Maritime & Shipping News [Archive]

huaiwei

October 29th, 2003, 12:32 PM

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.

"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.

**********************************************

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

Kommentare

October 29th, 2003, 01:01 PM

Rotterdam,because as i know,it's most economcal important port in the world :)

RafflesCity

October 29th, 2003, 01:34 PM

I remember for a long time, they always said that Singapore was the busiest port in the world behind Rotterdam. But I believe we have overtaken Rotterdam in that capacity:cool:

http://msnbcmedia.msn.com/j/msnbc/Components/Photos/040616/040616_maritimesecurity_hlg_1p.h2.jpg

http://www.geog.umontreal.ca/Geotrans/fr/ch5fr/conc5fr/img/singport.jpg

http://www.xanfarin.com/viajes/singapore/port.jpg

http://www.lethagencies.com/images/maps/Singapore/map_singapore.gif

October 29th, 2003, 05:33 PM

Like GreyX, I'd also like to see some numbers ;)

What I heard is that Singapore has been the worlds busiest cargo port in the last few years but that it's now overtaken by Hong Kong.

Dennis

October 29th, 2003, 10:28 PM

Shockwave

October 29th, 2003, 10:44 PM

It's still Rotterdam (as far as I know..) :cool:

huaiwei

October 29th, 2003, 10:53 PM

Some pictures from Corbis .... not too difficult to find, of coz. The real difficulty is taking my own pictures, because of all the terrorist threats and such. :rant:

http://pro.corbis.com/images/AABT001696.jpg?size=67&uid={ba5cdb9a-fd8b-4391-b20a-fd50b024ba2b}

http://pro.corbis.com/images/AABT001697.jpg?size=67&uid={2cc435fb-73b5-4b49-acef-2e0383129c9d}

http://pro.corbis.com/images/YM015090.jpg?size=67&uid={12657b25-14f3-4997-913a-b01e8d8a4b16}

http://pro.corbis.com/images/IH097602.jpg?size=67&uid={b5810cf3-98ca-4aee-947f-1e1f97da6727}

http://pro.corbis.com/images/AABT001701.jpg?size=67&uid={5d5b0d96-831f-470b-ad80-cc10f74d3c21}

There are actually 6 ports in Singapore currently, of which 3 are almost purely container terminals, and 2 are partial container terminals. One is a bulk terminal with a neighbouring shipyard. Here are some of them:

Keppel Container Terminal
Brani Container Terminal
Tanjong Pagar Container Terminal
Keppel Shipyard (now a residential zone)
Sembawang Wharves and Shipyard

huaiwei

October 29th, 2003, 11:25 PM

October 30th, 2003, 12:50 AM

Interesting interesting.. Thanks for digging up some stats.

Cliff

October 30th, 2003, 10:11 AM

That building in the very first picture of the tread bears an amazingly striking resemblence to the HDB HUB in Singapore.

ryanr

October 30th, 2003, 02:18 PM

Finally. Thanks for those stats, Huaiwei!!:) Very interesting.

And great pics! Thats a huge load of metal i see!

RafflesCity

October 31st, 2003, 12:58 AM

Both are great harbours! But I like the little extra skyline :)
http://www.skyscrapercity.com/photopost/data/2/103port.jpg

huaiwei

October 31st, 2003, 10:13 AM

Originally posted by GreyX

Finally. Thanks for those stats, Huaiwei!!:) Very interesting.

And great pics! Thats a huge load of metal i see! To you and Jo, this thread isnt conclusive yet. Wait till you see the information dug up by the Dutch! I know they can produce counter-statistics! ;)

hoogbouw010

October 31st, 2003, 09:21 PM

The Rotterdam Port Authority (http://www.portofrotterdam.com) published these statistics for world's major ports (2002 throughput in gross weight x 1 million metric tons):
1. Rotterdam / 322.1
2. Singapore / 258.1 (incl. rivertrade)
3. Shanghai / 230.0
4. Hong Kong / 192.5
5. Nagoya / 134.1 (incl. rivertrade)
6. Antwerp / 131.6
7. Kaohsiung / 129.4
8. Pusan / 114.8
9. Yokohama / 95.7 (incl. rivertrade)
10. Hamburg 97.6

Singapore is larger in containers. But Rotterdam is a large bulk port (oil, chemicals, coal, ore), which counts in total throughput and puts this harbor at #1.

sOmeOne

October 31st, 2003, 09:26 PM

Wow! Look how confusing all these crates and boxes are!!
http://www.skyscrapercity.com/photopost/data/2/103port.jpg

hoogbouw010

October 31st, 2003, 09:30 PM

Next photos: 17 April 2003.

http://www.oranga.com/pics/s200304170471.jpg

http://www.oranga.com/pics/s200304170475.jpg

Vapour

November 1st, 2003, 10:40 PM

According to the stats posted by Huiawei, #1 port city is Tokyo metro area:

Cargo

7. Chiba, Japan, 169,043,000 +
15. Yokohama, Japan, 116,994,000 +
28. Tokyo, Japan, 84,257,000 =

370,294,000 #1

huaiwei

November 3rd, 2003, 12:33 PM

Originally posted by Vapour

According to the stats posted by Huiawei, #1 port city is Tokyo metro area:

Cargo

7. Chiba, Japan, 169,043,000 +
15. Yokohama, Japan, 116,994,000 +
28. Tokyo, Japan, 84,257,000 =

370,294,000 #1 I wonder why they recognise New York/New Jersey as one port, but they dont for the Tokyo metro ones? ;)

RafflesCity

December 6th, 2003, 03:03 PM

Dec 6 2003

PSA wins award again for best container terminal
PSA CORP has once again won the Best Container Terminal Award at the Lloyd's List Maritime Asia Awards, affirming its position as a world leader in port and terminal operations and management.

The Lloyd's List Maritime Asia Awards, which were launched five years ago, recognise innovators of the maritime industry and honours companies that have improved their business practices and had a positive impact on the industry.

PSA Corporation had earlier won the award for three consecutive years in 1999, 2000 and 2001.

Its Singapore Terminals head of operations, Mr Tan Puay Hin, received the award on Thursday at a function in Shanghai.

Said PSA Corp president and chief executive Ng Chee Keong: 'PSA is most honoured to receive this award and we would like to thank all our valued customers and business associates who have voted for PSA.

'We would like to take this opportunity to pay tribute to the 200 shipping lines which call at Singapore and PSA.

'This award is a boost for the management and staff of PSA, and re-affirms the importance of continuing efforts to provide the best services for our customers.'

Meanwhile, new monthly figures out yesterday show that PSA Corp's business continues to grow.

Total TEUs (20-ft containers) handled by it grew 13.6 per cent in the first 11 months of the year to hit 25.30 million. This compares with 22.30 million in the same period last year.

Overseas TEUs handled shot up 27.6 per cent to 8.82 million, from 6.91 million.

TEUs handled in Singapore rose 7.3 per cent to 16.48 million, from 15.36 million. -- Narendra Aggarwal

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

RafflesCity

January 5th, 2004, 10:52 AM

It expects new highs in container throughput, cargo, tonnage and bunker sales

5 Jan 2004

By BETH JINKS

http://business-times.asia1.com.sg/mnt/media/image/launched/2004-01-05/bjmpa5-194506.jpg
PSA Corporation: handled 16.48 million TEUs here as at Nov 30, placing it on track to post a new record of 18 million TEUs

(SINGAPORE) A record-breaking year in 2003 will see the Port of Singapore set new highs in container throughput, cargo tonnage, bunker sales and ship calling tonnage, and full-year figures are set to secure Singapore's place as the world's biggest cargo port for another year.

Last year's port-wide results indicate both PSA Corporation and Jurong Port have enjoyed record years, and that Singapore remains the world's busiest bunkering port, based on the Maritime and Port Authority of Singapore's (MPA) statistics through end November.

Singapore's total cargo amounted to 317.13 million tonnes in the first 11 months - up 3.6 per cent on last year. The November result places the Port of Singapore on track for a full year record of 346 million tonnes, provided December meets last year's monthly average. That is 11 million tonnes - or 3.2 per cent - more cargo than the port's 2002 record.

Singapore's two container terminal operators PSA Corporation and Jurong Port handled 16.76 million TEUs in the first 11 months of 2003 - placing Singapore on track to have handled a record 18.28 million TEUs in 2003, provided December throughput meets the monthly average.

Singapore's dominant terminal operator, PSA Corporation, handled 16.48 million TEUs here as at Nov 30, placing it on track to post a new record of 18 million TEUs. The figures leave Jurong Port about 280,000 TEUs, placing the fledgling port on track for a full year throughput of more than 300,000 TEUs - up from a negligible number in 2002. Jurong Port does not release operating statistics.

Containerised tonnage dominates the total cargo figures - up 3.2 per cent, to 175 million tonnes - set to smash the 2000 record with an expected full-year total of 191 million tonnes. Oil bulk cargo contributed 113 million tonnes - up 3.7 per cent on 2002. The figure places Singapore on track to come close to matching its full-year oil cargo record of 124 million tonnes, set in 1999.

Bunker sales hit 18.9 million tonnes by Nov 30 - positioning Singapore to deliver a new record of about 20.6 million tonnes.

Vessel arrival data shows 123,653 ships called at Singapore in the 11 months - a drop from the last four years. However calling tonnage is up nearly 11 per cent, to 902.6 million gross tonnes (gt) - likely to also deliver a full-year record.

Singapore's ship registry has 3,088 ships totalling 25 million gt - a slight recovery from October which saw the lowest number of Singapore-flagged vessels in at least four years.

But Singapore's claim to the world's top tonnage port title is disputed by the world's second biggest port, Rotterdam, which has claimed since 1994 that differing calculation methods inflate local volumes.

Rotterdam's full-year 2003 throughput was 328 million tonnes, Rotterdam Municipal Port Management (RMPM) announced last week, falling short of Singapore's expected 346 million tonnes.

However, Singapore calculates its cargo in terms of freight tons, or volume, while Rotterdam, along with most other ports in the world, uses the more simple metric tonnage method, counting weight. Singapore's freight tons calculation counts the biggest of either volume or weight, unlike metric tonnes that rely solely on cargo weight.

According to RMPM, this use of freight tons means Singapore's total throughput figure must be reduced by an estimated one quarter for accurate comparison. This would give Rotterdam the top spot.

RafflesCity

January 20th, 2004, 05:26 PM

10/1/04

20% hike in capacity aimed at meeting expected box growth

(SINGAPORE) PSA Corporation plans to boost container handling capacity by 20 per cent to 24 million TEUs (twenty-foot equivalent units) a year - from 20 million - by building five berths at its Pasir Panjang Terminal.

The company also revealed yesterday that it handled a record 18.1 million TEUs at its terminals in Singapore last year, 7.8 per cent more than in 2002.

'Construction of the new berths will begin in phases, and the first two berths are expected to be operational by 2005,' PSA said.

'With the new berths, PSA will be able to cater to its projected container growth of about one million TEUs a year over the next few years.'

A PSA spokesman said that the new berths will come on-stream in stages, but would not say how much they will cost. When completed, they will raise the number of PSA's container berths to 42.

PSA chairman Stephen Lee said: '2003 started off with uncertainty, (but PSA) reinvented itself and carried out difficult changes to make the company leaner, stronger and more competitive.

'PSA is now well-positioned to ride the recovering regional and global economy and pursue our international expansion plans.'

PSA was dealt a body blow when it lost two major clients - Danish shipping line Maersk and Taiwan's Evergreen Marine - to Malaysia's Port of Tanjung Pelepas over the past three years.

In response, PSA has retrenched about 500 employees to cut costs and increased its investment overseas to bolster growth.

It has also reversed a long-standing policy, allowing a client to take a stake in its terminals. In August, China carrier Cosco bought 49 per cent of two berths in the Pasir Panjang terminal for an estimated $80 million.

'The joint venture between China's Cosco Corp and PSA Corp reflects the new approach in PSA's relationship with its customers,' said PSA president and chief executive Ng Chee Keong.

'(It) heralds the beginning of more joint ventures with shipping lines to invest in terminal operations in Singapore.'

huaiwei

January 22nd, 2004, 08:12 PM

PSA's overseas volumes surge 35% to all-time high

Solid performance due to contributions from Belgium and China operations, helping total throughput to hit record too

By Nicholas Fang

SINGAPORE port operator PSA Corp's overseas terminals handled 10.4 million containers last year, a 35.1-per-cent surge over 2002, which boosted the group's total volumes to a record 28.5 million boxes last year. Industry watchers say that PSA's strong overseas performance can be attributed to contributions from its Belgian and China operations. PSA disclosed last week that its Singapore operations handled a record 18.1 million containers last year, up 7.8 per cent from 2002.

PSA's rival across the Causeway, Johor's Port of Tanjung Pelepas (PTP), also had a record-breaking year last year as it handled 3.5 million 20-foot equivalent units (TEUs), a standard container size. This represented a 31-per-cent increase in volumes over the 2.66 million TEUs handled in 2002 and meant that PTP maintained its position as Malaysia's top container terminal for the second year in a row.

PTP chief executive Mohd Sidik Shaik Osman said in a statement yesterday: 'We will continue to target aggressive growth, especially with the expected completion of an additional 720 metres of wharves early this year.' The Malaysian port is building an additional two berths so it can handle six million containers annually, up from five million boxes at its existing six berths.

PSA announced last week that it has obtained approval to build an additional five berths at its Pasir Panjang Terminal, bringing its total number to 42 berths, with an annual handling capacity of 24 million TEUs. Earlier reports also said that there is sufficient land prepared at Pasir Panjang for the building of 20 new berths if necessary.

PSA's record volumes last year came despite a difficult year when it let go of 800 employees, slashed wages, revamped itself and was hit by Sars, the Iraq war and terrorism fears. In a bid to enhance its competitiveness in the region, PSA had earlier offered a one-year discount package to all its customers, which ended last July. PSA had also entered into a landmark agreement with Chinese shipping line Cosco to allow it to take a 49-per-cent stake in, and to operate, one of PSA's Singapore terminals.

Rival PTP has also seen consistent growth in volumes since it began operations in early 2000, but the increase has largely been due to the high-profile arrival of two former PSA customers - Danish giant Maersk Sealand and Taiwan's Evergreen Marine. Its volumes in 2000 were just over 400,000 TEUs, and rose to 2.05 million TEUs in 2001 and 2.66 million TEUs in 2002.

huaiwei

January 24th, 2004, 10:12 PM

JAN 17, 2004

PSA CORP has won back business from a feeder shipping line that had jumped ship to Malaysia's Port of Tanjung Pelepas (PTP) three years ago. Bengal Tiger Lines (BTL), a German-owned company registered in Cyprus, ceased calling at the Johor port this month and has moved its twice-weekly services back to Singapore, The Business Times reported yesterday.

The move is a shot in the arm for PSA Corp, which has, in recent years, lost Danish shipping giant Maersk Sealand and Taiwan's Evergreen Marine to Tanjung Pelepas. The switch by BTL is a watershed as it is the first time the flow of clients to the Malaysian port has been reversed.

Maersk reportedly used the feeder line to ship its export cargo meant for India and passing through the Malaysian port. However, Maersk is now using its own ships on a new service that is based in Salalah, Oman.

Feeder lines such as BTL are crucial players in the industry as they serve hundreds of smaller ports and 'feed' major shipping lines plying international trade routes. BTL is the largest operator that moves cargo between the Indian subcontinent and the south-east Asian hubs for giant shipping lines.

A BTL spokesman was quoted as saying that the move to return to PSA 'is driven purely by volumes'. He explained that continuing to ply between the Malaysian port and India would have left its vessels sailing empty for one leg of the journey. 'While we have been very satisfied with performance at PTP, we can only follow the volumes and, unfortunately, these have diminished from one player and not developed in general as expected,' BTL said.

The switch, which will earn it rebates from PSA Corp, is expected to add ballast to other main lines calling at PSA.

Mr S.C. Chan, regional director of Orient Overseas Container Line, said the move augured well for PSA Corp as BTL was a 'strong player' on the Madras-Singapore route. 'It will bring about cost savings for main lines in the long run as well,' he said.

RafflesCity

January 24th, 2004, 10:43 PM

Connectivity is extremely important. If I'm not wrong it works the same way with air hubs.

Anyway good news!
:dance:

baqthier

January 25th, 2004, 01:36 AM

Bengal Tiger lines pullout unlikely to affect volume: PTP

From Malay Mail
http://www.emedia.com.my/Current_Ne.../20040117110915

THE Port of Tanjung Pelepas (PTP), Malaysia's biggest container terminal says it doesn't expect volume at the port to be affected by the withdrawal of Bengal Tiger Lines from the port.

"There is no volume on PTP with the re-routing. PTP is still well-connected to the Indian sub-continent through existing common feeders such as QC, OEL and HRC," a PTP spokesperson said.

With the pullout, PTP is now served by 11 feeders, that connect it to ports in Indonesia, Thailand, Vietnam, Cambodia and India.

Bengal Tiger had previously called at PTP twice a week, with one call being a fixed call, while the second one was on an ad-hoc basis.

Bengal Tiger is the biggest operator dedicated to shipping cargo between the Indian subcontinent and South-East Asian hubs, providing feeder services for main lines such as Denmark's Maersk Sealand.

On Friday, the Singapore Business Times reported that PSA Corp, which runs the world's second-busiest container port, has won back Bengal Tiger from Malaysia.

It said that Bengal Tiger had stopped calling PTP early this month, after it shifted back to Singapore as Maersk has stopped transshipping Indian export cargoes through Bengal's feeder service. Maersk has instead shifted the volumes to its West Asia hub at Salalah in Oman.

Over the last couple of years, PTP had managed to win over two of PSA's biggest customers, namely, Maersk and Taiwan's Evergreen Marine Corp, and the shifting of alliance by Bengal Tiger is being touted as a victory for PSA over PTP.

As a result of losing the world's two biggest mainline operators to PTP, PSA had revoked substantial connectivity rebates worth between 15 and 25 per cent of the tariffs for feeders who also stopped at PTP.

PTP still managed to see a 31 per cent rise in twenty-foot equivalent container units (TEUs) to 3.49 million TEUs last year.

Cliff

January 25th, 2004, 02:32 AM

Yay!!!!!

huaiwei

January 26th, 2004, 09:27 PM

Originally posted by RafflesCity

Connectivity is extremely important. If I'm not wrong it works the same way with air hubs.Connectivity would be even more important in the maritime industry, where the hub and spoke system is so much more pronounced. It takes much more then being the largest shipping film in the world to build connectivity. ;)

RafflesCity

January 29th, 2004, 05:26 PM

29 Jan 2004

http://www.channelnewsasia.com/imagegallery/store/AFP/SGE_EOR47_141103064112_00_173x245.jpg

SINGAPORE : A record 986.4 million gross tonnes of shipping cargo passed through Singapore's port in 2003, a 1.5 percent increase on the previous year, maritime authorities said on Thursday.

The Maritime and Port Authority said the increase was achieved despite a 5.2 percent fall in vessel calls to 135,368, with increases in the number of containers and amount of cargo on board the ships making up for the fall.

The authority claimed in a statement the figures showed Singapore remained the world's busiest port in terms of shipping tonnage.

But spokeswoman Felicia Woo told AFP the authority did not have equivalent figures from its rivals, such as Hong Kong and Rotterdam, to confirm the claim, which she said was based on Singapore's historical number one position.

Singapore port's shipping tonnage numbers have grown steadily from 877.1 million tonnes in 1999 to 910.1 in 2000, 960.1 million in 2001 and 971.7 in 2002.

In terms of container and cargo throughput, Woo said Hong Kong was still believed to have the world's busiest port with Singapore coming in second, although this could also not be confirmed because of a lack of comparable data.

The authority's statement said the port handled a record container throughput of 18.41 million 20-foot equivalent units last year, up 8.7 percent from the 16.94 million in 2002.

Total cargo handled for 2003 was 347.69 million tonnes, up 3.8 percent from 335.12 million the previous year.

The authority said in its statement it had taken a series of measures last year to make Singapore's port more attractive, such as port dues concessions of between 20 and 50 percent. - AFP

RafflesCity

January 30th, 2004, 01:24 PM

S'pore port shatters records

30 Jan 2004

Bunker sales, shipping tonnage, container handling up last year

(SINGAPORE) Despite intensifying regional competition Singapore broke existing records for its bunker sales, shipping tonnage and container throughput for 2003, according to statistics released yesterday by the Maritime and Port Authority (MPA) of Singapore.

Container volumes handled by Singapore's two container terminal operators - PSA Corporation and Jurong Port - topped 18.4 million TEUs (twenty-foot equivalent units) for the year, up 8.7 per cent from the year before when box volumes totalled 16.94 million TEUs.

Total cargo handled for 2003 amounted to 347.69 million tonnes, up 3.8 per cent over the year before.

PSA, which handles the lion's share of containerised cargo, moved 18.1 million TEUs, up a respectable 7.8 per cent over the year before.

A spokesman for the up-and-coming Jurong Port confirmed to Shipping Times that the multi-purpose port handled a container throughput for the year of 340,000 TEUs, eclipsing its 2002 tally of 140,000 TEUs.

The Jurong Port spokesman attributed this to the addition of four new shipping lines which, along with existing customers, added eight new services at the fledgling port.

The predominantly bulk handling port currently has a capacity of one million TEUs, and will add a further 400,000 TEUs to its capacity this year.

The overall throughput of the two operators topped the record volumes of 2000 when 17.09 million TEUs of containerised cargo was handled island-wide.

Last year, Singapore ranked second behind Hong Kong in terms of overall container throughput, but comparable data on Hong Kong's performance last year is not yet available.

Despite seven straight months of falling container traffic through Hong Kong's main port facilities in Kwai Chung amid rising competition from the Pearl River Delta ports of southern China, Hong Kong port authorities are optimistic its combined handling will reach 20 million TEUs.

The jump in container volumes also boosted the total tonnage calling at Singapore with a new record of 986.4 million gross tons (GT), representing a 1.5 per cent growth over 2002.

Based on these figures the MPA said it would likely remain the world's busiest port.

The increase was achieved despite a 5.2 per cent drop in vessel calls to 135,386 calls in 2003.

Box ships contributed nearly 37 per cent of this total tonnage with 361 million GT, while tankers contributed the next largest proportion with 311.8 million GT for nearly 32 per cent of the total.

Bunker sales also set new records with 20.8 million tonnes of bunkers sold last year, a 3.5 per cent rise over 2002.

The record bunker volumes appear to indicate Singapore has cleared the fallout from the bunker scandal which rocked the local industry in 2001/2002. The MPA had last year denied that the drop in bunker sales in 2002 was connected to the scandal, but said this year that measures to strengthen the integrity of the bunker trade was behind this year's rising volumes.

These measures included more stringent quality checks and a new requirement for Custody Transfer Sampling for ship-to-ship transfer of bunkers and bunker tankers loading at terminals.

Following suit with the port's rising performance, the Singapore Shipping Registry (SRS) also set a new record with 25.57 million GT from 3,063 vessels, up 8.6 per cent from 2002. The SRS remains the 7th largest merchant fleet in the world and the largest in Asia.

The MPA attributed the increase to the registry's ongoing reputation as a quality flag along with its incentive scheme which gives an 80 per cent discount on the initial registration fee for ship owners registering a group of vessels.

During 2003, the MPA offered a 20 per cent port dues concession for container ships along with a 50 per cent concession on port dues for all cruise ships, regional ferries and passenger-carrying harbour craft as part of a package of Sars relief measures.

In championing Singapore's bid to establish itself as a leading International Maritime Centre, MPA chief executive Rear Admiral Lui Tuck Yew said the MPA would continue spearheading efforts to develop and promote the country's maritime sectors and would 'work closely with the industry to identify new initiatives and promote ourselves more aggressively.'

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huaiwei

January 30th, 2004, 10:36 PM

Quite an amazing performance when Sg lost the (then) two biggest customers to PTP years ago! ;)

szehoong

January 31st, 2004, 03:38 PM

2003 Another Record Breaking Year For PTP with 3.5 Million TEUs

JOHOR BAHARU, Jan 14 (Bernama) -- The year 2003 has been another record-breaking year for the Port of Tanjung Pelepas (PTP) with an annual throughput of close to 3.5 million TEUs.

The record, which surpassed the slightly over 3.0 million TUEs expected for the year, strengthens PTP's position as Malaysia's number one container terminal for the second year in a row.

In terms of year on growth, 2003 saw total throughput rise by 31 percent surpassing the growth of 30 percent or 2.66 million TEUs seen in 2002.

A new monthly record was also set in Oct which recorded a throughput of 332,314 TEUs.

In a statement Wednesday PTP said, of the 3.5 million TEUs handled last year, 3.33 million TEUs were transhipment containers, a 32 percent rise from the previous year's 2.54 million TEUs.

It said local cargo volumes have also steadily increased 15 percent to 150,000 TEUs.

Container vessel calls to the port saw a dramatic rise of 26.6 percent from 2,486 calls in 2002 to 3,148 calls in 2003.

Gross crane productivity has also improved from 2002 levels of 31 moves per hour to 32.4 moves per hour, a 4.5 percent rise.

PTP Chief Executive Officer Datuk Mohd Sidik Shaik Osman meanwhile dedicated the excellent achievements as the results of PTP's staff who have worked very hard and diligently to bring PTP to new heights.

"We are particularly proud that despite the increased competition, PTP has reached a remarkable growth level of 31 percent to reach 3.5 million TEUs.

"To maintain PTP's position as a premier regional transhipment hub, we will continue to target aggressive growth especially with the expected completion of an additional 720 metres of wharf early this year."

2003 also saw PTP Free Zone welcoming new customers such as Schenker Logistics as well as BMW Group who will be relocating their Asia Regional Parts Distribution Centre from Singapore to the PTP Free Zone.

Construction of the facility began in the third quarter of last year and should be operational by the middle of this year.

To add icing to the cake, the Southeast Asia's fastest growing port located at the Southwest shoulder of Johor, has been awarded the prestigious ISO 9001-2000 certification by Lloyd's.

"This is indeed an achievement by all employees in ensuring that the continuous improvement process will take PTP to greater heights in the future," the statement added.

-- BERNAMA

RafflesCity

January 31st, 2004, 05:06 PM

Originally posted by huaiwei

Quite an amazing performance when Sg lost the (then) two biggest customers to PTP years ago! ;)

Maybe it seems surprising to us because the media never stopped harping on it since then. Sometimes negative-biased reporting can have its advantages;)

weirdo

February 1st, 2004, 09:05 AM

this thread is nice. lots of interesting stuff.

huaiwei

February 1st, 2004, 12:16 PM

Originally posted by weirdo

this thread is nice. lots of interesting stuff. Too much local bias thou? :D

RafflesCity

February 12th, 2004, 09:42 AM

12 Feb 2004

By Nicholas Fang

RATINGS agency Moody's Investor's Service has upgraded PSA Corp's debt rating by one notch to the highest level, Aaa.

The ratings boost follows a corporate restructuring in which PSA Corp - Singapore's main port operator - moved its riskier international business to a holding company.

The upgrade is also a pat on the back for PSA Corp's adoption of more flexible policies which has enabled it to retain customers amid what Moody's described as 'fierce' competition.

Moody's upgraded PSA Corp's rating from Aa1 last month, and said that the outlook for the rating is stable.

Moody's said in its report: 'We understand that PSA's restructuring programme - intended to realign the group's legal structure to reflect the global nature of its operations - was recently completed.

'The process involved PSA International's elevation to group holding company status, while PSA Corp itself became a subsidiary of PSA International.'

Moody's said that this reduced PSA Corp's exposure to the greater business risk associated with the international plans of the PSA group and reinforced its current strong financial profile.

The restructuring also reinforced the strategic importance of PSA Corp now that it only owns Singapore's port assets, considered one of the Singapore Government's 'critical resources', Moody's said.

It added: 'The rating further reflects the ability of PSA Corp to absorb much of the competitive pressures and industry volatility seen over the past 12 to 18 months.

'While ongoing fierce competition is expected from neighbouring ports, PSA Corp is positioned to withstand this and absorb the consequent pricing pressures.

'In addition, regional rivals still require time to build the capacity needed to challenge PSA Corp in a sustainable and material manner.'

PSA Corp reported on Tuesday that it handled 15.4 per cent more containers last month at all its operations than in January last year.

