scale plant standards of 600,000-900,000 tonnes, Singapore really has only two world-scale crackers.

If the green light is given for Shell's project, and if ExxonMobil - which has started exploratory talks on another cracker here - advances its project, 2005 may just turn out to be a watershed in Singapore's plan to secure five world-scale crackers.

Copyright © 2004 Singapore Press Holdings Ltd. All rights reserved.

[huaiwei]

Jurong Port Experiences Record Growth

Jurong Port is experiencing record growth in throughput. It is currently handling a monthly throughput of about 76,000 teus, which is an increase of 204 per cent compared to the same period last year.

The strong growth is attributed to new services introduced by existing customers, existing customers phasing in bigger tonnages, and new customers.

http://www.jp.com.sg/update/2004/1004/img/001.jpg
Jurong Port is now thriving with main and feeder shipping lines calling regularly at its Container Terminal.

Since February this year, three new services were introduced by existing customers. These are the Round-the-World (RTW) Service by Norasia, Gold Star Line and China Shipping Container Lines; the Vietnam Thailand Express (VTX) Service by Gold Star Line; and the Haiphong Service by EP Carrier. Existing customers have also been phasing in bigger tonnages, eg. Zim Line’s Asia-Mediterranean-Pacific (AMP) Service started at Jurong Port in 2002 with 2,500 – 3,000 teu capacity vessels and now they are using 3,800 teu vessels. As a result, ZIM Line’s throughput at Jurong Port has grown by 82 per cent since 2002. As for new shipping line customers, Jurong Port has added a few to its fold since late last year and these include New Econ Line, Delmas and United Arab Shipping Co.

Jurong Port is grateful to its customers for their support and is looking forward to building lasting relationships with them.

©Copyright Jurong Port Pte Ltd
Designed by Apex Solutions Pte Ltd

http://www.jp.com.sg/news/news.htm
82%?? Muahaha.....I would love to see Jurong port moved to Tuas, and becoming a major conpetitor of PSA!

[huaiwei]

What do you guys think the maximum of TEU in the future that Singapore port can hold to the maximum in the future. My guess is that Singapore port hub can hold the max to 60 million TEU. Man if Singapore got more land like deep water strategic locations in Vietnam (Van Phong Bay) or China. With the necessary land to accomondate and advance technology, Singapore port can handle up to 100 million TEU a years, maybe more. Dang that would be humongous :). Who known what the future will withhold.
Hmmm.....the thing is Singapore is actually moving her entire port operations to land at least 3 times bigger then the present size further from the city. In addition, more land has also been reclaimed in the western extreme end of the city for a second port to be built, presumably suitable for Jurong Port's operations. So when we lack land, we just reclaim more. Yeah, we will hit a limit someday, but hopefully by then, technology and efficiency will take over? ;)

[huaiwei]

29 December 2004

Star Cruises says it's committed to developing global cruise hub in Singapore
By Michael Lim, Channel NewsAsia
I dont know how long this will last thou...What if the Malaysian government wants to similarly set up a cruise hub somewhere in Malaysia? Hmm....

[babystan03]

11 January 2005

PSA handles record volume in 2004, plans to add 15 new berths
By Joanne Lee, Channel NewsAsia

SINGAPORE : Singapore port operator PSA has recorded an unprecedented growth in its local operations in 2004, and it is planning to expand to sustain further growth.

PSA saw a 14.1 percent jump in the number of containers handled to 20.6 million 20-foot equivalent units, up from 18.1 million the year before.

PSA says the growth was buoyed by a rebounding regional economy led by China's rapid rise as a manufacturing base and an increase in the number of shipping services.

Over the next five to seven years, PSA will be adding 15 new berths to the existing 37 at its terminals here.

Three of these will be operational this year.

The expansion, when completed, will boost PSA's handling capacity to 31 million standard containers a year, from 20 million now.

The latest numbers show that PSA is continuing to see strong results from its efforts in recent years to sharpen its competitive edge.

It has been fighting off the competition from neighbouring ports by trimming costs and offering greater connectivity. - CNA

Copyright © 2004 MCN International Pte Ltd

[huaiwei]

Woohoo! Way to go, port! :D

[babystan03]

Business Times - 12 Jan 2005

Gati sets up Asia-Pac base in Singapore

By GEORGE JOSEPH

(SINGAPORE) A leading Indian express cargo and freight forwarding company is setting up its Asia-Pacific headquarters in Singapore. The Mumbai-listed Gati Ltd will use Singapore as a gateway for its India-centric business from the region and will focus on developing express distribution and integrated freight business opportunities with companies that plan to enter or are already operating in the Indian market.

'Our key thrust into the region is in establishing a sales and marketing presence and developing relationships here,' said Brad Jeffreys, Gati vice-president of international business. He did not rule out the possibility of tapping other 'key markets' in Hong Kong, China, Thailand, Malaysia and Indonesia from its Singapore base.

Starting with some 50 employees in the region, the regional operations directed from Singapore are expected to employ some 500 people indirectly over the next three years.

Expanding on the company's India-centric strategy yesterday at a press conference to launch its Asia Pacific headquarters, Mr Jeffreys said that India was the fastest growing market after China with imports growing at a rate of about 16 per cent a year.

Gati, he said, also had unparalleled delivery reach, multi-modal connectivity and logistics capability for companies doing business in India.

He estimated the Indian airfreight import market size at 245,000 tonnes, valued at US$1.5 billion, a year. With the impending signing of a free trade agreement between Singapore and India, more trade opportunities will be opened to businesses in both countries, he added.

'Gati is primed to be at the forefront of the express distribution and integrated freight business between India, Singapore and the region,' he said.

Gati, with 27 warehouses and some 2,600 employees in India is headquartered in the southern Indian city of Hyderabad. Hailed as the market leader in express distribution in India, it also provides customs clearance services at major seaports and airports in India, including in Bangalore, Chennai, Kolkata, Mumbai and Trivandrum.

Gati India recorded total revenues of $115 million last year. It is looking at a total inbound and outbound revenue of $20 million from the region by next year, with half of it coming from Singapore alone.

Singapore Economic Development Board assistant managing director Chua Taik Him said that Singapore's extensive international connectivity coupled with Gati's established network in India, would 'bring about tremendous business opportunities for Singapore and the company'.

He said that Gati's decision to site its regional headquarters in Singapore was timely, to address the fast-growing market opportunities in Asia.

Copyright © 2004 Singapore Press Holdings Ltd. All rights reserved.

[babystan03]

Jan 16, 2005
16 new berths at Pasir Panjang for 'mega-vessels'

By Nicholas Fang and Karamjit Kaur
TRANSPORT CORRESPONDENTS

IN A bid to stay ahead of the pack in the intensely competitive global port industry, Singapore is planning ahead by making space for a further 16 berths to its Pasir Panjang Terminal.

That will take the total number of berths there to 42, with the new berths set to cater to the 'mega-vessels' that are taking to the high seas.

The Transport Ministry said yesterday that it has started to plan for the next phase of development at Pasir Panjang together with the Maritime and Port Authority of Singapore.

In an explanatory note to Transport Minister Yeo Cheow Tong's addendum to the President's address in Parliament last week, the ministry said that the new berths will form the third and fourth phases of development at Pasir Panjang.

'This will allow our terminal operators sufficient space to expand to meet the growing volumes from their existing customers and also attract new business,' the ministry said.

'We are closely monitoring industry trends and developments so that our planned port infrastructure will meet the future needs of our customers.

'For example, as shipping lines are ordering bigger container ships, the layout and design of the new berths will cater to such mega-vessels.'

The ministry said that Singapore currently has 42 operational container berths at Singapore's various terminals including Pasir Panjang, of which 37 are being run by PSA, and five by Jurong Port.

On the aviation front, the ministry said it will continue to market Singapore to attract new airlines to fly here and encourage existing customers to expand operations. It will also keep pushing for liberal skies to extend the airport's connectivity.

Work on upgrading Terminal 2 at a cost of $240 million will be completed next year and planning is underway for Terminal 1 to be upgraded by 2008, at a cost of $180 million.

To meet projected traffic growth, the $1.7 billion Terminal 3, to be ready in 2008, is being built.

A budget airline terminal will be built and operational by next year. It will increase the capacity of Changi Airport by 20 million to a total of 64 million passengers a year.

The ministry also said that providing Singaporeans with an efficient and affordable public transport system will remain 'a key priority'. The current system has worked well to keep fares low, but is not easily understood by the public, it said.

A committee set up recently to study the current public transport fare review mechanism is expected to submit its recommendations soon.

As for private transport, the Government will review the 3 per cent vehicle population growth rate which has been in place since the introduction of the quota system in 1990.

In line with shifting the balance from ownership costs to usage costs like road pricing, it also needs to consider expanding the existing Electronic Road Pricing cordon to other areas and times of the day.

Copyright © 2004 Singapore Press Holdings. All rights reserved.

[huaiwei]

Hmm......Think this should mean the completion of the 2nd phase in Pasir Panjang. The 3rd and 4th phases are unlikely to add space thou...because if the plans are similar to previous ones, they are meant to replace the existing facilities in Keppel Harbour! :D

[babystan03]

Business Times - 17 Jan 2005

Blueprint to develop S'pore as global maritime centre

By GEORGE JOSEPH

(SINGAPORE) THE Ministry of Transport (MOT) and the Maritime and Port Authority of Singapore (MPA) will continue to work closely with terminal operators and other industry players here to strengthen Singapore's position as a global hub port.

Capacity at PSA terminals will be expanded, more shipowners and shipping related companies will be encouraged to set up operations here and more efforts will be taken to enhance the attractiveness of maritime careers.

These are the major thrusts Singapore will take to maintain its edge as a global hub port and international maritime centre.

They were made in the Ministry of Transport's addendum to President S R Nathan's address at the opening of Parliament on Jan 12.

Cautioning that Singapore could not afford to be complacent as competition in this sector remains intense, the addendum stated that the MOT and the MPA would actively grow value-added services and identify new business opportunities.

Vehicle and petrochemical transhipment was cited as an example of an area to further develop so as to promote's Singapore's maritime cluster.

As for the future growth of the port, another 16 berths are planned for PSA's Pasir Panjang terminal, which presently operates 26 berths.

'This will allow our terminal operators sufficient space to expand to meet the growing volumes from their existing customers and also attract new business,' the addendum said.

To meet future needs of industry trends, the new berths will be designed to cater to the bigger 'mega' container vessels shipping lines are ordering.

The MOT and the MPA will also increase the spectrum of maritime ancillary services offered in Singapore, as a 'vibrant and comprehensive' maritime services cluster will complement and reinforce the global hub port status.

And to ensure that employers have access to skilled manpower in the maritime sector, more upgrading opportunities will be provided for employees and efforts in supporting maritime education and training programmes will be stepped up. These efforts are geared at encouraging more Singaporeans to take up maritime and maritime-related careers.

'Together with the tertiary institutions, we are developing a range of diploma, basic degree and postgraduate degree programmes, on both a ful-time and part-time basis,' the ministry said.

Last year, the Nanyang Technological University launched undergraduate and masters programmes in maritime studies. More such programmes will be devloped this year to enable Singapore's maritime workforce to upgrade their educational qualifications and expertise.

Copyright © 2004 Singapore Press Holdings Ltd. All rights reserved.

[huaiwei]

Hmm...the education aspect is surely the most important for long term benefits. but what they need to do also, is to raise the "repuation" of the shipping industry as well? Seems like most people here dont consider it a lucrative industry to go after?

[huaiwei]

NEWS RELEASE

11 January 2005

PSA SINGAPORE TERMINALS ACHIEVES RECORD 20.6 MILLION CONTAINER VOLUMES IN 2004

SINGAPORE – PSA Singapore Terminals handled 20.6 million Twenty-foot Equivalent Units (TEUs) of containers for the year ending 31 December 2004. This represents an unprecedented growth of 2.5 million TEUs, a 14.1 percent jump in throughput compared to 18.1 million TEUs handled in 2003.

PSA Singapore Terminals’ upswing has been buoyed by a rebounding regional economy led by China’s rapid rise as a manufacturing base. In addition to the strong organic growth in volumes from existing shipping services, PSA Singapore Terminals welcomed a bumper crop of 36 new services in 2004 – more than double the 15 services it took on the year before. These new services involve 28 carriers and they call at as many as 29 countries.

PSA is reaping the benefits of measures implemented in recent years to sharpen its competitive edge. Its position as a standard-bearer of excellence in port operations has consistently been recognised by the shipping community. In 2004, PSA Singapore Terminals was awarded “Best Container Terminal”, and its sister terminal in Guangzhou Port, the Guangzhou Container Terminal, the “Best Emerging Container Terminal”, at the Lloyd’s List Maritime Asia Awards. PSA Singapore Terminals also clinched the “Best Container Terminal Operator in Asia” for the 15th time at the Asian Freight & Supply Chain Awards.

As part of its strategy to sustain long-term growth and maintain Singapore’s premier status as the world’s largest transhipment hub, PSA Singapore Terminals will be adding a total of 15 new berths at Pasir Panjang Terminal over the next five to seven years. Three of these new berths will be operational in 2005, adding to its existing 37 container berths. 12 new quay cranes and 42 new yard cranes have been ordered to support these berths. The 15 new berths are expected to boost PSA Singapore Terminals’ annual handling capacity of 20 million TEUs by 11 million TEUs to 31 million TEUs.

Said Mr Eddie Teh, Group CEO of PSA International, “I am very encouraged by the record 2004 container throughput of the PSA Group in Singapore, Europe, China and India. Worldwide, we have successfully delivered quality services to our customers in a year of exceptionally high volumes which stretched our resources. Our achievements have been possible only with the diligent and concerted efforts of our managers, staff, contractors and the labour unions, and I wish to thank them for their contribution. I also wish to thank all our customers for their vote of confidence in us, as is evidenced by the large volumes they entrusted to our terminals. We shall strive to provide even better service and value for them in 2005.”

Background

PSA Singapore Terminals - the world’s largest container transhipment hub, operates 4 container terminals and 2 multi-purpose terminals in Singapore. It links shippers to an excellent network of 200 shipping lines with connections to 600 ports in 123 countries. Shippers have access to daily sailings to every major port in the world at this mega hub. Website: www.singaporepsa.com\

PSA International - one of the leading port operators in the world, operates 16 ports in 11 countries across Europe, India, China, South Korea, South East Asia and Japan. As the port operator of choice in the world’s gateway hubs, PSA is “The World’s Port of Call”. Website: www.internationalpsa.com

Issued by Corporate Communications Department.

[babystan03]

Business Times - 22 Jan 2005

S'pore may pip HK as busiest container port

(HONG KONG) Hong Kong is set to lose its title as the world's busiest container port to Singapore this year and China's Shanghai and Shenzhen ports are steadily catching up, analysts said yesterday.

Hong Kong moved 21.93 million 20-foot equivalent units (TEUs) of goods last year, up 7.3 per cent from the year earlier as China's export growth remained strong, the Port Development Council has estimated.

But Singapore, the world's second-busiest port, handled a record 21.3 million TEUs in 2004, up about 16 per cent due to booming regional trade, according to port operators.

'It is very possible that Singapore will surpass Hong Kong by volume as Hong Kong's throughput growth is seen slowing to about 2.3 per cent this year,' said K Y Ng, a port analyst at Nomura International.

PSA Corp Ltd, Singapore's main port operator, has said it plans to build 15 new berths over the next five to seven years to expand its annual handling capacity to 31 million TEUs from 20 million TEUs.

PSA moved 20.6 million TEUs of goods last year, up 14 per cent, while its rival Jurong Port more than doubled its throughput to 711,000 TEUs from 340,000 TEUs.

Despite what is often seen as a keen regional rivalry, Mr Ng said Singapore and Hong Kong are not direct competitors.

Singapore focuses on the less-profitable transhipment business, where goods are moved from ship to ship before sailing to their final destination.

Hong Kong, capitalising on its location on the doorstep of China's export engine, specialises in more-profitable direct shipments.

Analysts said the PSA has become more responsive on pricing since losing several key customers to neighbouring Malaysia a few years ago.

In Hong Kong, many of the port operators also have significant investments in neighbouring Chinese ports, making them less vulnerable to competitive pressures.

Hong Kong's listed port operators, including Hutchison Whampoa Ltd, Wharf (Holdings) Ltd's Modern Terminal Ltd, China Merchants Holdings (International) Co Ltd and COSCO Pacific should have good earnings growth in their Hong Kong and mainland business in 2004, analysts said.

China's export growth is expected to slow to between 10 and 15 per cent this year from 32.7 per cent last year and that could slow container traffic growth in the region, Mr Ng said.

China's robust exports underpinned buoyant container traffic in the mainland, Hong Kong, Singapore and other Pacific ports.

About one-third of mainland exports originate from the booming southern province of Guangdong, and are shipped mainly through Hong Kong and Shenzhen ports.

Hong Kong officials say that there is plenty of China business to go around, but the territory has been steadily losing market share in the past few years to Shenzhen, where a 40-foot container is US$300 cheaper to process.