It handled 2.4 million 20-foot equivalent units (TEUs), up from 2.1 million TEUs previously. Its Singapore operations contributed 1.6 million TEUs compared to 1.4 million TEUs in January last year, a 13.6-per-cent increase.

huaiwei

February 20th, 2004, 04:00 PM

PSA sails into new year with changes

It offloads stake in failed Yemen port venture; Changes made to corporate structure, management team

By Nicholas Fang

WITH a year of turbulent sea change behind it, PSA Corp has kicked off 2004 with even more changes. The port operator has reportedly sold its stake in a failed port venture in the Middle East for US$200 million (S$337 million) and made sweeping changes to its management team and corporate structure yet again. Key changes include a new division based in fast-growing India, which is opening its port infrastructure to outsiders.

PSA has already won praise from Senior Minister Lee Kuan Yew for introducing changes that enabled it to bounce back amid growing regional competition and other challenges, to notch up record container volumes last year.

As part of the latest changes, a report in trade journal Lloyd's List yesterday said that PSA had offloaded its 60-per-cent stake in Yeminvest, its joint-venture port management company formed with the Yemeni government, last November. The company was responsible for developing and managing PSA's Aden Container Terminal but its fortunes took a dive after a terrorist attack on an oil tanker off the Yemen coast in October 2002 killed off trade in the area.

Before that, the Aden terminal had been one of PSA's top performers, contributing 377,400 standard-sized 20-foot equivalent units in 2001 and maintaining 40-per-cent annual growth. PSA included a $125-million loss provision for the facility in its results for financial year 2002, after business was hit by prohibitive war-risk surcharges imposed by vessel underwriters after the attack. PSA declined to comment on the Lloyd's List report, which said that the 60-per-cent stake had been sold back to the Yemeni government.

Separately, PSA announced that it had implemented a number of organisational changes, including the splitting of its former 'Asia and the Middle East' division into two units - PSA India and PSA East Asia. The changes were part of the ongoing transformation of PSA into a global multinational corporation, PSA said in an internal announcement obtained by The Straits Times.

The new India division, which will be based in Mumbai, had been set up to 'ensure the current intensity and focus required' for its success there. 'Increasingly, India is opening up its borders and encouraging more foreign private sector investments in its infrastructure, including ports,' PSA said. Interim leadership for the new unit will be provided by PSA's global head of business development, Mr Kelvin Tan.

Mr Robert Yap, who headed the Asia and the Middle East division, will now assume the post of chief executive officer of East Asia and will be responsible for PSA's operations in South Korea, Japan, Thailand and Brunei.

PSA also named Mr Aaron Mak as chief executive officer (CEO) of its China division. Before joining the company at the start of the year, he was the CEO of Logistic Information Network Enterprises - PSA's Hong Kong-based rival Hutchison Port Holdings' information technology unit - for 10 years.

Former Singapore Technologies Engineering chief financial officer Kuah Boon Wee will take over the same role at PSA from April, replacing Mr Peter Kwan, who left last year after having been appointed last March.

PSA Singapore chief executive Ng Chee Keong will also assume an added responsibility in the newly created post of global head of technical and operations development and will lead the group's efforts 'in continuing to provide and maintain the highest standards of service and innovations' for its customers.

Mr Vincent Lim will relinquish his duties as group head of corporate development to move to Belgium to become executive committee chairman of PSA's Hesse Noord Natie (HNN) group of companies. His responsibilities for global corporate communications have been transferred to PSA global head of human resource Caroline Lim.

PSA also said yesterday that HNN, its Belgian port operator with operations in Antwerp and Zeebrugge, has been granted the concession for the Port of Antwerp's newest container facility, located in an area in the port known as Deurganckdok West. The new HNN terminal will have a quay length of 2,750m and a surface area of 200ha, and facilities to transfer containers for truck, rail and barge connections.

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PHOTO: ADEN OFFICIAL

huaiwei

February 22nd, 2004, 08:27 PM

PSA to pump $647m into Antwerp facility

SINGAPORE port operator PSA Corp is set to invest 300 million euros (S$647.4 million) in a new container terminal in Belgium's booming port of Antwerp, operated by its Belgian subsidiary, Hesse Noord Natie (HNN).

It said HNN had won the licence to operate the west side of Deurganckdok, Antwerp's newest container facility. To be completed by 2008, the facility is expected to double the handling capacity of Antwerp port, which last year saw container traffic grow by 14 per cent to 5.5 million standard-sized containers.

Deurganckdok West is situated on the left bank of the River Scheldt, outside of the locks, providing direct access to the river and reducing vessel sailing time.

The new HNN terminal will have a quay length of 2,750m and a surface area of 200ha. When fully operational, it will be equipped with more than 100 straddle carriers and 24 quay cranes, capable of handling vessels up to 20 containers wide. It will also have facilities to transfer containers for truck, rail and barge connections.

HNN manages four container terminals in Antwerp. Last March, PSA bought a 20-per-cent stake in the firm from Companie Maritime Belge, giving it full ownership.

RafflesCity

February 22nd, 2004, 10:30 PM

Seems that PSA has stakes in many overseas ports and I think they are an extra source of revenue.

RafflesCity

February 24th, 2004, 03:58 PM

24 Feb 2004

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SINGAPORE : The Maritime and Port Authority of Singapore (MPA) will double the number of anchorages for refuelling ships to meet increasing demand.

From March 1, there will be two new facilities on the western side of Singapore.

Singapore is already Asia's biggest marine fuel bunkering centre with nearly 21 million tonnes sold last year. - CNA

RafflesCity

March 1st, 2004, 06:24 PM

1 March 2004

Analysts see pressure from tax exemption on charter income, and PSA's new berths

MALAYSIAN businessmen are not losing sleep over Singapore's Budget measures to enhance its overall competitiveness, but Malaysian port owners could face even keener competition from the region's leading shipping hub across the Causeway, businessmen and analysts said.

'Malaysia is still cheaper than Singapore but they will give our ports a run for their money. The shipping-tax exemption is quite significant,' said a Malaysian shipper.

He was reacting to Singapore's Budget measures announced on Friday that will exempt from tax all onshore charter income received by an Approved International Shipping Enterprise (AIS).

The measure, effective from Year of Assessment 2005, was drafted to help retain and attract ship owners and operators to operate out of Singapore. Currently, the onshore charter income of an AIS company is not tax-exempt, except when the charter income is received from another AIS company.

Two other major points in the Budget are also expected to put competitive pressure on Malaysian port owners.

One is the decision by the Maritime and Port Authority (MPA) to approve port operator PSA Corp's application for land to build five new berths at Pasir Panjang, even though the plan was announced earlier.

The other was MPA's decision not to grant PSA a monopoly on container operations in Singapore. An analyst said the veto will effectively allow PSA to be more flexible in competing with Johor's Port of Tanjung Pelepas (PTP).

PTP has won over two major liners - Maersk Sealand and Evergreen Marine - from PSA in the last four years. PSA, though, has fought back with a slew of incentives and expansion plans. PTP has felt the pressure from the measures taken by PSA even before the disclosure on Friday of the fresh Singapore incentives. PTP had asked the Malaysian government for assistance earlier last month. The Malaysian government has pledged to help PTP but has yet to announce any incentives.

But Singapore's incentives for shippers are not directed at PTP alone, which is controlled by Malaysian businessman Syed Mokhtar Al-Bukhary and Maersk Sealand.

'Today, transhipment is an international business. Within our neighbourhood alone, Tanjung Pelepas, Port Klang and Laem Chabang are all vying to replace PSA as the hub port for South-east Asia,' said Deputy Prime Minister Lee Hsien Loong on Friday when he presented the Budget.

'Competition in the port industry is not really domestic but takes place on a regional or even global stage,' added Mr Lee, who is also Finance Minister.

RafflesCity

March 1st, 2004, 06:28 PM

1 March 2004

(SINGAPORE) Onshore charter income will be tax exempt from next year for shipowners and operators under Singapore's Approved International Shipping Enterprise (AIS) scheme, who were handed a bonus in the 2004 Budget.

AIS companies here will be exempt from tax on all onshore charter income they earn from Year of Assessment 2005, in a bid 'to retain and attract international ship owners and operators to operate from Singapore', Deputy Prime Minister and Finance Minister Lee Hsien Loong told Parliament during his budget speech on Friday.

The expanded tax break affects 49 companies which control more than 800 vessels that operate out of Singapore, according to the latest data available from AIS lead agency International Enterprise (IE) Singapore.

Currently, onshore charter income is only tax exempt when an AIS company charters the vessel to another AIS company here, but the new incentive scraps the current 22 per cent corporate tax on all onshore charter income earned by AIS companies.

The announcement comes as charter rates continue to soar, with many ships chartered out at record high rates amid growing demand for limited available vessel tonnage.

The AIS scheme was launched in 1991 and provides international shipping companies which base regional operations in Singapore with 10-year renewable tax-exempt status.

The exemption can be extended every five years, and is open to resident shipping companies that own and operate fleets of more than four vessels, register at least 10 per cent of those ships under the Singapore flag, and spend a minimum $4 million here annually.

Designed to attract major international ship owners to locate operation bases in Singapore, AIS is one of a raft of government schemes aimed at developing - and furthering - Singapore's international maritime centre status. Key to those ambitions have been efforts to attract more professional shipping services - including brokers and lawyers - which congregate around key shipowning hubs.

RafflesCity

March 9th, 2004, 09:48 PM

9 March 2004

Cargo tonnage and bunker sales also move up

(SINGAPORE) The port of Singapore saw container throughput jump 15 per cent and overall cargo tonnage climb 3.6 per cent in January, signalling another strong growth year ahead.

Singapore's two container terminal operators, PSA Corporation and Jurong Port, collectively handled 1.613 million TEUs in January, up from 1.403 million TEUs in January 2003.

PSA accounts for 1.6 million of the total, leaving Jurong Port with 13,000 TEUs in the first month of the year.

Overall, the port handled 30 million tonnes of cargo, with containerised cargo accounting for 56 per cent and oil 35 per cent.

Bunker sales rose 3.2 per cent to 1.86 million tonnes.

The global trend towards fewer but larger vessels has continued and is reflected in both port calls data and the Singapore ship registry.

In January, a total of 11,448 vessels arrived in Singapore - 624 less than the same month a year earlier - but tonnage was up 1.5 per cent at 85.6 million gross tons. Calls by container ships, tankers and passenger ships were all up, but the port received less ferries, tugs, barges, bulk carriers, coasters and freighters.

Singapore's ship registry had 3,065 vessels flagged at the end of January - down from 3,325 a year earlier - but again tonnage has grown 7.7 per cent to 25.4 million gross tons.

Singapore achieved record volumes in container throughput, cargo tonnage and bunker sales in 2003. The port handled 18.4 million TEUs, 986.4 million gross tons (GT) of cargo, and sold 20.8 million tonnes of ship fuel.

RafflesCity

March 9th, 2004, 10:17 PM

8 March 2004

(SINGAPORE) Singapore has sweetened its ship registry further, slashing the paid-up capital requirements for shipowners and waiving conditions on related companies in an effort to boost the national fleet.

Companies flagging ships in Singapore are now only required to have a paid-up capital of $50,000 - removing the old condition for the lesser of $500,000 or 10 per cent of the value of the ship, the Maritime and Port Authority of Singapore (MPA) announced in a circular.

Tug and barge owners' paid-up capital requirements have also been pegged to the lesser of 10 per cent of the value of the first craft registered, or $50,000. The eased conditions have a minimum of $10,000 and maximum of $50,000 - a substantial drop from the old maximum of $250,000.

Non-Singapore shipowners who are bareboat charterers registering ships here through a Singapore company need a minimum paid-up capital of $50,000.

Related companies are no longer subject to any minimum paid-up capital, the MPA said, provided they commit to registering vessels and tonnage on a sliding scale.

The waiver applies to related companies agreeing to register two ships totalling at least 40,000 net tons, three ships at 30,000 tons, four ships with aggregate tonnage of 20,000 tons, of five vessels - with no minimum tonnage required.

The move provides a strong incentive for the Singapore flag, and follows the latest Budget announcement, which extended tax exemptions for onshore chartering income for many Singapore shipping groups.

Boosting Singapore's ship registry has been highlighted as a key tool in government-backed efforts to build Singapore into an international maritime centre, to attract more shipping headquarters and professionals here. The MPA currently flags 3,065 vessels totalling 25.4 million gross tons, and has repeatedly said it wants to boost its registry with 'quality vessels from reputable companies', embarking on international delegations to encourage shipowners to register their fleets here.

But the reduced paid up capital move could face criticism from vocal opponents of open registries - dubbed 'flags of convenience' - who may see it drawing lower-quality tonnage and less reputable owners.

It is in stark contrast to the MPA's decision to double the paid-up capital requirements for bunker suppliers to $200,000 in 2002 - specifically to weed out less reputable operators following a series of corruption scandals.

RafflesCity

March 11th, 2004, 10:49 PM

11 March 2004

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SINGAPORE : Singapore's unemployment may have recently been at record highs, but there is one industry here that just can't find enough workers: the booming maritime sector, where 3,500 skilled jobs are currently vacant.

Singapore's maritime sector is projected to grow by up to around 9 percent annually over the next 15 years.

That means more job openings are on the way.

In fact, the industry could add another 83,200 jobs over the next 15 years, according to a manpower study conducted by NUS Consulting for the Maritime Port Authority of Singapore.

Currently the Singapore's maritime industry employs 116,800 people.

So, how does the port authority hope to fill all these vacancies?

"I think in the longer term we would really like to have more Singaporeans taking up a career in the maritime; hence, we are coming up with our education enhancement programmes," said Rear Admiral (NS) Lui Tuck Yew, chief executive of the MPA.

"We are looking at possibilities of transiting people from mid-career into the industry. I think in the short term, obviously there are possibilities of bringing in people from abroad to fill those jobs if there is an urgent need for them to be filled," he said.

And to do that, the port authority is working closely with local education institutions to bring in more maritime courses here.

For now, Nanyang Technological University and its partner, the Norwegian School of Management, are jointly offering the Bachelor of Science in Maritime Studies - Shipping.

"We are working very hard to grow Singapore as an international maritime centre -- bring in more companies, create more employment opportunities and grow the economy," Rear Admiral Lui said.

"We believe that if we are successful in terms of attracting the kind of companies we want to bring into Singapore there will be tremendous job growth opportunities."

The challenge will be meeting manpower needs so as not to hold back growth.

And if enough locals cannot be found, then more foreign workers may have to be taken in. - CNA

RafflesCity

March 20th, 2004, 10:14 AM

Shipping firms flock to HarbourFront Office Park

20 March 2004

NYK Line, P&O Nedlloyd, and Mitsui OSK Lines are among those attracted by the proximity to port terminals

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THE HarbourFront Office Park, consisting of three towers, is fast becoming a hub for shipping companies, given its proximity to four port terminals. The latest shipping company to head there will be NYK Line, which recently signed a lease for 60,000 sq ft at HarbourFront Tower One, sources told BT. The deal is said to boost occupancy for the 375,000 sq ft building to about 90 per cent.

Only the top floor of the 18-storey tower and some space on the third floor are still available for lease.

Other shipping lines that have relocated to the park over the past year or so include P&O Nedlloyd, and Mitsui OSK Lines. Both are in HarbourFront Tower Two (the refurbished former Cable Car Tower). The 150,000 sq ft building is said to be 35-40 per cent let. Both blocks are majority owned by Mapletree Investments, a fully owned unit of Temasek Holdings.

The third building in the HarbourFront Office park is KeppelBay Tower, which is majority owned by Keppel Group. About 60 per cent of its 395,000 sq ft total net lettable area is occupied. Keppel Corp itself has taken up two floors while other tenants include Canon Singapore and BMW.

HarbourFront Tower One and Keppel Bay Tower, both 18 storeys high, were completed in late 2002 while the HarbourFront TowerTwo was completed in Q1 2003.

Singapore is reeling from an office glut that has seen 17.9 per cent of total office space on the island sitting idle at the end of last year, according to official data. According to Jones Lang LaSalle figures, average islandwide office rents fell 18.5 per cent last year.

The space which NYK Line will occupy at HarbourFront Tower One is understood to be spread over the building's 13th to 16th levels. NYK and its related companies are moving their operations from several existing offices on the island, including Gateway at Beach Road and Suntec City, to the new location.

The shipping line's lease with Mapletree is for five years and the gross monthly rental rate is said to be 'at least $3 psf'.

Other major tenants in the building include Exxon Mobil (occupying about half the tower), Dupont, Power Seraya and the backroom operations of UBS Warburg.

huaiwei

March 23rd, 2004, 11:13 PM

Rival's $8.4b ship order puts pressure on NOL

Despite AP Moeller-Maersk's move, NOLis unlikely to take on the competition by going on a buying spree, say analysts

By Lee Su Shyan

A DANISH newspaper reporting yesterday that AP Moeller-Maersk had ordered 129 ships worth a staggering US$4.9 billion (S$8.4 billion) in the next three years is leaving rivals such as Neptune Orient Lines (NOL) wondering what to do in the face of heightened competition.

Should they keep up with AP Moeller-Maersk or allow the world's biggest container transportation group to grab an even bigger share of the lucrative market?

For homegrown NOL, there is not much room to manoeuvre, analysts say, pointing out that the company is still suffering the effects of incurring huge debts to acquire APL in 1997. The debts were partly responsible for the group suffering a loss of US$330 million in 2002.

However, NOL achieved a big turnaround in fortunes last year, thanks to rising freight rates and volumes on the back of China's surging economic growth. It also managed to reduce its debt further following a US$300-million share placement issue. The result was robust profits of more than US$428 million last year.

Despite the record earnings, analysts say NOL was unlikely to go on a grand expansion trail of mergers and acquisitions. In fact, the company has twice taken pains in recent weeks to deny market speculation that it was in talks to buy over a rival in order to grow its capacity quickly.

Analysts say that these days, NOL's policy is to add capacity in only an incremental fashion. For example, on its website, the company says it will take delivery of an additional seven vessels this year. Another three vessels have been ordered for delivery next year. At its full-year results presentation, it had said that 'capacity will grow through upsizing of vessels, adding tonnage conservatively and acquiring slots in partnership with other carriers'.

A recent report by JP Morgan pointed out that NOL would find it difficult to add much capacity, given that shipyards are unable to deliver capacity any earlier than the 2006 peak season. 'Hence, to build scale or to expand during the uptrend, the company has to consider acquisitions and mergers,' it said.

Meanwhile, NOL's share price is languishing, having fallen by 18 per cent from a peak in less than two months. Yesterday, it closed down one cent at $1.95, from a high of $2.39 in January.

JP Morgan pointed out that NOL was trading at the lowest price-earnings ratio among the regional shipping stocks, which include Orient Overseas Container Line and Evergreen Marine. It added that a part of the counter's underperformance reflects the lack of clarity over whether NOL will go down the acquisition route.

RafflesCity

March 24th, 2004, 11:40 PM

Singapore ports meet new IMO requirement for security measures

24 March 2004

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SINGAPORE : Transport Minister Yeo Cheow Tong said two of Singapore's three ports have met the International Maritime Organisation's (IMO) requirement for new security measures.

The deadline for ports to comply with the new IMO's security measures is July 1 this year.

The third port will likely get its certificate by next week.

Singapore is the world's busiest container port.

Some 136,000 ships sailed through Singapore last year and at any one time there are 1,000 ships in port.

This makes it tempting for terrorists to seize one of the ships and use it as a weapon of mass destruction.

Singapore has been quick to implement the International Ship and Port Facility Security Code drawn up by the International Maritime Organisation.

Mr Yeo said: "We are going to be one of the first countries in the world to be fully compliant. So, for example among our ports we have three ports - PSA, Sembawang Port and and Jurong Port. Of the three ports, PSA and Sembawang Port are already full-compliant. They have received their certificates.

"Jurong Port is at the final stage of getting its certificate. And I expect that probably by next week they should be getting theirs...it means that Singapore will be classified as a secure port and ships coming here will have no problems going to another port."

Among the security measures is the requirement that all ships above 500 tonnes be fitted with an Automatic Identification System.

Singapore is going even further by looking at coming out with a low cost transponder system for smaller ships.

The transponder can automatically send signals that identify the vessel and its position. - CNA

huaiwei

April 11th, 2004, 04:02 AM

I wonder if being fast in responding to security needs might translate into more business? :)

huaiwei

April 15th, 2004, 05:22 PM

PSA volumes rise 16.7%

PSA CORP shifted 16.7 per cent more containers last month compared with the same month last year, with volumes also up against February at its local and overseas terminals.

Analysts expect container volumes handled by Asian ports to rise this year, boosted by increased trade partly as a result of the furious growth of China's economy.

The port operator said yesterday that its global container volumes rose to 2.8 million twenty-foot equivalent units (TEUs) last month from 2.4 million TEUs in March last year. This was up from the 2.3 million TEUs it moved in February this year.

PSA said it handled 1.7 million TEUs last month at its Singapore terminals, the second-busiest port complex in the world after Hong Kong. The volume was up 13.3 per cent from March last year and higher than February's 1.4 million TEUs.

Its overseas terminals posted a 22.2 per cent rise in volumes handled to 1.1 million TEUs from the same period the previous year. This was also up from the 900,000 TEUs handled in February.

PSA has investments in port projects in Belgium, Brunei, China, India, Italy, Portugal, South Korea and Thailand.

From January to March, PSA handled 7.6 million TEUs, up 16.9 per cent compared with 6.5 million TEUs in the first quarter of last year.

While confronting intense competition from neighbouring Malaysia's Port of Tanjung Pelepas and Port Klang, PSA is seeking to expand its offshore terminal capacity. PSA has expressed interest in the multibillion-dollar Yangshan port project and the Nansha container terminal project in China.

Container traffic at PSA rose 16.3 per cent last year to 28.5 million TEUs, with nearly one-third handled offshore, where volumes last year swelled 35.1 per cent. -- Reuters

huaiwei

April 22nd, 2004, 11:49 PM

PSA profits swell to $683m on global economic recovery

A pickup in world trade and contributions from its Belgian unit boost earnings by 22%

By Hugh Chow

SINGAPORE'S No.1 port operator, PSA International, enjoyed a 22 per cent surge in year-on-year net profits to $682.7 million last year, as the group benefited from a recovery in global economies and trade during the second half of the year.

The PSA group - which used to be called PSA Corporation - saw revenues rise by 15 per cent to $3.4 billion in the 12 months to December, as trade between countries picked up again after the Sars outbreak paralysed businesses in much of Asia early last year.

Profits were also boosted by full-year revenue contributions for the first time from Belgian subsidiary Hesse Noord Natie as well as a stronger euro, which gained 17 per cent in value against the Singapore dollar over the year.

Last year, the group finally managed to arrest an annual decline in net profits since 2000.

In 2000, the group had earnings of $803.3 million. A year later, this figure fell to $732.2 million and in 2002 this had slipped further to $559.9 million.

At a media conference yesterday, PSA's new chief financial officer, Mr Kuah Boon Wee, said: 'The trend here is that the overall economic recovery is coming through to our businesses.'

PSA terminals around the world handled 17.1 per cent more cargo last year compared to the year before, as about 28.7 million standard containers - known as twenty-foot equivalent units (TEUs) - passed through their hands.

Of this figure, some 18.1 million TEUs were handled by the flagship Singapore operations - which is one of the busiest ports in the world.

The group - which is owned by Temasek Holdings - underwent a painful belt-tightening exercise last year when about 800 staff were laid off since February and wage levels were overhauled and linked more closely to individual performance.

In addition, PSA sold off supplementary businesses in airport-handling, cruise terminals, exhibitions and cable cars in a further attempt to cut costs.

In a statement, PSA International chief executive Eddie Teh said: 'We have had to make tough decisions to reduce costs to stay competitive, and to rationalise our portfolio of investments by divesting non-core assets.'

Along with these changes came a change in name to better reflect the group's overseas ambitions.

In December last year, the group became known as PSA International. PSA Corporation currently refers to only the domestic Singapore business.

Revenues from the domestic business - PSA Corporation - grew 1 per cent last year to $1.5 billion, while net profits increased by 7 per cent to $694.3 million.

Mr Kuah explained that even though the overseas operations had been profitable, the company's management had seen it fit to set aside large provisions which meant that in accounting terms they were money-losing.

This dragged down the group's bottom line to a level which was below the net profits made by the Singapore operations on a stand-alone basis.

huaiwei

April 23rd, 2004, 05:12 PM

Better bonuses on the cards after good PSA results

Last year's decision to 'swallow the bitter pill' of wage restructuring was the right thing to do, says union chief

By Sue-Ann Chia

LOOKING back, port workers' union chief Lee Mun Hou said last year's decision to 'swallow the bitter pill' of wage restructuring was the right thing to do.

It means members of his 4,000-strong union can look forward to better bonuses this year after the sterling financial results posted on Thursday by PSA International.

'The decision to implement wage restructuring reaped positive results. The lower fixed costs allowed PSA to quote competitive rates, and this has resulted in more business,' the Singapore Port Workers' Union (SPWU) president said yesterday.

'PSA has made profits and the workers now enjoy a higher income.'

Yesterday, a PSA Corp spokesman said that under an incentive scheme, top performing employees can look forward to up to four months of bonuses, while competent performers can expect bonuses of one to two months. The wage agreements 'allow our staff, especially those who contributed more, to have a share in PSA's success'.

He was reponding to an SPWU statement yesterday saying the improved results meant that more money can be set aside for bonuses in the 'performance incentive pool', which will be distributed to employees according to individual performances.

Workers, the statement added, can also count on receiving another variable payment later this year, under the 'gain sharing incentive scheme', which is linked to the company's cost savings.

'Once a company achieves the target, the savings are ploughed back and shared among all the workers,' said Mr Lee, adding that 'we are on target'.

The maximum workers can receive under this is an additional 0.8-month payout.

PSA International's year-on-year net profit had surged 22 per cent to $682.7 million last year, and the PSA group saw revenues rise 15 per cent to $3.4 billion in the year ending December.

While the turnaround was attributed to a recovery in the global economy and trade in the second half of last year, the SPWU said credit should also be given to workers who endured a belt-tightening exercise last year. Mr Lee said: 'The decision is now bearing fruit and we are glad that PSA is now back on the right track to good health.'

About 800 staff have been laid off since February last year, and wages overhauled and linked more closely to individual performance.

Said PSA International chief executive officer Eddie Teh: 'Our staff and union in Singapore rallied steadfastly behind the company in 2003, and we succeeded in rising to the challenges posed by our competitors.'

Port Officers Union president Tan Hoon Kiang said this year's bonuses should put to rest initial fears that workers would receive less after a wage revamp. 'Returns to staff should be quite good. For those performing well, the gains are actually greater.'

RafflesCity

April 23rd, 2004, 08:25 PM

I wonder if being fast in responding to security needs might translate into more business? :)

I guess it would be a long-term benefit or an advantage for shipping to places that enforce this requirement.

huaiwei

April 25th, 2004, 11:17 PM

NOL unit counters talk of plunge in freight rates

APL chief challenges recent bearish forecasts, noting that analysts have underestimated the growth in demand for shipping services in the past

By Hugh Chow

RUMOURS of an imminent demise in shipping freight rate hikes have been greatly exaggerated, reckons Mr Ron Widdows, head of Neptune Orient Lines' (NOL) container shipping arm APL.

APL's chief executive officer (CEO) is keen to counter recent warnings from industry-watchers who see a sharp drop in freight rates as early as next year as the supply of new ships threatens to outstrip demand for cargo transportation.

The dramatic recovery of freight rates - the price charged by shipping companies to transport goods - had been an important factor behind NOL's dramatic return to profitability last year after two consecutive years of losses.

Average freight rates increased 20 per cent last year as improving economies stimulated greater consumer demand for goods as well as the services of marine transport firms.

Many shipping lines, including Hong Kong-based OOCL and indeed NOL, have ordered new ships in efforts to take advantage of rising rates and greater levels of trade between countries.

Citigroup Smith Barney analyst Charles de Trenck said in recent reports that the industry is now ordering a number of ships equivalent to 42 per cent of current capacity.

This is usually a precursor to downturns, he wrote.

But Mr Widdows, who heads a division that accounted for nearly 76 per cent of NOL's turnover worth US$5.52 billion (S$9.32 billion) last year, is unmoved by the pessimistic predictions of such industry-watchers.