Last year, Shenzhen port for the first time moved more goods than Hong Kong's main container facilities at Kwai Chung. The city handled 13.66 million TEUs while Kwai Chung moved 13.43 million TEUs in 2004.

Shenzhen's growth rate was close to that of China's busiest container port Shanghai, which increased 29 per cent to 14.55 million TEUs.

Shenzhen port forecast 10-14 per cent volume growth this year to 15-15.5 million TEUs.

'It is not surprising that Shenzhen will overtake Hong Kong - it's just a matter of time,' said Peter So, an analyst at Macquarie Securities.

Hong Kong port operators have been stepping up investments in mainland ports to tap China's trade growth, a trend that is expected to continue. - Reuters

Copyright © 2004 Singapore Press Holdings Ltd. All rights reserved.

[huaiwei]

Notice our best friend is now prefering to talk more about Li Ka Shing's Hutchison empire than the amount handled in ports now? Hardly surprising, of coz!. :D

[Harry Potter China]

In the posts I get confused what the name of Singapore's port is. Is it Pasir Panjang, Keppel or Jurong?
:)
Singapore has had stiff competition from Shanghai lately. Will Singapore be eclipsed by Shanghai in vying for the top spot?
:)

[huaiwei]

In the posts I get confused what the name of Singapore's port is. Is it Pasir Panjang, Keppel or Jurong?
:)
Singapore has had stiff competition from Shanghai lately. Will Singapore be eclipsed by Shanghai in vying for the top spot?
:)
Hmm.....let me clarify:

Jurong Port is indeed a port by itself, operated by the JTC. PSA's facilities, however, are not really called ports. They are called terminals which includes Pasir Panjang, Keppel, Tanjong Pagah, Brani, and non-containerised whaves at Sembawang and PAsir Panjang (next to the container terminal).

And yes, I would believe that Shanghai will overtake Singapore this year for the world's busiest port title! :D

[babystan03]

Business Times - 26 Jan 2005

Mid-year decision on ExxonMobil's 2nd plant

By RONNIE LIM

(SINGAPORE) Global energy titan ExxonMobil is expected to announce by as early as mid-year whether it will build a second world-scale, multi-billion dollar petrochemical cracker in Singapore, BT has learned.

The booming Asia-Pacific market would clearly seem to support the project, with ExxonMobil announcing yesterday that it plans to spend 'tens of millions of dollars' to boost production capacity at its existing US$2 billion ethylene cracker on Jurong Island.

Planning for its new cracker is apparently well-advanced and ahead of that of rival Shell, which is conducting the final phase of its study for another cracker here, sources indicated.

Announcing ExxonMobil's expansion, ExxonMobil Chemical's Asia-Pacific manufacturing director Lynne Lachenmyer said the company will raise ethylene capacity at its existing 800,000-plus tonnes cracker by 75,000 tonnes to over 900,000 tonnes per annum (tpa).

Work on the project will start in the third quarter of this year and should be completed by fourth quarter next year.

'The economic growth in Asia Pacific has been robust, and the demand for petrochemical products closely mirrors this trend. This expansion will help position us to continue to meet the growing demand in this region,' Ms Lachenmyer said.

The increased ethylene output will cater to the needs of downstream customers that use it to produce various chemicals and plastics, such as polyethylene.

The expansion comes after ExxonMobil chairman and CEO Lee Raymond said here last September that he was upbeat about prospects for expanding petrochemical production in the region, especially given strong demand from China and India.

ExxonMobil, he said, was looking at possible investment sites where it either has large integrated refining facilities or where feedstock is readily available.

This puts Singapore in a strong position, as ExxonMobil has already invested US$6.5 billion here to build its largest integrated complex in Asia.

This comprises its 580,000 barrels per day refinery - made up of Exxon's Chawan and the former Mobil/Jurong refineries - which supplies feedstocks such as naphtha to its ethylene cracker.

Japan, where ExxonMobil has integrated refining capacity, is another possible site, although cost is a deterrent there.

China has the market draw but not the integrated refining facility. Besides, issues like intellectual property protection - especially of high-tech, proprietary engineering designs - and lack of a proper legal framework may work against it, BT understands.

Singapore, on the other hand, is strategically located to supply to not only China, but also other Asia-Pacific countries such as India.

ExxonMobil communications manager Koh Tze San stressed yesterday that the latest expansion is 'part of the company's continuing investments here'. It should not be read as an interim step before a possible second cracker investment.

'We look at it one step at a time,' she said. 'We are very careful with investments, and we continue to explore opportunities around the world.'

Separately, Shell, in collaboration with the Economic Development Board, is carrying out detailed 'definition phase' studies for another one million tonnes per annum ethylene cracker here and is expected to decide on the US$1 billion project before mid-2006.

Asked if ExxonMobil's latest expansion will have any impact on its project, Shell said: 'Our investment decisions are driven by global considerations.'

Shell Chemical's general manager for Base Chemicals (Asia Pacific and Middle East), Harshard Topiwalla, said: 'In the next 10 years, Asian markets will need several new crackers to meet growth in demand. We will progress the project as planned in collaboration with EDB.'

If ExxonMobil and Shell go ahead with their new crackers, they will be numbers four and five here.

Shell and a Japanese consortium led by Sumitomo Chemical are partners in Petrochemical Corporation of Singapore, which runs two crackers with a total 1.4 million tonnes per annum ethylene capacity.

Copyright © 2004 Singapore Press Holdings Ltd. All rights reserved.

[huaiwei]

Posted: 26 January 2005 2028 hrs

Ships using Malacca and Singapore Straits urged to report water depth changes

SINGAPORE : The Maritime and Port Authority of Singapore has urged ships using the Malacca and Singapore Straits to report any changes in water depths.

This move comes after post-tsunami changes were reported in the depths of waters, particularly those in the northern approach of that area.

MPA says since the initial unconfirmed reports on January 6, many ships have passed the area smoothly.

None reported any changes in water depths.

However, as a precaution, ships transiting the Straits should continue to listen for broadcast of changes in depths.

They are also reminded to turn on their echo sounders to check the depths of water, and to advise the coastal VTS Authority of any depths less than charted.

MPA says it is closely monitoring navigational safety in the Malacca and Singapore Straits, together with the Indonesian Hydrographic office and the industry. - CNA

[babystan03]

Business Times - 01 Feb 2005

More ships under Singapore flag

Republic moves up a notch to No 6 after total tonnage increases 8.4%

By DONALD URQUHART

(SINGAPORE) Singapore is now home to the world's sixth largest merchant fleet with more than 3,100 vessels flying the Singapore flag following an 8.4 per cent rise in total tonnage signing up with the Singapore Registry of Ships in 2004 compared with the year before.

The growth in ships joining the Singapore flag registry - pushing it up a notch from the seventh to the sixth largest registry in the world with 27.7 million GT - is part of a bumper year recorded by the Maritime & Port Authority (MPA) of Singapore last year.

Records were set in a number of areas, including total shipping tonnage visiting the port, bulk and container cargo throughput and bunker sales.

'The MPA will continue to review its policies to ensure that the Port of Singapore remains competitive,' the regulator's chief executive, Lui Tuck Yew, said in a statement.

'We will continue to work closely with the maritime industry to further develop a conducive and pro-business maritime environment to further enhance Singapore's position,' he added.

Total cargo volumes - comprising containerised, conventional and bulk cargo - also rose, climbing over 13 per cent in 2004 over the year before, to 393 million tonnes. Of this total, containerised cargo represented 223.5 million tonnes with the next biggest segment being oil which made up 129.3 million tonnes.

The Singapore port held on to its rank as the No 1 bunkering port in the world with a record 23.6 million tonnes sold last year, up 13.3 per cent over 2003.

It also retained its status as the busiest port in the world in terms of shipping tonnage, with 1.04 billion GT of vessel port calls, a growth of 5.7 per cent over 2003.

The total number of vessel calls declined, however, from 135,386 in 2003 to 133,185 in 2004 - indicating an upsizing of vessels calling here.

Containerised shipping - a key sector of Singapore's port business - is increasingly moving up to larger sized vessels in a bid to reap greater economies of scale.

Containerised cargo also hit record levels on the back of surging Chinese exports, pushing total throughput up nearly 16 per cent last year over 2003, to 21.3 million TEUs.

Of this total, PSA Corporation moved 20.6 million TEUs while Jurong Port more than doubled its throughput to 711,000 TEUs from 340,000 TEUs the year before.

Meanwhile, PSA International announced yesterday that its Brunei venture, Muara Container Terminal (MCT) had a record-setting year, with a 32 per cent jump in throughput and crossing the 100,000 TEU mark.

The total throughput of 101,100 TEU included nearly 27,300 TEU of transhipment cargo.

In 2003, the terminal recorded a throughput of 76,515 TEU of which roughly 7 per cent, or 5,300 TEU was transhipment cargo.

'Encouraged,' by the volume growth at MCT, PSA's CEO for Southeast Asia and Japan, Grace Fu said PSA would continue working with its customers to 'create value for them and help them boost productivity.'

This will likely become all the more important in the near future following an announcement last year by Brunei's Economic Development Board (BEDB) of plans to build a new US$400 million container terminal at the nearby Pulau Muara Besar.

PSA has an 80 per cent stake in MCT- Brunei's first container terminal - which according to its annual report, aims to develop 'into a regional hub for Brunei, Indonesia, Malaysia, Philippines and East Asean'.

The world's largest flag registry Panama is nearly six times larger than Singapore and is also twice as large as the second biggest, Liberia.

Copyright © 2004 Singapore Press Holdings Ltd. All rights reserved.

[babystan03]

Singapore Cruise Centre:

http://img204.exs.cx/img204/8287/dscn256519aq.jpg

[babystan03]

Business Times - 25 Feb 2005

Middle East firms boost S'pore's oil hub status

By RONNIE LIM

(SINGAPORE) The entry of Emirates National Oil Company (Enoc) - which is building the US$200 million Horizon Terminals on Jurong Island - signals a new wave of Middle East oil producers keen to use Singapore to cater to booming markets like China, says an oil consultant.

Mohamed Merican, a consultant with Bakri Asia, said yesterday the arrival of the Middle East companies is the latest evolution of Singapore's oil hub, which developed and grew from the initial entry of big oil companies, then later, oil traders.

'Now, as Asian markets which are dependent on Middle East oil grow bigger, the West Asian oil producers are viewing the region differently and are looking at using Singapore as their regional energy hub. This process is now taking place,' he said.

Mr Merican was speaking at an Institute of Southeast Asian Studies seminar on 'the impact of energy security and geopolitics on Asia's energy hubs'.

In January, Enoc announced it would build an 840,000 cubic metre oil tank farm here to cater to strong demand from its partners and other oil traders. Enoc has a 52 per cent stake in the tank farm, while Kuwait's Independent Petroleum Group has 15 per cent.

Enoc has also indicated that the tank farm will be the forerunner of similar terminals it is eyeing in Asia, including China.

Mr Merican said that with regional countries paying an 'Asian price premium' - above what the West pays - for crude oil from the Middle East, the Gulf Cooperation Council (GCC) countries 'realise they have a shared responsibility towards the markets here'.

The Horizon project will add 5.3 million barrels - about 24 per cent - to Singapore's current independent storage of 22.3 million barrels. Singapore now has about 88 million barrels of storage, of which 72 per cent is held by the three oil refiners here.

Saudi national oil company Saudi Aramco surprised the industry here when it held its first-ever seminar/exhibition in Singapore last September - an event intended to boost Saudi-Asian ties.

Reflecting the storage boom here, Mr Merican disclosed yesterday that another independent operator, Oiltanking, is adding 1.2-1.9 million barrels to its 6.5 million barrels of storage here, joining Horizon, as well as Vopak which is boosting its 9.3 million barrel capacity by an additional 2.1 million barrels.

Mr Merican said that while beleaguered China Aviation Oil Singapore (CAO) has dropped out of the Horizon project, another company, Titan Group, which works closely with Chinese national corporations like Sinochem and Sinopec, is also eyeing building a terminal here.

CAO earlier indicated it hoped to add to China's strategic oil reserves through the Singapore tank farm, and Mr Merican believes other Chinese corporations may still decide to do the same.

Titan, an oil trading-shipping-bunkering company focused on the China market, told BT in January that it planned a 3-6 million barrel tank farm here and would decide on the venture later this year.

Copyright © 2004 Singapore Press Holdings Ltd. All rights reserved.

[babystan03]

Business Times - 01 Mar 2005

S'pore can embrace, lead maritime sector

Asian collaborationeasier if country's brand not imposed, says IMC chairman

By DONALD URQUHART

(SINGAPORE) Singapore must shed the 'provincial mindset' if it wants to be an established global maritime centre and an Asian leader, said IMC Pan Asia Alliance chairman Frederick Tsao.

The decline of traditional shipowners and the rise of large corporate shipping entities has left a leadership void in the Asian shipping industry and Singapore is in a prime position to reforge that leadership, Mr Tsao told BT yesterday.

The problem is a lack of response by the shipping industry, he said. 'Asia as a whole must respond, but they're not.'

'In particular I want to provoke Singapore to respond because Singapore, among Asia, naturally has all the elements that are best for this,' he said.

Geographic location, financial means, legal foundation, business-friendly environment, educated work force and competitive costing are all key advantages.

A strong and diverse linguistic and cultural connection with much of the Asian region as well as the English-speaking world is important as well.

But before this can happen 'Singapore must grow out of the provincial mindset and truly embrace the future of Singapore as the maritime centre of Asia,' he said.

'The centre must have a different mindset,' he added. 'It must radiate a soul, an energy, it must radiate leadership because this is where things happen.'

And it must not be afraid of competition.

Among the concrete steps Mr Tsao advocates is the creation of an Asian secretariat that brings together the whole of Asia's maritime industries to look at all the Asian issues relating to the shipping sector. He is also pushing for the establishment of a strategic research centre here.

Both would be industry funded and focused, but would require initial start-up support by various Singapore government agencies with whom he has been discussing the ideas over the past year and a half.

When asked whether this would conflict with the Singapore Maritime Foundation, established last year to promote Singapore as a global maritime hub, Mr Tsao highlighted that using Singapore in the name is a reflection of provincial thinking.

'Let it happen here, but don't put the Singapore brand on it,' he urged. 'The more you say Singapore, the less engagement and less leadership from Asia you will get.

'Singapore must really be the centre of East and West which means it must be embracing, not excluding.'

'Wipe out this 'I'm Singaporean',' he said. 'It doesn't mean you don't have any national pride,' but it puts it in the correct context when conducting business, he said.

Mr Tsao delivered the 19th Annual Chua Chor Teck Memorial Lecture last Friday, touching on emerging trends of the Asian and global shipping industry, as well as the promotion of Singapore as an international maritime hub.

Copyright © 2005 Singapore Press Holdings Ltd. All rights reserved.

[babystan03]

03 March 2005

The Government plans to make the Maritime Industry a key pillar of the economy

SINGAPORE: The Singapore government is keen to develop the maritime industry into another important pillar of economy.

Currently, the sector contributes some 7% to Singapore's GDP.

Among the key services that are being looked at include vessel registration, ship broking, financing and management, as well as maritime insurance, legal and arbitration services.

The government is also eyeing newer services such as freight derivatives and other risk management activities, and all these could lead to the creation of new jobs.

Minister of State for Transport and Finance Lim Hwee Hua said, "The Government is working very closely with industry players, and industry associations to grow these sectors. At the same time, the Government actively consults with international players to better understand global trends in shipping-related developments so as to meet evolving needs. The need to track developments closely is underpinned by a few major trends - Firstly, the emergence of economic powers in the fast-growing China and India markets. Secondly, the increasing shift in the centre of gravity of shipping activity towards Asia . Singapore is indeed well-placed to tap these trends and the growth of these services sectors will create many high value-add and exciting jobs for Singaporeans." - CNA

Copyright © 2005 MCN International Pte Ltd

[huaiwei]

So this will be the "mysterious" sector they are supposedly delibrating about for so long?

[babystan03]

10 March 2005

Singapore port first in the region to use radiation detection system
By Yvonne Cheong, Channel News Asia

SINGAPORE: Singapore and the US have signed an agreement to prevent terrorists from getting their hands on nuclear and other radioactive materials, which can be used to build dirty bombs.

State-of-the-art equipment will be deployed at the Singapore Port in six months to detect hidden shipments of such materials.

Singapore will be the first in South East Asia to use the detection system in cooperation with the US.

A joint statement said the deal will further strengthen their work together in the war on terrorism.

"The agreement Commissioner Lock and I are signing today, on behalf of our respective governments to deploy sophisticated radiation detection equipment at the Port of Singapore sends a clear message to terrorists: There will be no safe havens in Singapore for the smuggling of nuclear and radioactive material." said Franklin Lavin, the United States ambassador to Singapore.

"The radiation detector, which is like a large gate, a portal designed such that a container truck carrying a container drives through it, the detector will be able to detect if there's any presence of radioactive or nuclear material contained within the cargo." said Mr Lock Wai Han, the commissioner for Immigration and Checkpoints Authority.