He said: 'The one thing that has been true over the past three years, and maybe going forward, is that nobody has been able to project the growth in markets.

'You know the ships are coming, but there's no way to project with certainty exactly what trade routes those ships are going to be deployed, or exactly the time horizon.'

Analysts have consistently underestimated the growth in demand for shipping services, said Mr Widdows.

His 30-year career in the shipping industry has taught him to be sceptical of many forecasts.

'If you were to cycle back a year ago, people were projecting excess capacity in 2004.

'Not only is there no excess capacity, but also the world's supply of container ships that exists today is fully employed,' he said.

Long-term factors such as the growth of trading activity around the world, the transfer of cargo traditionally moved by bulk carriers to container ships and the shift of manufacturing activities to Asia have driven the expansion of container volumes in this region.

Economic recovery driving consumer demand in the United States and Europe is also helping to boost business.

Moreover, Mr Widdows highlighted the disparity between nominal capacity - the number of ships and how much they can carry in theory - and how much this capacity can be used effectively.

For example, draught limitations - how deep in the water you can load a ship - mean that ships beyond a certain size cannot be loaded to their full capacity.

This is the case with ships passing through the Panama Canal or those docking at ports such as Shanghai and New York because of the limited water depth. 'So you get physical limitations which affect how much of the physical capacity of a ship you can use,' he said.

This is why he reckons that it will be smooth sailing for the industry for at least this year and the next when he expects demand for container shipping to continue outpacing supply.

He said: 'At some point in time there will be a softening of demand, but it's a little further out than some folks have predicted.'

babystan03

May 6th, 2004, 08:16 AM

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.

RafflesCity

May 8th, 2004, 08:33 AM

PSA and Jurong Port enjoy higher volumes

8 May 2004

PSA handles record-matching 1.7m boxes here last month; Jurong Port chalks up 129% year-on-year growth

By Nicholas Fang

PSA CORP has done it again.

After March's record monthly volumes of 1.7 million shipping containers, the port operator matched that by handling 1.7 million containers at its Singapore operations again last month.

Not to be outdone, Singapore's No. 2 port - Jurong Port - turned in year-on-year growth of 129 per cent last month with 48,000 20-foot equivalent units (TEUs), or standard containers, handled.

PSA's 1.7 million TEUs handled in March and again last month represented the highest monthly volumes since the containerisation of its operations in 1972.

Last month's volumes were also 21.4 per cent higher than the 1.4 million TEUs handled in April last year.

Volumes at PSA's overseas operations surged 22.2 per cent from 900,000 TEUs in April last year to just below 1.1 million TEUs last month.

Analysts attributed the strong performance to good trade flows and the growth of the world economy in recent months. As a result, most ships have been carrying full loads of cargo and shipping rates have risen.

Combining Singapore and overseas operations, PSA handled 2.7 million TEUs last month, a 17.4 per cent increase over the corresponding period last year.

For the first four months of this year, the group handled 10.4 million TEUs, which was 19.5 per cent higher than the 8.7 million TEUs in the previous corresponding period.

PSA last month reported a 22 per cent surge in year-on-year net profits to $682.7 million last year.

Its revenues rose 15 per cent to $3.4 billion in the 12 months ended Dec 31, as trade between countries picked up again after the Sars outbreak paralysed businesses in much of Asia early last year.

Jurong Port also announced yesterday that its volumes last month had surged 128.6 per cent to 48,000 TEUs.

This brings its year-to-date volumes to 182,000 TEUs, or 133.33 per cent higher than the 78,000 TEUs recorded in the first four months of last year.

A Jurong Port spokesman said that the strong growth was due to new services and shipping lines calling at the port since last year.

She declined to disclose the new lines that were calling at the port, but The Straits Times understands that French shipping line Delmas and Singapore's New Econ Line have begun using Jurong Port.

Separately, recent statistics released by the Maritime and Port Authority of Singapore showed that the Port of Singapore as a whole enjoyed strong first-quarter growth in cargo throughput and sales of shipping fuel.

Cargo for the three months ended March was up 9.1 per cent over the same quarter last year, at 90.7 million tonnes, while container throughput rose 13.8 per cent to 4.8 million TEUs. Shipping fuel sales grew 6.3 per cent to 5.5 million tonnes.

babystan03

May 10th, 2004, 08:15 AM

Business Times - 10 May 2004

JOHOR

Move triggered by higher freight rates, proposal to raise port charges

SEVERAL shipping lines which call at Johor port seem to be scurrying away from its waters as a result of higher freight rates and a proposal by the port to hike charges, The Star reported.

With freight rates hitting historical highs, the shipping lines have started bypassing some of the smaller ports and reducing the number of less lucrative services, in the hope of reducing costs.

Most of Johor Port's cargo is import and export-based, which could result in its clients opting for their containers to be transported by feeder ships to, or from Singapore, before being distributed, the report said.

'The longer a vessel is chartered the more expensive it is. Thus only the larger, more important ports are included on a charter trip these days, leaving the smaller terminals for feeder lines. This is the drawback of strong freight rates,' an official from a shipping company explained.

Analyst Daniel Griffin from Avenue Securities, however, says that this may just be a knee-jerk reaction to the high freight rates and proposed increase in port charges.

The Star quoted a Johor Port official saying: 'Shipping is a cyclical business, services leaving and new ones coming are part and parcel of the business, we don't actually view it in a negative manner... it's just business.'

But looming in the horizon is Johor Port's proposed 25 per cent rate hike, which is still under discussion, The Star report said. As it stands, the port's charges of RM180 (S$81) per 20-ft equivalent unit (TEU) and RM270 per 40-foot equivalent unit are among the cheapest in the region, the report added.

'Johor Port would have definitely taken into consideration the negative impact of a rate hike. But the rationale behind the move is to increase efficiency and acquire more quay cranes.

'After all, its current rates are among the lowest in the region. Bear in mind, that the rate hike is merely a proposal and has yet to become a reality,' The Star quoted an industry observer as saying.

Even so, some main line operators seem to have already decided to move. Industry sources told The Star that come May 17, Japan-based Kawasaki Kisen Kaisha Lines plans to halt its Japan service from Johor.

It is further believed that by June, a consortium of Korean shipping lines led by Hyundai Merchant Marine, is also looking to cut down some of the services provided through the port.

'It does not make economic sense to call at both Johor Port and Singapore. It's cheaper to just transport the boxes to or from Singapore,' the shipping official added.

Johor Port registered net profit of RM83.59 million on the back of RM312.14 million in sales last year.

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

huaiwei

May 11th, 2004, 12:11 AM

Venture partner sues PSA and P&O Australia

By Elena Chong

A SINGAPORE businessman who teamed up with two major port operators during the dot.com boom has now taken the pair to the High Court, for alleged oppressive conduct.

PSA International and P&O Australia Ports took equal stakes in P-Serv Technologies (PST) in September 2000, investing nearly $30 million so that the firm could develop and market a real-time track and trace system for container boxes globally.

Users of the track and trace system would be given up-to-date information on their containers, including the location and status of the containers.

But PST founder Ng Sing King, better known as Mr Paul Ng, 41, along with six associates, now claim that as minority shareholders, they have been oppressed and want a buyout at a fair value by PSA International and P&O.

After the deal with PSA International, a subsidiary of PSA Corp, and P&O, PST's name was changed to eLogicity International.

Mr Ng was eLogicity's chief executive officer (CEO) until he was removed on April 12, 2002, together with the senior vice-president corporate, Mr Lim Koon Hock, 48. Both men remain as directors.

The plaintiffs claim that the affairs of the company have been conducted in a manner prejudicial to them and disregarding their interests as shareholders. They now want their shares in the company to be bought from them at a fair value by the two port operators or either one of them.

PSA International has counter-claimed against the plaintiffs for alleged misrepresentations contained in the company's business plan given to its parent company, PSA Corp.

The counter-claim is for the difference between the purchase price and the present value of PSA International's shares in the company.

P&O has petitioned that eLogicity be wound up on the grounds that the shareholders cannot work together and the business is not viable.

In his opening statement yesterday, the plaintiffs' lawyer, Mr Andre Maniam, claimed that the defendants and their nominee directors collaborated with competitors of the company to the exclusion of the plaintiffs.

He also alleged that they usurped the role of the company's management. The plaintiffs also alleged that the defendants had diminished the value of the company.

The defendants will argue that the action is misconceived. They will allege that the company's poor financial showing is a direct result of Mr Ng's mismanagement as CEO of the company.

An offer was made to the plaintiffs in July 2002 to wind up the company, and for all the shareholders to go their separate ways but instead, the plaintiffs commenced proceedings against the defendants.

The hearing is fixed for four weeks before Justice M.P.H. Rubin.

Mr Maniam is assisted by Mr Melvin Chan. Senior Counsel K. Shanmugam and Dr Stanley Lai act for PSA International while Mr Thio Shen Yi and Mr Collin Seah represent P&O.

babystan03

May 11th, 2004, 08:42 AM

Business Times - 11 May 2004

(SINGAPORE) Jurong Port more than doubled its container throughput in April, handling 48,000 TEUs, compared to just 21,000 TEUs in the same month a year ago. The fledgling port has seen its box throughput soar 133 per cent in the first four months of 2004, handling 182,000 TEUs.

Jurong Port, being promoted as a local competitor and alternative to PSA Corporation, will expand its annual container capacity to 1.4 million TEUs by year's end. It is also expected to double its 2003 throughput of 340,000 TEUs this year.

PSA's April throughput was up 21 per cent to 1.7 million. Singapore's dominant container terminal operator has handled 6.1 million TEUs here in the first four months of 2004, up 14 per cent. Singapore terminals handled a record 18.4 million TEUs last year.

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

RafflesCity

May 11th, 2004, 12:08 PM

Business Times - 10 May 2004

'It does not make economic sense to call at both Johor Port and Singapore. It's cheaper to just transport the boxes to or from Singapore,' the shipping official added.

Strange but 2 years ago, it sounded the other way round huh ;)

babystan03

May 11th, 2004, 05:36 PM

Strange but 2 years ago, it sounded the other way round huh ;)

Perhaps it shows that those rate cuts and restructuring actually works?? :D

huaiwei

May 11th, 2004, 07:59 PM

What goes round...comes around? :D

babystan03

May 11th, 2004, 08:01 PM

What goes round...comes around? :D

Hopefully your prediction is correct.....haha.....:D

But seriously speaking, so long as they keep a tab on cost....it will be a good strategy......:D

huaiwei

May 11th, 2004, 08:09 PM

Hopefully your prediction is correct.....haha.....:D

But seriously speaking, so long as they keep a tab on cost....it will be a good strategy......:D
In the end...it seems like a measure of who has deeper pockets to sustain price cuts longer?

babystan03

May 11th, 2004, 08:10 PM

In the end...it seems like a measure of who has deeper pockets to sustain price cuts longer?

I guess so or maybe it's who is able to satisfy the customer more.....:D

huaiwei

May 11th, 2004, 08:46 PM

I guess so or maybe it's who is able to satisfy the customer more.....:D
It takes time to offer excellent service, which includes the world's fastest turnaround times, excellent logictical support, as well as countless other related factors. All that at a competitive price? :D

babystan03

May 12th, 2004, 03:19 AM

It takes time to offer excellent service, which includes the world's fastest turnaround times, excellent logictical support, as well as countless other related factors. All that at a competitive price? :D

So long as those edges are maintained at a competitive price, customers will be more than satisfied.......:D

I agree it takes time to offer an excellent and ultra efficient service.......but we have to move with times too....:)

babystan03

May 12th, 2004, 09:22 AM

Business Times - 12 May 2004

By BETH JINKS

(SINGAPORE) Malaysia's Port of Tanjung Pelepas (PTP) says it set a new world record for berth productivity yesterday with 340 moves an hour, loading and unloading the Maersk Sealand vessel AP Moeller.

The Johor port said the achievement eclipsed the former world record of 336 gross berth moves set in 2001. PTP's former productivity record was 302 moves an hour, set in February.

The port said it used eight super post panamax cranes on the AP Moller after it arrived from Algeciras, Spain, allowing operations to wrap up in 13 hours.

Maersk Singapore's Henrik Jorgensen described the performance as 'a fantastic achievement', PTP said in a statement. The world's largest container line had earlier praised PTP's strengthening productivity, which has been partially attributed to its ability to focus equipment on two major customers.

PTP currently operates six berths along a 2.16 km quay and handled 3.5 million TEUs last year - up 31 per cent on 2002, and continues to enjoy strong volume growth this year, notching up a 27 per cent increase in the first quarter.

The port has embarked on an ambitious second phase expansion of dredging and reclamation works, which will boost its annual handling capacity to about six million TEUs by mid-2004. The expansion will eventually add eight new deepwater berths along an additional 720m quay.

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

babystan03

May 13th, 2004, 05:25 AM

MAY 14, 2004
PSA and Jurong clinch best port operator awards
By Nicholas Fang

SINGAPORE'S two port operators have beaten competitors in the region to yet again clinch top awards at the annual Asian Freight and Supply Chain Awards (AFSCA) held in Shanghai.

PSA Corp was voted the best container terminal operator in Asia for the 15th time in 18 years, while Singapore's No. 2 port, Jurong Port, bagged the award for best emerging container terminal operator in Asia.

This is the second consecutive year that Jurong Port has received the accolade, it said in a news release yesterday.

The awards, held on Wednesday, were organised by Hong Kong-based cargo trade journal Cargonews Asia and the results were determined by a survey of Cargonews readers across the region.

Separately, Jurong Port yesterday said that it has been selected by recently formed joint-venture firm Pacorini SembLog to be its transhipment hub port for metals traded on the London Metal Exchange (LME).

Pacorini SembLog is a 50:50 joint venture between SembCorp Logistics and Italian metal logistics company B. Pacorini and provides logistics solutions for the metals industry and other products and commodities.

Jurong Port is accredited by the LME as a 'good delivery point' for the storage of non-ferrous metals.

It will provide warehouse and berth facilities to Pacorini SembLog, the port operator said.

The first shipment is expected to arrive in the second quarter of this year.

--------------------------------------------------------------------------------
Copyright @ 2004 Singapore Press Holdings. All rights reserved.

babystan03

May 13th, 2004, 09:37 AM

Time is GMT + 8 hours
Posted: 13 May 2004 1405 hrs

By S Ramesh, Channel NewsAsia

SINGAPORE : The government's calls to take maritime and port security seriously have not fallen on deaf ears.

A special security device used by the US Department of Defence to track nearly 800 ships in 60 countries is now being tried out by logistics companies in Singapore to keep track of their containers.

The device is aimed at ensuring terrorist do not get their hands on cargo containers out at sea.

Singapore's port has been ranked the busiest in the world time and again.

With thousands of containers passing through its port each day, it is no surprise that security is a major concern, especially with the global concerns over weapons of mass destruction and dirty bombs.

Among the latest security devices being tested out at Sembcorp's logistics centre is the Smart and Secure Tradelane, a gadget which the US Defense Department has been using for ten years already.

It is a lock which uses an e-seal.

Once this container is sealed with a lock at the logistics centre, information about what goods it contains is entered into a PDA.

Once the container leaves Singapore's ports, it is closely monitored wherever it stops until it reaches its destination.

This is done with the help of radio frequency identification.

The logistics centre which loaded the goods, is then able to track the movement of the container at every port the cargo stops at.

Any attempt to tamper with the seal will automatically be relayed to the PDA, triggering an alert.

"Besides just securing it with the lock, (the intention) is to incorporate it with light, motion as well as temperature sensors. With the sensors incorporated and built in place, you could now even determine if someone has drilled a hole in the container wall," said Lim Chee Kean, President, Savi Technology.

This smart and secure device has so far been tried out in ports like Hong Kong, Taiwan and Singapore.

And it has reported 100 per cent success - even if the container was just shaken slightly while unloading it.

Said Winson Heng, Managing Director, Bearing Point: "Because of advanced clearance requirements, using the appropriate technology as well as the solutions will actually result in more cost benefit to the organisation and alternately to the customers." - CNA

Copyright © 2004 MCN International Pte Ltd

babystan03

May 13th, 2004, 02:57 PM

MAY 14, 2004

Strong demand and higher freight rates help shipping line improve first-quarter results, with revenue growth of 16%
By Nicholas Fang

SINGAPORE shipping line Neptune Orient Lines (NOL) has turned in sparkling results for the first quarter, with a 705 per cent surge in net profit to US$163.2 million (S$282 million) from a year earlier, due to strong demand and higher freight rates.

The company said that its core liner business and its logistics unit had both achieved good results in the first three months ended April 2.

NOL chairman Cheng Wai Keung said at a results briefing yesterday: 'The management team is not resting on its laurels after the record results of last year.

'They have maintained fiscal discipline and a tight control on costs to keep the momentum going. The result is that we have performed better than many others in the industry at this point in the year.'

NOL posted a 16 per cent rise in revenue to US$1.55 billion from US$1.34 billion for the first quarter last year. Its net profit included exceptional items such as US$8 million from the sale of its smaller product tanker division, Neptune Associated Shipping, in March; and US$3 million from the sale of other small assets and some write-backs.

NOL's liner unit, APL, saw sales rising 29 per cent to US$1.2 billion, contributing 72 per cent of the group's total turnover.

The shipping line's APL Logistics business registered a 25 per cent increase in turnover to US$288 million, or 17 per cent of total turnover.

NOL said that it had seen stable freight rates across the major trade lanes.

Group president and chief executive officer David Lim said at the briefing yesterday that the growth in liner volumes in the traditionally slower first quarter also reflected a number of initiatives put into effect by the liner team. 'They worked hard to secure cargo to keep our ship utilisation at a high level, and to maximise the use of our assets by careful management of our networks.

'The tight supply in the charter market and rising oil prices have put pressure on our costs. Nonetheless, we managed to reduce costs in our liner operations by US$17 million in the first quarter and are on track to achieve our target of reducing costs by US$100 million for the whole year,' he said.

Elaborating on the impact of rising oil prices in recent weeks, Mr Lim reckoned that higher bunker fuel prices could add US$10 million to fuel costs for the full year, after offsetting part of the price hikes through fuel surcharges and hedging strategies.

Earnings per share for the group surged to 11.41 US cents from 1.72 US cents previously, while net asset value per share rose to US$1.03 from 91 US cents as at Dec 26 last year.

Mr Lim said that the company would be able to grow both volumes and profits for the rest of the year on the back of robust growth trends in global trade and the rapid development of markets in Asia, Europe and elsewhere.

'Ocean transport will remain our core capability, but we will add to this by building up other capabilities in the supply chain to deliver higher value to our customers.'

--------------------------------------------------------------------------------
Copyright @ 2004 Singapore Press Holdings. All rights reserved.

huaiwei

May 13th, 2004, 03:00 PM

MAY 13, 2004

SINGAPORE'S seaport was named the best in Asia for the 16th time at the annual Asian Freight and Supply Chain Awards (AFSCA) held in Shanghai yesterday.

Singapore has won the award, organised by Hong Kong-based industry journal Cargonews Asia, 16 times over the past 18 years.

The Maritime and Port Authority of Singapore (MPA) said that this accolade once again attests to the strong vote of confidence that the international maritime community has in the Republic as a premier port and international shipping hub.

MPA also said that the awards recognised and honoured outstanding organisations which had shown leadership in the cargo transport, freight and supply chain sectors.

Going forward, MPA said it would be working with industry partners to identify ways to improve the services offered at Singapore's port further.

--------------------------------------------------------------------------------
Copyright @ 2004 Singapore Press Holdings. All rights reserved.
Whoops.....an award?! :D

babystan03

May 13th, 2004, 03:12 PM

Whoops.....an award?! :D

Haha.....another attempt at "wild" thinking?? :D

babystan03

May 15th, 2004, 08:37 AM

Business Times - 15 May 2004

At the helm of NOL

Ten months after his closely followed appointment to the hotseat of one of Singapore's corporate icons, NOL chief David Lim can let results speak for themselves. GEORGE JOSEPH talks to the former minister

IT'S just 10 months since David Lim took over the reins at the NOL Group, one of Singapore's corporate icons.

But after an uneasy calm, when analysts and the media attempted to portray him as someone new to the container shipping business, the former government minister, who once also headed port operator PSA Corporation, can now let the results speak for themselves.

NOL is riding a wave of success, brought about both by surging freight rates and a slew of management actions taken to realign the way the company did its business.

When Mr Lim, 48, agreed to take over as group CEO at the listed ocean transportation group in July last year, he was not really tracking the company and was not very much aware of the difficulties NOL was facing. But the former Colombo Plan and President's Scholar just saw it as another challenge.

'The difficulties in the company did not factor a lot in my thinking about whether or not to accept the job. I thought the job was a challenge, and fitted well with my experience and interests,' he said in an interview with BT at his 25th floor office with a commanding view of the PSA container terminals.

'Most of my career, outside politics, has been in the economic and industrial sectors. So the NOL opportunity was something that I would have considered before I took up political office, and it was something natural to consider when returning to the private sector,' said Mr Lim, who was trained as a civil engineer and began his career with the Ministry of Defence developing computerised logistics systems for the Air Force and Navy.

The bigger concern for him when joining NOL, however, was if people would think that this was a shoo-in, a pre-arranged move to ease his return to the private sector. For, after all, he was leaving the government front benches just after over five years in politics. He was then acting Minister for Information, Communications and the Arts.

'I told the chairman (of NOL) that I would not take the job if he had been asked to offer it to me. And I insisted that I meet with the outside directors of the selection committee, and unless they felt I was the right person for the job, I was not going to take it,' he said candidly.

'I was actually planning to take a break before starting work in the private sector, but when the offer came, NOL could not wait. And given the problems they were facing, I could not delay my start date to suit my own personal preferences. So I only took a short break after accepting the job, and I've been busy since.'

Busy, he had to be. The corporate sector will remember the time when Mr Lim plunged into the scene, and onto a hotseat.

Singapore media and the international maritime press had been churning out story after story, analysing the sudden departure in January 2003 of Flemming Jacobs, the Danish shipping executive who only about three years earlier was recruited in a high-profile induction of foreign talent, to head the then-ailing and highly leveraged NOL Group.

The dreaded red ink was flowing and the company was straddled with US$2.8 billion in debts with no dividend payments to shareholders since 1997.

Learning the ropes

Mr Lim realised that he had to sit down and peel the onion. It has not been easy, but there has been no lacking in determination to master the business as quickly as possible.

Over the last 10 months, he acknowledged, he gained a better sense of the shifts in the industry and the opportunities that are really out there to be worked on.

'I think it is a very interesting and exciting industry to be in. It is full of growth. Container shipping has been around for 30 years and ships have been around for hundreds of years, so it is an old industry, seen as a bit stodgy.

'But we see opportunities really everywhere within the industry, in our traditional segments, in new segments as the global customers demand new solutions, in our existing geography as well as the new geographies.'

To move the group forward, the newly-appointed group president and CEO made several trips to the company's business locations all over the world and also had executives fly in regularly for brainstorming in Singapore.

Having grasped the container and logistics business trends and gained an understanding of the different phases of development NOL went through over the past six or seven years, Mr Lim focused his mind on where to take the group over the next six or seven years.

Taking a step back into shipping history, Mr Lim said the industry saw two or three major developments over the last cycle - over the last five or six years.

'One, we had new players coming in and some players expanding very rapidly. For example, China Shipping is a company that was not there when we first started exploring the position of APL, NOL's container arm. It started in 1997, about the same time as we bought APL. That's grown to a company the size of NOL combined with APL. So it has grown very rapidly.

'Second, the industry is beginning to become more competitive, in a different way compared to its earlier beginnings when it relied on US anti-trust provisions to do business.

'The anti-trust provisions have weakened over the years, or rather, the anti-trust protections have weakened. Business is entering into a different phase where we are more focused on cost and service as a basis to create business, to attract customers and to grow.

'Through the last cycle, we had a very bad year in 2002 where business was expanding, volumes were high, supply was tight and yet the industry was losing money. We lost a lot of money that year. Many companies, good companies, either made very little money or also lost money. And I think the industry has responded to it since then. It has become more aware of the need to focus on fundamentals, to take a more disciplined financial approach, looking at how we ought to structure pricing, how we ought to respond to market conditions in a sensible, rational, logical way.

'This doesn't mean the end of cycles, but I think it does signal perhaps a different thinking on how we ought to approach the inherent cyclicality that is within the industry.

'So as I talk to the CEOs who are the leaders of other shipping lines, I sense there are ambitions to grow. There is also a greater cognizance of the importance of dealing with market forces and responding appropriately.

'But it is globalisation that is gaining greater traction now and the effect it is having on customers is being increasingly felt,' he adds, as he articulated his thoughts on the shipping and logistics industry.

Mr Lim sees a need by customers for more than just ocean transportation - they need freight management across the entire supply chain.

'The need of customers today is really to bring a box (container) from their 50 or 100 different factories scattered around the world to the 20 different distribution points in their market locations.

'And their market locations are more than North America or Europe today - they are very rapidly changing also to the markets that are producing the goods. So more companies are moving into China, into the developing countries.

'So, it's no longer just an ocean transportation need anymore. Companies are beginning to say, how can I better deal with the complexity, and is there more value to be counted out from the entire logistics and transportation function than looking at the pieces?

'It's very much like saying, do I just relocate a factory to a cheaper location, or do I re-engineer my entire production line so that I am not taking just one factor into account - the cost advantage of moving a factory overseas - but rather thinking of my entire production, so that I am manufacturing on a global basis. And that means putting things together in the most cost effective way to supply the markets.

'So, as much as it has happened in manufacturing, it is also beginning to happen in transportation and logistics which supports the manufacturing.

'This is, I think, something that the shipping lines are beginning to be more aware of and certainly the logistics suppliers are very aware of.

'Supply chain concepts have been around for a long time, except that in terms of implementation, it tended to be more piecemeal rather than truly across the entire supply chain. A number of companies do it, but I think it is still fairly early in terms of meeting their customer needs.

So, it's both the customer need that is growing as well as the companies that recognise this and which are moving into this space, he says.

Shifting waters

'The shipping industry itself is shifting, is maturing, is moving away from the tradition of relying on a certain old way of doing business, becoming much more market-oriented and market-force driven.

'And then the positioning of ocean transport within the larger sphere of freight movements and freight management is the second trend that I see. So we sit at a confluence of these forces.

The NOL Group, he says, is well positioned to respond to what's happening broadly within the transport and logistics industry, by building on the framework of strategic moves made earlier.

The way to do this, he thinks, is to build up existing capabilities, both in shipping as well as what is traditionally called logistics.

'But I think over time, that hard demarcation over the liner (shipping) operations and logistics operations will give way to a broader view on how the business is constructed.'

He says once you change the orientation, over time the mix of business and revenue sources will also shift, but it is not going to be sudden or overnight.

Tracking the needs of customers is like tracking the sun, he elaborates, using the analogy of a growing plant and the sun.

'If you take a plant and turn the pot, the plant continues to grow as it grew before, but over time, you notice that the new branches are growing in a slightly different direction as it grows towards the sun.

'So the shape changes over a period of time, but you have grown from the same foundation. You are not uprooting something or planting a completely new tree. It is basically the same organisation and it is now re-oriented because the world has changed around us.

'We need to orientate ourselves to always be tracking the sun. So we will always be tracking the customer.'

While customer service is crucial like in any other business, the container shipping industry is vulnerable to an 'inherent cyclicality'. Many things could go wrong.

You must have strategies to prepare yourself to cope in an uncertain world, Mr Lim adds.

'So it is not so much predicting when the next downturn will happen but learning how to cope with the cyclicality that is inherent in this as well as in other industries. If you know that the tides will rise and the tides will fall, you learn to accept that, you learn to cope with it and you don't build your house when the tide is down and have it flooded when the tide comes up.

'You mark the high water line and say, we build above this, then we will be okay.'

NOL has turned the corner, producing a record US$429 million profit last year and paring its liabilities by more than half. On Thursday, the group reported sparkling first-quarter results with a US$163.2 million gain.

Flush with another quarter of good results, Mr Lim is hopeful that this would be a longer cycle than before for the industry 'if everything goes as planned'.

'But what we do know is that when the market does turn, we will be prepared. That we are very clear about. So we are not intoxicated by the good numbers we see. This is not the time to let our guard down.'

For, after all, this is not magic - results at the wave of a wand.

'It is just a lot of hard work and the numbers speak well of the efforts that have been put in by all our people,' he said with some pride, and a lot of satisfaction.

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

babystan03

May 19th, 2004, 05:41 PM

Time is GMT + 8 hours
Posted: 19 May 2004 2316 hrs

By Ken Teh, Channel NewsAsia

SINGAPORE : The Maritime and Port Authority of Singapore has won a prestigious international maritime award for enhancing safety at sea.

MPA received the Seatrade Award for "Safety at Sea" for its system, called "Enhancing Pilot-Master Information Exchange Onboard Vessels".

The system allows for navigational plans to be sent in advance thereby enhancing safety in port waters. - CNA

Copyright © 2004 MCN International Pte Ltd

huaiwei

May 23rd, 2004, 04:30 PM

babystan03

May 23rd, 2004, 04:46 PM

They seem to be winning every single conceivable award, dont they? :D

Haha....I hope they continue that stint and lead the way in port's standard!!!!!!!:D

huaiwei

May 23rd, 2004, 04:50 PM

Haha....I hope they continue that stint and lead the way in port's standard!!!!!!!:D
Yeah lah...but for ports, the standard is not tt important lah..keep the ships coming can liao. :)

RafflesCity

May 24th, 2004, 01:16 AM

True true, and keep the prices competitve :cool:

babystan03

May 25th, 2004, 03:43 PM

MAY 25, 2004

SINGAPORE - Only a tiny fraction of the world's seaports and ships now comply with a security code aimed at blocking terrorist attacks, but that is about to change, the head of the UN's maritime agency said on Tuesday.

The UN's International Maritime Organisation said it would begin enforcing the International Ship and Port Security, or ISPS, code when in takes effect on July 1 - a situation that could disrupt shipping.

'Ships will be detained,' said the secretary-general of the maritime agency, Mr Efthimios Mitropoulos. 'There will be disruption.'

The UN security code, adopted after Sept 11, 2001 to protect ports and vessels from terrorists, requires port staff and ships' crews to conduct regular anti-terror drills, restrict the number of weapons and visitors aboard vessels, and have attack contingency measures in place.

Commercial vessels are also required to submit security plans to the maritime agency.

Singapore already complies with the code. The country's Maritime and Ports Authority says it will turn away noncompliant ships.

Mr Mitropoulos said only 301 of about 5,500 port facilities - fewer than 6 per cent - comply with the security code's conditions. And the agency has accepted just 1,933 security plans out of 12,283 submitted by commercial vessels, he said, adding that the July deadline won't be extended.

He was on a two-day visit to Singapore to watch an anti-terror exercise in the country's port. The US Coast Guard and China's maritime authorities also observed Tuesday's simulated terror attack on a container ship in Singapore. - AP

--------------------------------------------------------------------------------
Copyright @ 2004 Singapore Press Holdings. All rights reserved.

RafflesCity

May 27th, 2004, 07:15 AM

Singapore port to get new generation super cranes: terminal operator

http://www.channelnewsasia.com/imagegallery/store/phpsm1zCD.jpg

27 May 2004

SINGAPORE: Singapore's Pasir Panjang port will install 12 super cranes worth 120 million Singapore dollars (70 million US dollars) that are capable of serving the latest generation of container ships.

PSA Singapore said the super post-Panamax cranes, with a lifting capacity of 60 tonnes and lifting height of 38 metres (125 feet) each, are capable of serving ships with more than 8,000 twenty-foot equivalent units (TEUs) of cargo.

"These giant cranes are geared for the newest generation of container ships," PSA said in a statement posted on its website.

"The new equipment will improve the operational efficiency and thus the competitiveness of the port."

PSA said the new cranes will be installed at two of five new berths being constructed at the Pasir Panjang Terminal and which are expected to begin operations next year.

State-owned PSA currently has 37 container berths in Singapore at Pasir Panjang and three other terminals, and is expanding to 42 to prepare for forecast strong growth over the next few years.

- AFP

babystan03

June 3rd, 2004, 08:24 AM

Business Times - 03 Jun 2004

Republic broadening the breadth and depth of services to meet the needs of international maritime community

(SINGAPORE) Many shipping vessels outline the seascape of modern day Singapore. The coast is dotted with numerous shipyards, container terminals, jetties that lead to the world's third largest oil refinery and a thriving petrochemicals cluster.

These bear testimony to the importance of the maritime sector to Singapore's economy. Its ideal location as the natural meeting point of major sea routes has contributed to Singapore's transformation from a fishing village to the bustling International Maritime Centre (IMC) it is today.

Singapore today connects some 200 shipping lines to more than 600 ports in over 120 countries. Its connectivity is further enhanced by 60 international airlines that link Singapore to 140 cities in 50 countries.

This also means that Singapore has a 2.8 billion market catchment, including economic powerhouses such as China and India, within a seven-hour flight radius.

Its excellent communications network enables linkage to the rest of the world via satellite and 24-hour telegraph and telephone systems. There is political stability and transparency, first-rate infrastructure and a pro-business fiscal regime.

As an IMC, Singapore offers a wide range of maritime facilities and services, from ship repairs and conversion, bunkering, ship registration, ship management, ship broking and financing, to maritime training, R&D initiatives and programmes, and international names in the maritime legal and P&I clubs/insurance fields.

The Republic's ideal location and integrated maritime ancillary services are backed by an attractive corporate tax regime, a quality workforce and the various free trade agreements, bilateral shipping agreements and more than 46 double taxation treaties that Singapore has sealed to promote greater access into other key markets, and enhance trade and investment flows. But the push for Singapore to gain greater prominence as an IMC continues.

The past months have seen increasing industry focus on Singapore's maritime sector as the Republic announced initiative after initiative aimed at further boosting its status as an IMC. One key announcement was made in October last year, when Singapore Transport Minister Yeo Cheow Tong gave details of a widely expanded role for the Maritime and Port Authority of Singapore (MPA). It was appointed the 'champion agency' and entrusted with the responsibility to promote Singapore as an IMC. With this task ahead, the MPA has embarked on a three-pronged approach.

Aside from attracting a core group of shipowners and operators to set up bases in Singapore, the MPA is also looking at broadening the breadth and depth of maritime ancillary services in Singapore, and continuously improving the business environment for the maritime industry.

The maritime sector contributes some S$12.4 billion to Singapore's gross domestic product and employs over 115,000 people. In its new role, the MPA is expected to lead efforts to further grow the sector over the coming decade. The MPA is drawing on Singapore's well-established network of shipping lines and shipowners and coordinating government efforts to foster the development of a host of shipping-related services here, while remaining responsive to the needs of the industry.

Public-private sector partnership

As the IMC champion agency, the MPA has adopted a conscious and consistent strategy of partnership with the maritime industry, related organisations and institutions, as well as other relevant stakeholders.

The partnership approach extends to discussions on technical issues or collaborations on specific projects with the industry as well as to broad policy and strategy formulation and implementation. This has resulted in the development of better balanced and more cohesive policies, innovative measures to give effect to the policies, and a more efficient pooling of public and private sector resources towards the common goal of growing Singapore into a leading maritime centre of the world.

In March this year, more details were presented on how the MPA would engage the private sector to help in attaining this goal. A public-private sector partnership known as the Singapore Maritime Foundation (SMF) was formed, and it is the first collective body to represent all facets of Singapore's maritime industry.

The SMF has three central functions: a forum for the exchange of ideas for the development of the maritime sector; a catalyst for cooperation among the various segments of the country's maritime industry, and a partner for the government in promotional, training and manpower development efforts in the industry. Headed by the Singapore Shipping Association (SSA) president Teo Siong Seng, the new body includes a high-profile six-member board drawn from the private sector, government-linked maritime companies and the MPA. It also includes a nine-member expert advisory panel and a permanent secretariat. The SMF has already started work with the setting up of two task forces, one to look at ship financing and the other focused on arbitration.

Seal of quality and attractive packages

An overriding function of the MPA is also to attract shipowners and operators to set up their Asia bases in Singapore. The recent months have seen the MPA introducing a number of concrete initiatives to expand Singapore's ship register.

Over 3,000 ships with a total tonnage of 25.4 million GT currently fly the Singapore flag, making the country the sixth largest register in the world, and the largest in Asia. But the MPA aims to grow this number by offering what it considers to be a package that competes well with any other register in the world.

Initiatives introduced to attract more ships to the registry include lowering the paid-up capital requirements for shipowners and a waiver of conditions for related companies. The paid-up capital for companies flagging ships in Singapore has been reduced from the lesser of S$500,000 or 10 per cent of the value of the ship, to just S$50,000. Related companies are no longer subject to any minimum paid-up capital they commit to registering vessels and tonnage on a sliding scale.

The Singapore Registry of Ships (SRS) has much to offer. If a shipowner comes in under the Block Transfer Scheme, BTS (a special package for companies bringing in several ships), he is able to enjoy some of the lowest rates in the world, because the SRS has capped the maximum amount that the shipowner has to pay on the registration as well as the annual tonnage tax.

And since November last year, ships registered under the BTS have enjoyed automatic exemption from withholding tax on interest payments for offshore loans. The SRS is especially competitive for larger vessels, which accounts for the good mix of large tankers, bulkers and container ships on its register.

While efforts are being made to expand the Singapore ship register, equal attention is also paid to ensuring the quality of the register. The recent awarding of the US quality shipping standards, or Qualship21, to the SRS bears testimony to the success of initiatives introduced to maintain the quality of the Singapore fleet.

These include the presence of a full-time Flag State Control (FSC) Unit, which carries out targeted and routine flag state inspections to ensure that Singapore ships enforce stringent quality standards. This robust system of checks has helped to develop a safety culture among Singapore ships.

According to the US Coast Guard's 2003 Port State Control Annual Report, the SRS' annual detention ratio in 2003 was 0.76 per cent, based on 264 distinct vessel calls at US ports, as compared to the 2001-2003 average detention ratio of 0.95 per cent.

Singapore has in place various other programmes tailored to the needs of the shipping community. The Approved International Shipping Enterprise (AIS) is designed to attract shipping companies to set up operating bases in Singapore.

Companies under the AIS scheme enjoy tax exemption on profits derived from the operation of non-Singapore flag vessels. More than 40 shipping groups, including the IMC Group, Cosco, NYK, K Line, AP Moller and ANL, have joined the AIS scheme.

In addition, ship managers and ship agencies can apply for the Approved Shipping and Logistics Scheme. Qualifying companies can look forward to enjoying a concessionary tax rate of not less than 10 per cent on qualifying incremental income.

This article is contributed by the Maritime and Port Authority of Singapore

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

babystan03

June 3rd, 2004, 08:26 AM

Business Times - 03 Jun 2004

MPA leads Posidonia mission to boost the market profile of Singapore as an International Maritime Centre, reports DAVID HUGHES

SINGAPORE is pulling out all the stops to be noticed at this year's Posidonia Exhibition in Piraeus, Greece. Going to Posidonia marks a further stage in the active promotion of Singapore as an International Maritime Centre (IMC) which was initiated last October when the Maritime and Port Authority of Singapore (MPA) was appointed its 'champion agency'.

The MPA's task is to further Singapore's vision to be an IMC by building a vibrant maritime services cluster, based on the traditional strengths of its hub port and shipyards.

To do this, the MPA is pursuing a three-pronged approach. As well as attracting a core group of ship owners and operators to set up operations in Singapore, it is keen to increase the breadth and depth of the maritime ancillary services offered here. It is also continuously looking to improve the business environment for the maritime industry.

Taking part in a major global shipping industry event, other than those staged in Singapore, is an obvious course. But it does take the commitment and resources from not only the MPA, as lead agency, but also the participating Singapore companies and organisations.

An MPA spokesman said: 'Our participation at international exhibitions such as Posidonia is an excellent opportunity for the MPA to bring together a group of Singapore maritime companies to jointly promote our maritime services. 'We aim to showcase these services as a comprehensive package.

'Such participation not only allows us to meet a large number of potential customers in one location, it also facilitates networking and provides opportunities for us to build up business contacts.' She added: 'It is a good means for us to keep abreast of shipping developments in the European region and, at the same time, increase the market profile of Singapore as an IMC to these overseas markets.'

Minister of State for Health and Transport Balaji Sadasivan will lead the 30-member business delegation to Posidonia. He will be accompanied by MPA chief executive Rear Admiral (NS) Lui Tuck Yew, as well as other key industry representatives from Singapore. Dr Sadasivan plans to meet Greek maritime officials as well as key representatives of the major Greek shipping associations such as the Union of Greek Shipowners.

The MPA officials hope to establish and strengthen maritime relations with their Greek counterparts and explore areas of maritime cooperation. The MPA has teamed up with the Association of Singapore Marine Industries (ASMI), the Singapore Maritime Foundation (SMF) and 10 maritime companies to promote a good cross-section of the Singapore maritime services clusters in Posidonia.

This approach to collectively market Singapore as an International Maritime Centre is designed to raise the profile of the country as a dynamic IMC to the European market. The MPA spokesman said that the collective approach is consistent with the work of the MPA as the 'champion agency' to promote Singapore's maritime services as a seamless suite, from cargo handling to shore-based ancillary services.

The MPA is pushing hard the message that Singapore's ideal location and integrated maritime ancillary services make it the business location of choice for companies that are keen to expand into Asia.

The spokesman said: 'We hope our European trade visitors will leave with a greater understanding of Singapore's pro-business policies and maritime operating environment for shippers, shipping lines, and other maritime service providers alike. 'If the trade visitors go away with the knowledge that in Singapore, their cargo will not only be handled efficiently by our port, but that they will also have convenient access to a strong maritime service cluster offering legal services, financing arrangements, insurance advice and charter deals among others in Singapore, this would be a gain for us.'

The Singapore-IMC Pavilion will feature ship registration, ship repair and conversion facilities, bunkering, ship management, broking and financing, maritime training, R&D programmes, and maritime legal services. The 10 maritime companies participating are: bunkering specialist Global Energy (Asia), shipping lawyers Joseph Tan Jude Benny, shipyards and builders Jurong Shipyard, Keppel Shipyard, and Kwong Soon Engineering Co, Neptune Shipmanagement Services, Pan-United Marine, Singapore Technologies Marine, ST Education & Training and Tru-Marine. Building on this year's pioneering trip to Posidonia, there are plans for Singapore to participate in Nor-shipping in 2005. A strong Singapore presence is on the cards at other big global shipping industry shows with the MPA saying that it will continue to work with its industry partners, such as the SMF and the ASMI, to identify more international trade exhibitions to promote Singapore's maritime service offerings and facilities.

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

babystan03

June 7th, 2004, 04:02 PM

Time is GMT + 8 hours
Posted: 07 June 2004 2151 hrs

By Channel NewsAsia's China Correspondent Maria Siow

SHANGHAI : Singapore's Senior Minister Lee Kuan Yew has begun a trip to China by meeting city officials in Shanghai and hearing about their plans for a mega new port.

China is constructing a US$16 billion deepwater port at Yangshan Island, about 30 kilometres south east of Shanghai's city centre.

Singapore's PSA Corp has previously signalled its interest in potentially investing in the development.

Shanghai now has the world's third largest container port and the fourth largest port overall.

Shanghai port authorities told Mr Lee that the city's port development is driven by the rapid development along the Yangtze Delta.

Under the first phase, five berths will be completed by the end of next year, with a further four being finished by the end of 2006.

By 2020, it is expected to have 30 berths serving not just Shanghai, but also China's vast hinterlands, including Jiangsu, Zhejiang, Anhui and Sichuan provinces.

The city has given the go-ahead to Shanghai International Port to operate the first five berths at Yangshan Port.

Once complete, Yangshan is expected to the world's largest container port.

Local port authorities have also said that the development of Yangshan port will not be monopolized, and public tenders will be called for, both from domestic as well as international companies.

Mr Lee also met Shanghai Mayor Han Zheng, who briefed him on the city's developments.

Mr Han said as Shanghai develops and becomes more mature and sophisticated, new problems are created.

This, he says, requires people to change their mindsets, and for authorities to re-think the role of government.

In China, the post of Shanghai major has traditionally been a springboard to senior leadership positions.

Former President Jiang Zemin and former Premier Zhu Rongji both served as mayors of Shanghai. - CNA

Copyright © 2004 MCN International Pte Ltd

babystan03

June 8th, 2004, 06:31 AM

This story was printed from TODAYonline

$1.07b contract for Jurong Shipyard
Tuesday • June 8, 2004

SembCorp Marine's wholly-owned Jurong Shipyard has secured a letter of intent to convert a giant tanker into a floating oil production and storage facility for US$628 million ($1.07 billion).

The Singapore marine engineering group said that Jurong Shipyard obtained the letter from Petrobras Netherlands, a unit of Petrobras, Brazil's state oil company.

The turnkey contract entails converting the 280,000-dead-weight-tons very large crude carrier, Barao De Maua, into a floating production storage offloading unit, or FPSO, to be renamed Petrobras 54, in 38 months.

Work on the project is expected to commence in August, SembCorp Marine said.

It added that the Petrobras contract is expected to have a positive contribution to earnings.

However, the deal will not materially affect net tangible assets and earnings per share in the financial year ending Dec 31, 2004. — Dow Jones

Copyright MediaCorp Press Ltd. All rights reserved.

babystan03

June 8th, 2004, 08:33 AM

Business Times - 08 Jun 2004

Shanghai keen to partner S'pore in port project
City's mayor hopes to tap Republic's experience

By LOH HUI YIN
IN SHANGHAI

SHANGHAI wants to deepen cooperation in port management with Singapore, which, in the view of the Chinese city's mayor Han Zheng, has mature practice in this area.

'Singapore has rich experience and also enjoys sound management mechanism, but in Shanghai, we have just started to become a major port,' he said.

'We hope we can carry out cooperation with the Port of Singapore in a concrete manner,' said Mr Han during a meeting with visiting Senior Minister Lee Kuan Yew.

Mr Lee kicked off his visit to China yesterday, during which he was briefed by the Shanghai Port Authority, and also met Shanghai party secretary Chen Liang yu and the Shanghai mayor.

Mr Han said that although the two ports already have a cooperative relationship, he hopes to deepen it by undertaking a substantive project together.

Shanghai is now developing a new port on the Big and Little Yangshan islands. When the massive project is completed in 2020, it will have a total of 30 berths. The first five berths under phase one will be ready at the end of next year. Another four berths will be ready in 2006.

PSA is keen on managing Yangshan port and is believed to be teaming up with international shipping group AP Moller and Cosco Pacific - China's terminal and container shipping operator - to make a bid for the contract.

But competition is expected to be keen, as other international operators are also eyeing the management contract.

Apart from the interest in Yangshan, PSA is one of four major partners which will develop the US$600 million second phase of the Dalian Container Terminal (DCT). The other three partners in the terminal, in north-east China, are AP Moller, the Dalian Port Group and Cosco Pacific.

This is not the first time that Mr Han has talked about port cooperation between PSA and Shanghai.

Last year when a Singapore delegation visited Shanghai, he mooted the idea of PSA taking a stake in Yangshan in return for a Chinese stake in the Singapore port operator.

Mr Han, who said he had visited Singapore three times on study trips, pointed out that he counts Singapore investors in Shanghai among his friends.

'Many of these businessmen are some of the earliest investors in Shanghai,' said Mr Han, who became mayor about 18 months ago. He was one of the vice-mayors of the bustling city before his latest promotion.

At the Shanghai Port Authority, Mr Lee was briefed by its director-general Xu Peixing on the port's ambitions to serve the Yangtze River hinterland.

Mr Lee and his delegation leaves for Suzhou today to take part in celebrations to mark the 10th anniversary of the Suzhou Industrial Park, which Singapore has a stake in.

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

babystan03

June 15th, 2004, 05:39 AM

JUNE 15, 2004
S'pore plans $50m shipping system overhaul

SINGAPORE - The Government is investing up to $50 million (US$29 million) to overhaul the computer systems used by the shipping industry in the Republic, Dr Lee Boon Yang, Minister for Information, Communications and the Arts said on Tuesday.

The funds will be used over five years to boost efficiency by tying together disparate government-linked networks, he said.

Dr Lee said at an industry conference: 'More efficient information flows among shippers, freight forwarders, carriers and financial institutions will facilitate the flow of goods within, through and out of Singapore.'

Singapore hosts the world's second-busiest port and logistics accounts for 8 per cent of the local economy.

Dr Lee said a slew of different technical systems handle aspects of Singapore's shipping business that range from handling dangerous goods to submitting trade declarations.

'There is potential to join up these islands of computerisation into a more powerful network,' he said, adding that Government funds would be used to develop the software and encourage its adoption.

'The project will consist of a core information technology system that will automate the creation and exchange of commercial and regulatory information necessary to facilitate trade,' he said.

Dr Lee said the new system would boost profits by saving companies time in moving goods to the market. -- AP

Copyright @ 2004 Singapore Press Holdings. All rights reserved.

babystan03

June 15th, 2004, 08:27 AM

Business Times - 15 Jun 2004

WWL eyes Singapore as vehicle logistics hub for the region

It also signs major deal with BMW for transporting cars to Australia and New Zealand

By DAVID HUGHES
IN LONDON

OSLO-HEADQUARTERED ro-ro and vehicle logistics specialist Wallenius Wilhelmsen Limited (WWL) is considering making Singapore its South-east Asia hub.

A senior Europe-based WWL executive told Shipping Times that although no firm decision has been taken, Singapore is under consideration as regional hub for its burgeoning vehicle logistics business.

It is understood that the company reviewed several options in the region, including the Port of Tanjung Pelepas.

Last September, the company renewed its terminal services agreement with PSA Corporation for another three years, noting Singapore's prime position as a ro-ro hub for the growing vehicle manufacturing in Thailand, India, Indonesia and China. At the time, its Asian region head Anders Boman said the company expected its Singapore volumes to grow by 10-20 per cent.

For its part, PSA committed to spending an unspecified amount to expand and upgrade Pasir Panjang Wharf's ro-ro capabilities which, along with Sembawang Wharfs, handles around 400,000 vehicles annually.

WWL's chief operating officer, logistics management division, Steve Cadden, also unveiled last week a major logistics deal with car manufacturer BMW for transporting vehicles from factories in Germany, South Africa, the UK and the US to dealers in Australia and New Zealand.

The five-year pilot agreement worth about US$50 million to WWL, which envisages 170,000 vehicles being delivered to the Australasian market, is a further extension of the company's diversification into the vehicle logistics business.

WWL has now completely withdrawn from the container market formerly served by its Wilhelmsen Line container/ro-ro (conro) ships which will have all been converted to pure car and truck carriers by the end of this year.

The company, which is 50-50-owned by Sweden's Wallenius Lines and Norway's Wilh Wilhelmsen, operates over 60 ro-ro ships.

Its main cargoes are new cars, 'high and heavy' rolling cargo such as agricultural and construction equipment and specialist and project static cargoes, including yachts and generators.

Presenting an upbeat picture of the company, which had revenues of US$2 billion last year, chief executive officer Nils Dyvik told a press briefing last week that the BMW deal was 'a milestone for WWL Logistics' while the strong ro-ro vessel market was expected to continue throughout 2004.

He also pointed to 'positive operational cooperation' with Eukor in which Wallenius and Wilh Wilhelmsen also have major stakes. The tight ro-ro supply market is holding back a major new service.

Chief operating officer and head of ocean services, Christopher Connor, said WWL is looking for a ship to start a shuttle service between China and Japan. He said the new service would start as soon as the company could locate a suitable vessel to charter.

The very tight supply situation for ro-ro tonnage has made finding a suitable ship difficult and the company might take a conro ship for the service even though it has withdrawn from the container shipping market.

The new service would carry cars to China and other cargoes on the return leg. The shuttle will form part of a major expansion programme at WWL whose fleet is in the final stages of being converted to carrying rolling cargoes only.

Other developments include increasing sailings from Europe and North America to Oceania and increasing capacity on sailings between Asia and North America. Mr Cadden said that since less than 20 per cent of vehicle logistics is currently outsourced and there is a trend towards outsourcing, offering logistics solutions to vehicle manufacturers is a major opportunity for WWL.

He said the company is working on 10 new target projects and hoped to be able to announce more major logistics deals this year.

As well as the BMW deal, signed on April 5 this year, WWL also has vehicle logistics deals with Renault, Peugeot Australia, Case New Holland Australia, Ford, GM & DC Mexico, Porsche Australia and Nissan.

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

babystan03

June 15th, 2004, 08:40 AM

JUNE 15, 2004
Shanghai port to open ahead of schedule

SHANGHAI - Shanghai's new deepwater port - key to the city meeting its ambition to overtake Hong Kong and Singapore as the world's largest shipping centres - is preparing to open tenders for foreign terminal operators following faster-than-expected progress in its construction.

The city is rushing to complete the first stage of the port by late next year to keep up with an explosion in container traffic, which doubled in the past three years to 11.3 million 20-foot equivalent units per year.

The port is being built on reclaimed land along a string of craggy islands connected to the mainland by a 31km bridge across open seas.

By the time it is finished in 2020, the port will have capacity for 50 large container berths and have cost at least US$10 billion (S$17.2 billion).

Mr Zhang Huimin, the vice-director of the Yangshan port project, said that a team of several thousand workers was living on boats to allow them to toil around the clock on building the bridge and the first terminal.

'If the gods give us good weather, we will have no rest,' he said.

Despite rough seas and strong offshore winds, Mr Zhang said the bridge would be completed slightly ahead of time by October next year and the first terminal open in 2006. -- Financial Times

Copyright @ 2004 Singapore Press Holdings. All rights reserved.

babystan03

June 29th, 2004, 08:10 AM

JUNE 29, 2004
Booming Traffic At PSA Terminals
Shipping lines face berthing delay
By Nicholas Fang

TRADE is booming - so much so that ships calling at PSA Corp's Singapore terminals have been hit by unprecedented delays. Instead of being able to berth immediately, they have had to wait up to a day to load and unload their cargo.

The delays, which have been felt since the end of last month, are being experienced by ports all over the region and are caused by surging global trade volumes and a booming Chinese economy.

Shipping lines told The Straits Times yesterday that their ships have had to wait for berths at PSA's Tanjong Pagar, Brani and Keppel terminals for between two and 24 hours, compared to the on-arrival berthing they are used to.

Peak-period volumes normally seen during the four months between July and October had arrived early, they said.

PSA Singapore terminals chief executive officer Grace Fu backed this up.

She told The Straits Times yesterday that the port operator had experienced a 17 per cent surge in average daily volumes handled in the first three weeks of June - from over 50,000 standard containers this time last year - to more than 60,000.

'I don't think anyone could have predicted this unprecedented increase in volumes, including the shipping lines,' she said.

'Some lines have also been adjusting their services in the region ahead of the peak period which starts next month, and this has resulted in services being switched in and out of Singapore and increased volumes in some cases.

'Because of the overall congestion in the region, a lot of ad hoc volumes are also making their way here, and we have a policy of not turning any of these away.'

PSA has hired more operations staff such as prime mover drivers and crane operators, and more private contractors to carry out services such as moving containers between its terminals by road, she said.

'We have also increased the manning levels at our terminals by extending the shifts worked by our staff up to 12 hours in some cases.

'Our people are also coming back on their days off and working on weekends to help deal with the extra volumes'.

An executive with a consultancy specialising in the shipping industry said that the increase in volumes was due largely to increasing traffic in and out of China.

And while this may put smiles on the faces of PSA Singapore's executives, it has caused a major headache among mainline operators and feeder shipping lines.

Feeder lines specialise in bringing cargo from smaller, less accessible ports to main hub ports, where the cargo is consolidated for loading on larger mainline carriers to transport to other major markets.

An executive with a local feeder line, who declined to be named, said yesterday that services operated by his line had been badly hampered.

'The main congestion appears to be at Brani, Tanjong Pagar and Keppel, which are all bunched together. The services using PSA's Pasir Panjang Terminal don't seem so badly affected,' he said.

'Lines have traditionally planned our services calling at PSA based on the assumption that we will get either berthing on arrival, or rapid berthing at least, and we were willing to pay a premium for that.

'Now we're having to wait up to one day. What is more, PSA enforces punitive charges on ships that are late in arriving at their terminals to recoup costs for having equipment on standby and other charges, but it does not work the other way when we are faced with delays.'