The system will be tested at the Pasir Panjang Terminal, but will eventually screen all containers entering and leaving the port for ALL destinations.

"I suppose if there's no trafficking in the region, we may not get any hits at all but that's fine, just shows that this is really a safe port of call. But how it integrates with processes to make sure that it does not affect the trading community, I think that's really key," added Commissioner Lock.

6 countries, including the Netherlands and Greece, have already installed the radiation detectors, and the US is in discussions with 30 countries covering 50 ports worldwide.

Singapore is the first in the region, and the agreements with Malaysia, Thailand, Indonesia and the Philippines are expected to be completed in the next few months. - CNA

Copyright © 2005 MCN International Pte Ltd

[RafflesCity]

PSA turns in record S$881m profit

11 Mar 05

Boost from surge in export cargoes from China, other Asian countries

By GEORGE JOSEPH

(SINGAPORE) Port operator PSA International turned in its best performance with a record S$881.3 million profit last year, aided by the continuing surge in export cargoes from China and other Asian countries.

http://business-times.asia1.com.sg/mnt/media/image/launched/2005-03-11/gjpsa11-210936.jpg
Busy: Container throughput rose 15.5 per cent to 33.11 million TEUs

Net profit increased 29.1 per cent for the year ended Dec 31, 2004 from S$682.7 million in 2003 on revenues of $3.58 billion.

Total container throughput rose 15.5 per cent to 33.11 million twenty-foot equivalent units (TEUs) during the year, with the Singapore terminals alone handling a record 20.62 million TEUs. This was a 14.1 per cent increase over the previous year, PSA said in a statement yesterday.

Singapore port operations contributed more that half of group profits, boosted by the higher throughputs, but lower headcount and other cost cuts were partially offset by increased fuel costs.

PSA's overseas terminals, mostly in Europe, China and other parts of Asia moved 17.7 per cent more cargo, or 12.49 million TEUs.

PSA said revenue rose 5.3 per cent to S$3.58 billion. Other income more than doubled to S$256.4 million from S$110.3 million in the previous year.

PSA, 100 per cent owned by Singapore investment company Temasek, is said to be preparing for a public listing, which was postponed as it faced mounting pressure from regional competitors and restructured its organisation.

However, a booming China and congestion in Western ports brought it 'unexpected volumes' and the port operator is looking at a very optimistic future.

It has been expanding its global footprint, acquiring strategic stakes in other ports and made its biggest leap into the global container handling business last month when it successfully made a HK$3 billion bid to buy Hong Kong port assets.

The group also saw volumes flow in from its newly constructed greenfield terminals in Sines, Portugal and Incheon, South Korea.

'We move forward into 2005 with a sense of optimism that growth will continue. Ports and shipping lines will work closely to handle the expected higher throughput, and PSA will continue to play its part in ensuring shipping remains safe, reliable and efficient,' said PSA chairman Stephen Lee.

PSA Group CEO Eddie Teh hinted at more partnerships saying the group will leverage on its global reputation for professionalism to build successful partnerships this year and thanked customers, staff and unions for their efforts in managing 'unexpected volumes' during the year.

[babystan03]

Business Times - 16 Mar 2005

Singapore oil traders shrug off 'Geneva threat'

By RONNIE LIM

(SINGAPORE) Singapore will face competition as an oil trading hub from regional centres such as Shanghai and Bangkok, rather than from newly-emerging Geneva, traders here said yesterday.

'Geneva challenges London. Singapore will be more concerned with a trading hub emerging in China,' consultant Ong Eng Tong said.

'It's more a time-zone thing. Dubai, for instance, has a noon effect on trading here, while Europe has a 4pm effect.'

Agreeing, Petro Summit vice-president Peter Glynn said Geneva is no threat to Singapore. 'Shanghai will be more of a long-term threat,' he said. 'There's also Thailand, which wants to rival Singapore as a regional oil hub and which recently lowered tax rates (for oil traders) to match Singapore's at 10 per cent.'

The traders were commenting on reports yesterday saying that with Russia's rise as a major oil producer, the arrival of Russian oil companies in Geneva has created a critical mass that has attracted other traders there.

This has put Geneva on par with the top trading centres of New York, London and Singapore. The Republic, the third largest centre, handled US$104 billion of physical oil trades and US$101 billion of paper trades in 2003.

In Geneva, Russia's Lukoil Holdings, OAO Yukos and OAO Rosneft have joined big companies like Total, Cargill, and Sempra Energy, as well as smaller outfits such as Petrotrade, Europetroleum and Taurus Petroleum, AP reported. It said that in 2000, Cargill consolidated its trading in Geneva by moving its Singapore operations there.

One attraction is the availability of finance. Geneva branches of major international banks finance the trading of about 20 million barrels of oil a day worldwide.

Smaller trading houses have also been squeezed out of London by escalating real estate and other costs.

'Geneva has been around for quite a while as a twin hub to London for European trading,' said an official with a China trading house here. 'It has grown due to the recent flood of Russians and others attracted there, partly by lower taxes. Some run two offices - London and Geneva.'

But with oil trading a global business, Russian traders have also established offices in Singapore. They includee Lukoil, Petroval, which represents Yukos, and Energo Impex, Mr Ong said.

The official from the China trading house added: 'More Russian traders could come. They are consolidating right now following the Yukos affair. Some US companies, which were earlier affected by the Enron debacle, are also returning.'

He named Amerada Hess as one, and said it could be followed by others, including Duke Energy. This will add to the estimated 200-plus international oil trading companies already here.

As for competition from Shanghai, the official said this isn't happening just yet. 'You need capital for oil trading, and China has capital controls,' he said. 'Besides, you need a mass of traders there before a hub can materialise.'

Nearby Thailand has set up two tax-free zones for oil exports in Ko Si-chang and Sri-racha. But the response so far from traders has been lukewarm because there is no developed trading infrastructure.

Copyright © 2005 Singapore Press Holdings Ltd. All rights reserved.

[RafflesCity]

Interesting...there was a lot of commotion when the Thais first started eh

[babystan03]

01 April 2005

PSA to add 3 more berths at Pasir Panjang Terminal
By Derek Cher, Channel NewsAsia

SINGAPORE : PSA is further expanding its ports in Singapore to cope with growing container trade.

The port operator told Channel NewsAsia that it is adding another three new berths at Pasir Panjang Terminal - bringing the total to eight new berths by next year.

The three extra berths will boost PSA Singapore's annual capacity by another 12 percent to over 26 million twenty-foot equivalent units, the standard measure for containers.

PSA says it needs to increase capacity to meet the annual projected growth of about 1 million TEUs over the next few years.

It plans to add at least 15 new berths at Pasir Panjang Terminal by 2011.

PSA says the first three berths - costing almost S$200 million - will be operational this year.

Last year, PSA's four Singapore terminals had a record container throughput of 20.6 million TEUs. - CNA

Copyright © 2005 MCN International Pte Ltd

[huaiwei]

Yohhoo...now I lost count over how many they are really adding. :D

[babystan03]

13 April 2005

PSA International's Q1 container volume up 11.6% on-year
By Loh Kim Chin, Channel NewsAsia

SINGAPORE: PSA International has reported an 11.6 percent increase in container volume moved by its terminals in the first three months of this year compared to a year ago.

It handled 8.5 million standard units of containers in its local and overseas terminals.

In Singapore alone, its operations saw volume improving 13 percent to 5.3 million TEUs from January to March.

Its overseas terminals handled 3.2 million TEUs, a rise of 9.3 percent.

Singapore is the world's second busiest container port after Hong Kong.

Container volumes have been growing, thanks to the boom in trade from Asia to Europe and within Asia. - CNA

Copyright © 2005 MCN International Pte Ltd

[babystan03]

A more detailed report......:yes:

April 14, 2005
PSA's first-quarter volumes up 11.6%

By Nicholas Fang
Transport Correspondent

THE boom in global trade has delivered PSA International a sharp increase in the amount of freight it has handled so far this year.

Its global operations moved 8.48 million containers in the first three months of the year, up 11.6 per cent on the 7.6 million handled in the same quarter last year.

Its Singapore terminals have shown even greater growth: 5.31 million 20-foot equivalent units (TEUs) or standard containers were handled from January to last month compared with 4.7 million in the same period last year, a rise of 13 per cent.

Its overseas operations, which include terminals in China, India and Europe, handled 3.17 million containers, a 9.3 per cent increase over last year, according to figures on PSA's website.

Port operators around the world have been reaping the benefits of the trade boom, which has expanded in tandem with the improving world economy.

Shipping companies are now carrying more cargo to the United States and Europe from Asia.

In February, Singapore overtook Hong Kong as the world's busiest container port in terms of volumes handled for that month, the first time it has taken the lead since 1998.

Last month, PSA handled 1.91 million TEUs in Singapore compared with 1.69 million a year earlier. Its overseas operations moved 1.14 million containers last month, up from 1.07 million previously.

PSA said last month that strong export volumes from China and other Asian countries had boosted its full-year net profit by 29.1 per cent to $881.3 million.

Buoyed by 'exceptional volume growth', revenues rose 5.3 per cent to $3.6 billion for the year ended Dec 31, PSA said.

It handled 15.5 per cent more containers last year, moving 33.1 million TEUs.

Copyright © 2005 Singapore Press Holdings. All rights reserved.

[babystan03]

14 April 2005

Singapore aims to become boating hub to tap growing market
By Chua Chin Chye, Channel NewsAsia

SINGAPORE : Asia is set to see exploding demand in the leisure marine craft industry, and Singapore wants to tap this growing market to become the recreational boating hub for the region.

Minister for Community Development, Youth and Sports Vivian Balakrishnan made this comment on Thursday at the opening of Boat Asia, a regional showcase for the leisure marine craft industry.

Demand for boats has been picking up in recent years following a sharp drop-off after the 1997 Asian financial crisis.

Dr Balakrishnan said, "In a sense, modern Singapore exists today because we have been the leading seaport for Asia. We will continue to leverage on our maritime assets, but this time, not just to serve commercial craft, but also leisure boat and pleasure craft. Our vision is therefore for Singapore to become a leading recreational boathub in the region."

Worldwide, there has been an exploding demand for leisure craft, especially in the niche market of megayachts, and the mass market of sailboats, canoes and jet skis.

Dr Balakrishnan believes the island republic is well-positioned to tap into the market.

He said, "I believe Singapore has a competitive edge because of our location, our reputation for security, reliability, safety. This is a place where people will put their multi-million-dollar yachts and be able to sleep soundly at night. At the same time, this is a great launchpad to explore Southeast Asia. We will be the Changi Airport of Southeast Asia."

The minister noted the importance of two recent developments: Sentosa Cove and One-15 Marina.

"We have several other marinas as well. I think we have critical mass. What we need now is to position ourselves to fulfill a market need, a market demand, as the economy recovers, as wealth is generated in Southeast Asia, indeed in Asia," Dr Balakrishnan said.

Leisure group SUTL, which owns One-15 Marina in Singapore, says the growth potential is tremendous.

"We have so much growth for marinas in this region. We are just starting. It's so embryonic. SUTL will definitely like to look at other marina opportunities, not just in Singapore but also in the region," SUTL chairman and managing director Arthur Tay said.

The leisure marine industry is recovering well, after seeing a downturn following the 1997 Asian financial crisis.

"The market has been bad the last few years, but seems to be recovering now, with the economy. The marina here at Sentosa is going to make a big difference. It's going to be a big five-star marina, close to the city. It's going to make a big difference to the industry in general," said Alan Pickering, director of Simpson Marine (SEA).

Industry players say they expect sales to improve by 10 to 15 percent in the coming years in Singapore and the rest of Asia. - CNA /ct

Copyright © 2005 MCN International Pte Ltd

[babystan03]

April 15, 2005
Cargill sets up Asian shipping hub in S'pore

By Nicholas Fang
Transport Correspondent

AMERICAN commodities tra- ding giant Cargill is centralising its Asian ocean transportation operations in Singapore to focus on the sector's booming trade.

The company, which provides food, agricultural and risk management products and services, said in a statement that it is establishing a central Asian hub for its Cargill Ocean Transportation unit in Singapore.

The freight operations, which are now headquartered in Tokyo and Hong Kong, will be transferred here by June.

The company said the new Singapore office will focus on inter-regional chartering, business development and logistics as well as freight trading.

'In parallel, Cargill Ocean Transportation will open an office in Shanghai, with specific focus on business development and logistics in China,' it said.

Cargill Ocean Transportation president Tom Intrator said in the statement: 'Our Hong Kong and Tokyo teams have been the cornerstone of our success in Asia to date. With the growth in the market and our customer base, we believe we needed to adapt our business model.

'These changes reflect our commitment to further build our presence across the region, better serve our customers, and provide more challenging growth opportunities for our people.'

Cargill Ocean Transportation ships over 130 million tonnes of bulk commodities spanning the agricultural, industrial and energy sectors, and trades in excess of 100 million tonnes of derivative contracts as part of its global risk management.

The unit's Asia-Pacific manager, Mr Eric Aboussouan, will head the new office in Singapo- re.

Mr Aboussouan, who is currently based in Hong Kong, told The Straits Times yesterday: 'The new hub will have between 15 and 20 staff and they will be a mix of new hires and existing employees from Hong Kong and Tokyo.'

Cargill's operations in Singapore employ almost 200 staff but this does not include those who will man the new freight hub, he added.

Copyright © 2005 Singapore Press Holdings. All rights reserved.

[babystan03]

15 April 2005

Singapore is world's busiest container port in Q1

SINGAPORE : Singapore was the world's busiest container port in the first quarter of this year, beating Hong Kong by a fraction.

Hong Kong handled a total of 5.28 million 20-foot equivalent units of goods from January to March.

That is compared with the 5.3 million units handled by Singapore port operator PSA in same period.

Hong Kong is facing stiff competition from Shenzhen, where exporters can ship their goods at prices that are about one-third those charged in the territory. - CNA /ct

Copyright © 2005 MCN International Pte Ltd

[huaiwei]

Woohoo...think this deserves a new thread! :D

[babystan03]

April 16, 2005
HK trails S'pore in 1st-quarter port volume

HONG KONG - HUTCHISON Whampoa, Cosco Pacific and other operators of Hong Kong's port handled fewer containers than Singapore in the first quarter as the city state attracted more sea trade from South-east Asia.

Hong Kong handled 5.28 million 20-foot standard containers (TEUs) in the first three months, an increase of 1.4 per cent from a year ago, the Hong Kong Port Development Council said on its website yesterday.

Singapore's PSA International said on Wednesday it handled 5.31 million TEUs in the period, a 13 per cent gain.

Hong Kong's share of cargo shipments from southern China has fallen in recent years because of rising costs and increased competition from mainland ports, according to a study commissioned by the city.

Singapore has benefited as exporters from Indonesia, Thailand and other South-east Asian countries ship goods through the port to their final destinations within the region, and to Europe and North America.

'Growth in intra-Asia trade has been very strong,' said Daiwa Institute of Research analyst Geoffrey Cheung in Hong Kong.

'Singapore, because of its key position in the Malacca Strait, captures a lot of the booming trade in South-east Asia.'

Hong Kong port's slowing growth comes as global cargo volumes rise, boosted by demand in the United States and Europe for China-made goods.

In March, Hong Kong, handled 1.8 million TEUs, down 7 per cent, compared with Singapore's 1.91 million TEUs, the Hong Kong port council said.

Singapore overtook Hong Kong to become the world's busiest port in February.

China manufactures almost 60 per cent of Hong Kong's exports and is the No. 1 destination for goods passing through the city's port. \-- BLOOMBERG NEWS

Copyright © 2005 Singapore Press Holdings. All rights reserved.

[babystan03]

Tanjong Pagar Terminal PSA

http://img258.echo.cx/img258/4163/pic0182916sd.jpg

Containers

http://img253.echo.cx/img253/556/pic01834137gc.jpg

[babystan03]

April 29, 2005
Singapore voted best seaport in Asia for 17th year

By Nicholas Fang
Transport Correspondent

CARGO companies have named Singapore as Asia's best seaport for an amazing 17th year.

And the international maritime community's strong vote of confidence in the Republic as a premier port did not stop there.

Singapore logistics companies including PSA International and Singapore Airlines (SIA) Cargo clinched top honours as well at the 19th Asian Freight and Supply Chain Awards held in Hong Kong on Wednesday.

The awards are organised by Hong Kong-based industry journal, Cargonews Asia.

The port of Singapore experienced a remarkable year last year, crossing the one billion mark in terms of shipping tonnage - a growth of 5.7 per cent over the previous year.

Maritime and Port Authority of Singapore chief executive Lui Tuck Yew said in a statement on Wednesday: 'Receiving this award is a great source of encouragement for everyone who has worked very hard at keeping Singapore as the choice port of call.'

PSA Corp was also named 'Best Global Container Terminal Operator' and its Singapore operations won the 'Best Container Terminal Operator (Asia)' award.

This is the first time that the Global Container Terminal Operator category has been included in the awards, and the 16th year that PSA has secured the Best Container Terminal Operator (Asia).

Other Singapore winners at the awards included SIA Cargo, which clinched the 'Best Cargo Carrier (Asia)' award for the 12th time, and Jurong Port, which was named 'Best Emerging Container Terminal Operator (Asia)' for the third time in a row.

Separately, a documentary on the port of Singapore and PSA Singapore Terminals entitled The World's Busiest Port has been nominated for an award at the National Geographic Channel ShowReal Asia 2 Awards, which recognise outstanding Asian film-makers.

The documentary, which is the first in Singapore to be shot entirely in high- definition television format, airs next month on the National Geographic Channel.

The awards ceremony takes place tonight at Fort Canning Green.

Copyright © 2005 Singapore Press Holdings. All rights reserved.

[huaiwei]

Tanjong Pagar Terminal PSA

http://img258.echo.cx/img258/4163/pic0182916sd.jpg

Containers

http://img253.echo.cx/img253/556/pic01834137gc.jpg
Wah! Where you took these photos from?

[babystan03]

From Lianhe Zaobao(29/4/05):

摩根士丹利预测：
　　深圳港5年后取代香港
　　成为全球最繁忙集装箱港

　　（香港讯）摩根士丹利最近发表一份有关香港、上海和深圳三个港口的前瞻性发展预测报告，结果令人对香港航运业发展感到十分忧虑。报告大胆预言，到2010年深圳港会成为全球最繁忙集装箱港，香港沦落至两个中国内地港口之后，甚至被新加坡挤出三甲之外。

　　报告还指出，到了2020年，上海港会超越所有对手，一跃成为全球首位。

　　摩根士丹利说，全球最大集装箱港排名今后将出现“四头马车”发展情况，分别是深圳、上海、香港和新加坡。报告认为，到2010年深圳港吞吐量会达到3350万标准箱，荣登首位。香港和上海港的吞吐量则将分别为2790万和2583万标准箱。

　 　根据报告结果，随着新加坡在未来5至6年将增添15个泊位，该港在2011年货柜吞吐量可能会达到3100万标准货柜，这显示到时能够威胁深圳霸主地位的，竟然并非港沪，而是近年积极推动航运业发展的新加坡港。但报告明言，以长远发展而言，香港和新加坡将会落后于深沪两港。

　　由于香港对未来10年将不会添置任何新码头设施，令集装箱码头竞争几乎被中国内地两大港口主导。有香港货运业界慨叹，失掉全球最大集装箱港地位，损失的并不是荣誉本身，因为当香港的货源已逐渐被深圳港抢夺，班轮公司会分配较佳的船期、挂港序予该港，到时香港将难以“翻身”。

　　至于一直雄心勃勃的上海港，摩根士丹利认为，该港最终会成为全球集装箱港的领导者，通过外高桥港区增添运货能力，加上大小洋山港发展越趋成熟，上海到2020年的集装箱吞吐量会 达至5792万标箱，同年深圳港和香港分别有5620万和4020万标准箱，深圳继续紧跟上海，而香港此时已被远远抛离。


Key facts from this article:

-Analysis done by morgan stanley.
-Predict that Shenzhen will be the busiest container port in 2010.
-Singapore port is likely to be in the top 3 position in 2010.
-Predict Singapore port container volumes could reach 31 million by 2011, threatening Shenzhen port's top position.
-Also predict that Shanghai will be the busiest container port in 2020.
-Also predict that Hongkong port & Singapore port will be behind Shanghai and Shenzhen in the long run
-In 2020, container volume in Shanghai, Shenzhen and Hongkong will reach 57.92 million teu, 56.2 million teu and 40.2 million teu respectively.

[babystan03]

Wah! Where you took these photos from?

From Singapore tallest penhouse at the moment........:D

[babystan03]

PSA container traffic (for the first four months of 2005) rise 12% in Singapore, handling 7.12 million teus. PSA overseas ports increase 9.8% to 4.35 million. PSA handled 1.81 million teu in April alone.

Jurong Port (for the first four months of 2005) rise 59% to 291,000 teus.

In total, Singapore handled 7.41 million for the first 4 months.

http://www.zaobao.com.sg/stock/pages13/local050514.html

[heirloom]

wah... its empty or your friend lives there?

[babystan03]

wah... its empty or your friend lives there?

Haha.....actually never go up.....just took from a staircase which can see the port......:yes:

[babystan03]

Business Times - 26 May 2005

S'pore to boost Asia's maritime profile with 'world class' event

Better integration with global maritime industry is ultimate goal

By GEORGE JOSEPH

(SINGAPORE) An attempt is being made to establish a world class maritime exhibition and conference in Singapore so that Asia is better integrated with the global maritime industry.

The move comes at a time when Asia is becoming a powerful force in world shipping as a generator of cargo but the voice of Asian shipping in the industry's global decision making is not yet commensurate with its importance in the global business.

Yesterday, the private-sector driven Singapore Maritime Foundation (SMF) announced the launch of Sea Asia, a biennial event to be held from April 2007, with the theme New Maritime Horizons.

It is touting the show as Asia's premier maritime event not unlike Greece's Posidonia and Norway's Nor-Shipping, the European leaders in the shipping exhibition and conference circuit.

'It is timely to have a flagship maritime exhibition and conference to market and profile maritime competency at an international level,' said SMF chairman S S Teo.

Singapore was the 'natural choice' for staging the event, he said, being in the 'heart of Asian shipping dynamism' and having made major strides towards being an international maritime centre.

The SMF, just established last year, works in partnership with various sectors of the maritime industry here and Singapore government agencies to promote and develop the Republic as an IMC.

While there have been several maritime exhibitions and conferences held here and other parts of the region over the years, none have gained the status and quality of those held in Europe. This has limited the visibility of Asian maritime companies on the global front and the networking of the Asian shipping community.

Singapore port operator PSA ran its 'SingaPort' series of exhibitions and conferences, easily the biggest maritime show here, since 1980. This was renamed and repositioned as Asia Pacific Maritime in 2001.

PSA brought in leading international exhibition organisers Reed Exhibitions to partner it and help improve attendances and participation. But it got off exhibition organising when its properties division was divested and its owner Temasek Holdings set up subsidiaries to run the Singapore Expo and organise exhibitions. Singex Exhibitions was thus formed and took over the running of APM with Reed.

The next Asia Pacific Maritime, also a biennial show, will be held in March next year, which means Singapore will have two 'competing' maritime shows when Sea Asia launches in 2007. Industry observers told BT the exhibition scene is very competitive with show promoters chasing the same potential exhibitors. But Asia has yet to develop a major maritime show in terms of global industry participation.

Korea has its KorMarine and Japan, Sea Japan. Both are targeted at local industry alone.

Added SMF's Mr Teo: 'With strong industry support, Sea Asia will become the iconic platform for anyone with maritime interests in Asia and what the region has to offer the world.'

SMF has teamed up with UK maritime publisher and event organiser Seatrade, to run Sea Asia.

Seatrade managing director Christopher Hayman said yesterday: 'We are organising a world-class maritime event. With its unique positioning as a platform for the voice of Asian shipping, it is sure to substantially benefit the global maritime community.'

Mr Hayman added: 'Our experience tells us that this is the place and time to harness that growth.'

Copyright © 2005 Singapore Press Holdings Ltd. All rights reserved.

[babystan03]

Business Times - 01 Jun 2005

YOU AND THE TAXMAN
Singapore's appeal as logistics hub

YEO KAI ENG and KOR BING KEONG examine the GST relief schemes for foreign and local companies importing goods into S'pore

By ERNST & YOUNG

SINGAPORE is a natural logistics hub with its excellent infrastructure and strategic position in the Asia Pacific, and the various GST relief schemes further enhance its appeal.

Singapore is essentially a duty-free port. Except for liquor, petroleum, tobacco and cars, there are no customs duties on goods imported into Singapore. Its efficient customs procedures are major draws for companies using Singapore as a logistics hub.

While there is a 5 per cent goods and services tax (GST) imposed on all goods imported into Singapore, it is recoverable by GST-registered importers. Even then, as part of the measures to enhance and promote Singapore as a logistics hub, the government has over the years introduced various schemes to suspend the GST payable on goods imported into Singapore. These not only alleviate cash-flow problems for GST-registered importers but are also equally appealing to non-GST registered foreign companies as they can establish their logistics hub in Singapore without the additional GST costs. Here, we describe these schemes and how foreign and local companies importing goods into Singapore can benefit from them.

Airport Logistics Park of Singapore (ALPS): Launched in 2000, the ALPS is aimed at initiating a new round of high value-added activity in the logistics sector. The strength of the ALPS lies in its convenience and flow-through capability. It is conveniently located right next to Changi Airport with direct access to the airport. Its flow-through capability comes from being gazetted a Free Trade Zone (FTZ) that reduces the turnaround time for goods moving in and out of Singapore.

As an FTZ is considered outside Singapore customs territory, GST is not applicable on goods imported into ALPS. In other words, goods imported and exported from ALPS are treated as outside the scope of GST. Value-added activities such bulk-breaking, kitting, packing and labeling can be performed at ALPS. To date, many major logistics companies have established warehousing facilities at ALPS.

ALPS is therefore ideal for foreign companies wishing to use Singapore as their logistics base without having to worry about possible GST registration and the associated GST compliance obligations of importing and supplying goods from Singapore.

Foreign companies are not the only beneficiaries of ALPS. The scheme is an attractive alternative to the Major Exporter Scheme (MES) for companies in Singapore with substantial imports and exports but which want to avoid the hassle of reporting their imports and exports in their GST returns. Unlike the MES scheme that requires all goods imported and exported to be reported in the GST returns, there is no requirement to report goods imported into ALPS and their subsequent exports from ALPS in the GST returns since they are all considered out-of-scope for GST purposes.

Major Exporter Scheme (MES): Unlike ALPS that operates within a confined area, the MES status is granted to GST-registered businesses and waives the GST payable on the import of non-dutiable goods into Singapore. Most logistics companies in Singapore have the MES status that allows them to import goods into Singapore on behalf of foreign companies without GST.

To the extent that foreign companies are arranging for their goods to be imported and redistributed from Singapore, they will have a liability to register for GST in Singapore if the value of the goods supplied from Singapore exceeds $1 million annually. The logistics companies typically also assume the GST reporting obligations on behalf of the foreign companies for goods imported and redistributed from Singapore, thus relieving the foreign companies of the need to register for GST in Singapore.

Foreign companies that wish to import and redistribute their goods from Singapore will therefore be able to benefit from the MES scheme by appointing a logistics company with the MES status to handle the imports and their subsequent distribution.

Bonded warehouse scheme (BWS): Sharing similar characteristics with the ALPS, a bonded warehouse is a designated area approved by Singapore Customs for storing imported goods. As a general rule, locally purchased goods cannot be stored at the bonded warehouse, but they can be stored in non-bonded areas of the same warehouse premises. Operating like an FTZ, GST is suspended on goods imported and stored in a bonded warehouse. In addition, GST is not charged when goods are traded within the bonded warehouse, transferred from one bonded warehouse to another, nor does it apply to goods which are re-exported. Only goods which are removed from the warehouse for the local market are subject to GST.

The BWS is ideal for traders involved in the trade of imported commodities which are traded repeatedly before being re-exported. It is also ideal for foreign companies using Singapore as a distribution hub and for Singapore companies whose imports are substantially destined for re-export. In 1999, a scheme was added to allow for the waiver of the GST payable on goods removed from bonded warehouses by traders with the MES status.

Currently, bonded warehouse operators must ensure that at least 80 per cent of the goods imported and bonded are re-exported. A further concession was announced this year with the lifting of the 80 per cent export requirement for qualifying operators from Jan 1, 2006. This relaxation will provide greater flexibility for storing in bonded warehouses for subsequent sale and redistribution. This further change also increases the attractiveness of BWS and will appeal to a broader group of importers and traders.

Approved third-party logistics company (3PLC) scheme: Logistics companies in Singapore that operate vendor-managed inventory (VMI) on behalf of overseas suppliers are required to charge 5 per cent GST on the local delivery of goods to the Singapore buyers. This GST treatment applies even if the local buyers enjoy the MES status. This position creates a disincentive to use the services of Singapore logistics companies as buyers with MES status will be able to import goods without GST if the inventory is managed in neighbouring countries.

The 3PLC scheme came into operation in January last year to address the above concerns. An approved 3PLC will be able to import goods belonging to itself or its overseas principals without paying any GST. The approved 3PLC will also be able to supply the imported goods locally to a MES customer or to other approved 3PLCs without the need to charge GST. The scheme therefore operates like the MES scheme in waiving the GST payable on goods imported into Singapore. It goes one step further in making an approved 3PLC's value-added services more attractive to the overseas suppliers of a Singapore-based customer that has the MES status, as the customer will not need to pay GST when drawing down the inventory locally managed by an approved 3PLC.

This scheme therefore facilitates foreign companies to maintain their inventory in Singapore with an approved 3PLC with the view of supplying the inventory to Singapore-based customers with the MES status.

Unlike the various schemes available to facilitate the import of goods into Singapore, there are currently no schemes available to foreign companies that purchase goods locally for redistribution from Singapore. Such foreign companies will have a liability to register for GST in Singapore if the goods purchased and supplied from Singapore exceed $1 million annually.

Perhaps it is timely to consider schemes that will also allow foreign companies to purchase and supply goods from Singapore without exposing these companies to a liability to register for GST.

Yeo Kai Eng and Kor Bing Keong are directors of GST services at Ernst & Young

Copyright © 2005 Singapore Press Holdings Ltd. All rights reserved.

[babystan03]

09 June 2005

PSA to buy Hutchison port stake for US$800m: report

HONG KONG : Hutchison Whampoa Ltd is selling a stake in a Hong Kong container terminal to Singapore's PSA Corp, reports the South China Morning Post, quoting a source with knowledge of the deal.

PSA will pay almost US$800 million for 20 percent of Hongkong International Terminals, or HIT, leaving Hutchison with a 66.5 percent stake.

"The original proposal was for an equity swap between PSA and HIT, but Canning wanted cash," said an executive with knowledge of the deal, referring to Hutchison group Managing Director Canning Fok Kin-ning.

"They had targeted a completion date of July 1, but both sides are very eager to get it done."

The purchase would mark PSA's second acquisition of port assets in Hong Kong in four months.

The report also said that the deal is seen as a sign that Hong Kong has entered its sunset years as leading global container hub.

Hong Kong was the world's busiest container port last year but was surpassed by Singapore in the first quarter of 2005. - CNA /ch

Copyright © 2005 MCN International Pte Ltd

[babystan03]

June 10, 2005

PSA to pay $1.3b for 20% of Hutchison terminal
It will boost link to China, while HK port gets attractive price, say analysts

By Narendra Aggarwal

PSA Corp has ramped up its presence in Hong Kong with a US$800 million (S$1.34 billion) deal to buy a 20 per cent stake in rival Hutchison Whampoa's flagship container terminal.

The deal, expected to be completed by July 1, is PSA's second on the Hong Kong docks in four months.

Hutchison Whampoa, a ports-to-telecommunications conglomerate, will be left with a controlling 66.5 per cent stake in Hongkong International Terminals (HIT), the jewel in its global ports crown.

HIT accounted for more than 50 per cent of the 13.4 million containers that passed through Hong Kong's main Kwai Chung port last year.

Hong Kong's South China Morning Post (SCMP) yesterdayreported PSA's acquisition of some of Hutchinson's most prized port assets, saying that it saw the deal as a sure sign that the territory has entered its sunset years as a leading global container hub.

Reports in the territory said Hutchison Whampoa, which is controlled by tycoon Li Ka Shing, made the deal to offset part of what could be a US$25 billion expenditure on commercially unproven third-generation phone technology.

Neither PSA nor Hutchinson would confirm the sale but market-watchers put that down to the fact that details were still being worked out.

SCMP, citing a source close to the deal, said the original proposal was for an equity swop but Hutchison managing director Canning Fok wanted cash. It said both parties were eager to complete the deal by July 1.

Talks were believed to have been held in Hong Kong on Wednesday during a meeting between Temasek chief executive officer Ho Ching and senior Hutchison executives.

'It's a great idea for Hutchison to sell...at the prices being offered because Hong Kong ports are in terminal decline and the prices being offered are extremely attractive,' Morgan Stanley analyst Rob Hart was quoted as saying.

'PSA wouldn't mind paying a premium for the asset,' BNP Peregrine analyst Jim Wong told Reuters.

Analysts in Singapore said PSA was probably increasing its presence in Hong Kong to improve its service to major global clients which use both ports and want better access to China's booming economy.

'PSA seems to be moving to a position of cooperating with Hong Kong rather than being a rival,' said a local analyst, who did not want to be identified.

PSA International, the Singapore port operator's international investment vehicle, is reportedly planning a $500 million bond issue to help finance the deal.

This will result in it becoming a minority partner in 12 of Hutchison's main terminal berths at Kwai Chung, the newspaper added.

In February, PSA secured a foothold in Hong Kong when it bought stakes in two Kwai Chung terminals from Hong Kong-listed NWS Holdings for $630 million.

PSA said then that the landmark deal - its first foray into the world's largest container port - would give it a crucial link to China.