PSA's Ms Fu said the port operator had been waiving some charges for customers which have been inconvenienced, but did not elaborate.

P&O Nedlloyd general manager Paul Hoogwaerts said that his company's ships had been experiencing delays of between two and 12 hours, but added that PSA had been working to keep shipping lines informed of potential delays before their ships arrived at Singapore.

'PSA will try to inform ships, including those which have set sail from the previous port, if there will be delays in berthing a day before they arrive.'

Another shipping executive with an Asian mainline operator, who requested anonymity, said: 'Our ships are experiencing average delays of between two and five hours, with only one or two out of every 25 vessels facing longer delays of between 10 and 16 hours.

'But PSA is trying its very best to cut down the impact of the congestion for us.'

The shipping consultancy executive said that a possible concern for PSA would be if groups of feeders or mainline operators decided to impose a congestion surcharge to recoup lost earnings.

These surcharges would fall on whichever party pays for the freight, which could be the mainline operators or their customers or shippers, and would increase the cost of calling at Singapore, he said.

Meanwhile, PSA's Ms Fu noted that the port operator would add three new quay cranes by the end of this year, and that two of its planned five new berths would come into operation next June and July.

'This is a situation that we are apologetic about, but we hope our customers won't judge us on this basis,' she said, adding that service levels at PSA's operations had been maintained in the first five months of the year.

On when she believed the congestion might ease, Ms Fu said that it depended on the volumes being generated by the shipping lines and any further adjustments made to their services in the coming months.

PEAK-PERIOD VOLUMES

The port operator has experienced a 17 per cent surge in average daily volumes handled in the first three weeks of June to more than 60,000 containers, says PSA's Ms Fu

Copyright @ 2004 Singapore Press Holdings. All rights reserved.

babystan03

July 2nd, 2004, 08:11 AM

Business Times - 02 Jul 2004

All our terminals are compliant, says PSA Int'l

By DONALD URQUHART

(SINGAPORE) PSA International announced yesterday that it is still awaiting certification for nearly half of its terminal facilities around the world although all fully comply with the ISPS Code requirements. With all ships and port facilities required to obtain a certificate of compliance from their respective government authorities by July 1, PSA said it has been 'working closely and actively with the local port authorities to ensure all its 17 ports around the world are fully compliant with the ISPS Code.'

PSA said in a statement that eight of its facilities, including its flagship terminals in Singapore and Belgium, achieved full certification ahead of the July 1 deadline. Other PSA-operated ports that met the deadline include: Voltri Terminal Europe in Italy, Tuticorin Container Terminal in India, Fuzhou Qingzhou and Fuzhou-Jiangyin Container Terminal in China, Incheon Container Terminal in Korea and Muara Container Terminal in Brunei.

'The remaining ports have all been appraised by the port authorities to be fully ISPS compliant and are awaiting official issuance of the certificate,' the global terminal operator said but did not indicate when this would conclude.

'Close cooperation with local port authorities was key in enabling PSA to achieve compliance at all its ports today,' said Eddie Teh, PSA group CEO. 'The ISPS certification process is a demonstration of our dedication and commitment to provide a safe and secure environment for all port users.'

The PSA statement said: 'PSA will continue to work closely with local port authorities to integrate security requirements with its operational processes to ensure cargo flows through its ports are as smooth and seamless as possible when complying with the Code.'

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

babystan03

July 5th, 2004, 08:21 AM

Can see that PSA is busy investing in other ports.......:)

Business Times - 05 Jul 2004

PSA joint venture Incheon terminal opens

By DONALD URQUHART

(SINGAPORE) The first phase of PSA International's US$200 million joint venture Incheon Container Terminal (ICT) opened with its first vessel call over the weekend.

The Wan Hai 211 belonging to Wan Hai Lines called on Saturday at the greenfield terminal located 30 km from Seoul in which PSA has a joint venture with Korea's Samsung Corporation.

PSA said in a statement that it was actively working with other shipping lines including Hyundai Merchant Marine and Dongnama Shipping to generate more vessel calls 'in the near future'.

In 2001 ICT was awarded the concession to build, transfer and operate the terminal over three phases that will ultimately see a total quay length of 900 metres with a 1.2 million TEU annual capacity.

Phase 1 of ICT has a berth length of 300 metres with a 14 metre draft and an annual capacity of 400,000 TEU.

The terminal is also equipped with two post-panamax quay cranes, six rubber-tyred gantry cranes and a reach stacker.

Aiming to 'grow ICT into a major gateway port,' PSA said it had a close working relationship with the Korean Ministry of Maritime Affairs and Fisheries.

The Incheon port is the country's third busiest container port handling 760,000 TEU in 2002 compared with the country's largest port of Busan which handled 9.33 million TEU and Gwangyang Port which handled 1.08 million TEUs.

Incheon is also home to the recently opened international airport serving Seoul, built on reclaimed land.

The government plans on building more container terminals at Incheon with the idea to mesh air and sea cargo handling more closely as an overall cargo transhipment centre, part of the government's intention to make Korea a regional transport and logistics hub for North-east Asia.

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

babystan03

July 7th, 2004, 04:42 AM

Business Times - 07 Jul 2004

PSA Int'l may be quitting Indian port partnership
Official confirms Pipavav stake sale, but APM Terminals CEO says status quo remains

By DONALD URQUHART

(SINGAPORE) PSA International could be bowing out of its Pipavav partnership as AP Moller seeks to increase its shareholding in the emerging Indian container port, a move that would pare PSA's India interests down to only one terminal.

The AP Moller Maersk group, along with its APM Terminals and Maersk India units, is said to be planning a buy-out of its original partners in the Gujarat Pipavav Port (GPP), according to Indian press reports.

This includes a 21.8 per cent share held by PSA International since 1999 and a 16 per cent stake held by Sea King Infrastructure Ltd.

Although PSA International's head of communications, Fei Che, confirmed the sale of PSA's stake in an interview with Bloomberg, saying the move was a 'very strategic exit', APM Terminals CEO Peder Sondergaard told Shipping Times late yesterday that the Maersk India stake remained at 14 per cent.

'At this point in time we are the shareholder we have been for a while which is a minority shareholding and that's the current status,' Mr Sondergaard said in a telephone interview.

Declining to comment further on APM Terminals' plans for Pipavav, Mr Sondergaard added: 'As a principle we try not to publicly comment on potential projects or potential developments because it does give a lot of uncertainty in the market and very often it doesn't materialise.'

'Right now we're the size that we have been for quite awhile,' he reiterated.

PSA International did not respond to Shipping Times' queries yesterday.

Senior shipping executives familiar with the Indian container terminal business said Maersk is keen on increasing its equity and management stake in the Gujarat port because of the port's potential to draw cargo from the New Delhi and larger northwest region.

This move potentially conflicts, however, with its recent tender award to build and operate the third container terminal at the booming Jawaharlal Nehru Port (JNP) near Mumbai, which is currently a key gateway for New Delhi import/export cargo. But industry watchers say there is likely enough cargo to fill both the west coast terminals for some years to come.

PSA International was also a bidder for the third JNP terminal but was unsuccessful. Although Pipavav is primarily a feeder port currently - with Maersk Sealand running feeders to its main Middle East hub in Salalah, Oman - the idea is to turn it into a mainline container port, said one shipping executive. Container throughput at the terminal is estimated to be about 140-150,000 TEUs annually.

On why PSA would want to sell off its share in a port with some potential, an industry source speculated that the successful global terminal operator may be disenchanted with the poor performance of its limited forays into India.

PSA's only other terminal venture in the country is a green-field project at Tuticorin, in India's southeast, where it has a 57.5 per cent stake in PSA-Sical container terminal which handled 235,000 containers last year. The source said that while operationally the terminal has been successful, volume growth has not been up to expectations.

The Pipavav terminal, which recently acquired three gantry cranes that are now up and running, is now a fully containerised terminal with regular vessel calls. The port also has a new direct rail connection with the main rail grid into the large northwest and New Delhi markets. Further development will include container yard expansion, possibly by year-end.

Other Pipavav shareholders include CDC UK, AMP Australia, New York Life, Industrial Development Bank of India and Unit Trust of India.

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

babystan03

July 7th, 2004, 02:57 PM

Wednesday July 7, 8:19 PM
Container shipping volumes surge at Singapore's PSA

SINGAPORE, July 7 (Reuters) - Singapore state-owned port operator PSA International Pte Ltd said on Wednesday the volume of containers it moved at its local and overseas terminals jumped 19.3 percent in the first half of 2004 on a year ago.

The port operator said its global container volumes reached 16.1 million twenty-foot equivalent units (TEUs) in the first six months from 13.5 million TEUs in the same period last year.

Asian ports are expected to show stronger growth in container volumes handled this year, boosted by booming regional trade as a result of China's economic growth, analysts said.

PSA, which operates the world's largest trans-shipment hub in Singapore, said its local terminals handled 15.1 percent more containers in the first half of the year, totalling 9.9 million TEUs, which is about 60 percent of its total volumes handled worldwide.

PSA, which has investments in port projects in Belgium, Brunei, China, India, Italy, Portugal, South Korea and Thailand, said it shifted 26.5 percent more by volume from its overseas terminals, totalling 6.2 million TEUS, in the six months.

In Singapore PSA has invested S$120 million ($70.13 million) in cranes for its new berths to help meet an expected rise in volumes.

The port operator is speeding up the construction of five new berths in the city state to meet an expected annual growth of about one million TEUs over the next few years.

Another Singapore port operator, Jurong Port, said it more than doubled its container throughput in the first half, to 288,000 TEUs from 119,000 TEUs in the first six months of 2003. ($1=1.711 Singapore Dollar)

Copyright © 2004Reuters Limited. All rights reserved. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of Reuters Limited

babystan03

July 7th, 2004, 05:51 PM

Wednesday July 7, 8:19 PM
Container shipping volumes surge at Singapore's PSA

PSA, which operates the world's largest trans-shipment hub in Singapore, said its local terminals handled 15.1 percent more containers in the first half of the year, totalling 9.9 million TEUs, which is about 60 percent of its total volumes handled worldwide.

9.9 million teus for the first six months??? Does that mean container traffic might exceed 20 million teus this year??? ;) :cheers:

huaiwei

July 7th, 2004, 06:29 PM

Strangely, it says 60%....dosent that make it bigger then any other port on earth?

Anyway..how much did we handle last yr?

babystan03

July 7th, 2004, 06:33 PM

Strangely, it says 60%....dosent that make it bigger then any other port on earth?

Anyway..how much did we handle last yr?

Aiyah it's 60% of PSA's traffic worldwide, not 60% of the worldwide traffic..... :bash: :D

If i dun remember wrongly, last year was 18.4 million TEUs.......:)

huaiwei

July 7th, 2004, 06:39 PM

Aiyah it's 60% of PSA's traffic worldwide, not 60% of the worldwide traffic..... :bash: :D

If i dun remember wrongly, last year was 18.1 million TEUs.......:)
Whoops!! :D

Hmmm....I wonder how that compares to other competiting posts in the region, if not the world?

babystan03

July 7th, 2004, 06:51 PM

Whoops!! :D

Hmmm....I wonder how that compares to other competiting posts in the region, if not the world?

Emm the region ports have also experience a surge in volume.....here's one article to show the volume surge in China ports.....

Business Times - 06 Jul 2004

Shenzhen container traffic soars 32% in H1
The second largest container port in China aims to ship 13m TEUs this year

(HONG KONG) Sea container traffic in the southern Chinese town of Shenzhen grew more than 32 per cent in the first six months from the same period in 2003, the Shenzhen Municipal Port Authority said yesterday.

Shenzhen port handled 6.06 million 20-foot equivalent units (TEUs) of goods from January to June, as south China's export engine continued to hum despite central government moves to cool red-hot economic growth.
Throughput in the city's three major container terminals - Yantian, Shekou and Chiwan - rose between 20 per cent and 64 per cent in the first half of the year.

'The growth of traffic was good in the first half and is in line with expectations,' a port official said.

The city expects to move 13 million TEUs of goods this year. 'The peak season falls in the second half, so we should have no problem achieving our target,' the official added.

Shenzhen handles a big chunk of the goods made in the Pearl River Delta and shipped to the rest of the world. The city borders Hong Kong, the world's busiest container port.

Analysts say Shenzhen has attracted many price-sensitive shippers who want to export directly from the mainland instead of trucking their goods to Hong Kong for export. Shenzhen is the second-largest container port in mainland China after Shanghai.

In Shanghai, first-half throughput rose 29.3 per cent from a year earlier to 6.75 million TEUs, according to preliminary figures.

Hong Kong's Hutchison Whampoa Ltd is the major foreign investor in Shenzhen's Yantian International Container Terminals phase one, two and three.

Beijing-backed China Merchants Holdings (International) Co Ltd owns 32.5 per cent of Shekou Container Terminals phase one and 51 per cent of phase two. It also invested in Chiwan Container Terminals.

Hong Kong's Wharf (Holdings) Ltd's Modern Terminal Ltd has a 10 per cent in the first phase of Shekou Container Terminals and 9.8 per cent of phase two. It also owns an 8 per cent stake in Chiwan Container Terminals.

Neptune Orient Lines' container shipping arm APL recently signed a long-term terminal agreement with Chiwan Container Terminals.

The 20-year deal better positioned APL to take advantage of surging container trade out of South China and the industrial and manufacturing concentration in the Pearl River Delta region particularly as berthing windows become increasingly scarce. - Reuters

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

RafflesCity

July 8th, 2004, 03:52 PM

PSA's total container volumes rise 19.3%

8 July 2004

By Nicholas Fang

WITH its Singapore terminals seeing unprecedented volumes and queues of ships waiting to berth last month, PSA Corp has again turned in a stellar month of growth in June with 1.8 million containers handled at its local terminals.

This represents a 17.7 per cent increase over the 1.53 million containers recorded in June last year and is also an improvement on May's 14 per cent year-on-year growth.

For the first six months of this year, 16.1 million standard containers or 20-ft equivalent units (TEUs) were handled at PSA's local and international operations.

This was a 19.3 per cent improvement over the 13.5 million TEUs recorded in the corresponding period last year, PSA said on its website.

Shipping lines said recently that since the end of May they had faced delays at some of PSA's Singapore terminals because of booming trade, with some of their ships having to wait up to almost a day before berthing.

The delays were experienced by ports all over the region and were said to have been caused by surging global trade volumes and a booming Chinese economy.

PSA Singapore terminals chief executive officer Grace Fu said last month that the port operator had seen a 17 per cent surge in average daily volumes handled in the first three weeks of June, from over 50,000 standard containers this time last year, to more than 60,000.

She added that it had been waiving some charges for customers inconvenienced by delays.

Industry insiders say PSA has now managed to ease most of the congestion and delays, with berthing-on-arrival being experienced by 70 per cent of the shipping lines calling here.

Separately, Singapore's No. 2 port operator, Jurong Port, also experienced surging volumes last month.

In an e-mail statement, the port said that it handled 56,000 TEUs last month compared with 18,000 TEUs in June last year, representing an improvement of 211 per cent.

This was the highest level of monthly growth recorded this year. For the year to date, the port has handled 288,000 TEUs or 141 per cent more than the same period last year.

babystan03

July 8th, 2004, 05:14 PM

JULY 9, 2004
Berthing delays at PSA ports under control
Waiting time has been cut drastically in past 3 weeks; PSA and industry body looking at measures to handle the spike in volumes

By Nicholas Fang

EXTRA staff and equipment deployed at PSA Corp's Singapore ports have eased delays of up to a full day that had been experienced recently by ships calling here as a result of surging volumes.

In a joint statement, PSA and the Singapore Shipping Association (SSA) also said that during a meeting yesterday they had discussed other short-, medium- and long- term solutions to tackle the burgeoning volumes.

One shipping boss, Mr S.C. Chan, regional director of Hong Kong's Orient Overseas Container Line, confirmed that the delays had been cut drastically over the past two to three weeks.

He said: 'Just two or three weeks ago, almost every one of our ships was being delayed. But now, it's down to two to three ships out of every 10 which are being held up, and even then, the delays are only for two to three hours.'

The congestion, which reportedly started in late May, came after a big spike in global trade volumes, owing partly to a booming Chinese economy. Ports throughout the region have also been affected.

Shipping lines said last month that their ships had had to wait for berths at PSA's Tanjong Pagar, Brani and Keppel terminals for between two and 24 hours, a big change from the instant service they had been accustomed to.

PSA Singapore terminals chief executive Grace Fu said last month that the port operator had experienced a 17 per cent surge in average daily volumes handled in the first three weeks of June - from over 50,000 standard containers at the same time last year - to more than 60,000.

She said that PSA staff had been working overtime and that the company had taken a number of other measures to ensure that customers were not badly affected, and had also been waiving some charges for customers who had been inconvenienced.

SSA services committee chairman Patrick Phoon said: 'From the statistics shown, the delays have dropped significantly and things have started to flow much better.

'PSA's operations staff are working round-the-clock and we appreciate their efforts. We know that they are very keen to reduce the delays and priority will be given to critical services.'

SSA said yesterday that it would encourage all its members to provide more accurate forecasts and up-to-date information about their services calling at Singapore to allow PSA to better plan its operations.

Ms Fu said: 'We take delays seriously. We have invested in more operations staff and equipment, including yard cranes, quay cranes and prime movers, and these are already operational.

'In the longer term, we will be phasing in three new berths at Pasir Panjang Terminal by next year, with two additional berths being commissioned in 2006. Development of these five new berths has been fast-tracked.'

She said that PSA would continue to seek to protect the service integrity of its customers.

Copyright @ 2004 Singapore Press Holdings. All rights reserved.

huaiwei

July 8th, 2004, 05:42 PM

Thank goodness PSA has some brains to prepare the ground for berth expansion, so it dosent take long to add new berths like in this case! :D

RafflesCity

July 9th, 2004, 07:43 AM

exactly...big business!

also its good in the long term..you dont wanna see shipping lines running away again!

huaiwei

July 9th, 2004, 09:39 AM

8 July 2004

PSA and SSA Join Efforts to Manage Boom at Singapore Terminals

On 8 July 2004, PSA met with members of the Singapore Shipping Association (SSA) to proactively address concerns faced by its members as a result of the surge in volumes at PSA’s terminals in Singapore. SSA is keen to work closely with PSA to handle more peak months ahead. The meeting discussed short-term, medium-term and long-term solutions to ease the congestion.

After the meeting, SSA is satisfied that the situation is under control and that PSA is monitoring it closely. With extra manning, and more equipment to be provided by PSA, the terminal operator will be able to facilitate faster turnaround of ship calls. As for the shipping lines, SSA will encourage all its members to provide more accurate forecasts and up-to-date information to facilitate even better planning by PSA.

Mr Patrick Phoon, Chairman, Services Committee, SSA Council, said: “We are pleased that PSA has listened to our feedback and that it will study all our suggestions to further improve the situation. In fact, from the statistics shown, the delays have dropped significantly and things have started to flow much better. PSA’s operations staff are working round-the-clock and we appreciate their efforts. We know that they are very keen to reduce the delays and priority will be given to critical services.”

Ms Grace Fu, CEO, PSA Singapore Terminals, said: “We take delays seriously. We have invested in more operations staff and equipment - including yard cranes, quay cranes and prime movers – and these are already operational. We shall seek to protect the service integrity of our customers. In the longer term, we will be phasing in 3 new berths at Pasir Panjang Terminal by 2005, with 2 additional berths being commissioned in 2006. Development of these 5 new berths has been fast-tracked. We are indeed privileged to be working hand-in-hand with SSA to manage the boom in volumes at the Singapore Terminals.”

Background

SSA
The Singapore Shipping Association (SSA) was formed on 29 January 1985. The Association protects and promotes the interests of its members. It undertakes activities on shipping matters which are beneficial to its members. The SSA is fully geared to meet the challenges of the 21st Century.

PSA Singapore
PSA Singapore registered a year-on-year growth of 18% for the month of June 2004, with the number of containers handled reaching some 60,000 TEUs daily. For the first 6 months of this year, volumes at PSA Singapore grew by 15% to reach 9.9 million TEUs. PSA Singapore handled a total of 18.1 million TEUs in 2003.

babystan03

July 16th, 2004, 08:01 AM

JULY 14, 2004
Port workers on track for big bonus
Unionist says payout up to 4 months likely if PSA does well

SINGAPORE port workers who have performed up to mark can expect this year's bonus to be 'the same, if not better' than the four months they received last year, said Singapore Port Workers' Union general secretary Ameer Hamzah yesterday.

'If things remain the way they are, then it would not be a problem for us to achieve as much as what we got last year,' Mr Ameer told reporters on the sidelines of a conference here on port workers' unions, organised by London-based International Transport Workers' Federation.

But, he cautioned, such optimism needs to be tempered by how well PSA Corp performs for the rest of the year.

Buoyed by cost cuts in Singapore, PSA Corp reported a 22 per cent hike in group net earnings to $682.7 million for last year. PSA Singapore, its local operations, posted a net profit of $694.3 million, up 7 per cent from 2002.

Last year, port workers who met individual performance targets received a bonus of up to four months. This was under a new wage reform structure agreed on by the union and PSA management, put into effect last August.

Mr Ameer also said workers' morale was at an 'all-time high'. They were 'working extra shifts' following a surge in the quantity of vessels and cargo going through PSA's terminals here. By this, he said, they are showing support to the union and management and ensuring ships would not be unduly delayed.

Last month, average daily volumes in the first three weeks soared 17 per cent, with more than 60,000 standard containers being handled compared to over 50,000 in the same period last year, said PSA Singapore terminals chief executive Grace Fu.

The heavy traffic caused congestion at PSA's Tanjong Pagar, Brani and Keppel terminals, like it did at other ports in the region.

The build-up reportedly began in late May, after a big spike in global trade volumes.

As a result, ships had to wait between two and 24 hours for berths, a big change from the instant service they are used to. PSA Corp said last week that the delays were now 'under control'.

Copyright @ 2004 Singapore Press Holdings. All rights reserved.

babystan03

July 16th, 2004, 08:16 AM

Business Times - 16 Jul 2004

PSA's headhunt is to man volume surge, new berths
It's not related to last year's retrenchment,says union chief

By DONALD URQUHART

(SINGAPORE) PSA Corporation's plans to hire more than 60 new crane operators is not related to its large-scale retrenchment exercise last year, but is based solely on attrition, unexpected volume growth and expansion, the head of the port workers union said.

'The new recruits being taken in are to make up the numbers of natural attrition, because of the cargo upsurge and also to prepare for the opening of the two berths at Pasir Panjang Terminal next year,' said Singapore Port Workers' Union general secretary Ameer Hamzah yesterday.

Speaking to Shipping Times on the sidelines of the International Transport Workers' Federation (ITF) annual forum here, Mr Ameer highlighted that no operational staff were retrenched in last year's traumatic layoffs which saw nearly 700 workers lose their jobs.

NTUC secretary-general and Minister in the Prime Minister's Office Lim Boon Heng told reporters yesterday that faced by a 'severe threat of further losses', PSA's decision 'turned out to be the right thing to do'.

He added that in retrospect the mostly support services workers 'should have been let off when there was no need for them earlier so that the adjustments would have been easier,' rather than during a tough economic and competitive climate.

Praising Singapore's tripartite labour model, ITF general secretary David Cockroft said the ITF sees a healthy relationship between PSA and the port workers. Asked about the massive layoffs last year, Mr Cockroft said: 'The situation changes all the time and hindsight gives you 20-20 vision.

'You can always say how good it would have been to do things differently, but I think in this situation the PSA took the right kind of steps. It had a proper dialogue with the union and if things develop in a positive way than I hope those retrenchments will be cancelled in the future.'

The global terminal operator is now back on the hiring track as it scrambles to deal with delays at its flagship Singapore terminals from early June when Asia-to-Europe volumes began an unusual surge, adding 17 per cent more boxes - or about 10,000 TEUs - through Singapore each day.

In response, PSA began to boost manpower, extended shift hours and added more equipment in a bid to get ships turned around faster. For health, safety and family reasons, the overtime work is limited to one extra four-hour shift per week per worker, which is spread over hundreds of dock workers, said Mr Ameer.

As a result, Berth-On-Arrival (BOA) delays improved by 22 per cent last week, compared with the last week of June and average waiting time improved by 45 per cent.

Shipping Times understands the situation has improved further as PSA typically presses more resources into action during the traditional peak season of July and August.

Volume growth at PSA's local terminals of 15 per cent, or 9.9 million TEUs, for the first six months this year over last looks set to nearly double Drewry Shipping Consultants' 8.2 per cent global growth forecast for 2004.

Mr Ameer said union discussions with PSA management last year concluded that staffing levels were appropriate for the environment at the time, but the unprecedented volume surge necessitated the new round of hiring. 'We have also internally upgraded some of our workers,' he said, noting that the typical dockyard progression is from prime movers to yard cranes to quay cranes. As such, the new recruitment will be phased in as training at each level progresses.

This internal upgrading of workers is one of the reasons PSA was able to manage the upsurge in such a short period of time, Mr Ameer said. 'The union and management have worked very closely to make sure whatever the case, the customer comes first,' he added.

A key component of the measures is the fast-tracking of the Pasir Panjang Terminal development which will see three new berths operational in 2005, including two in July and one in September, as well as two more in 2006. Originally, only one new berth was scheduled for 2005.

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

babystan03

July 21st, 2004, 08:12 AM

Business Times - 21 Jul 2004

PSA places $78m order for 42 cranes
Fast-tracking of Pasir Panjang Terminal expansion to meet demand

By DONALD URQUHART

(SINGAPORE) As part of its accelerated development of Pasir Panjang Terminal (PPT), PSA Corporation has placed a $78 million order for 42 Korean-made gantry cranes with delivery from March 2005.

The 42 rubber-tyred gantry cranes (RTGs) are to be built by South Korean industrial conglomerate Doosan heavy Industries and Construction Company following the awarding of the contract last week.

A PSA corporate spokesperson said the the cranes will be delivered in phases from March to September 2005, 'in line with the development of PSA Singapore's five new berths at Pasir Panjang Terminal'.

Under the fast-track, three new berths will be operational at PPT in 2005, including two in July and one in September, as well as two more in 2006. Originally, only one new berth was scheduled for 2005.

The overall expansion of PPT will enlarge PSA's annual throughput capacity from 20 million TEUs to 24 million TEUs.

The crane order follows an earlier one in May this year in which PSA placed an order worth $120 million for 12 super post-panamax quay cranes for PPT from Shanghai-based Zhenhua Port and Machinery Company.

The fast-tracking of its Pasir Panjang development was necessitated after a 17 per cent surge in average daily volumes - or about an extra 10,000 TEUs daily - handled in the first three weeks of June which resulted in atypical berthing delays at PSA's local terminals of anywhere from two to 24 hours.

The surging volumes were a result of a flood of westbound Asia-to-Europe cargoes out of North Asia and China which were exacerbated by the early arrival of the peak season.

Patrick Phoon, chairman of the Singapore Shipping Association (SSA) Council's Services Committee had earlier told Shipping Times that while typically the peak season arrives after the first half of the year, this year it arrived nearly a month early.

He added that the surging volumes were 'a happy problem' for the industry, 'but a problem nonetheless'. Shipping Times understands that the situation has improved following additional equipment, extended shifts for crane operators and dialogue and information exchange between PSA and shipping lines although the typhoon in North-east Asia last week has disrupted schedules causing vessels to 'bunch-up' resulting in some delays at terminals here.

PSA saw a volume growth at its local terminals of 15 per cent, or 9.9 million TEUs, for the first six months of this year over the corresponding period last year.

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

RafflesCity

July 21st, 2004, 12:32 PM

Good to hear that PSA is speeding up the expansion of the new terminal

btw its a good idea that you post several articles in 1 post :)

huaiwei

July 21st, 2004, 01:03 PM

Hmm..if you do some comparison, PSA's eventual 24 million TEU handling capacity is just 4 times more then PTP's 6 million? We arent that big afterall! ;)

babystan03

July 21st, 2004, 01:34 PM

Good to hear that PSA is speeding up the expansion of the new terminal

btw its a good idea that you post several articles in 1 post :)

Thanks......:)

babystan03

July 24th, 2004, 08:51 AM

Business Times - 24 Jul 2004

CORPORATE ANALYSIS
Singapore's marine sector looking offshore for growth
Big players like SembCorp Marine, PSA tapping into China's rapid development

By JEAN CHUA

SEMBCORP Marine's latest investment in Cosco Shipyard Group has drawn mixed reactions from analysts.