PSA, which operates at 18 ports in 11 countries, handled 33.1 million containers - known as 20-foot equivalent units (TEUs) last year. This made it the world's second-largest container port company after Hutchison, which moved 47.8 million TEUs.

Copyright © 2005 Singapore Press Holdings. All rights reserved.

[babystan03]

Business Times - 10 Jun 2005

First Ship Lease moving ops from New York to S'pore

Balance of power in industry shifting to Asia, says shipping finance company

By DONALD URQUHART

(SINGAPORE) Citing the shifting balance of power to Asia, German-controlled shipping finance company First Ship Lease Ltd has announced it will shift its operations from New York to Singapore from this August with the transition to be completed by end of the year.

'We are very excited to relocate to Singapore,' said First Ship Lease (FSL) president, Philip Clausius.

'It is widely known in the shipping industry that the balance of power is increasingly shifting to the East and we plan to take full advantage of this opportunity and dynamism present in Asia.

'We have analysed various potential locations and strongly believe that Singapore provides the best overall platform for FSL to offer our services to a global target customer base,' Mr Clausius added.

An estimated 40-45 per cent of FSL's target market is in Asia, a roughly similar size to its European market.

Mr Clausius will also relocate here and continue in his position reporting directly to the board of directors, according to a statement from FSL.

The company, which currently offers operating and finance leases in the form of bareboat charters, said it also plans to expand its product mix following its relocation.

Going forward, the company plans to offer long term time charters and equity joint ventures 'with high quality operators'.

FSL was established in October 2003 with US$45 million in equity with three principal investors. Cyprus-based Schoeller Holdings Ltd holds a 34 per cent stake while German-based HSH Nordbank AG and Bayerische Hypo-und Vereinsbank AG each hold a 20 per cent stake.

The company had earlier said it aimed to build an asset base of 30-35 ships by next year with total investments reaching US$1 billion.

Schoeller Holdings Ltd - owned by Heinrich Schoeller - is one of the world's largest shipowning groups and already has a presence in Singapore through a joint venture in regional feeder operator Bengal Tiger Line (BTL).

FSL's current chief financial officer (CFO), Paul S Samett will assist Mr Clausius and a yet to be appointed Singapore-based CFO in a consultancy role.

Copyright © 2005 Singapore Press Holdings Ltd. All rights reserved.

[babystan03]

15 June 2005

Singapore's PSA moves 10.5% more containers in first five months

SINGAPORE: Singapore port operator PSA International moved 10.5% more containers on year in the first five months of 2005.

PSA moved 14.52 million TEUs (20-ft equivalent units) in the January-May period, up from 13.14 million TEUs in the same period last year.

Volume at its Singapore operations rose 11.4% to 9.02 million containers from 8.10 million previously.

Singapore has continued to benefit from a regional trade boom.

Exporters from Indonesia, Thailand and other Southeast Asian countries have increased shipments of goods through Singapore to places within the region and in Europe and North America.

At its overseas ports, PSA handled 5.50 million TEUs, up 9.3% from 5.03 million TEUs in the previous corresponding period. - CNA/ir

Copyright © 2005 MCN International Pte Ltd

[babystan03]

Business Times - 15 Jun 2005

PSA, Jurong Port volumes surge

By GEORGE JOSEPH

(SINGAPORE) Singapore's container terminal operators continued to turn in increasing year-to-date throughput volumes, with PSA International recording a 11.4 per cent rise in container boxes handled globally and the smaller Jurong Port showing a 58.6 per cent increase.

PSA handled 9.02 million TEUs (standard size container boxes) at its Singapore terminals alone, compared to 8.1 million TEUs in the same period - January to May - last year. Its overseas terminals handled 5.5 million TEUs, making it a total of 14.52 million TEUs up to May this year, compared to 13.14 million TEUs for 2004.

Although the Jurong Container Port operated from a much smaller base of 232,000 TEUs last year, its 58.6 per cent rise to 368,000 TEUs marked a significant jump for the fledgling container terminal operator.

In May alone, PSA moved 1.9 million boxes at its Singapore terminals, 9.2 per cent more than in May last year.

Together, PSA and Jurong handled 9.39 million containers at the Singapore Port for the first five months, 13 per cent more than last year.

Asia's container terminals have been benefiting from robust trade between China and Europe and the Americas, and from intra-Asian trades.

In efforts to tap more of these cargo handling volumes, PSA International has been making some of its biggest investments in port projects overseas in the past 12 months, eyeing especially the booming exports out of China and through Hong Kong. It has also been investing selectively in India and Europe.

Just last week, PSA International surprised those who thought it might never happen, when it announced one of its biggest investments, a 20 per cent stake in Hong Kong's Hutchison International Terminals worth US$925 million.

This was PSA's second investment in Hong Kong terminals following its acquisition of port assets of NWS Holdings Ltd for HK$3 billion (S$646 million) earlier this year.

Copyright © 2005 Singapore Press Holdings Ltd. All rights reserved.

[babystan03]

This story was printed from TODAYonline

Yesterday, once more for PSA

Maersk-Nedlloyd tie-up raises fears of fresh defection

Thursday • June 16, 2005

Val Chua
val@newstoday.com.sg

PSA International may be riding the crest of a trade boom, but some are predicting turbulent weather ahead for Singapore's port operator.

They argue that Singapore stands to lose out in another round of port rivalry as one of its largest customers, P&O Nedlloyd, comes under the wing of a customer that defected in 2000. This is the Danish-owned AP Moeller-Maersk, which shifted its operations to a relatively-unknown port in Johor about five years ago.

With Maersk, the world's top shipping line, and Nedlloyd, the third largest line, in the process of merging, there is the possibility the enlarged entity will abandon Singapore for Malaysia, in the name of rationalisation.

But industry sources said this fear may be misplaced.

"It may be logical for Maersk to shift its Nedlloyd operations to the Port of Tanjung Pelepas (PTP). But in practice, that may not be the case. That it would move everything to Johor is too simplistic an argument, as some operations could still be handled here even if there is any rationalisation," said Mr Ramadas Rao, Asia editor of international shipping weekly Fairplay.

Observers point out that a key factor is the contractual agreements — which can run from a few years to as many as 20 — that bind a shipping line to a port.

Mr Thomas Orting-Jorgensen, who is in charge of Maersk's shipping operations in the region, told Today it was "premature" to discuss the issue: "I can only say that whatever contractual commitment that P&O has made, we will honour it."

In any case, PSA's present situation is promising. For the first five months of this year, PSA Singapore moved 9.02 million containers, a rise of 11 per cent over that in the same period last year.

PSA also fast-tracked its Pasir Panjang berth expansion and inked a deal to buy 80 cranes — signs of its confidence in domestic volume, said Mr Rao.

Detractors, especially those across the Causeway, beg to differ. The Singapore-based port operator is in a "vulnerable" position, said Malaysia's Business Times on Monday. From ship service and jobs, to agencies and feeder lines, there will be some casualties, it argued.

"The vulnerability is reflected in the fact that even if Maersk does not move out all of P&O Nedlloyd's operations from Singapore, it could do much harm by shifting the transshipment and re-positioning of empty containers to PTP," it added.

The Malaysian port, which is 30-per cent owned by Maersk, has expanded aggressively since it lured another top PSA customer, Evergreen Marine, in 2001. With its Phase Two expansion, the Johor port will soon have the capacity to handle the 1 million containers per year currently handled in Singapore for P&O, one of PSA's top 10 customers.

Experts, however, said that there are no permanent rivals on the high seas. For example, a year after Maersk abandoned Singapore, it improved ties by moving some services back to PSA.

Last year, there was talk that, PSA or its parent, Temasek Holdings, would take a stake in PTP's Phase Two terminal expansion.

Last month, the market was rife with talk that Temasek, which owns Neptune Orient Lines, had been buying shares in British port operator P&O, which owns 25 per cent of P&O Nedlloyd.

All this demonstrates the shifting dynamics of the shipping world.

PSA's latest US$925 million ($1.6 billion) strategic investment in China via Hutchison Whampoa, including a 20-per-cent stake in its flagship port, Hong Kong International Terminals (HIT), is another example.

The Singapore port operator is extending its reach overseas as it faces rising competition at home.

HIT alone accounted for more than 50 per cent of the 13.4 million containers that passed through Hong Kong's main Kwai Chung port last year.

"PSA is building a regional port network. This is one of the missing pieces of its puzzle and it doesn't mind paying a slight premium for it," said Mr Herbert Lau, chief investment officer for the asset management arm of Hong Kong conglomerate Celestial Asia Securities Holdings.

The implications of the Maersk-Nedlloyd merger are hard to predict.

"Depending on the trade at that time, it could be a gradual, partial shift to Malaysia, and not a lock, stock and barrel operation," said a market observer.

He added: "But whatever happens depends on Maersk. If it decides to move, it will be purely on commercial grounds. It is not entirely in PSA's hands."

It behoves PSA to build that network rapidly, said analysts, as there is no telling how treacherous the seas might get back home.

Copyright MediaCorp Press Ltd. All rights reserved.

[babystan03]

Business Times - 18 Jun 2005

Jurong beats rivals to host Lucite's US$150m plant

Singapore plant will service Asian demand for methyl methacrylate

By RONNIE LIM

SINGAPORE'S Jurong Island has beaten other sites like Malaysian oil and gas state Terengganu and US oil capital Houston to clinch Lucite International's US$150 million investment in a pioneer chemical plant.

The UK's Lucite, the world's leading producer of methyl methacrylate - the basic building block of the acrylic industry - expects to start building the first of its kind, environment-friendly acrylic plant here next June, with completion slated for end-2007.

'The search for a suitable location for this 'First in Class' production facility has taken over a year, with many high quality sites being considered across the world,' Lucite said in an announcement yesterday.

The company is still finalising the commercial and engineering aspects of the venture, 'but for a project of this scale, the engineering and construction costs would typically be around US$150 million', a spokesman said.

The world-scale Singapore plant will produce 120,000 tonnes of methyl methacrylate, employing its innovative and proprietary Alpha Technology, which it said provides economic and environmental benefits over conventional methods. The technology will also reportedly allow it to reduce production costs.

Detailed design work for the Jurong Island plant has begun, the company said, and once it concludes the commercial agreements, construction will begin in 12 months' time.

Lucite - with a current production capacity of 750,000 tonnes methyl methacrylate - supplies about one quarter of the global volume of this intermediate, used for plastics, paints and coatings. It has plants in the US, UK, Taiwan, while a new 90,000-tonne plant is coming up in China.

BT earlier reported in April that a key to its choice of investment site will be the availability of cleaner raw materials like carbon monoxide, ethylene and methanol - which the petrochemical crackers here can supply.

Apart from Petrochemical Corporation of Singapore's two crackers and ExxonMobil's cracker, two new cracker investments are being planned by both Shell and ExxonMobil.

Gas-rich Trengganu, which was vying for the project, had reportedly offered Kertih petrochemical park, one of its largest industrial parks, as a possible location. The US West coast, including Houston, was also considered.

Lucite - owner of well-known brands like Perspex and Lucite - said that 'Singapore was finally chosen because of the established and vibrant nature of its chemical industry, the availability of high quality and well-trained staff, proximity to the Asian market, and EDB support.'

Lucite's chief executive Ian Lambert said: 'Singapore offers a number of clear advantages to fast-growing chemical companies like Lucite and represents an excellent location to progress our novel Alpha technology through the commercial phase of its development.'

EDB chairman Teo Ming-Kian added: 'This is a strong vote of confidence in Singapore's attractiveness as a global hub for chemicals, and highlights the capacity of our workforce in helping to bring a new technology to market.'

Copyright © 2005 Singapore Press Holdings Ltd. All rights reserved.

[babystan03]

24 June 2005

PSA must invest in workers, facilities to meet new challenges: MM Lee
By Asha Popatlal, Channel NewsAsia

SINGAPORE : Minister Mentor Lee Kuan Yew says Singapore's port cannot afford to be complacent, even though it has turned the corner from stormy waters a few years ago.

Speaking at the port workers union's dinner on Friday, Mr Lee explained PSA Corp could not afford to stand still, and that it would face keener competition ahead.

Mr Lee stressed that PSA is a cornerstone of Singapore's economy and has to succeed.

This means management and staff have to wok together, so what it did with the retrenchment exercise in 2003, which many people still remember, was painful but necessary for Singapore's future.

These days, competition in the shipping industry is no longer simply between port and port; it has become one between port-shipping line alliances.

Not seeing that, PSA started losing out from 2000, when shipping line Maersk tied up with the Malaysian port of Tanjung Pelepas.

In the years following that, PSA has had to make some hard decisions.

"Working together with the management, union agreed that sacred cows had to be slaughtered. The no-retrenchment deal had to go. 24 February 2003 was a sad day when union officials cried together with the retrenched workers," Mr Lee said.

Mr Lee assessment is that the worst is over, and PSA has shot back up in the world rankings.

He attributed PSA's comeback to its continuous investments, and the workers' commitment and training.

All these have resulted in more jobs, and better pay from bonuses and overtime.

Said Mr Lee, "My RC chairman in Spottiswoode Park, Tan Eng Loke, is an active SPWU Council member. He told me there is so much overtime work, workers now ‘complain’ to him they have little time for themselves. I say this is a happy problem. I hear that with the low price of cars, some port workers are now buying new cars.

"The SPWU has now got to deal with problems beyond industrial relations, like solving car park problems for some of these workers with management."

Mr Lee has had a long history with Singapore's port and its workers.

In 1955, he chose to stand in Tanjong Pagar because he had fought for the welfare of port workers there, and he has also worked with its union for a long time.

He stressed that the port remains a cornerstone of Singapore's economy.

It creates jobs for more than just the 4,000 plus workers it hires directly and its 3,000 contract workers.

Looking ahead, PSA has to continue to adapt to change, as shipping lines consolidate to form alliances and mergers.

Mr Lee also pointed out four major challenges for PSA in the years ahead.

The first was building trust between workers and management.

He said this helped a lot during restructuring operations, adding that it was good when workers joined unions because problems are best solved by unionists who are closer to the ground.

The second was that management must invest in worker training and welfare.

Equipment can be bought off the shelf but not human capital; training and relationship-building takes time.

The third was that management must invest in new facilities and increase productivity to remain ahead of the competition.

And fourthly, their labour must remain flexible.

Last June, Mr Lee noted how when volumes surged, workers volunteered to come back on their days off. – CNA /ct

Copyright © 2005 MCN International Pte Ltd

[babystan03]

June 25, 2005
It's good times again for port workers
Wage revamp leads to turnaround; workers to get extra 1.5 months in bonus

By Sue-Ann Chia

PORT workers are in the 'happy' position of having so much overtime work now that some of them have told union leaders that they have little time for themselves.

Minister Mentor Lee Kuan Yew said last night he had also heard that with lower car prices these days, some are buying a new set of wheels.

So much so that the Singapore Port Workers' Union (SPWU) has got to deal with problems beyond industrial relations - like solving car park problems.

It is, in fact, an illustration of just how much better off employees of PSA Corp are today compared to 2003 when the port operator, hit by competition and economic downturn, shed 800 jobs and had to restructure its wages.

What this led to was a practice of keeping basic wages low, linking pay to performance, so that when the company does well, profits could be shared with workers through higher bonuses.

It is an approach which he said applied to and had worked for other companies as well.

Mr Lee, who was speaking at the union's 59th anniversary dinner and who praised them for having accepted changes that had to be made, brought cheer to the crowd of 650 when he announced that they will be getting an extra 1.5 months in bonus this year.

'Including overtime payment and bonuses, they are getting more pay today than they did in 2003,' he noted.

The tough measures taken to make itself competitive worked, and PSA Corp has been propelled back into the No. 1 position in Lloyd's List Maritime Asia Award of Best Container Terminal.

Mr Lee made plain, however, that for PSA to remain competitive, it must continue with its new wage formula.

'Basic wages must be kept low. Higher wages should come in the form of variable components,' he noted, adding that it has worked for Singapore Airlines and Singapore Airport Terminal Services.

It was a step Singapore and companies here had been willing to take.

Mr Lee noted that, by contrast, France and the Netherlands recently rejected the European Union Constitution. This appeared to be because their citizens were fearful that hiring cheaper Polish workers in their countries would depress wages and take jobs away from them.

But as it is, European firms were themselves already investing outside their home countries in cheaper neighbouring countries and exporting their goods to the rest of the world.

Singapore was facing similar problems.

Mr Lee noted that any job done here could in fact also be outsourced to another country.

'It is an irreversible technological change... If we don't change willingly, we'll be forced to change unwillingly,' he warned.

Mr Lee, who was the union's legal adviser from the 1950s, noted, however, that port workers here were much better off now with their average pay rising by up to six times.

This is the result of better education, and investment in equipment and technology which helped change the economy.

For instance, a cargo stevedore with primary education was paid $260 a month in 1970. He did not handle any machinery.

Now, the stevedore has become what is now known as a container equipment specialist. He has three O levels, operates computer-aided cranes that cost $11 million and earns $3,200 a month.