While some declined to comment, others issued a 'hold' recommendation on SembCorp Marine's stock after learning this week that the company will pay $49 million for a 30 per cent stake in the shipyard operations of China's largest shipping conglomerate, China Ocean Shipping Co (Cosco).

SembCorp Marine has worked with Cosco Shipyard since 2002 and owned 20 per cent of Cosco's yard in Dalian in northern China. With this latest deal, SembCorp Marine will have a share in the group's five yards in Dalian, Nantong, Shanghai, Zhoushan and Guangzhou. With China being one of the world's fastest-growing maritime nations, it is no wonder SembCorp Marine sees its cooperation with Cosco as key to its overseas expansion and future growth.

PSA Corp, which runs the Singapore port, also has a close relationship with Cosco. Last month, it said it will work with Cosco Pacific - China's largest terminal and container shipping operator - and two other industry partners to develop the US$600 million second phase of Dalian Container Terminal at Dayao Bay. PSA Corp will reportedly take a 25 per cent stake, Cosco 20 per cent, Dalian Port 35 per cent stake and AP Moller 20 per cent.

Last year, it allowed Cosco to buy 49 per cent of two berths at Pasir Panjang for about $80 million - the first time PSA permitted foreign investment in its Singapore facilities.

Change in outlook

Singapore's marine sector - and main infrastructure players SembCorp Marine, Keppel Corp and PSA - have not always been so outward-looking. SembCorp Marine, for example, started looking at acquiring a shipyard in China in 2000, according to the 1999 annual report of parent SembCorp Industries. It wanted to turn from 'a traditional shipyard business into a global marine engineering specialist', the report said, citing falling margins because of competition from yards in China and excess capacity in Singapore.

Of PSA's cooperation with Cosco Pacific, PSA president and chief executive Ng Chee Keong said it 'reflects the new approach in PSA's relationship with its customers' and heralds the beginning of more joint ventures with shipping lines to invest in terminal operations in Singapore.

Singapore's long-standing position as the number 2 container handler in the world also means there is no real hurry for local marine firms to go overseas. Things are changing, however. Last year, while Hong Kong retained its top position, Shanghai overtook Busan in South Korea to become the world's third-busiest container port. According to figures from Containerization International and China's Ministry of Communications, the Shanghai port handled 31 per cent more cargo, or 11.3 million standard 20-foot units. Hong Kong processed 20.5 million containers, and Singapore 18.1 million.

This year, despite moves by the Chinese government to cool the economy, the Chinese shipping industry shows no sign of slowing down. The country is going ahead with a US$16 billion project to help ease transport bottlenecks caused by a 3 1/2-time increase in foreign trade over the past decade. The Shanghai port authority is building a new project in Yangshan port near Shanghai, which the Chinese government estimates can handle 25 million standard containers a year - more than the volume of Hong Kong.

To benefit from this busy container trade in China, the container shipping arm of Singapore's Neptune Orient Lines signed a 20-year terminal agreement with Chiwan port in western Shenzhen a few months ago. Its APL unit was reluctant to reveal details, but analysts say terminal agreements usually involve cheaper handling rates, berthing priority and productivity guarantees by the terminal operator. Carriers typically guarantee a minimum volume throughput.

Interestingly, Keppel Corp's unit, Keppel Offshore and Marine, does not seem to have much interest in China.

'Different companies will be in China for different reasons,' an analyst said. 'SembCorp Marine and PSA, by the nature of their business, feel they have to be in China to take advantage of the growth. Keppel Corp, on the other hand, would rather concentrate on the Middle East, with which they are more familiar.'

Not all is doomed for the Singapore marine industry. Research done by NUS Consulting for the Maritime and Port Authority of Singapore suggests that Singapore maritime companies may increase production by up to 9.3 per cent annually between this year and 2008. The number of workers in the shipping and and port industries may increase from 116,800 this year to more than 200,000 by 2018. Most of this demand will be from ship repairs and construction, the report said.

Some industry sources suggest that it may take years for some companies to recover their investments in China. One analyst said some projects will not benefit the companies' bottom line immediately and are most likely what he calls 'strategic moves'.

Adding value

Whether the bet on China pays off, and how Singapore can best position itself there, remain to be seen. Some observers suggest that Singapore marine firms could provide their expertise in services to their Chinese partners. SembCorp Marine's subsidiary Jurong Clavon has set up a 40:60 joint venture company with Cosco Shipyard Group to provide corrosion control consultancy, staging, copper slag processing and trading, blasting and painting services to shipyards in China. The new joint venture company will be known as Cosco Shipyard Jurong Clavon Co.

'That's where Singapore firms could give something to Chinese firms,' one analyst said.

'The Chinese are actually very protective and guarded about their marine sector. You have to give them something compelling.'

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

babystan03

July 24th, 2004, 06:35 PM

Business Times - 24 Jul 2004

NOL profit seen doubling in Q2 on higher freight charges
The shipping group is expected to post record profits in 2004, but freight rates may start to correct in 2005, say analysts

Neptune Orient Lines (NOL), the world's seventh-largest container shipping group, probably doubled quarterly profit as it moved more cargo at higher charges, fuelled by brisk trade with China, analysts said.

In the current second half, Singapore's biggest shipping group could post stronger results as freight rates rise in the peak third-quarter season, they added.

Freight rates have swelled in the last two years, supported by China's export boom and a tight supply of ships, benefiting NOL and other regional shipping lines.

But analysts expect freight rates to slip from next year as new vessels come on stream, possibly as early as 2006, and as China reins in its rapidly growing economy.

A Reuters poll of five analysts showed NOL is expected to post a 137 per cent rise in net profit to US$162 million in the quarter to June 25 from US$68.5 million a year earlier, with forecasts ranging between US$141 million and US$180 million.

Forecasts for second-quarter earnings nearly match the US$163.17 million net profit NOL made in the first quarter. The company is due to release second-quarter results on Tuesday.

NOL, which has a market value of S$3.4 billion, is expected to post a record net profit of S$1.01 billion for the full-year, according to the average forecast of 13 analysts polled by Reuters Estimates. That would be 38 per cent higher than 2003's net profit of US$428.8 million. Net profit in 2005 is expected to fall to S$965 million, the poll showed.

'The momentum for margin expansion is likely in our view to carry through only until this year's peak season,' said JP Morgan's Christopher Gee, who rates the stock 'underweight'. 'We anticipate a tougher outlook in 2005,' Mr Gee said in a client note, citing the accelerated deliveries of container vessels in the sector.

Mr Gee pencilled in a US$155 million second-quarter net profit, adding NOL's shares could be driven in the near-term by a maiden interim dividend, special payout or share buyback.

NOL shares have risen more than 7 per cent this year, outpacing Taiwan rivals Evergreen Marine Corp, whose shares dipped 12 per cent, and Yang Ming Marine Transport Corp, which has tumbled 16 per cent in the same period.

About two-thirds of NOL's revenues come from its container shipping arm APL, which has more than 90 container ships.

It moved nearly 20 per cent more cargo in the April 3 to June 25 quarter than a year earlier, while its average freight rates were about 5 per cent higher. APL's second-quarter rise in freight rates, however, was lower than the average 14 per cent year-on-year growth in the first quarter. - Reuters

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

RafflesCity

July 24th, 2004, 07:49 PM

Last year, it allowed Cosco to buy 49 per cent of two berths at Pasir Panjang for about $80 million - the first time PSA permitted foreign investment in its Singapore facilities.

Getting major Chinese shipping companies to invest in operations here is a good strategic move.

babystan03

July 25th, 2004, 08:17 AM

Getting major Chinese shipping companies to invest in operations here is a good strategic move.

Killing two birds with one stone i think. First, it increase the Chinese company commitment and linkage with Singapore. Secondly, it counters the competition(of shipping companoes having their dedicated berths) in the region. :cool:

huaiwei

August 4th, 2004, 06:46 PM

August 04, 2004

Temasek in $2.8b cash bid for NOL

Mandatory offer hinges on enough acceptances to take stake past 50% by its close

By Chua Kong Ho

TEMASEK Holdings yesterday made a $2.8 billion cash bid to buy the remaining shares of Neptune Orient Lines that it does not already own at $2.80 a share.

The conditional cash offer comes just days after NOL reported better than expected net profit of US$186 million (S$316 million) for the second quarter ended June 25, a 172 per cent jump from the US$68 million for the corresponding period of last year.

Buoyed by high freight rates and strong demand, NOL shares have risen 25 per cent this year, the eighth-best performing stock on the benchmark Straits Times index.

Temasek’s offer price of $2.80, made through wholly owned subsidiary Lentor Investments, represents a 3.7 per cent premium to yesterday’s closing price of $2.70. The offer price exceeds the highest closing price of NOL shares since Jan 4, 1994.

Said Mrs Margaret Lui, Temasek managing director of strategic development: “We were interested to increase our shareholding above 30 per cent. Our mandatory conditional offer is an all-cash firm offer, conditional upon us receiving acceptances so as to cross 50 per cent (of total ownership) as at the close of the offer.”

Temasek’s stake in NOL was cut from 33 per cent to less than 30 per cent following a cash call by the shipping group in November, which raised $547.7 million through a placement of 236 million shares.

Since then, Temasek has been steadily buying NOL shares on the market.

Lentor Investments bought 20.3 million shares on the open market yesterday at prices between $2.50 and $2.68 a share, pushing Temasek’s shareholdings in NOL to 30.14 per cent.

Startree Investments, another wholly owned Temasek Holdings subsidiary, purchased 22.5 million shares on the open market at between $1.97 and $2.04 a share in 10 separate transactions in February and March.

Crossing the 30 per cent shareholding limit triggers a mandatory takeover offer under Singapore’s listing rules.

The shipping line has been benefitting from rising global freight rates, driven by demand from a booming China. NOL recently signed new charter agreements for the delivery of four container ships in 2007/08.

Goldman Sachs is advising Temasek on the offer.

huaiwei

August 4th, 2004, 10:12 PM

PM Goh's contributions to NOL lauded in book

But at the launch of Beyond Boundaries, which celebrates NOL's first 35 years, Mr Goh was quick to play down his role

By Nicholas Fang

AT THE launch of a book which pays tribute to his contributions to Neptune Orient Lines (NOL) during his tenure as managing director in the 1970s, Prime Minister Goh Chok Tong was quick to play down his role, saying that it was a team effort.

The book, Beyond Boundaries, celebrates the first 35 years of the shipping line through anecdotes and stories from former top executives and employees, and tells of its rise from humble beginnings to become a US$5.5 billion (S$9 billion) global transportation and logistics player.

In his foreword to the book, Mr Goh said the story of NOL is part of the wider Singapore story.

'In the early years of our independence, we set out to create a national shipping line to serve our country. Many people were involved in the birth and maturity of NOL. I was fortunate to be one of them,' he wrote.

Speaking at the book launch yesterday at The Fullerton hotel, an event attended by the shipping industry's elite, Mr Goh regaled the crowd, which included many friends and former NOL colleagues, with anecdotes of his early days in the company.

And he said he would not be where he is today were it not for NOL, as it was during his time there that he caught the eye of the late finance minister Hon Sui Sen, who brought him into politics.

Mr Goh joined in 1969 and was NOL's managing director at the time he entered politics in 1976.

'When I looked at the book, I found that they gave me so much face for what I did, I personally felt a little uncomfortable because I merely played a part, not from Day One but maybe from close to the first or second year in joining NOL as the planning and projects manager,' he said.

He said he moved to NOL from the Finance Ministry at that time as he had become 'restive' with his work in the civil service. The change proved to be an eye-opening experience, he said, as he described his initiation into the industry under NOL's first executive director Eric Khoo.

'Coming from the civil service, I was not very good in socialising and I had never drunk wine in my life, so Eric Khoo would organise barbecues and functions at his house. I would be invited ... and I learnt a few things about drinking wine.'

He also described a dinner with some European guests who were enjoying post-meal cigars. 'I thought maybe that's the way to get on with shipping people. So I watched what they did. I took a cigar, I tried and I inhaled. Well, it was not very enjoyable,' he said to laughter.

Mr Goh also had the audience in stitches when he described a business trip with former NOL chairman Lua Cheng Eng to Cairo, where he lost his luggage.

'At that time we were quite thrifty. Lua and I actually shared one room and we shared the double bed. Lua was fully dressed in his pyjamas but I had no pyjamas. He would get into bed first, I would then change and quickly creep into the bed in my briefs and my singlet.'

His stories were not the only ones which were a hit with the audience, as Mr Lua and other former employees of NOL, including its first managing director M.J. Sayeed and the chief officer of NOL's first ship Captain Mark Tozer, also recounted their favourite memories of the company.

huaiwei

August 4th, 2004, 10:16 PM

How a 28-year-old future PM turned this ship around

When Mr Goh Chok Tong took over Neptune Orient Lines in 1973, it was a loss-making, unpromising shipping company. Within two years, however, he turned it around. His success and recollections of those times are captured in Beyond Boundaries, a book on the story of NOL's first 35 years

IN 1969, a year after Neptune Orient Lines (NOL) was set up, a group of men with strong leadership and management qualities were brought in to help the fledgling company pick up speed.

Among them was Mr Goh Chok Tong, then a 28-year-old from the Administrative Service. He started out as planning and projects manager, and was managing director from 1973 to 1977.

To bone up on shipping matters he knew nothing about, he bought books.

'Where were the shipowners to teach you in Singapore? I used to walk from the office in ICB Building in Shenton Way to Motion Smith bookshop in Raffles Place just to browse and buy. So I read and thought, 'Oh, that's how you run a shipping line',' he recalled in the book.

Mr Goh, then the planning and projects manager, also combined textbook knowledge with an all-hands-on-deck approach.

When NOL's first tanker was bought around 1969, he was instructed by his bosses to be on board and stay for the entire course of the slow journey from Singapore to the Middle East to learn about tanker operations.

He took a book on the subject to read during the voyage.

At each port stop, the tall and lanky officer watched the loading and unloading operations and compared them with what was in the book.

However, after the tanker stopped at Penang, he decided he had seen enough: 'I can tell you I was bored to death. The time passed so slowly.

'The Hong Kong crew spoke only Cantonese and Mandarin. I couldn't speak any Cantonese nor much Mandarin at that time.

'Fortunately, the Chief Officer was from India and I was able to speak to him. He told me all about the various pipelines on the tanker.

'So there was this pipeline, that pipeline... I lost interest after a while. The pipelines were all the same except for some colour markings to distinguish them for different usage.'

Bored, he would read or go to the deck to sun himself.

EARLY PROFIT ESTIMATES 'STUNNING'

AS PLANNING and projects manager, Mr Goh also devised a management information system which made estimates of the earnings and various costs from each voyage. With such information, he could estimate the profitability of a voyage as soon as a ship left the port.

'The results we obtained by using this information system stunned me and the management and the Board,' he recalled.

'Almost every voyage in our European service liner was a loss, even when we had a good load factor. Sometimes, even with more than an 80 per cent load factor, we still lost money.'

He figured that either the wrong type of ship was being used or the wrong cargo was being carried - or both. Mr Goh worked out a model where each ship would have a good mix of cargo to maximise freight earnings.

However, this solution alone was not good enough to compete with the big boys.

So, for the European service, NOL replaced its custom-built, multipurpose semi-container ships with full container vessels.

In another example, Mr Goh cited how his hard bargaining style helped NOL buy a new ship at US$1 million less than when it was first offered to the company.

'Our consortium partners were amazed. In 1975, when the company turned around, we were delighted. It was our first profit after so many years. That year, we gave a small bonus to the staff, to encourage them,' he said.

His other moves included the reorganisation of NOL and this led to the separation of the company's shipowning and agency functions.

He also changed NOL's business strategy and went full steam ahead with the containerisation programme.

DETERMINED TO SEE NOL SOAR

THESE leadership qualities earned him the post of joint managing director in 1973. The other MD was Mr Eric Khoo.

When Mr Khoo left NOL in 1974, Mr Goh became the sole MD and faced the daunting task of turning the company around.

He gave himself three years to do the task and told his boss: 'If I could not, NOL should find someone else.'

The company made money in two years and in 1976, NOL's profits soared.

Mr Goh's achievements led then-finance minister Hon Sui Sen to recommend him as a People's Action Party candidate and later, as Mr Hon's successor.

In 1976, Mr Goh contested the Marine Parade ward and rose through the ranks to become Prime Minister in 1990.

Recalling those days, he said: 'If I hadn't turned NOL around, he would have said that this chap is useless and then I wouldn't even get to run the shipping company.'

Mr Lua Cheng Eng, who as liner manager reported directly to Mr Goh, said in the book: 'His management style is the same as his style as PM. He is consultative and very approachable so you don't feel threatened when you talk to him.

'His mind is like a radar. He is clear in his thinking and analytical. You could tell him a lot of things but he would be able to pick up the key issues quickly,' he said.

REFUSED TO TRAVEL FIRST CLASS

AS A leader, Mr Goh led by example and always showed care and concern for his staff.

He never travelled first class because he felt the company was not making money:

'If I travel first class, the ship captains would also insist on travelling first class. I wanted to set an example.

'I was young and quite flexible. I could curl up my legs in the economy seat,' he said.

Boosting staff morale was high on his list of must-dos as a boss.

He introduced a 'happy hour' once a month when all NOL staff went to the penthouse of Neptune Building in Trafalgar Square to eat, drink and chat with him for an hour.

'You have to make your staff feel that you care for them,' he said.

Another example of his caring approach: He bought a vehicle to transport the ship's senior officers.

He noticed the officers were eager to rush home to see their families when they returned to Singapore. But they had to walk some distance from the wharves to take a taxi home.

He told them: 'We can't afford to give you a Mercedes, but we will take you home in a station wagon. That saved them some time.

'It was a little gesture, but they felt that we cared.'

http://straitstimes.asia1.com.sg/mnt/media/image/launched/2004-07-29/h4c.jpg
Mr Goh in 1971 with (left) Communications Ministry permanent secretary Ngiam Tong Dow and Mr Goh Chee Hiong.

http://straitstimes.asia1.com.sg/mnt/media/image/launched/2004-07-29/h4d.jpg
managing director Goh with (left) Mr S. machida of Ishikawajima-Harima Heavy Industries and secretary Tan Cheng Joo in 1976.

huaiwei

August 4th, 2004, 10:32 PM

David Lim offered NOL job right after leaving Govt

DESPITE not having a shipping background, Mr David Lim was such a favourite to take over at the helm of Neptune Orient Lines (NOL) that he was offered the job the same day it was reported that he was leaving the Government.

In a book entitled Beyond Boundaries which celebrates NOL's 35-year history, NOL chairman Cheng Wai Keung describes how he eagerly made a phone call at 9am the day it was announced in the newspapers that Mr Lim had left his job as Acting Minister for Information, Communications and the Arts.

Mr Cheng made the call while waiting to catch a flight at the airport that day in late April last year.

'I knew I had to be quick because I was sure others would also ask him to join them. So as soon as it was 9 o'clock, I called his office on my mobile phone.

'And the first thing he asked me was: 'Did anyone in the Government ask you to ask me? If that is so, I don't want to be considered for the job'.'

Mr Cheng replied that no one from the Government had done so and that he would not have asked Mr Lim to take on the post if he did not think he was up to the job.

'I knew that if he took the job, he would give his full commitment. He would go for the long haul. We had carried out a rigorous worldwide search to fill the post and I felt that David would be the right man for the job,' Mr Cheng said.

In the book which was launched yesterday, Mr Lim said he could not take credit for NOL's sterling results last year, when the company returned to the black with profits of US$429 million (S$740 million) from a net loss of US$330 million the previous year.

'It had little to do with me. The most important thing for me to do was to make sure I didn't make things worse,' he said, adding that most of the performance was from NOL's container and ocean transportation business where strategies had been worked out early last year before he joined NOL.

http://straitstimes.asia1.com.sg/mnt/media/image/launched/2004-07-29/h4b.jpg
Mr Lim's services were secured by the NOL chairman's 9am call.

huaiwei

August 5th, 2004, 04:53 PM

S'pore Shipping chalks up 300% rise in net profit

By Nicholas Fang

SINGAPORE Shipping Corp (SSC), formerly known as Hai Sun Hup, said first-quarter net profit surged a whopping 302 per cent to $6.4 million, buoyed by strong contributions from its ship owning and management businesses.

Mainboard-listed SSC said in its results statement to the Singapore Exchange yesterday that revenue for the quarter ended June 30 also improved 28.6 per cent to $25.3 million.

SSC's agency and terminal operations posted an impressive 36 per cent increase in sales to $1.1 million, due mainly to higher stevedoring revenue.

The lion's share of its revenue still came from its ship owning and management segment, which saw a 31.4 per cent increase in turnover to $14.3 million. This was due to higher charter rates for the group's container and multi-purpose vessels, SSC said.

The group's higher net profit also reflects this.

Charter rates have been soaring throughout the industry due largely to bustling global trade and increased demand for vessels.

SSC said net profit from agency and terminal operations fell 38.6 per cent compared to the previous corresponding period due mainly to a lower contribution from an associated company.

Its warehousing and logistics business recorded a 41.3 per cent net profit increase to $653,000 due to higher turnover from international shipping, storage and transportation activities.

Earnings per share rose to 1.5 cents from 0.36 cent previously, while net asset value per share also increased, going to 38 cents a share from 36 cents a share as at the end of March.

On the current financial year ending March next year, the company said that its results are expected to improve significantly over the previous year, primarily due to contracted higher charter rates for container vessels and improved spot charter rates for multi-purpose vessels.

babystan03

August 8th, 2004, 04:12 AM

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.

babystan03

August 11th, 2004, 11:02 AM

Business Times - 11 Aug 2004

PSA's local volumes surge 12% in July

Jurong Port posts 141% jump in July throughput

By DONALD URQUHART

(SINGAPORE) Surging container volumes that brought unprecedented congestion to Singapore's terminals nearly two months ago showed little sign of abating in July as throughput volumes were again at near-record levels.

Volumes handled by PSA Corporation's five Singapore terminals amounted to 1.8 million TEUs for the month of July, up 12 per cent on the same month a year earlier, but shipping lines say the congestion problem is largely a thing of the past.

For the year to-date, PSA's local terminals have handled a total 11.7 million TEUs, up 14.7 per cent on the same period last year, according to its monthly statistics released yesterday. The July throughput figures are identical to June, during which PSA was hit with a massive surge of westbound volumes out of China and destined for Europe.

Singapore's other container terminal operator, Jurong Port also recorded healthy volume increases, with a July throughput of 53,000 TEUs, up nearly 141 per cent over the same period last year. June was a record-setting month at Jurong Port, with 56,000 TEUs handled compared with only 18,000 TEUs the year prior.

A Jurong Port spokesperson attributed the throughput increase to 'a surge in the general growth of container throughput in the region', but added that the port had not experienced any congestion problems as a result.

Year to-date throughput at Jurong Port amounted to 341,000 TEUs, nearly three times the 119,000 TEUs handled in the same period in 2003. The surging volumes out of North Asia, in particular China, have stretched the global container shipping and port industry to its limits, making spare container ship capacity as tight as a drum and bogging down key ports the world over.

While shipping lines were complaining of up to one-day berthing delays at PSA terminals here in June, added manpower and equipment, along with greater communication between shipping lines and the terminal operator, have largely returned the situation to normal.

PSA also threw its Pasir Panjang Terminal development into high gear, with three new berths to be operational next year, compared with the original plan for one berth in 2005. Two more will come on stream in 2006 bringing PSA's local capacity up to 24 million TEUs compared to the current 20-million TEU capacity.

Overseas, PSA's throughput at its 17 terminal ventures saw a 25.9 per cent rise for the first seven months this year, compared with the same period last year, hitting 7.3 million TEUs.

Overall, PSA handled a total of 19 million TEUs, up 18.8 per cent for the year to-date and looks set to significantly better the global container growth forecast by Drewry Shipping Consultants' of 8.2 per cent for 2004.

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

huaiwei

August 12th, 2004, 11:09 PM

NOL stock soars above offer price to 10-year peakof $2.90

Shipping line can pay up to $2.88 each for 2 days without affecting offer price, in view of dividend

By Edna Koh

TEMASEK Holdings' dramatic $2.8 billion takeover bid for Neptune Orient Lines (NOL) sent its share price soaring to a 10-year closing high of $2.90 in frenzied trading yesterday, well above the offer price of $2.80.

At the same time, Temasek, which unveiled the bid on Tuesday, said it had won regulatory approval to pay up to $2.88 for NOL shares in trading on the open market today and tomorrow, without triggering a revision to its offer price.

This is in order to take into account an 8.75 cent interim dividend payable on each share.

NOL shareholders who accept Temasek's offer of $2.80 a share will be allowed to keep the dividend, which is payable on Aug 30.

But any NOL shareholder who sells on the open market today and tomorrow loses the dividend, which goes to the buyer. Monday is a holiday for National Day.

This changes next Tuesday when NOL shares go 'ex-dividend', which means that from then on, the seller rather than the buyer keeps the dividend.

Temasek wanted to make up the difference today and tomorrow.

Its move set a floor for NOL shares, which rose as much as 9.3 per cent to $2.95 yesterday on heavy trade. The shares eventually closed the day at $2.90 each, up 7.4 per cent, on 96.68 million shares done, making it the most active counter.

The share price also shot past Temasek's offer price because of expectations that it may revise its $2.8 billion takeover bid, market watchers said.

One rumour yesterday was that the Singapore investment firm may raise its offer price to $3.10. Asked about the possibility of a price revision yesterday, Temasek spokesman Eva Ho would only say: 'Ours is a firm offer.'

Speculation yesterday that Temasek's buying fervour may extend to Chartered Semiconductor Manufacturing and ST Assembly Test Services, two of its companies, also propelled these counters near the top of the actives list. Chartered rose two cents, or 1.9 per cent, to $1.09 while Stats gained seven cents, or 5.6 per cent, to $1.31.

Temasek had raised its stake in NOL to 30.14 per cent on Tuesday, triggering a mandatory general offer for the rest of the NOL shares it does not own.

For Temasek's offer to go unconditional, it needs to garner at least 50 per cent of acceptances, failing which, it will have to return any shares tendered. On the other hand, if it manages to get more than 90 per cent, it can delist the company and take it private.

Analysts were split over whether it would be able to get a significant level of acceptances.

At $2.80, NOL is valued at below the fair value of $3 to around $3.40 pegged by a number of broking firms.

DBS Vickers, for example, has a target price of $3.36 on the shipping firm, and said in a research note yesterday that at $2.80, NOL is trading at only 2.6 times its forecast 2005 earnings. This is compared to 4.6 to five times that of its regional peers.

Still, despite this, some analysts felt that at $2.80, investors were getting a reasonable deal.

NOL may be cheaper than its peers, but one lingering question is whether the shipping industry is at the top of the cycle, and freight rates are set to soften next year. For those who think the cycle has peaked, valuations may be less meaningful, said one observer.

'The stock is at a 10-year high, and it is highly cyclical. Temasek's offer is not that far from the fair price. Asking for more is like splitting hairs, given the risk that the share price could come off 20-30 per cent if it doesn't go through,' said one analyst.

Others, however, thought the poser of whether it would garner 50 per cent acceptances was too close to call, with NOL's share price 'so close to what the offer price is'.

There was also generally little expectation that it would cross the 90 per cent mark.

huaiwei

August 12th, 2004, 11:10 PM

Temasek move leaves industry experts baffled

By Nicholas Fang

THE move by Temasek Holdings to up its stake in Neptune Orient Lines (NOL) to over 30 per cent, triggering a mandatory takeover offer, has industry watchers scratching their heads.

The question most observers are asking is whether Temasek intends to acquire more than 90 per cent of NOL's shares and take the company private, which seems a likely conclusion given the current offer.

But speculation has been rife among analysts on why Temasek would want to inch its shareholding marginally above the 30-per-cent limit to just 30.14 per cent and then make a cash offer at $2.80 a share, a price which is unlikely to bowl over minority shareholders.

An analyst with a local broking house who declined to be named said the price of $2.80 is a 'balanced price'.

'It's just enough to get about half of the shareholders to say 'yes', and the other half to say 'no', which means it's unlikely that they will receive the over 50 per cent level of acceptances that will make their offer unconditional.

'Judging by their offer price, it doesn't seem that they are very keen to take the company private. After all, if they really wanted to make an offer for the company, they could have done it at 29 per cent and not have to go over 30 per cent when it becomes mandatory,' she said.

'It seems that they just want to make a statement that they are still a substantial shareholder of the company.'

Temasek strategic development managing director Margaret Lui said on Monday in a statement detailing Temasek's offer: 'We were interested to increase our shareholding above 30 per cent.'

Players within the shipping industry are reportedly less-than-impressed with Temasek's offer price.

Norwegian shipping tycoon John Fredriksen, a significant shareholder of NOL, yesterday gave the offer the cold shoulder, according to a Reuters report.

'That bid is too low,' Mr Tor Olav Troim, Mr Fredriksen's assistant, told the wire agency.

Mr Troim declined to specify how many shares his boss owns in NOL, telling Reuters: 'He is among the five to six biggest shareholders.'

Industry journal Lloyd's List said in a report yesterday that if Temasek goes ahead with an eventual delisting of NOL, it will allow it to make a takeover bid for another container line without the restrictions of the stock market, with P&O Nedlloyd or Hapag Lloyd likely targets.

But given the low level of Temasek's offer, it seems more likely that Temasek wants to up its stake in NOL so that, in the event that NOL merges with another container line, as has been rumoured recently, its diluted stake will still be around the 30 per cent level, the report said.

Other market watchers pointed to recent comments by Temasek executive director Ho Ching, who said earlier this year that the investment company is looking to focus on companies which have 'the potential to grow beyond their domestic markets'.

NOL would fit this bill, given its steady growth from a small shipping line serving Singapore's domestic needs in 1968 to a global line ranked among the top 10 in the world with offices in more than 90 countries.

NOL's acquisition in 1997 of American liner APL, though widely criticised at the time as having been carried out at too high a price, catapulted the Singapore line into the big league of global shipping companies.

However, the timing of the acquisition coincided with a cyclical downturn in the industry and it found itself knee-deep in red ink.

After pulling itself out of the mire by the end of the 1990s, NOL was hit again by a cyclical downturn in 2001, which was compounded by the Sept 11 terrorist attacks.

The industry plunged into its worst-ever recession.

But after a change of stewardship last year, the company has refocused its efforts on developing a leaner business model and growing its core liner and logistics business segments.

Temasek's move to increase its stake could be viewed as a vote of confidence in NOL's long-term plans.

If Temasek is planning to take NOL back into its fold, possibly creating a shipping and port monolith by way of a merger with port operator PSA Corp, it would do well to remember NOL's initial efforts to expand in the United States.

In a recently launched book commemorating NOL's first 35 years, Mr Teo Yak Long, who was the company's liner chief in the 1980s, said that NOL's efforts to expand in the US 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 reduced to improve the chances of getting access to the US markets.

Sure enough, when Temasek's stake was whittled down to just over 30 per cent, NOL was taken off the list.

For now, the market awaits details of the course Temasek is charting for NOL.

babystan03

August 13th, 2004, 09:23 AM

Business Times - 13 Aug 2004

Congestion delays linger at PSA's S'pore terminals

Labour problems in US and congestion in Europe add to peak-seasondelays here

By DONALD URQUHART

(SINGAPORE) Surging China volumes continue to strain port facilities around the globe with sporadic congestion delays still afflicting PSA Corporation's Singapore terminals, according to shipping lines.

This year's peak-season cargo volumes from Asia to the US and Europe which have resulted in record cargo throughput for container terminals here and across the region are likely to extend well into October, say shipping executives.

The peak-season volumes caught terminal operators off guard by arriving in full force in June, nearly one month early, and are now expected to remain strong beyond the normal tapering off period in September.

The surging Asia-to-Europe volumes brought nearly 17 per cent higher throughput - or about 10,000 additional containers - through PSA Corporation's local terminals each day during the first two weeks of June and made for 15 per cent higher throughput for the first seven months over last year.

Lines polled by Shipping Times yesterday reported varying degrees of congestion, ranging from no delays whatsoever, to improved but still significant delays at Singapore terminals. 'It is still not as we would like it to be - that is, for all our vessels to berth immediately upon arrival,' said one senior shipping executive of a major line.

Despite prompt and wide ranging action starting from June to address the unprecedented delays - of up to 24 hours at the peak - some lines told Shipping Times that their vessels are still experiencing delays of anywhere from two to 10 hours. 'They're struggling, really, to keep up with the situation, but it's still not up to the mark,' one feeder executive said.

The lines say the congestion crunch is particularly bad when a number of vessels from major strings simultaneously arrive. 'Those of us who have many sailings are paying a bit of a price,' added one liner executive.

The congestion has also become visible when surveying Singapore's coastline, with up to fifth generation, fully-laden container vessels periodically appearing for varying periods of time in far-flung anchorages.

Lines with a smaller number of sailings in which their vessel calls are more spread out and are fortunate enough not to be calling during the peak berthing windows may be escaping much of the congestion, suggest some liner executives as the reason not everyone is experiencing delays.

'I think they're doing the best they can, that's not to say we like the situation, but to some degree we have to be understanding,' said a senior executive of one of PSA's largest customers.

Some of the liner executives also highlighted that aside from surging volumes over-taxing Singapore's facilities, at least part of the problem is originating from other ports, including labour problems on the US West Coast and congestion problems in Europe.

'The vessels from Europe are coming back late which is throwing the schedules out of whack,' said one, adding: 'This is causing a snowball effect.'

Because of the delays, both here and at other ports, combined with many vessels sailing chock-a-block, mainlines are having to renominate their second carrier which is placing additional stress on the container yard.

Meanwhile, Malaysia's Transport Minister Chan Kong Choy offered to help ease congestion in Singapore through 'friendly cooperation'.

'We can help them in a friendly manner as we have the capacity to takeover the boxes,' Mr Chan said last week according to a Star online report.

But liner executives said it was largely impractical to do so because of the disruption it would cause to a line's network.

'Pelepas has two free berths but I don't see how it can be done in a very organised manner,' said one. 'We have a weave of connections from one of our vessels to another, and to other vessels like feeders and alliance partners, and you just can't say let's pull out two strings and go to another port temporarily.'

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

huaiwei

August 14th, 2004, 09:01 PM

Temasek eyes NOL

TEMASEK Holdings' $2.8-billion offer to buy the 70 per cent of Neptune Orient Lines (NOL) shares it does not own has caused a stir in the stock market. Speculation is rife over what the state-owned investment company will do next. For now, Temasek is holding the cards close to its chest, but the exercise is apparently more than just about unlocking shareholder value in what it deems an under-valued asset. There is talk that Temasek's latest foray has the makings of a strategic move to strengthen Singapore as a key commercial aviation and shipping hub in the region. If true it underlines the crucial role Temasek still plays in the economy to build up Singapore companies to compete globally in key sectors such as transportation and logistics. The NOL acquisition, if it goes through, will open up new opportunities for Temasek to grow a Singapore company that is fundamental to the Republic's core interests.

Size matters in an era of intense global competition. Singapore needs to reposition itself as the regional economies gear up to meet the growing challenge from China and elsewhere. Some analysts believe that Temasek could acquire NOL and merge it with a big player to give the shipping line - the world's seventh largest container carrier - and Singapore a bigger presence in global shipping. NOL, whose net profit soared to US$186 million (S$319 million) its latest quarter, and PSA are key pillars of Singapore's economy. The market has been speculating about a tie-up between NOL and port operator PSA Corp, which faces mounting competition from regional ports. PSA's stakes in 14 ports in eight countries, plus NOL's investments in nine terminals around the world, would make them a bigger and stronger company. True, the enlarged entity will still be behind Hutchison Port Holdings, the world's top container operator with stakes in 31 ports outside its Hong Kong base. But it would enhance PSA's plans for an initial public offering (IPO), which was put on hold in 2002 to wait for market conditions to improve. A merger will fit in nicely with the PSA's IPO plan to raise $4 billion. Alternatively, NOL could merge with another big shipping group to reap economies of scale as a global player. The market talk is that it could join forces with Dutch container shipping giant P&O Nedlloyd, whose European container routes would complement NOL's network.

All this though is market speculation. For now, Temasek says its main aim is to restore its stakeholding in NOL after it was diluted from 32 per cent to 28 per cent in a US$300-million share placement last November. In terms of market value, NOL is seen as one of the world's cheapest shipping stocks. According to Bloomberg's data, the carrier was trading at about 3.6 times its estimated profit for the year, lower than rivals with forward price-earnings ratios of up to 15 times. Indeed it is the sort of company which Temasek would want to grow, an objective clearly spelt out in its Charter: 'By nurturing successful and vibrant international businesses from its stable of companies, Temasek will help to broaden and deepen Singapore's economic base.'

Whatever the eventual outcome, the bottom line for Temasek, indeed Singapore, is clear: The country could do with more Singapore companies which are global brands with influence and reach far beyond its shores. If the latest move nudges it closer towards this long-term goal, it would have been well worth it.

babystan03

August 16th, 2004, 10:33 AM

AUG 16, 2004
China overtakes S'pore as favourite ship repair centre
Shipping boom triggered by huge import of iron ore and oil may mean it could one day displace the Republic in the business

By Tschang Chi-chu

NANTONG (Jiangsu) - Since January, Cosco (Nantong) Shipyard, has turned away roughly 15 per cent of the ships that have come to its shipyard at the mouth of the Yangtze River for repairs.

'Turning away our old customers is the hardest thing for us to do,' said Mr Chen Denghua, general manager of Cosco, whose customers include shipping giants A.P. Moller-Maersk Group, Hyundai Shipping and Kawasaki Kisen Kaisha ('K' Line).

But Cosco is not alone in turning away customers.

Other ship repair yards in China have also been doing so lately due to the cyclical rebound in the shipping industry starting last spring.

In the late 1990s, during Singapore's heyday as the world's largest ship repair hub, it also turned away customers.

Now, China has displaced Singapore as the favoured ship repair centre in Asia.

The so-called 'China factor' has been credited with igniting the shipping industry's current boom as China imported record amounts of iron ore and oil since 2002.

The Baltic Dry Index (BDI), an indicator of the price of transporting major raw materials by sea, hit a new record high of 5,681 last February due to China's ravenous demand for dry bulk imports such as iron ore and soya bean.

But after Beijing began cracking down in April on over-investment in the steel, cement and real estate industries, the BDI dropped by more than 1,000 points in a month to a more reasonable level.

'Repair is picking up worldwide because the freight rates have come down a little bit.

'When freight rates are up, everybody wants to take their ship out there to collect cargo,' said Mr Wong Kok Siew, CEO of SembCorp Industries.

Every three years, bulk carriers, container ships and oil tankers need to visit a dry dock for checkups and general repairs as required by their insurers.

But more and more cargo ships, especially big ships whose repairs cost more, are going to repair yards in China rather than in Singapore.

'Because of cheaper cost, many ships come to China for repairing now. Every shipyard in China is full of ships,' said Mr Liu Chin Peng, senior general manager of Jurong Shipyard.

Due to low labour costs, shipyards in China can do the same repair work 30 per cent cheaper than it would cost in Singapore.

China's docks, which used to service only Chinese ships, opened their doors to ships from around the world in 1996.

'The writing is on the wall that one day, no doubt about it, China will be the leading nation for ship repair,' said Mr Charles Foo, special projects managing director at Keppel Offshore & Marine.

'China has so many yards in terms of capacity...and obviously in terms of manpower, they have unlimited source of manpower compared to Singapore.'

To survive the competition, Singapore shipyards have moved up the value chain to the more lucrative ship conversion and floating production storage and offloading (FPSO) vessel repair businesses.

FPSO has accounted for a growing slice of Singapore's marine industry revenues at the expense of ship repair and conversion in the past several years, according to the Association of Singapore Marine Industries.

This may give Singapore a cushion for now, but it may not last long.

As China's ravenous appetite for oil grows, oil companies such as China National Offshore Oil Corp and PetroChina have been scouring seas surrounding China for oil.

'There are a lot of oil-prospecting ships, oil tankers and storage ships working in the South China Sea. These ships will eventually need to be repaired, which will bring us some business opportunities,' said Cosco's general manager.

It won a bid to repair a PetroChina oil-prospecting ship working in the East China Sea for the first time in its 43-year history this year.

To fill the gaps of knowledge, Cosco's parent firm has tied up with Singapore shipyards that have experience in repairing offshore oil exploration and development ships and platforms.

Cosco Shipyard Group signed an agreement to sell a 30 per cent stake in its ship repair business to SembCorp Marine on July 19.

In exchange, China's largest shipyard group will get SembCorp Marine's know-how and experience in offshore oil rig repair.

Cosco's Dalian and Nantong shipyards have each sent eight people to Jurong Shipyard for training.

Given China's thirst for learning, there may come a day soon when the student will overtake the teacher.

When asked whether China could also displace Singapore's forte in high-end, niche markets such as oil tanker and liquefied natural gas ships by the end of this decade, Jurong Shipyard's Mr Liu answered with a nervous laugh:

'That's what many Singaporeans worry about too.'

Copyright @ 2004 Singapore Press Holdings. All rights reserved.

babystan03

August 17th, 2004, 02:46 PM

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

August 23rd, 2004, 12:11 PM

Business Times - 23 Aug 2004

PSA tipped to take stake in business of Pelepas port

Source says partnership could result in PSA moving some container trade to Johor port

(KUALA LUMPUR) Speculation is growing stronger that Singapore's PSA Corp will take a stake in the business of its competitor, the Port of Tanjung Pelepas in Johor.

Quoting an unnamed industry source, the Malaysian Star newspaper reported on Saturday that PSA Corp would buy into a subsidiary of PTP, a partnership that would result in PSA moving some container trade to Pelepas. Star said PSA would be invited to take a stake in an almost completed two-berth expansion of PTP, rather than the whole port.

'It makes sense for PSA to take up a stake as it now spends millions on subsidies after having (to) slash its rates,' the source said.

The four-year-old PTP is controlled by Syed Mokhtar Al-Bukhary, an influential Malaysian businessman who also controls Johor Port as well as a broad array of businesses from power stations to hotels.

Danish shipping line Maersk Sealand, which moved its transhipment hub to Pelepas from Singapore, has a 30 per cent stake in PTP.

Also on the cards for PTP is a merger with Johor Port and an initial public offering of shares, although Mr Mokhtar's Malaysia Mining Corp would retain control with a 51 per cent stake, the source said. The latest talk of cooperation between the rival Singapore and Malaysian ports follows earlier press speculation of stake sales of some sort by Pelepas.

Responding to the speculation, Second Finance Minister Jamaludin Jarjis had said last year that he welcomed the possibility of the leading port operators forging an alliance. 'If there are opportunities for them to create alliances, it is for them to decide,' he was reported as saying.

For the first half of the year, PTP reported a 25 per cent jump in volume to two million 20-ft boxes. PSA handled 9.9 million boxes in Singapore in the same period, up 15 per cent from a year earlier.

Globally, PSA handled 16.1 million boxes in the first half, up 19 per cent. The Singapore operator has investments in port projects in Belgium, Brunei, China, India, Italy, Portugal, South Korea and Thailand. - Reuters

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

babystan03

August 24th, 2004, 10:14 AM

Business Times - 24 Aug 2004

Up to PSA to decide on M'sian port deal, says Temasek

PSA to be invited to take a stake in 2-berth expansion of PTP: report

By EDDIE TOH
IN KUALA LUMPUR

SINGAPORE investment company Temasek Holdings will let subsidiary PSA Corporation decide whether it would take a stake in the second phase of rival Port of Tanjung Pelepas (PTP) in Malaysia.

'This is a decision for the PSA board and management to take as we are not involved in the investment and business decisions of the Temasek-linked companies,' Temasek spokeswoman Eva Ho said in a written reply to BT yesterday.

On another question on whether Temasek itself would take a stake in the port in Johor, she said: 'As for Temasek, we have stated before that we are open to opportunities which make economic sense.' She declined to elaborate.

PSA said it does not comment on market speculation, while PTP declined to respond to queries yesterday.

This is the first time Temasek has commented on the possibility of an alliance between the two rival ports.

BT reported last August that Temasek and Malaysian tycoon Syed Mokhtar Al-Bukhary's privately held Seaport Terminal had high-level meetings to find ways for the two ports to forge an alliance. Seaport is a PTP shareholder.

Since then, the market has been rife with talk that PSA or Temasek would acquire a stake in the second phase of PTP.

But a source said PTP has added a condition that PSA must shut down some of its existing berths and divert the cargo to the Malaysian port. The condition is believed to have strained negotiations.

The rumour resurfaced last week. Star newspaper quoted unnamed sources as saying that PSA would be invited to take a stake in an almost completed two-berth expansion of PTP, rather than the whole port.

'It makes sense for PSA to take up a stake as it now spends millions on subsidies after having to slash its rates,' the source said.

The Malaysian daily quoted the source as saying that such a deal would help retain the current shareholding structure of PTP, which is en route for a public listing.

Malaysia Mining Corporation (MMC) owns 50.1 per cent of PTP. Danish AP Moller-Maersk group, which migrated from PSA's port to PTP four years ago, owns 30 per cent. The remaining 19.9 per cent is controlled by Seaport. Syed Mokhtar is also the biggest controlling shareholder of MMC with a 40 per cent stake.

The two ports have continued to enjoy brisk business despite their intense rivalry.

For the first half of the year, PTP saw a 25 per cent jump in volume to two million 20-ft boxes. PSA handled 9.9 million containers in Singapore in the same period, up 15 per cent from a year earlier. Globally, PSA handled 16.1 million boxes in the first half, up 19 per cent.

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

babystan03

August 26th, 2004, 01:46 PM

Business Times - 26 Aug 2004

SINGAPORE
PSA, PTP may be in talks: envoy

Speculation rife that PSA may take a stake in PTP

SPECULATION that Singapore's PSA Corp is in talks to take a stake in rival Malaysia's Port of Tanjung Pelepas (PTP) gained momentum yesterday when Kuala Lumpur's envoy here said that he also believed the two have been talking.

High Commissioner N Parameswaran told a luncheon meeting of the Foreign Correspondents' Association yesterday that 'there is talk in the air about discussions between PTP and PSA which I would not completely preclude.'

Later, he said he understood talks were taking place.

Malaysia's The Star newspaper reported recently that PSA would be invited to take a stake in a two-berth expansion of PTP, which fuelled the speculation, but the Singapore terminal operator yesterday continued with its oft-repeated stand of 'not commenting on market speculations' when asked about the envoy's remarks.

On Tuesday, BT reported that PSA's parent company Temasek Holdings said it would let its subsidiary decide on such matters.

'This is a decision for the PSA board and management to take as we are not involved in the investment and business decisions of the Temasek-linked companies,' said Temasek spokeswoman Eva Ho.

On another question whether Temasek itself would take a stake in the port in Johor, she said: 'As for Temasek, we have stated before that we are open to opportunities which make economic sense.'

Rivalry was rife between PTP and PSA ever since the Malaysian port appeared on the scene in 2000.

Controlled by Malaysian tycoon Syed Mokhtar Al-Bukhary, who also owns the Johor Port, the Malaysian port's cheaper rates put PSA on the defensive, prompting it to keep its customers happy here by offering rebates and discounts.

However, bilateral relations between Malaysia and Singapore have improved when Malaysian Prime Minister Abdullah Ahmad Badawi took over from Mahathir Mohamad.

A subsequent improvement of relations has encouraged more collaborative economic activity between the neighbours and a new, working relationship between the two ports cannot be ruled out.

The booming East-West container trade has seen both PTP and PSA reporting record increases in their throughput volumes.

Last month, PTP reported a 25 per cent jump in containers handled in the first half of the year to 2 million TEUs (20-ft equivalent units), while PSA reported a 15 per cent hike to 9.9 million TEUs from last year.

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

babystan03

August 27th, 2004, 10:16 AM

Business Times - 27 Aug 2004

PSA loses another shipping line - to Jurong Port this time

UASC to use Jurong Port as its container transhipment hub from Sunday

By DONALD URQUHART

(SINGAPORE) PSA Corporation has lost its third mainline container carrier in four years. But this time it's Singapore's Jurong Port - not the Malaysian Port of Tanjung Pelepas (PTP) - that is reaping the benefit.

Mainline carrier United Arab Shipping Co (UASC) will begin using Jurong Port as its container transhipment hub from Sunday after negotiations for a new terminal services deal with PSA collapsed recently.

The Kuwait-based line will start with a bang. Three of its ships - the 3,800 TEU (20-foot container) Al Mutanabbi and Al Noof from its Asia-Europe Container Service, and the 1,200 TEU Al Wattyah, on an ad hoc call - start calling on Sunday.

Word of the move began spreading after an industry reception hosted by Jurong Port earlier this week, although no official announcement has been made.

Speaking to BT yesterday, UASC regional commercial manager David Skillen confirmed the move, saying the decision to shift to Jurong was based on 'a variety of issues', including tailor-made services at the smaller facility.

It wasn't a result of surging volume that has created periodic congestion at PSA's terminals here since early June, he said, adding that this isn't a long-term issue.

'Obviously, we are a big fish in a small pond at Jurong, but at PSA our volumes are not that significant,' he said.

'There were also some contractual issues,' Mr Skillen said, without elaborating. But industry sources told BT that UASC had been unhappy with the 'inflexible tariffs' offered by PSA in a new terminal services agreement.

UASC then found in Jurong Port a better alternative with more competitive rates, and took the offer back to PSA without saying where it originated.

The industry sources say it was likely that PSA assumed the offer had been made by PTP. PSA subsequently declined to meet or beat the offer UASC had in hand, and the carrier gave PSA notice that it would shift.

UASC's departure appears reminiscent of the tensions surrounding Maersk Sealand's dramatic move from PSA to PTP in 2000, followed by Evergreen Marine Corp in 2002.

Meanwhile, Mr Skillen declined to say what volume UASC moves through Singapore, but the line is ranked the world's 23rd largest carrier by capacity and has four of its six weekly service strings calling at Singapore.

Industry sources have estimated its annual volume in Singapore to be around 50,000 TEU, but when pressed on this, Mr Skillen would only say: 'PSA won't miss us much.'

Another senior shipping executive said: 'With full to overflowing terminals here, PSA need not be interested in the small fry. When making a big haul, some of the small fry can slip through the net.

'After all, as far as Singapore is concerned, in this case it's like going from the left pocket to the right.'

On whether UASC considered moving to PTP, Mr Skillen said that although the Malaysian port had demonstrated it could deliver the efficiency, the lack of equipment on its recently finished berth expansion and limited connections meant the time wasn't right for such a move.

'I don't see that a third party at PTP would receive very good service, which is currently dominated by Maersk and Evergreen,' he said. 'We would come in as the younger brother.'

With Jurong Port committed to transporting UASC's transhipment cargo from PSA's terminals to its facilities - otherwise known as 'inter-gateway container haulage' - UASC's feeder network and alliance partners, Senator and Hanjin, will continue to call at PSA.

For up-and-coming Jurong Port, the new mainline customer will be a crucial boost, adding to the volume generated by a handful of feeder lines and main lines that include New Econ Line, Gold Star Line and Zim Israel Navigation Company.

At end-July, throughput at Jurong Port had jumped three times year-on-year to 341,000 TEUs, from 119,000 TEUs handled in the same period in 2003.

Volume handled by PSA Corporation's five Singapore terminals in the same period was 11.7 million TEUs, up 14.7 per cent from the year before.

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

babystan03

September 3rd, 2004, 05:27 PM

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.

babystan03

September 4th, 2004, 02:52 AM

Business Times - 04 Sep 2004

PSA to add 10 berths to cope with surging cargo volumes

New berths at Pasir Panjang will help ease congestion

By VEN SREENIVASAN

(SINGAPORE) In a further move to ease the extreme pressure building up on its facilities as a result of surging volumes, PSA has decided to build 10 more berths at its Pasir Panjang Terminal over the next five to seven years.

PSA chairman Stephen Lee announced this at PSA's International Advisory Council meeting yesterday.

The 10 berths are on top of the five that PAS has already commissioned under its fast-tracking programme several months ago. The 10 berths, spread over 130 ha of land, will add more than 3 km of quay length at PSA's Pasir Panjang port.

The decision to add 15 new berths has been prompted by a sharp surge in container volumes at Singapore's biggest port this year which has put a strain on the port's facilities, led to sporadic congestion, and lengthened ship turnaround times in the last few months.

The surging volume has been due to a flood of Asia-to-Europe cargoes out of North Asia and China. And this has been exacerbated by the early arrival of the peak season, which has resulted in record cargo throughput for container terminals at PSA and across the region.

During the first seven months of this year, PSA's five local terminals handled 11.7 million TEUs (twenty-foot equivalent units), up almost 15 per cent over the same period last year.

Last year, it handled a record throughput of 18.41 million TEUs, 8.7 per cent up from 2002's 16.9 million TEUs. And with a record 986.4 million gross tonnes handled, it retained its top spot as the world's busiest port in terms of gross tonnage last year. And this was in spite of a 5.2 per cent drop in vessel calls. Industry insiders say the occasional congestion may have been a factor prompting some shipping operators to divert their vessels to other ports.

Ten services decided to move away from PSA this year, the latest being Kuwait-based United Arab Shipping Co, which moved its hub operations to PSA's local rival, Jurong Port. Analysts expect the tight conditions to extend into the final quarter of the year.

London-based Drewry Shipping Consultants, for example, predicts Asian container volumes to the US and Europe to rise about 16 per cent in 2004, over the previous year, compared with global growth forecasts of about 8 per cent.

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

babystan03

September 7th, 2004, 08:19 AM

Business Times - 07 Sep 2004

S&P affirms its top AAA long-term rating for PSA

It says management policy is the most significant concern in the medium term

By VEN SREENIVASAN

(SINGAPORE) Standard & Poor's Ratings Services yesterday affirmed its top 'AAA' long-term rating on PSA Corporation, while pointing out that in the medium term 'management policy' would be the most significant concern.

Saying that PSA Corp's business position is 'solid' though there is intense competition from regional ports, S&P's credit analyst for Corporate and Infrastructure Ratings group, Ee-Lin Tan, pointed out that 'like many Singapore government-linked entities, the PSA Group is increasingly focused on delivering higher shareholder value, which could lead to the adoption of more aggressive financial policies'.

S&P's outlook for PSA is stable. The rating on PSA Corp is tied to the credit quality of the overall PSA group, which is held by PSA International Pte Ltd, S&P said in a statement yesterday.

PSA Corp's Singapore port operations account for the bulk of the group's assets and cashflows.

The rating also took into account PSA group's strong finances, its geographic diversity through its overseas operations, as well as its strategic importance to the Singapore government.

S&P noted that PSA enjoyed a robust financial position, with funds from operations (FFO) of about $1 billion last year. And despite its aggressive capital expenditure programme, S&P does not see the ratio of FFO to net debt sinking below the 50 per cent level. Its gearing, in terms of net debt to net capital, is expected to stay below 40 per cent over the medium term.

'Group liquidity is strong,' Ms Tan noted. 'At Dec 31, 2003, total cash of $1.5 billion was more than sufficient to cover short-term debt of $209 million, and US$500 million notes due in August 2005.'

Last week, PSA chairman Stephen Lee announced that the world's busiest container port would build 10 more berths at its Pasir Panjang Terminal over the next five to seven years. The 10 berths are in addition to the five that PSA has already commissioned under its fast-tracking programme several months ago.

During the first seven months of this year, PSA's five local terminals handled 11.7 million TEUs (twenty-foot equivalent units), up almost 15 per cent over the same period last year.

Last year, it handled a record throughput of 18.41 million TEUs, 8.7 per cent up from 2002's 16.9 million TEUs. And with a record 986.4 million gross tonnes handled, it retained its top spot as the world's busiest port in terms of gross tonnage last year. And this was in spite of a 5.2 per cent drop in vessel calls.

Earlier this year, S&P's rival ratings agency, Moody's Investor's Service, upgraded PSA Corp's debt rating by one notch to the highest level, AAA. Moody's ratings boost followed a corporate restructuring in which PSA Corp moved its riskier international business to a holding company.