Mr Lee, who has fought for better wages and working conditions for port workers since the 1950s, was also given a tribute by SPWU last night - a painting depicting a port terminal here. A video recounting his days as an adviser was also screened.

Copyright © 2005 Singapore Press Holdings. All rights reserved.

[babystan03]

Business Times - 25 Jun 2005

Keeping PSA the preferred port of call

Excerpts of Minister Mentor Lee Kuan Yew's speech at the Singapore Port Workers Union's 59th anniversary dinner and dance yesterday

AT your 45th anniversary dinner and dance in 1991, I counselled the PSA and the SPWU to get ready for the stiff competition ahead and said that in the next 20-30 years, PSA would meet unforeseen challenges. So I urged all to get our priorities and fundamentals right. Train our people, increase their productivity, automate, mechanise, computerise and work together as a team. For 10 years, the formula worked like a charm. The Asian crisis came in 1997. That did not make a dent on PSA's profits and workers' wages. PSA continued to win accolades and its business continued to grow. When we sailed into the millennium in 2000, PSA's bottom line was still impeccable.

Unfortunately, we were blind to the changes and competition around the corner. In late 2000, PSA lost a chunk of Maersk's business to Tanjung Pelepas. Soon after, in 2002, PSA lost Evergreen's business. More shipping lines threatened to leave PSA for Tanjung Pelepas. That year, PSA lost the Lloyd's List Maritime Asia award's Best Container Terminal. This despite having won the award successively in 1999, 2000 and 2001.

The contest has shifted from a port versus port competition, to one between PSA and a port-shipping line alliance. PSA took up the challenge. Working together with the management, union agreed that sacred cows had to be slaughtered. The no-retrenchment deal had to go. Redundant workers, mostly in the backroom and support functions, had to be retrenched. Wages had to be restructured. Union officials had the unpleasant task of breaking the news to their comrades.

Feb 24, 2003 was a sad day when union officials cried together with the retrenched workers. PSA and MOM worked hard to get them alternative jobs. SPWU is a part of my life. I was the legal adviser of the Port Workers' Union from the 1950s. In the 1955 elections, I chose Tanjong Pagar because it included the port workers. I had fought for their welfare, better wages and conditions of service. The port is a 24/7 operation. I built HDB flats in Tanjong Pagar for the workers to live close by so that they could walk to work.

Although Changi International Airport became a premier international air-hub, I reminded everyone in 1991 that 'without the harbour, we will not be half ourselves''. This has not changed. PSA creates jobs far in excess of the 4,722 it employs directly and the approximately 3,000 contract workers like prime mover drivers, lashing workers and wharf operation supervisors it employs indirectly. A larger cluster of related industries have grown around the PSA. Hence, PSA's vitality is important to Singapore's wider economy.

PSA has to succeed. What management and SPWU did in 2003 was painful but necessary. The port workers' unions understand that cooperation between management and workers is crucial to survival. The union I worked with for so long had courage and wisdom to do what was right and necessary for our future.

The worst is behind us. In 2003, PSA Singapore Terminals recaptured the Lloyd's List Maritime award of Best Container Terminal which it lost in 2002. It won it again in 2004.

PSA Singapore Terminals remains the world's largest transhipment hub. It alone handles 20 per cent of the world's total container transhipment throughput. For the whole of 2004, PSA Singapore Terminals handled a record 20.6 million TEUs (twenty-foot equivalent units), representing an unprecedented growth of 2.5 million TEUs, a 14.1 per cent jump compared to 18.1 million TEUs handled in 2003.

Management and workers made PSA's 2004 achievements possible. When there was an unexpected surge in volumes last June, union leaders went to management to ask what they can do to help take care of customers. Workers volunteered to come back on their off-days to help speed up handling of waiting ships. Union leaders, workers and management all pulled together as one team, to deliver for their customers, and for PSA and ultimately for themselves.

More recently, in March 2005, PSA Singapore Terminals again achieved a new high monthly record throughput of 1.91 million TEUs.

The two tables I attach (See Pg 2) show how wages have gone up as PSA workers became better educated, and PSA invested more in equipment. In 1970, a cargo stevedore with primary education was paid $260; he used no equipment. In 2005, the cargo stevedore had become a container equipment specialist, with three O-levels. He operated computer-aided cranes that cost $11 million; his salary was $3,200. Technology has changed our economy. Our workers are better educated, with higher skills that enable them to use more complex equipment.

In short, the average wage of a port operational worker went up six-fold (or 604 per cent) from 1980 to 2005. The average wage of a technician went up more than three-fold (or 364 per cent) in the same period.

Including overtime payments and bonuses, they are getting more pay today than they did in 2003. The restructured wage system links workers' wages directly with the company's profits. Because the company performed well last year, workers were rewarded and were paid good bonuses in April this year.

PSA had also implemented a one-off Gain-Sharing Incentive Scheme, as part of the wage restructuring exercise negotiated with the union in 2003. Workers will be paid additional incentives if cost reduction and EVA targets are achieved by end-June 2005. PSA has told me that the workers have done well in achieving cost savings. Thus, they will be getting about 1.5 months' salary for their second instalment of the Gain-Sharing Incentive.

My RC chairman in Spottiswoode Park, Tan Eng Loke, is an active SPWU Council member. He told me that there is so much overtime work, workers now 'complain'' to him they have little time for themselves. I say this is a happy problem.

I hear that with the low price of cars, some port workers are now buying new cars. The SPWU has now got to deal with problems beyond industrial relations, like solving car park problems for some of these workers with management.

Looking ahead, we cannot afford to be complacent. PSA will face ever keener competition. The shipping lines, like those in banks and airlines, are consolidating. Maersk's acquisition of PONL represents this changing environment. Other shipping lines will respond, probably by forming similar alliances or mergers.

These huge shipping groups will exert pressure on all ports, including PSA, to deliver cheaper (cost per box) and faster (time to destination) services. They will have the bargaining power to press their claims. PSA have to meet their needs to our best ability. But so long as we remain nimble and flexible, adapting and changing, we shall be competitive.

I see challenges in several areas.

The harmonious IR, and the trust and confidence, between the workers and management were key factors which allowed for the speedy restructuring of PSA when market conditions changed. It is paramount that PSA continues to build on the excellent relationship between management and union. The union is an equal partner of management and their destinies are intertwined. I commend PSA Singapore Terminals management for actively encouraging its workers to join the union. Workers problems are best solved by SPWU who are closer to the workers than management.

Second, management must invest ever more in workers' training, welfare and safety education. Any port can buy the latest equipment, computers and software, warehousing and vehicles. But they cannot buy human capital off the shelf. Workers need to be trained. Relationship needs time to develop. A culture of competence, trust, and common destiny, cannot be easily replicated.

Third, management must invest in new facilities and increase productivity continuously. PSA is well ahead of its competitor. It already has 37 berths, more than 100 quay cranes, four integrated port terminals acting in union through one single operation. PSA is adding 15 more berths at Pasir Panjang Terminal by 2011. Three of these berths will be operational in 2005 and five in 2006. These 15 berths will boost PSA's handling capacity of 20 million TEUs by 11 million TEUs to 31 million TEUs. PSA has the capacity to meet all future requirements and more.

Fourth, PSA's operations must meet different needs. Flexibility of labour deployment is PSA's strength. Shipping volumes go up and down. When workload surges, workers must be on-call to work overtime and be prepared to be redeployed.

Contract workers, including foreign workers, should be employed to meet unexpected surges in order to provide a cushion to local union workers from being retrenched when workload drops. However, it is management's responsibility to integrate these contract and foreign workers into the local work. In this integration process, safety must never be compromised.

PSA needs to build on the close relationship it has with its customers. PSA listens to their customers to meet their needs. For PSA to remain competitive, basic wages must be kept low. Higher wages should come in the form of variable components. The critical statistics is the cost per box. The lower it is, the better we can face our competitors. Whatever the changes in the shipping industry, PSA must adjust and adapt to make itself the preferred port of call.

I wish the SPWU a happy 59th birthday.

Copyright © 2005 Singapore Press Holdings Ltd. All rights reserved.

[babystan03]

Jurong Island and Pasir Panjang terminal

http://img156.imageshack.us/img156/6922/pic0302715yc.jpg

[babystan03]

Business Times - 30 Jun 2005

NUS launches new centre for maritime studies

New body aims to be independent, authoritative and internationally respected

By UMA SHANKARI

(SINGAPORE) Reinforcing Singapore's efforts to establish itself as an international maritime hub, the Centre for Maritime Studies was launched at the National University of Singapore (NUS) yesterday.

The Centre for Maritime Studies (CMS) will focus its research on the commercial maritime sector and 'serve as a platform for maritime research and analysis for both the industry and academia', said Transport Minister Yeo Cheow Tong at the launch.

It is aiming to serve as an independent, authoritative and internationally respected body which will complement the efforts of the Maritime and Port Authority of Singapore (MPA) and other local institutions towards Singapore's aspirations as an international maritime hub.

It will also serve the needs and demands of the maritime industry in Singapore for its development in the medium and long term.

So far, the centre has raised about $3.65 million in funding from various industry players such as the IMC Pan Asia Alliance, PSA Corporation and Keppel Offshore & Marine.

In addition, MPA will commission up to $1 million worth of research projects.

Initial research focus will be in the area of maritime law, policy and security; offshore and energy; multi-modal transport supply chain; the dynamics and development of the maritime industry and trade dynamics and implications for shipping.

MPA's involvement in the centre is its lastest initiative to work closely with academic institutions and the industry.

In June 2003, MPA set up four professorships in Maritime Law, Shipping Economics, Shipping Management and Maritime Business Economics at the three local universities to kick-start the development of teaching and training capabilities for the maritime field.

In establishing the centre, NUS worked closely with the MPA and key industry players such as Frank Tsao, chairman of the IMC Group of companies, who initiated and promoted the project as an important pillar of Singapore's aim to be an international maritime centre. Mr Tsao will be appointed the pioneer chairman of the centre.

'His vision led to multiple rounds of discussions between different agencies in Singapore to bring this centre to fruition,' said Mr Yeo on Mr Tsao's role in the creation of the centre.

Speaking at the launch, Mr Tsao said that looking at factors such as language, Singapore's legal structure, its international image of corporate governence with its effective and efficient government and other related infrastructure, Singapore is in every respect qualified to be the maritime centre of the world.

The port and maritime sector accounts for 7 per cent of Singapore's GDP and provides 120,000 jobs.

Copyright © 2005 Singapore Press Holdings Ltd. All rights reserved.

[babystan03]

Business Times - 11 Jul 2005

Jurong Island storage complex decision 'in a few months'

By RONNIE LIM

A FINAL decision on a massive underground oil and petrochemical storage complex at Jurong Island - estimated to cost $760 million - is now expected 'in a few months'. Potential customers such as oil traders, and refineries and petrochemical plants on the island, are now being sounded out on the project, JTC Corp says.

JTC, which has been pushing the complex for almost four years, said it still needs to nail down commercial and business aspects as part of the final phase of the plan.

It was responding to BT on why there has been no decision on the project despite an earlier mid-2005 target that would have seen the complex completed by 2008.

'A feasibility study has recently been completed. It showed that the project is technically feasible and economically viable,' a JTC spokesman said. 'We are currently looking into the commercial and business model. We are also speaking to potential customers and industry players to obtain input and feedback. We expect to have more details on the project's implementation in a few months.'

Feedback could result in possible changes to the design of the complex, the spokesman said. 'The caverns will cater primarily to liquid hydrocarbons such as crude oil, naphtha and condensates. Storage for compressed natural gas (CNG) and LPG is a possibility if there is market demand.'

The original plan for the complex (adjacent to Banyan LogisPark on the island) involved 32 rock caverns capable of holding four million cubic metres, or about 25 million barrels of oil - adding almost a third to Singapore's current storage capacity of 88 million barrels.

But the economic viability of the project could be affected by new above-ground tank farms being built, or planned, here. Terminal operator Vopak will double its capacity to 18.5 million barrels by 2010, OilTanking is adding 1.2-1.9 million barrels to its existing 6.5 million barrels, and Emirates National Oil Company's new Horizon Terminal will have 5.3 million barrels of storage.

Projects on the drawing board include those by US oil trader ChemOil and local 'big boy' Hin Leong, which now stores its oil on tankers but is looking at building a 6.3 million barrel tank farm on Jurong Island.

An Economic Development Board official told BT earlier that underground storage on Jurong Island would free land now used for above-ground storage, and production facilities could be built on this land. Refinery officials have complained that because land here is limited and expensive, more refineries are unlikely to be built.

But one oil company source told BT there has been no 'push' so far from the authorities to give up above-ground tanks in favour of the underground cavern project.

Despite earlier speculation, the cavern storage plan is not tied to Singapore's plan to build a liquefied natural gas terminal and to trade LNG.

It is impractical to store LNG underground in the rock cavern, an official told BT. 'LNG has to be stored at minus 260 degrees Celsius. If it leaks, LNG solidifies, ices up and grows in volume.'

Copyright © 2005 Singapore Press Holdings Ltd. All rights reserved.

[babystan03]

12 July 2005
PSA may reduce cost to meet challenger, Port Klang

By Vernon Lee

PSA may have to further reduce its costs to meet the challenge from Port Klang.

Located near Kuala Lumpur, it's set to be the next major rival from Malaysia to pose a threat to PSA after Tanjung Pelapas in Johor.

Industry observers say shipping lines could join the likes of China Shipping Group and Maersk in the exodus up north due to lower costs.

CSG moved its regional headquarters to operator Westport in Port Klang earlier this month from Singapore.

This after the Chinese shipping line relocated its container transhipment hub to Port Klang in 2000.

The move by CSG followed the decision by Maersk and Evergreen to leave Singapore for PTP in 2000 and 2002 respectively.

In an email statement to 938 Live, CSG's Vice President, Li Zuo-ming said Westport is comparable to PSA in efficiency and turnaround time.

He added that PSA may have to introduce more incentives to attract shipping lines to stay put.

Chairman of the Singapore National Shippers Council, John Lu, agrees.

"For transhipment, whether it is in Singapore or other ports nearby, basically the difference would not be so substantial. They can actually get similar services. And if it is at a lower cost, it will attract them. I think this is something not good for Singapore but is unaviodable."

But Westport is not the only rival that PSA has to contend with at Port Klang.

The merger between Maersk and P&O Nedllyod - the world's number one and three shipping lines respectively - could potentially benefit Northport, another operator at Port Klang.

Anglo-Dutch P&O Nedlloyd calls at Northport and PSA, and is a major customer at the two ports.

Danish Maersk, which uses PTP as a regional hub, calls at Westport and Singapore on a limited basis.

But a restructuring exercise between the two shipping giants could result in more business for either Westport or Northport at PSA's expense.

Given the competition posed by its northern rivals, it's inevitable that PSA is intensifying efforts to invest in overseas port facilities, particularly in North Asia.

Bank of China International's chief analyst for transport and logistics, Michael Chan, says the strategy will help PSA to lower business costs for its customers.

"Being a pure port operator in one area is not going to be easy. With all this rising competition, you always can find lower costs besides you. So the only thing you can survive is build up a port network yourself which means you can give a shipping line a huge discount whenever they call in all the ports within your network around the world."

Within Singapore, PSA is also upgrading its facilities

It plans to add 15 new berths at Pasir Panjang by 20-11.

These new berths are expected to boost PSA's annual handling capacity in Singapore to 31 million standard containers, from 20 million presently.

All these efforts will position PSA well in a fast changing maritime landscape in spite of greater competition from Malaysia.

As Minister Mentor Lee Kuan Yew said recently at a Singapore Port Workers Union event, so long as PSA remains nimble and flexible, it shall be competitive.

Copyright © 2005 MediaCorp Radio Internet Development Unit

[babystan03]

14 July 2005

S$5m face-lift helps Singapore Cruise Centre stay ahead
By Jeana Wong, Channel NewsAsia

SINGAPORE: After a S$5 million facelift, Singapore Cruise Centre is heading out to town in a big way.

It plans to convince global cruise players to use Singapore as a home port as they tap into the region's market potential, and to grow its revenue by providing consulting services to overseas ports and selling its operational expertise.

Armed with new high-tech X-ray machines, streamlined passenger and baggage procedures, and new retail outlets, Singapore Cruise Centre is gearing up for growth in passenger numbers.

The centre raked in close to S$40 million in revenue in the last financial year -- a sign that the industry has recovered from SARS.

The Cruise Centre said the $5-million-dollar facelift is a needed investment to keep Singapore attractive as a cruise liner hub.

"Continuously, airports around the world have to upgrade themselves. So our cruise terminal is no different. It's a port of entry. So we continuously have to make sure when the passengers arrive, their experience is a memorable one, so that will give the reason for cruise liner to want to come more often. We need to convince them that Asia really is indeed a vibrant market, the next growth market, and Singapore is a viable hub for all of them." said Mr Soo Kok Leng, Chairman of Singapore Cruise Centre.

The Cruise Centre also takes pride in having a 100% compliance status with the industry's security code -- a first in Asia.

It will step up marketing efforts overseas to achieve its goal of doubling its passenger volume to 1.2 million by 2010.

It has also diversified its revenue stream by providing consulting services to its European and US counterparts.

"During the SARS period, Europe had no SARS, America had no SARS. If we had terminal operations over on the other side, there would still be source of income. Our core competency is not just the manpower, it's not just how to regulate people coming in and going out of the port. But also our IT systems, how we process passengers, how we make technology, so-called, our main tool in terms of control, in terms of billing," said Cheong Teow Cheng, President of the Singapore Cruise Centre.

It is also in talks with 3 Asian ports about contracts to design and provide operational procedures. - CNA /dt

Copyright © 2005 MCN International Pte Ltd

[babystan03]

14 July 2005
S'pore cruise indus to contribute $1bln

By Vernon Lee

Singapore's cruise industry may have already contributed more than a billion dollars a year to the economy.

This was revealed by Chairman of the Singapore Cruise Centre, Soo Kok Leng, at a media conference today.

The SCC is the only cruise terminal operator in Singapore.

According to the last available data from the Singapore Tourism Board, the cruise industry generated income in excess of 800 million dollars to the economy in 2000.

This figure comprises spending by foreign passengers in an industry previously dominated by locals.

Given that the revenue of the SCC was 15 million dollars in 2000, Mr Soo says the cruise industry therefore has a huge multiplier effect on the economy.

Mr Soo says the SCC is set to lure 800 thousand cruise passengers this year, or a jump of more than 25 percent from 2004.

By 2010, SCC is targeting 1.2 million cruise passengers a year by 2010.

"If you take the same market penetration as in the US, which is about 3.8 percent penetration into the population, you use the same percentage of penetration in Asia, we're talking about a potential market of six to seven million potential passengers."

Singapore is widely regarded as Asia's top cruise destination.

Last year, 33 cruise ships made a total of 392 calls at Singapore.

Mr Soo says SCC has not made a decision yet on whether to relocate its International Passenger Terminal to Marina South from Harbourfront.

SCC is in discussions with the STB on the issue in anticipation of the development of the two integrated resorts by 2009.

Copyright © 2005 MediaCorp Radio Internet Development Unit

[babystan03]

Business Times - 18 Jul 2005

HK lags S'pore as world's busiest port in 1st half

(HONG KONG) Hutchison Whampoa Ltd, Cosco Pacific Ltd and other operators of Hong Kong's port handled fewer containers than Singapore in the first half, after the city's cargo shipments grew at a slower pace than a year earlier.

Volume rose 1.3 per cent to 10.75 million standard 20-foot boxes in the first six months of the year, the Hong Kong Port Development Council said on its website.

Singapore, the world's busiest container port, handled 11.37 million containers in the same period. Hong Kong's first-half container volume expanded 8 per cent in 2004.

Growth in Hong Kong's cargo shipments is slowing down because of competition from Shenzhen and other southern Chinese ports, where costs are lower.

Singapore has benefited as exporters from Indonesia, Thailand and other South-east Asian countries ship goods through the island state to their final destinations in the region, and to the US and Europe.

In June alone, Hong Kong handled 1.91 million containers, 4.6 per cent more than the same month last year. Volume at the Kwai Chung terminals, which handle more than 60 per cent of Hong Kong's sea freight, rose 10 per cent to 1.21 million boxes. - Bloomberg

Copyright © 2005 Singapore Press Holdings Ltd. All rights reserved.

[babystan03]

20 July 2005
PSA signs TSA with Swire Shipping

Hong Kong's Swire Shipping has signed a new Terminal Service Agreements with Singapore port operator, PSA.

These agreements will also cover Tasman Orient Line, a jointly-owned subsidiary of the Swire Group.

Under the service agreements, PSA Singapore Terminals will be the key transhipment hub for Swire Shipping and Tasman Orient Line for their containerised and break bulk cargo.

Swire Shipping and Tasman Orient Line will enjoy a customised services, including priority berthing at Pasir Panjang Wharves.

A joint statement said they will also enjoy rebates that recognise its present and future growth at PSA.

Copyright © 2005 MediaCorp Radio Internet Development Unit

[babystan03]

July 23, 2005
Bunkering volumes grow 8% in first half

By Gabriel Chen

THE importance of Singapore's fuel bunkering industry was toasted when Minister of State for Transport Lim Hwee Hua helped 'push the boat out' yesterday.

She was on hand for the christening of the new barge Leadership built by Hong Lam Marine and chartered by ExxonMobil. It is the largest purpose-built double-hulled bunker tanker in South-east Asia.

Mrs Lim told the gathering at Pasir Panjang Terminal that bunkering - storage and supplying marine fuel - generated an annual revenue of about $7 billion.

Singapore again led the world's bunkering ports with a record 23.6 million tonnes of bunker delivered here last year.

And in the first six months this year, bunker volumes in the port totalled 12.4 million tonnes, up 8.2 per cent from the same period last year.

This is possible, said Mrs Lim, because of the 'strong support' from industry partners such as ExxonMobil and Hong Lam Marine.

ExxonMobil Marine Fuels worked with Hong Lam Marine, one of Singapore's leading bunkering service companies, on chartering Leadership well before the regulations requiring barges to be double-hulled were introduced.

Mrs Lim, who is also Minister of State for Finance, said she was pleased that Leadership met the Maritime and Port Authority's regulations.

'In Singapore, we are a firm believer in adhering to international standards so as to give our customers the confidence and assurance that our processes are safe, and that our products are of high quality,' she said.

Mrs Lim added that the government provided incentives for fleet owners to renew single-hull bunker tankers with more environmentally friendly double-hull tankers.

Leadership, on which construction began in Guangzhou in May last year, cost US$15 million (S$25 million) to build.

The barge will be able to unload fuel more reliably and promptly.

It will mean vessels will have shorter stays in port, which will benefit customers and help bolster Singapore's reputation as an efficient bunkering hub.

Copyright © 2005 Singapore Press Holdings. All rights reserved.

[babystan03]

July 25, 2005
MSC Pamela makes PSA port call

MSC PAMELA - the world's largest container ship - sailed into PSA Corp's Pasir Panjang Terminal on Saturday.

The 9,200-TEU vessel has the largest declared capacity for container ships to date, and is the largest vessel to call at PSA Singapore Terminals.

When lined up from end to end, the 9,200 twenty-foot equivalent units (TEUs) of containers span 56km - more than the length of the Singapore island from the eastern tip of Changi to Jurong in the west.

Owned by Mediterranean Shipping Company (MSC), MSC Pamela is built by Samsung Heavy Industries.

The 337-metre long container ship will ply the Asia-Europe Express route, calling at the ports Valencia, Le Havre, Rotterdam, Felixstowe, Antwerp, Jebel Ali, Singapore, Chiwan, Busan, Shanghai, Ningbo, Chiwan, Hong Kong and Singapore.

With the addition of MSC Pamela, the Asia-Europe Express route will now be served by a total of nine MSC vessels.

Mr Tan Puay Hin, the chief operating officer of PSA Singapore Terminals, presented the maiden voyage plaque to the ship's captain P. Gentili to commemorate MSC Pamela's maiden voyage to Singapore.

The ship is docked at a new berth at Pasir Panjang Terminal, MSC's home terminal in Singapore.

Copyright © 2005 Singapore Press Holdings. All rights reserved.

[babystan03]

29 July 2005

Singapore launches Zero GST Warehouse Scheme
By Michael Lim, Channel NewsAsia

SINGAPORE : Singapore has taken another step towards becoming the region's preferred logistics hub.

The government is rolling out a new Zero GST Warehouse Scheme to replace the existing Bonded Warehouse Scheme.

Under the change, importers with a strong inventory control system will no longer have to pay GST for their imports until the goods enter the local market.

The Zero GST Warehouse Scheme is expected to give a boost to the logistics sector here.

It is expected to help improve companies' cash flow and reduce their warehouse-related compliance cost.

Said Minister of State for Finance and Transport Lim Hwee Hua, "I think this gives them substantial leeway in terms of locating the warehouses because now the licensing regime is different. And they will save a lot of admin and staff cost when they move their goods between warehouses instead of having to get separate certificates for each warehouse."

Three types of licences will be issued under the new Zero GST Warehouse Scheme to cater to companies with different needs.

All current Bonded Warehouse Scheme operators will automatically be given a Type 1 licence, which means that they must still re-export 80 percent of their imports.

Type 2 licensees will be allowed to operate from a single warehouse and they must have a computerised inventory system.

Type 3 licensees are free to operate from multiple warehouses, which allows goods to be moved between different locations without approval from the Customs Department.

But they must have a centralised warehouse management system that keeps track of the goods.

With Type 2 and 3 licences, the companies can release all their imports into the local market.

Said Ms Lim, "What this essentially does is because of our unique circumstances we want to move away from defining a free trade zone in physical terms. This really is to in some way leverage on some of the very strong internal control systems that companies and offices themselves have by virtue of their own business and competitiveness. So in a way this will further strengthen all the connectivity that we currently provide."

Applications for the new licences will begin on October 1 and the new scheme will start on January 1 next year. – CNA /ct

Copyright © 2005 MCN International Pte Ltd

[babystan03]

Business Times - 05 Aug 2005

Jurong Port to expand locally and regionally

By DONALD URQUHART

(SINGAPORE) Singapore's second container and multi-purpose cargo handling facility, Jurong Port, plans to expand its facilities here along with an international expansion focusing on Indonesia, Vietnam and China.

In its monthly newsletter, the port said it has begun to explore opportunities overseas, focusing initially on the three Asian countries. When contacted by BT yesterday, a Jurong Port spokesperson declined to comment further, saying the port is 'still at a preliminary stage'.

In the first six months of this year, Jurong Port handled 444,000 TEUs (20-foot containers), a 54 per cent jump over the same period in 2004. For 2004, the port saw a total container throughput of 711,000 TEUs, and bulk and general cargo totalling 9.6 million tonnes.

Anticipating continued growth, the port said it will begin upgrading its container and conventional cargo-handling facilities, including purchasing five new container quay cranes - four to replace older cranes - as well as extending one container berth and upgrading/ extending one conventional berth.

The port will also consolidate and develop other facilities such as storage yards, warehouses and other infrastructure, it said in the bulletin. The Port said that the berth upgrading will enable it to handle larger container and conventional vessels.

The expansion and upgrading will not significantly expand its current container capacity of 1.4 million TEUs nor its conventional cargo capacity, but will improve operational efficiency, the spokesperson said. Work on the berth will begin first, and the new quay cranes will operate by end-2006. The yard expansion will be done later, according to the spokesperson.

Currently, Jurong Port has nine mainline and 10 feeder container services calling at its terminal. Some have left the island's dominant container handler, PSA Corporation, lured by lower rates and more customised services that the niche port operator is able to provide.

PSA Corporation plans to add nearly 60 per cent more capacity to its Singapore operations by 2011.

Copyright © 2005 Singapore Press Holdings Ltd. All rights reserved.

[babystan03]

Business Times - 12 Aug 2005

PSA in bid to manage Turkish port

ISTANBUL - A consortium grouping the Port of Singapore Authority and the Turkish construction firm Akfen presented an offer to manage the Turkish port of Mersin for US$755 million, the Anatolia news agency reported.

Mersin, one of Turkey's principal Mediterranean ports, is currently administered by the country's national rail agency TCDD.

The agency said the joint offer, the best received so far, must now be approved by Turkey's competition and privatisation authorities. The contract would run for 36 years.

Akfen chairman Hamdi Akin said he hoped the transaction would be completed by the end of the year, adding that his company planned to invest US$70-US$100 million in the next five years to expand the Mersin port.

A second candidate for the management contract, the Dubai Port Authority, dropped out of the race after putting forward an offer of US$750 million.

Copyright © 2005 Singapore Press Holdings Ltd. All rights reserved.

[babystan03]

Business Times - 29 Aug 2005

Johor port ups the ante with expansion

But there may be an upside for S'pore port operator

By DONALD URQUHART

(SINGAPORE) The Port of Tanjung Pelepas (PTP) in Johor is on the expansion trail again following the takeover of P&O Nedlloyd by the port's stakeholder Maersk Sealand - an expansion that could divert some container traffic from Singapore.

PTP, which now has eight berths, last week announced the building of another two more. This will give it an annual capacity of 8 million TEUs (20-foot equivalent units), up from its 6 million now.

The extra capacity could come on stream as early as end-2006, and some observers see the fast-tracking as a bid to handle traffic that now goes through Singapore.

But there could be a silver lining for Singapore port operator PSA Corp. The aggressive expansion of PTP is seen as a sign that it is becoming a single-user port for its main customer and 30 per cent stakeholder AP Moller Maersk. And that could encourage Taiwan's Evergreen Marine Corp - which is said to have reservations about the level of service at PTP - to think about moving its traffic back to PSA.

Some pundits see PTP's latest expansion plan as a reflection of AP Moller Maersk's acquisition of P&O Nedlloyd, which is one of PSA's biggest customers, and moves what sources estimate to be at least 600,000 TEUs a year through Singapore.

New owner AP Moller Maersk, which quit PSA for PTP in 2000, has said it will combine the operations of its Maersk Sealand, the world's biggest container line, with those of P&O Nedlloyd.

Some observers see this as another loss of traffic for PSA - but things may not be so straightforward.

It is not known when - or even whether - any of P&O Nedlloyd's traffic will be shifted to PTP. Also, P&O Nedlloyd would have contractual agreements binding it to PSA.

And whatever the case, PTP may not find it easy to handle traffic from P&O Nedlloyd. Already, an estimated 350,000 to 400,000 TEUs of Maersk Sealand cargo are transhipped through Singapore because of capacity constraints at PTP and more optimal connections through PSA.

Additionally, industry speculation suggests that PSA could win back Evergreen, which moved to PTP in 2002.

'Evergreen may suddenly find itself the step-child in the PTP relationship once P&O's volumes are brought over, especially if there is a capacity crunch,' an executive for a mainline shipping company told BT.

In a scene vaguely reminiscent of 2000-01, after Maersk Sealand announced its intention to leave Singapore for PTP, PSA is said to have been busy approaching feeder container lines in recent months to 'tie up loose ends', according to one Singapore-based feeder service operator.

'The difference this time around is that PSA is wielding the carrot instead of the stick,' said the feeder executive. 'But one can never be too sure about the stick part.'

For a major transhipment hub such as Singapore, feeder operators are the lifeblood that brings crucial cargo volume from smaller regional ports for loading on to mainline vessels here. Last time around, PSA penalised feeders who serviced PTP by revoking their discounts, as greater feeder connectivity at PTP posed a greater threat to PSA's Singapore business.

PTP is proving to be a tough competitor. And the contest can only get keener, with the Malaysian port having completed an ambitious land reclamation that could lead to as many as 14 berths.

But PTP isn't the only one expanding. PSA will have annual capacity of 31 million TEUs - up from its current 20 million TEUs - when it completes its latest expansion in 2011.

'Evergreen may suddenly find itself the step-child in the PTP relationship once P&O's volumes are brought over, especially if there is a capacity crunch.'
- A mainline shipping company executive

Copyright © 2005 Singapore Press Holdings Ltd. All rights reserved.

[babystan03]

Business Times - 31 Aug 2005

PTP quashes rumours of Evergreen's S'pore return
Size of any one customer won't impact others at multi-user berths

(SINGAPORE) Malaysia's Port of Tanjung Pelepas (PTP) has dismissed talk that its second biggest customer, Evergreen Marine Corp, may move back to Singapore to enjoy better connectivity and service.

'The shipping industry is aware that levels of service and productivity extended to all our customers are unrivalled. In a well-run multi-user terminal, the size of any particular customer has no impact on any of its other customers,' a PTP spokesman told BT yesterday, rebutting industry reports that the Taiwan shipping line may move traffic back to Singapore.

Market watchers and industry sources have alluded to this because of the clout that PTP stakeholder AP Moller Maersk - the parent company of Maersk Sealand - has at the southern Johor container terminal.

It is well-known that one reason cited by Maersk Sealand when it moved its transhipment hub from Singapore to PTP was that it could not get dedicated terminals for its exclusive use at PSA.

PTP has moved into an accelerated expansion phase, announcing recently that it will build two more berths, raising capacity to eight million TEUs. The announcement came in the wake of AP Moller's acquisition of P&O Nedlloyd, another major PSA customer.

This has raised the possibility that all P&O vessels, which will come under the new merged entity Maersk Line, may eventually call at PTP instead of Singapore. This, sources say, is causing unease among other users, including Evergreen.

PTP rebutted this idea by saying that it is a 'multi-user terminal' and that it is committed to providing the same high standards of service to all its customers.

The spokesman said: 'Our forward planning has enabled us to accommodate both customers equally in terms of their current and future needs.

'In addition, we are always ready to accommodate additional liners with an average of two spare berths at all times.'

On comments by some shippers that the Malaysian port is facing capacity constraints, the spokesman said: 'PTP has always been a supply driven port since inception when we developed six fully equipped berths before signing on any customers. We handled just over four million TEUs last year and our annual capacity currently stands at six million TEUs.

'Our berth utilisation is less than 55 per cent due to our high levels of efficiency and productivity. Even in 2004, when most ports were faced with congestion, all PTP customers were able to berth on arrival. PTP continues to expand ahead of market demand and upon completion of berths 9 and 10, will be able to accommodate eight million TEUs per annum.'

Singapore's PSA too is in expansion mode and will be able to handle 31 million TEUs annually by 2011, compared to the current 20 million TEUs.

Copyright © 2005 Singapore Press Holdings Ltd. All rights reserved.

[babystan03]

Business Times - 08 Sep 2005

SULPHUR CONTENT ISSUE
MPA to set up bunker quality panel

Move to establish acceptable procedure for sample testing

By DONALD URQUHART

(SINGAPORE) In a bid to protect the $7 billion-a-year bunker business here, the Maritime & Port Authority of Singapore (MPA) has announced it will work with the industry to form a testing advisory panel after a controversy erupted over conflicting lab test results.

Ever sensitive to developments that could damage Singapore's preeminent status as a quality bunkering port after being shaken by a quality and corruption scandal four years ago, the MPA hopes to establish what it says is a 'more systematic approach' towards interpreting bunker test results.

'The MPA will work with the bunkering industry to form an advisory panel to establish an acceptable procedure for sample testing and review test results, and where relevant take into account ISO 4259,' the MPA said in response to BT queries.

The testing issue first surfaced after DNV Petroleum Services (DNVPS) reported in June that it had found bunker samples here that exceeded Marpol Annex VI limits of 4.5 per cent sulphur content.

Subsequent tests by independent testing lab SGS Testing and Control Services Singapore, contracted by the MPA, showed sulphur levels below 4.5 per cent.

A minor controversy then ensued as other testing laboratories began to weigh in on the issue, highlighting what is apparently a gray area in the International Maritime Organisation's (IMO) Marpol Annex VI regulations.

Writing in an industry journal, Geoff Jones, technical manager of fuel testing company Lintec, argued that the sulphur value of 4.6 per cent found by DNVPS was in Lintec's view acceptable.

'The root cause of the differing results hinges on the interpretation of precision parameters when testing for sulphur. All test methods are subject to variation,' Mr Jones said.

He argued that when considering a single test result, there is an upper limit of 4.67 per cent which allows for known limitations of accuracy of the testing. This is based on ISO 4259:1992, 'Petroleum products - determination and application of precision data in relation to methods of test'.

Similarly, in a letter to BT, Maritec Pte Ltd managing director Rex Lim also cited ISO 4259 as saying: 'A recipient who has no other source of information on the true value of a single result shall consider that the product fails the specification limit with 95 per cent confidence only if the result for a 4.5 per cent sulphur is greater than 4.72 per cent.'

As such the 4.6 per cent sulphur content found by DNVPS would still meet the Marpol Annex VI limits, he argued.

In response, DNVPS Singapore managing director Per Holmvang said that in this particular case the ISO 4259 standard was not relevant, in part because a dozen samples were tested, all yielding the same result.

'Lintec's interpretation of ISO 4259 is incomplete since the standard requires an extensive testing scheme in order to arrive at the correct and binding results.

'The procedure includes retesting at the initial lab and also with an appointed third-party lab if the spread in the results does not fall within certain criteria,' Mr Holmvang said. Part of the problem, according to Mr Holmvang, is that 'the IMO makes no reference to this ISO and that's what we encourage the IMO to clarify, how they interpret precision data'.

Mr Holmvang urged the IMO to adopt two decimal places in the limit, or in other words a value of 4.50, rather than 4.5, in order to increase the precision that otherwise is impacted by the rounding off rule.

He also argued that the IMO should clearly acknowledge ISO 4259, but only as a dispute resolution mechanism which, in his view, is already implicit within the standard.

In its reply to BT, the MPA said it will continue to monitor developments on Annex VI at the IMO and keep the industry updated, adding that it understands the industry will be submitting a paper to the IMO on the technical details of using ISO 4259 as a guide for technical testing.

'The MPA is serious about implementing Marpol Annex VI. Adhering to international standards gives our bunker customers the assurance that Singapore's bunker processes are safe and consistent with international practice, and that our products are recognised for quality,' the MPA said.

It added that should there be any non-compliance, it would not hesitate to take action which, depending on the circumstances, could result in a vessel detention and/or fines of up to $10,000 and/or imprisonment for up to two years.

Copyright © 2005 Singapore Press Holdings Ltd. All rights reserved.

[babystan03]

Sept 14, 2005
Jurong Port plans $300m expansion over five years

JURONG Port plans to spend $300 million to expand by 2010 and is looking for acquisitions in South-east Asia.

The company operates a port for containers and bulk cargo, such as cement and steel.

Jurong Port entered the container business in 2001, handling just 56,000 twenty-foot equivalent units (TEUs).

This year it hopes to get close to one million boxes. In the first eight months, volume jumped 52 per cent to 606,000 TEUs.

'Growth in the container business has been phenomenal,' chief executive Matthew Chan said in an interview, adding that he hopes to increase the port's container handling capacity by more than 70 per cent within five years.

In its August monthly newsletter, the port said it will begin upgrading its container and conventional cargo-handling facilities, including purchasing five new container quay cranes, of which four are to replace older cranes. It will also extend one container berth and upgrade or extend one conventional berth.

The port will also consolidate and develop other facilities such as storage yards, warehouses and other infrastructure, the bulletin said.

Port businesses such as that of PSA or Hong Kong's Hutchison Port Holdings have seen stellar growth in recent years, thanks to booming trade between China and Europe and North America.

Like PSA, which handled more than 21 million boxes last year, most of Jurong Port's container business is transhipment - containers arrive on regional feeder ships to be transferred onto big carriers.

'We are looking to invest $300 million to increase our capacity to 2.4 million TEUs from 1.4 million to match our clients' growth rates,' Mr Chan said, adding that new port cranes should be delivered in the second half of next year.

In contrast to PSA, a lot of the goods arriving at Jurong Port are actually destined for Singapore, although 75 per cent of the containers are still for transhipment.

Jurong Port does not see itself as a competitor to PSA, an international ports group with large operations in Belgium, China, India, Italy and Portugal, but says its size allows it to react more flexibly to clients' needs.

While PSA's port yards are dominated by stacks of containers, Jurong Port's yard also holds large metal sheets used in shipbuilding, steel bars for domestic construction and piles of sulphur. The port's 500 employees manage about 10 million tonnes in bulk cargo each year.

Mr Chan said he has begun looking to expand abroad: 'We are scanning nearby countries for suitable projects and potential candidates - Vietnam, China, the whole of South-east Asia.'

The company, controlled by JTC Corp, generates 40 per cent of its sales in the container business, another 40 per cent from bulk cargo, and 20 per cent from leasing out storage space and warehouses in its facilities to clients.

The port also has 12 large silos which can hold 300,000 tonnes of cement, making it one of the world's largest independent cement handlers.

But because of a slowdown in Singapore's once busy construction sector, a quarter of its cement handling capacity of four million tonnes a year is lying idle. \-- REUTERS

Copyright © 2005 Singapore Press Holdings. All rights reserved.

[babystan03]

Business Times - 15 Sep 2005

PSA moves 18.4% more boxes globally

(SINGAPORE) PSA International said yesterday its terminals globally moved 25.84 million standard container boxes in the first eight months of the year, an 18.4 per cent increase over the same period last year.

Its Singapore terminals alone handled 14.8 million TEUs, compared to 13.54 million TEUs in the Jan-Aug 2004 period, a 9.3 per cent rise.

But for PSA's terminals outside Singapore, the improvement in box handled was much stronger.

The 11.06 million boxes moved amounted to a 33.3 per cent rise over the previous period, thanks to volumes recorded from its new port assets in Hong Kong.

Earlier this year, PSA invested a total of about US$1 billion in acquiring stakes in Hong Kong terminals eyeing the booming China economy.

PSA has investments in 18 port projects in 11 countries from Belgium to China.

Copyright © 2005 Singapore Press Holdings Ltd. All rights reserved.

[babystan03]

27 September 2005

Over $2.5b in business spending yearly by 60 shipping groups with S'pore base
By Asha Popatlal, Channel NewsAsia

27 companies received shipping awards for their commitment in making Singapore their operations base.

To date, that means more than 60 shipping groups have now made Singapore their shipping hub for Asia.

And this equates to over $2.5 billion in business spending annually.

Those figures were revealed by Transport Minister Yeo Cheow Tong in a speech to the industry on Tuesday night.

He said there are still challenges facing the sector.

One is the need to develop maritime ancillary services like developing Singapore further as an international maritime centre.

The other is to attract more talented people into an industry not traditionally perceived as glamorous.

In fact, a special Channel NewsAsia series telecast will show a fresh side to this industry.

Mr Yeo said: "It is true that many young Singaporeans do not consider a maritime career as being attractive. Many do not know that much has changed in the shipping industry, and especially in Singapore over the past 20-30 years.

"There are now vast opportunities available. They go beyond seafaring, to include shore-based jobs such as ship broking, finance and insurance." - CNA/ir

Copyright © 2005 MCN International Pte Ltd

[babystan03]

Oct 14, 2005
PSA moves 20% more boxes globally

By Narendra Aggarwal

THANKS to booming global trade, Singapore's PSA International, the world's second-biggest container port operator, posted a sharp 20 per cent jump in its global container volume in the nine months to Sept 30.

Releasing its monthly report card yesterday, PSA said its ports worldwide, including its operations in Europe, Hong Kong, China and India, moved 29.66 million containers in the first three quarters of the year, up 20.2 per cent from a year earlier.

In the first nine months of last year, the port operator had handled 24.68 million standard containers.

The 20.2 per cent increase in containers handled up to last month was an improvement over the 18.4 per cent increase in its global container volumes recorded up to August, data posted on its website showed.

PSA's container business growth has received an additional boost since August, when it began including container data from its newly acquired Hong Kong operations, a senior official pointed out.

In June, PSA bought its second set of port assets in Hong Kong in four months to enable it to gain better access to China's booming foreign trade market.

PSA said its Singapore operations handled 16.66 million 20-foot standard containers in the first nine months of the year, up 8.7 per cent from the same period last year. This was slightly below the 9.3 per cent growth recorded in the first eight months.

Its overseas operations were the star performers, with the latest data showing a stronger 38.8 per cent growth rate for the nine months to Sept 30 - even better than the 33.3 per cent increase as at the end of August.

Besides PSA, other Asian port operators like Hong Kong's Hutchison Whampoa have been benefiting from increased demand for Asian goods from the affluent markets in Europe and the United States.

Analysts said that as global trade volumes continue to grow as a result of fairly strong global economic growth, PSA would continue to see strong business growth. Almost 80 per cent of global trade is shipped by sea.

Copyright © 2005 Singapore Press Holdings. All rights reserved.

[babystan03]

I estimated it might reach 23 million teu this year.....:yes:

[babystan03]

Star Cruise and Seven Seas marine at the cruise centre

http://img484.imageshack.us/img484/6706/pic0429315aj.jpg

[babystan03]

Close up of Star Cruise Virgo

http://img457.imageshack.us/img457/2855/pic0429611am.jpg

[babystan03]

Nov 4, 2005
INDUSTRY ACCOLADE
Third container terminal award for PSA this year

PSA Singapore Terminals has won the Container Terminal of the Year award for the third time at the 2005 Asia Logistics Awards (ALA).

This is also the third major industry award PSA has clinched this year, having won the Best Container Terminal Operator (Asia) award for the 16th time at the 2005 Asian Freight & Supply Chain Awards, and the Best Container Terminal accolade at the Lloyd's List Maritime Asia Awards 2005 for the sixth time.

The ALA is a prestigious event that celebrates excellence, innovation and efficiency across Asia's logistics industries. The awards, which started in 2002, is organised annually by the Informa Group, publisher of Lloyd's List and Lloyd's Freight Transport Buyer Asia.

PSA International's China chief executive (CEO), Mr Aaron Mah, accepted the award at a ceremony held last evening in Shanghai, China.

Ms Grace Fu, PSA International's CEO for South-east Asia and Japan, said: 'PSA humbly accepts this award, which is a glowing tribute to the dedication and professionalism of our staff, unions and management.

'PSA Singapore Terminals is expected to record healthy growth in our throughput for 2005, and we are grateful for the support of all our customers and business partners. PSA will work even harder next year to take our world-class service and excellent value to even greater heights.'

The ALA winners are selected through a two-stage process: The first stage involves a popular vote cast by readers of Lloyd's Freight Transport Buyer, and the Asian readership of Containerisation International and International Freighting Weekly, to select finalists for each of the award categories.

For the Container Terminal of the Year category, the criteria were cost of services, level of customer service, standard of facilities, overall efficiency, frequency of liner calls, use of information technology and launch/ upgrade of new services in the last 12 months.

In the second stage, an independent panel of judges, comprising industry experts, decides on the winner for each category from among the finalists.

Copyright © 2005 Singapore Press Holdings. All rights reserved.

[babystan03]

Nov 9, 2005
Shanghai may beat S'pore for top port honours

SHANGHAI - SHANGHAI could surpass Singapore this year as the world's top cargo port in terms of throughput, reports said yesterday.

Turnover is expected to hit more than 440 million tonnes in Shanghai by year-end compared to 379 million tonnes last year when it was second to Singapore, Xinhua news agency said.

The report, citing Shanghai Port Administration statistics, predicted that such a growth rate would be enough to pip Singapore for the top port honours. Shanghai's throughput in the past 10 months hit 363 million tonnes.

By comparison Singapore will handle 420 million tonnes by year-end, the report said.

In terms of 20-foot equivalent units (TEUs), Shanghai is expected to handle 18 million TEUs this year. But that will not be enough to surpass Hong Kong and Singapore.

Meanwhile, a report last week said Danish giant AP Moeller-Maersk will take a share of the second phase of a US$12 billion (S$21 billion) port in Shanghai as it bets on China's shipping boom. \-- AGENCE FRANCE-PRESSE

Copyright © 2005 Singapore Press Holdings. All rights reserved.

[babystan03]

Business Times - 14 Nov 2005

PSA container traffic up 22% in Jan-Oct period

SINGAPORE - State-owned Singapore port operator PSA said on Monday its terminals moved 22.1 per cent more containers in the first 10 months of 2005 than a year earlier, thanks to heavy trade between Asia and Europe and North America.

The firm, which operates ports in Singapore and abroad, said in a statement it handled 33.6 million twenty-foot equivalent units (TEUs), a standard industry measure, in the period, compared with 27.5 million TEUs in the same period last year.

PSA International's container growth has been lifted since August, when it began including container data from its newly acquired Hong Kong operations.

In June, PSA bought its second set of port assets in Hong Kong in four months to improve its access to China's booming export and import market.

The Singapore firm, which is wholly owned by Temasek, the state-owned investment company, spent close to $1 billion to buy a stake in a container terminal in the territory from conglomerate Hutchison Whampoa .

In February, PSA secured a psychologically important foothold in Hong Kong when it bought stakes in two terminals from NWS Holdings for HK$3 billion (US$387 million).

The volume of TEUs moved through its flagship Singapore port increased 8.6 per cent in the first 10 months of the year to 18.6 million, putting it ahead of its rival Hong Kong and making it the world's busiest container port.

Container movements at its foreign ports -- including Hong Kong -- jumped 44.1 per cent to 14.99 million TEUs.

The global shipping industry has enjoyed a boom thanks to China's roaring economy, although recently, freight rates for containers and dry bulk have declined from record highs due to slowing China demand and an expected glut of container ships.

Many of the world's container ports remain heavily congested and PSA faces increased competition from Malaysia, where port charges can be 30 per cent lower.

But PSA, the world's second-largest container port operator, says it is more efficient than others, with faster turnaround times.

PSA also has investments in ports in Belgium, Brunei, China, India, Italy, Japan, the Netherlands, Portugal, South Korea and Thailand.

Copyright © 2005 Singapore Press Holdings Ltd. All rights reserved.

[babystan03]

Looks like they really need to build for cranes for the traffic......:D

[babystan03]

21 November 2005

Singapore keeps place as world's busiest container port
By Derek Cher, Channel NewsAsia

SINGAPORE : Singapore has continued to outpace Hong Kong this year in terms of container shipment.

It overtook Hong Kong as the world's busiest container port in the first quarter of this year and has continued to keep pace.

In Parliament on Monday, the Transport Ministry said Singapore handled more than 17 million TEUs of containers in the first nine months of this year.

Container throughput grew 9.8 percent compared to the same period last year, outperforming the 2.1 percent jump in Hong Kong and the 4.2 percent growth in Malaysia's Port Klang.

The ministry says the growth also compares favourably with the Port of Tanjung Pelepas, which posted a 3.4 percent growth for the first half of this year.

Said Minister of State for Transport Lim Hwee Hua, "Nevertheless, competition remains keen, with regional neighbours competing hard to increase their share of the container transshipment business. PSA and Jurong Port will continue to upgrade their facilities and improve their efficiency and cost structure to meet the needs of their customers. We are therefore confident that we will remain the port of choice in the region." - CNA /ct

Copyright © 2005 MCN International Pte Ltd