Moody's, which previously had a 'Aa1' rating for PSA Corp, said that the port operators' outlook for the rating was stable.

The upgrade was also widely regarded as a pat on the back for PSA Corp's adoption of more flexible policies which has enabled it to retain customers amid what Moody's described as 'fierce' competition.

PSA has undergone intense reviews and operational restructurings in the last year following the loss of two key customers - Mearsk and Evergreen - to a smaller rival, Malaysia's Port of Tanjung Pelepas.

Among others, the measures taken to strengthen the company included deepening its partnership with customers through customised contracts to meet their different requirements. It also segmented its markets and introduced appropriate incentives for users, and consolidated its feeder network through closer cooperation with operators.

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

babystan03

September 7th, 2004, 11:18 AM

Time is GMT + 8 hours
Posted: 07 September 2004 1620 hrs

PSA confirms it has been shortlisted for CSX bid
By Chan Hwa Loon, Channel NewsAsia

SINGAPORE : Port operator PSA International has confirmed that it has been shortlisted as a bidder for CSX Corp's global container terminal network.

CSX Corp is the third largest US railroad company.

It owns CSX World Terminals, the third largest container terminal operator in Hong Kong, after Hutchison and Modern Terminals.

CSX Corp is selling its CSX World Terminals to raise money to upgrade its US rail network.

Others shortlisted for the bid are Hong Kong's Whampoa, Wharf Holdings and an unidentified Chinese company.

CSX Corp's sale includes two container terminals in Hong Kong and terminals in the northern Chinese port of Tianjin, Vladivostock in Russia and others in South America and Germany.

It is also selling rights to build terminals in Qingdao, eastern China and Busan in South Korea.

CSX has lost business in Hong Kong to Hutchison and Modern Terminals. - CNA

Copyright © 2004 MCN International Pte Ltd

babystan03

September 9th, 2004, 08:27 AM

Business Times - 09 Sep 2004

PSA Int'l stokes its expansion drive

Report says it will bid for six new berths at Thailand's Laem Chabang Port

By DONALD URQUHART

(SINGAPORE) Hot on the expansion trail seemingly on all fronts, PSA International is one of three international groups bidding for a 30-year concession - worth 100 billion baht (S$4.1 billion) in revenue - to build and operate six new berths at Thailand's Laem Chabang Port.

On Tuesday it emerged that the globally-ambitious PSA Group had been short-listed to bid for the terminal assets of US-based CSX Corporation. Among CSX's far-flung terminals are some plum facilities in Hong Kong and China which would significantly bolster PSA's current China network.

The Laem Chabang project, meanwhile, has attracted three bidding groups, after eleven had purchased bidding documents, according to a report in the Thai newspaper, The Nation.

According to the report, PSA has partnered Thai companies Singa-Thai, Bangkok Success and Meechai Planner (Thailand).

While confirming that it had been short-listed for the CSX bid, PSA declined to comment on the Nation report when queried by BT. The other two groups reportedly bidding for the Laem Chabang project are Hutchison Port Holdings, along with Lexton (Thailand); and Thai-listed feeder line RCL Group, along with the Dubai Ports Authority.

The winning group will be required to invest 20 billion baht to construct the berths which must be incrementally ready for operation between 2006 and 2014, according to the report.

The next step in the process will be a review of the three group's technical submissions on Sept 15.

PSA has been operating at the Laem Chabang facility since it invested in Eastern Sea Laem Chabang Terminal Co Ltd (Esco) which operates Container Terminals B-1 and B-3, in April 2003.

On its core Singapore business, PSA announced on Friday it will build 10 new berths here within seven years to cope with surging volumes that have resulted in delays for shipping lines since early June. These berths are in addition to the fast-tracking of the development of five berths which was announced in July.

Those surging volumes, a result of the buoyant global economy which is fuelling exports from China to Europe and North America, show little sign of abating with PSA reporting yesterday that it handled 16 per cent more containers in August compared to a year ago.

PSA handled 2.9 million TEUs (twenty-foot equivalent units) in August globally, compared with 2.5 million a year earlier. For the first eight months this year, PSA handled a global total of 21.9 million TEUs, up 18 per cent over the same period 2003.

At its Singapore terminals, PSA saw a 13 per cent rise in volumes in August, with 1.8 million TEUs moved compared with the year-earlier 1.6 million.

Its international terminals recorded a 22 per cent rise, handling 1.1 million TEUs compared with 0.9 million in August 2003.

For the first eight months, PSA's Singapore volumes rose 14 per cent to 13.5 million TEUs while its overseas volumes rose 25 per cent to 8.4 million TEUs.

Singapore's only other container terminal operator, Jurong Port, said earlier this week that it had handled more than twice the number of containers in August than in the same period a year earlier.

Jurong Port handled 56,000 containers, matching its June record, compared with 23,000 in August 2003. For the first eight months this year, Jurong Port handled 397,000 TEUs, up from 164,000 last year.

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

babystan03

September 13th, 2004, 11:14 AM

Business Times - 13 Sep 2004

Use S'pore as launch pad for Asia, Yeo urges marine insurers

Republic already the Asian base for int'l shipping, trading firms

By GEORGE JOSEPH

(SINGAPORE) Singapore made a strong case to the international marine insurance community yesterday to use the Republic as the launch pad for marine insurers into Asia.

Making the stand for Singapore was Transport Minister Yeo Cheow Tong, who said that one of the country's strengths laid in the fact that it was already the Asian base for major international shipping and trading companies.

He added that over 40 major shipping companies controlling some 1,000 vessels are under the Approved International Shipping Enterprise Scheme, benefiting from tax and other concessions.

The minister made his pitch for a slice of the US$14 billion industry as the largest gathering of marine insurers descended on Singapore for their annual conference.

The International Union of Marine Insurance (IUMI) has been the forum for the marine insurance world since 1874 and after Japan, Singapore is only the second in Asia to host its annual conference.

Singapore has identified marine insurance as a key maritime ancillary service that it intends to grow, and attracting the conference was part of the lobbying of the European-dominated marine insurance community to look at more operations here.

Speaking at a welcoming reception last night in the historic civic centre's Asian Civilisations Museum, Mr Yeo said the rise in trade brought about by the rapid economic growth of especially China and India will ensure that Asia has a bigger role to play in the marine insurance sector.

He cited the 'strengths' that made him optimistic that this 'phenomenon' was happening, including the fact that 12 of the top 20 container lines in the world are Asian.

Asian shipowners control some 40 per cent of the world's merchant fleet and Asia is the home to the top six container ports, and has the world's largest shipbuilders.

International Monetary Fund (IMF) estimates indicate that Asia is forecast to grow by 7 per cent this year, faster than that of any other region in the world.

'Service providers eager for a slice of Asia's growth would do well to pro-actively look at setting up a base in this region to serve the growing Asian market,' said Mr Yeo.

For marine insurers, a foothold in Asia would also mean getting closer to their customers, providing them better service nearer their home bases and within the same time zones.

It will also enable them to better understand the diverse business cultures and practices within Asia and the differing stages of economic development among the various countries.

The Singapore government on its part provides strong support for the maritime industry and in the next phase of development of its reputed port facilities, a comprehensive cluster of shore-based maritime services will be built up.

The emphasis here is to make Singapore more than just a place to tranship goods or buy bunkers and supplies, Mr Yeo said.

'We want to create value and be a one-stop shop for shippers, shipowners and shipping lines, so that all their needs can be met here,' the minister assured.

The four-day annual conference, jointly organised by the General Insurance Association of Singapore, has brought close to 800 delegates, spouses and others to Singapore. IUMI represents 53 national insurance associations.

The Singapore Maritime Foundation, a private sector led group that promotes Singapore as a maritime centre, will help Singapore-based insurance executives and business people to network with the visiting delegates at a reception tomorrow at the Raffles City Convention Centre.

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

babystan03

September 13th, 2004, 11:15 AM

Business Times - 13 Sep 2004

Draw local investors to develop hull market

Region's shipowners shouldn't rely on Europe: insurer

(SINGAPORE) More local companies and businessmen should be attracted into investing in the marine hull insurance market here if this insurance sector is to develop and support Singapore as an international maritime centre.

Local broker and insurer Richard Loo thinks it is time a small group of Singaporean investors is brought together to fund an insurance market to serve shipowners here and in the region, and not rely soley on the European markets.

The sector here faces two major difficulties: globally, the marine hull insurance business has had very bad times with high loss ratios (claims to premiums collected) and the big underwriting markets are all in the US and Europe.

With the major marine hull insurance markets only begining to turn the corner after years of losses, it is timely to create markets in Asia so that the region's shipowners have an insurer closer to home.

In the past three years, most of the international groups were underwriting deficits, ranging from 10 per cent to as high as 40 per cent, before taking investment income into account.

Some of the big insurance players are pulling out from the marine hull market or substantially cutting back on capacity, and underwriters are expected to take a harder line towards rates at next renewals, Mr Loo told BT in an interview.

Emphasising the lack of insurance capacity in the Singapore market, he said it is difficult to write marine hull insurance of above $80 million (say, for a very large crude carrier VLCC) locally.

The global marine insurance market produced a total of US$14 billion in premium revenue annually and out of that hull premium was worth US$4 billion.

The main companies operating here are subsidiaries of the big players and are 'dictated' by their overseas principals on what they can accept to underwrite. So shipowners have no alternative but to go to the major markets of US and Europe, he added.

Mr Loo also feels that when underwriters are closer to their markets, they achieve better results.

'I must add that the Singapore marine insurance underwriting results are satisfactory.'

The combined loss ratio for cargo and hull of the Singapore marine insurance underwriting companies are performing better than two of the major marine markets in Europe - Lloyd's and Central Union of Marine Underwriters of Norway.

'However, the number of companies involved in marine hull underwriting is very limited. It is not easy to attract more marine underwriters to write hull insurance or to set up new outfits in this market.

'Perhaps, one of the best ways is to interest local and regional investors to fund and invest in this business in Singapore. Then, the most suitable marine underwriters can be picked to head such projects,' he said.

Mr Loo who is chief executive officer of L C H (S) Pte Ltd, is also a member of the Maritime and Port Authority of Singapore's Working Group on Co-operation in the Maritime Industry.

Singapore has tax breaks in place to promote the marine insurance industry, in particular to encourage professional reinsurers and captives to set up operations here to write offshore business.

A concessionary tax rate of 10 per cent can be granted to insurance companies on income derived from underwriting profits of offshore insurance business, as well as non-Singapore dividends, realised capital gains and interest, including interest on Asian Currency Unit deposits, derived from investing offshore premium income and shareholders' funds used to support the offshore insurance business.

Tax exemptions are also granted to encourage all general direct insurance and reinsurance companies, including P&I clubs, in Singapore to tap the insurance potential of the shipping communities in the Asia Pacific region.

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

babystan03

September 14th, 2004, 01:30 PM

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

September 14th, 2004, 01:31 PM

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

September 16th, 2004, 10:12 AM

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.

babystan03

September 22nd, 2004, 11:51 AM

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.

babystan03

September 23rd, 2004, 01:30 PM

Business Times - 23 Sep 2004

S'pore still the top choice

The city-state's growing stature as the maritime gateway to the region is seen in the rising number of firms setting up here

MORE than ever before, companies are picking Singapore as their preferred base for maritime operations. This year, 25 companies were presented the Maritime and Port Authority of Singapore's International Maritime Awards for their shipping business commitments in Singapore.

The move by more international maritime companies to operate from Singapore reflects a strong vote of confidence in the city-state as the maritime gateway to the fast-growing region. Today, Singapore continues to ride high on the list of global business rankings. It is the world's 10th most important maritime country under the 2003 Unctad (United Nations Conference on Trade and Development) rankings.

According to the 2003 survey by the Economist Intelligence Unit, Singapore is the best place to do business in Asia. More recently, the World Bank group ranked Singapore as the third easiest place in the world to do business. It jumped four places from seventh position last year.

Accolades aside, Singapore has actively built on its natural advantage as a strategic hub port to also serve as an international maritime centre. Its appeal takes many forms. Singapore offers an increasing critical mass of maritime ancillary services that is well integrated, a good-quality and responsive ship registry, excellent communications links, and a conducive and pro-business environment.

Adding to the vibrancy of Singapore as a maritime hub are various schemes that aim to create more value for companies based here. They include the Approved International Shipping Enterprise (AIS) and the Approved Shipping Logistics Enterprise (ASL) schemes, which the MPA administers. The two programmes were specially created to meet the needs of the shipping community.

The AIS scheme grants tax exemption to ship operators, while the ASL scheme gives a concessionary tax rate of 10 per cent on incremental income for ship management companies, shipping agencies and international shipping logistics operators. Companies that demonstrate their commitment to Singapore through the AIS and ASL schemes are recognised with the International Maritime Awards.

Commenting on the future of the maritime industry and the opportunities it offers, Peter Ong, MPA chairman, says: 'The international maritime community is undergoing a period of exciting developments fuelled by the growth in world economies and globalisation. As we move from one exciting year to another, we at MPA will continue to treasure the relationships that we have built with the maritime industry players and will foster these ties by working closely together to grow their businesses.'

This article was contributed by the Maritime and Port Authority of Singapore

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

babystan03

September 23rd, 2004, 01:40 PM

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

RafflesCity

September 23rd, 2004, 02:47 PM

Great news on the whole it would be interesting to see how well the port does at the end of the year :yes:

babystan03

September 30th, 2004, 11:51 PM

Time is GMT + 8 hours
Posted: 30 September 2004 2137 hrs

PSA Corp to sell CWT Distribution stake for S$45.8m

SINGAPORE : PSA Corp is selling its entire shareholding in freight forwarder CWT Distribution to logistics service provider C&P Holdings for S$45.8 million.

C&P will end up with about 82.6 million shares at a cost of 25-cents each, representing 55.03 percent of issued share capital.

As such, C&P will make a mandatory takeover offer for all the remaining CWT shares it doesn't now own at 55.5 cents cash each.

That is an 11 percent premium over the last transacted price of 50 cents on Thursday, but a discount of 1.77 percent from CWT's net tangible asset value of 56.5 cents a share as at December 31.

When contacted, PSA said this decision is in line with its earlier transfer of non-core businesses to Temasek Holdings.

It is focusing its efforts on container terminals, port development, and port-related businesses.

As for C&P, it says the acquisition will allow it to share expertise and customers with CWT, utilise assets better, and rationalise operations. - CNA

Copyright © 2004 MCN International Pte Ltd

babystan03

October 4th, 2004, 12:18 PM

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.

babystan03

October 5th, 2004, 12:15 PM

OCT 5, 2004
New customers help triple Jurong Port's cargo volumes
By Nicholas Fang

JURONG Port has seen its monthly cargo volumes triple from last year, thanks to new customers, new services offered by existing customers, as well as the use of larger ships.

Singapore's No. 2 port said in a recent newsletter that it is currently handling about 76,000 20-foot equivalent units (TEUs) or standard containers a month, an increase of 204 per cent over the same period last year.

It said that since February this year, three new services were introduced by some of its existing customers, including Norasia, Gold Star Line and China Shipping Container Lines, helping the port to achieve the impressive growth in throughput.

'Existing customers have also been phasing in bigger tonnages,' the port said, citing Zim Line's Asia-Mediterranean-Pacific Service, which started calling at Jurong in 2002 with vessels of 2,500 to 3,000 TEU capacity.

'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,' the newsletter said.

'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 Company (UASC),' the port said.

Kuwait-based UASC was the the most recent addition, having transferred its hub operations earlier last month to Jurong from PSA's operations.

Jurong Port president Fong Yue Kwong said in the newsletter that the port would continue to improve its service offerings to customers in order to boost its status as a top multi-purpose port.

'Jurong Port will continue with its niche marketing, which has served to keep the port growing and relevant.

'It is our aspiration to provide the best services and to grow together with our customers.'

Copyright @ 2004 Singapore Press Holdings. All rights reserved.

babystan03

October 5th, 2004, 12:20 PM

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.

RafflesCity

October 8th, 2004, 05:52 AM

Busy S'pore sea lanes a danger to shipping?

Stricter enforcement of collision regulations and 'speed limits' can enhance safety

8 Oct 2004

By GEORGE JOSEPH

ARE there too many incidents in Singapore waters? With Wednesday's accident just 5.5 km off Changi, this must be the question the shipping community is asking. There have been three collisions so far this year. And these have come after the January 2003 tragedy in which the Singapore naval vessel RSS Courageous cut into the path of a fully-laden container ship, causing the deaths of four service personnel.

All of these incidents occurred in the eastern waters of Singapore, which are notoriously busy. It's inevitable - with Singapore being one of the world's major ports and in the big league of ship registries - that the sea lanes around it are crowded. About 1,000 vessels transit Singapore waters daily, including fast passenger ferries cutting across the major trunk route as they race to and from the nearby Indonesian islands of Bintan and Batam.

But mariners say the English Channel is much busier and more congested than the Singapore Straits, yet it's not known for incidents disproportionate to the volume of traffic.

What then is happening here? Are alarm bells ringing?

The most surprising aspect of Wednesday's incident is the assertion by the Maritime and Port Authority of Singapore (MPA) that its Vessel Traffic Information Service (VTIS) had warned the vessels - MPA did not disclose what sort of warnings were given - and that crew on both ships were 'communicating with each other'. If the respective officers at the helm had been 'warned' and were in touch, it seems reasonable to assume they knew they were on a collision path, and yet they collided.

Based on initial evidence, evasive action was taken, but it was not enough to avert the crash. All masters have to be aware and observe a set of collision regulations in situations like this. Some mariners suggest that if the vessels were moving at a slower speed the collision would not have taken place. At this stage, anything said about the Wednesday incident is just speculation, although VTIS would have recorded the vessels' movements and would have a pretty accurate picture of what happened.

Putting the latest mishap and the speculation aside, improving the safety of crowded sea lanes may be an issue of active control of speed and movement. It may be time to enforce strict 'distancing' of vessels transiting known choke points, say those who know the perils of crowded sea lanes - especially in darkness. And this can be done by the VTIS itself.

But this reopens another maritime issue. Should VTIS merely be an 'information service' as MPA and other like-minded bodies believe it should be. This has its pros and cons, but the most significant thing to remember is the Master has full responsibility for his ship and he should make the final decisions concerning the safe movement of his vessel.

It may be worthwhile then in the interest of safety - and especially to avoid disastrous consequences when fully-laden oil tankers are involved - to look at how collision regulations may be strictly enforced in critical areas, even if they are outside Singapore's port limits.

Present arrangements on traffic separation in the Malacca and Singapore straits were jointly made by Singapore, Malaysia and Indonesia. Singapore needs to look at its own trouble spots and think of ways of better managing the problem before a more serious and devastating incident occurs.

While studying ways to enforce collision regulations strictly, authorities could also look at the usefulness of making investigative reports on marine incidents public. The Singapore authorities have been quite coy about this, whereas English, Australian and European regulators have had no problems with putting such reports in the public domain.

Maritime incidents are not necessarily of concern to the industry alone. They impinge on the economic and social well-being of the wider community as well. Any attempt to engage the wider community in lessons learnt from previous incidents are bound to have far-reaching effects in the development of better preventive measures.

babystan03

October 9th, 2004, 02:07 AM

Time is GMT + 8 hours
Posted: 08 October 2004 2113 hrs

PSA Marine wins design award for new Z-Tech tug boats
By Derek Cher, Channel NewsAsia

SINGAPORE : A new tug boat design has won port operator PSA Corp's unit, PSA Marine, this year's "Best Design for Business Effectiveness" award.

This new award category aims to show how design can contribute to business growth.

PSA Marine's new boats, called Z-Tech, can be driven in reverse as effectively and powerfully as forwards.

It costs the company some S$15 million to design and build two of these tug boats.
Two are already in operation here and another two have been sold to an Australian iron ore terminal.

PSA Marine expects to operate at least 12 Z-Tech tug boats in the next three years.

PSA Marine's vice president Peter Chew told Channel NewsAsia what prompted the company to develop the new tug boat design.

"I think the existing ones, we have to from time from time improved it. But it is with two intentions," he said.

"One is to build up a very good brand. We think that this will stand us in a very good stead. Secondly, we compete in a worldwide arena. We needed something that is able to stand out and something which is recognised by the industry and this has gained very good recognition over the last two years."

Asked what sort of difficulties the company faced in convincing the market of this new design, he said, "Singapore is known for having very efficient ports and we have over the years built up a very good reputation. In our industry, we are competing with maritime nations that have got centuries of shipbuilding experience.
"For us to be able to do this, we needed to be able to convince the international market place that we really have something that will work. So that was the difficulty. We have to develop a very good brand, we have to engage the best designers and we have, in our case, one advantage in that we are operating the world's busiest port and that is something that has given us a very good edge."

Mr Chew said the new design has given the company "a very good brand in the market place."

"In the past, people refer to a tug boat as a tug boat. Today, when they call us, they will say, Can we have the specification for your Z-Tech tugs? So we are increasingly beginning to hear Z-Tech as a word very much like Xerox is to photocopying," he said.

"So that gives us an indication that the brand is the buzzword in the industry. We have created a new category of tugs and most of them will call us the Z-Tech tug."

Asked what advice he would give to other companies that share the same aspirations, Mr Chew said, "I think you need to have a concept to start with and then you not only have to rely on resources locally, if you have to go overseas to get ideas, if you have to engage overseas talent, if you have to source for equipment overseas, I think you should make use of that.

"We are now operating in a different environment. You are talking about globalisation and we are competing with people who have had many years of experience and headstart over us." - CNA

Copyright © 2004 MCN International Pte Ltd

babystan03

October 10th, 2004, 02:57 PM

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.

babystan03

October 12th, 2004, 02:43 PM

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.

babystan03

October 13th, 2004, 01:22 PM

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.

babystan03

October 21st, 2004, 03:52 PM

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

RafflesCity

October 22nd, 2004, 11:52 AM

Glad to see Jurong Island continuing to thrive :)

babystan03

October 22nd, 2004, 02:45 PM

Business Times - 22 Oct 2004

More changes at PSA on the cards as veteran set to retire

Ng Chee Keong will stay on as PSA Corp non-exec director, PSA Int'l adviser

By DONALD URQUHART

(SINGAPORE) More change is afoot at Singapore's global terminal operator PSA International with the imminent departure of PSA veteran Ng Chee Keong, who will go on to play a consultancy role for the organisation.

Industry circles have been abuzz with talk that Mr Ng was leaving PSA after a 32-year career with the Temasek-linked company. In response to BT's queries, PSA confirmed yesterday that Mr Ng will retire from the post of CEO, PSA Singapore and Global Head of Technical and Operations Development from Jan 1, 2005.

Mr Ng will stay on as non-executive board director of PSA Corporation and technical adviser to PSA International, according to Goh Mia Hock, PSA's senior vice-president for Group Media Liaison and Tech & Ops Development.

'He will play a key technical advisory role in driving the global technical and operations development initiatives,' for all of PSA's terminals, Mr Goh said. This could include tapping his expertise when bidding for overseas terminal projects.

The news comes on the heels of an announcement earlier this month that PSA is rationalising its East Asia unit which was created only eight months ago after the former 'Asia and the Middle-East' division was split into PSA India and PSA East Asia. PSA no longer has any terminal interests in the Middle-East after writing off its stake in its Yemen terminal venture earlier this year.

BT understands that the East Asia restructuring is to be followed by further corporate streamlining as the terminal operator steels itself against ever intensifying global competition.

In paying tribute to Mr Ng, PSA said he was 'instrumental in forging long-term partnerships with leading shipping lines and building up a comprehensive feeder network that established PSA Singapore as the world's largest container transhipment hub.' He also played a pivotal role in PSA's globalisation drive, first in China and then in Europe, Mr Goh added.

A familiar face in the local shipping scene, the affable Mr Ng is one of only a handful of senior executives still at PSA who were part of former PSA chief Yeo Ning Hong's senior management team. Dr Yeo officially retired in July 2002, following a period of unprecedented turbulence for PSA.

That changing of the guard saw Dr Yeo succeeded by local businessman Stephen Lee, who was appointed non-executive chairman.

Also brought onboard was senior Hutchison Port Holdings executive Eddie Teh, who became Mr Lee's number two as deputy chairman.

Mr Teh also took over the position of group CEO from Mr Ng, a move that despite his being given the position of president and CEO of the flagship Singapore terminals, was widely viewed as a reduced role.

During this transition period a handful of key Yeo-era senior executives retired, including the 37-year veteran and a key master-mind of PSA's international expansion, Goon Kok Loon.

The departure of Mr Ng comes as little surprise to many in the industry as he is understood to have been eyeing retirement for some time now.

Expressing fond memories of his lengthy career with PSA - the only company he has worked for, Mr Ng said: 'I have been with PSA long enough to see its transformation from a breakbulk port into a container hub and from a statutory board into a global MNC.

'I marvel at the progress we have made over the years in IT, operations, customer relations, global partnerships and union-management relations.'

Mr Ng also said he was happy to be retiring when PSA Singapore was handling record container volumes and added he was confident the business was in competent hands.

'I would like to thank the past and present chairman and management of PSA for giving me the various job portfolios and opportunities over the years to learn and to stretch my capability. I am pleased to continue my association with PSA after my retirement,' Mr Ng added.

Meanwhile, following PSA's internal announcement earlier this month, its East Asia division comprising Brunei, Thailand, South Korea and Japan operations will be rationalised including a review of the division's management structure.

This also includes the departure of PSA East Asia CEO Robert Yap, who is returning to the IT industry.

The East Asia division was created after India and the Middle-East - both areas plagued by poor performance - were stripped out in a restructuring exercise in February this year.

Just over a year earlier, coinciding with the arrival of Eddie Teh, the group's operations were split into four separate regions each headed by a regional chief executive officer with the aim of making each management team more accountable.

Among the other changes announced earlier this month is the appointment of former Temasek Holdings adviser H R Srinivasan as the CEO of PSA's India division.

Despite numerous attempts at gaining a meaningful foothold in the up-and-coming Indian sub-continent, PSA has had few successes there.

In other staff movements, PSA East Asia vice-president David Yang was appointed vice-president of group business development, while Mr Goh assumed his new role from his previous position as PSA Singapore senior vice-president for planning.

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

babystan03

October 27th, 2004, 12:24 PM

Business Times - 27 Oct 2004

Wanted: Creative financing sector to attract more shipowners

(SINGAPORE) Singapore needs to develop a more 'creative' ship financing sector if it is to succeed in attracting more shipowners and realise its International Maritime Centre (IMC) ambition, Singapore Maritime Foundation chairman Teo Siong Seng said yesterday.

Despite Singapore's strong banking sector, the ship finance arena was lacking in comparison to other shipping centres, he said. 'Singapore should have a more imaginative, or more creative ship financing sector rather than the traditional ship collateral financing,' he said.

The fact Singapore has a stable political system, pro-business environment, and good infrastructure may not be enough to woo more shipowners here. 'If we want to develop as an IMC, we have to look at various aspects to attract shipowners.' In particular, he said: 'We don't have the breadth and depth of ship financing that we have seen in other cities.'

Aside from the conservative approach, financial institutions here tend to be mainly interested in the larger shipping firms, shying away from smaller operators, said a shipping executive from a Singapore-based carrier.

One of the SMF's working groups is exploring this exact issue and has been given three key objectives, according to SMF board member RAdm Lui Tuck Yew.

These include identifying new products and services that could be developed within Singapore's maritime financing sector; identifying regulatory or other impediments to the growth of this sector; and identifying key constituents such as shipbrokers; and understanding the importance of their role in arranging financial deals. Among the possible initiatives under consideration, according to Mr Teo, is the development of a ship leasing business as well as setting up a ship investor fund.

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

babystan03

October 27th, 2004, 12:26 PM

Business Times - 27 Oct 2004

Big plan to lift Singapore maritime industry profile

Campaign also aims to woo students, professionals to maritime careers

By DONALD URQUHART

(SINGAPORE) In a bid to elevate the profile of Singapore's maritime industry and attract people to maritime careers, the Singapore Maritime Foundation (SMF) is set to embark on half-a-million dollar awareness campaign.

Hoping to dispel the perception that the maritime industry is just about ports and shipyards, the SMF is aiming to bring a more accurate, broader image of the maritime industry into the view of more Singaporeans through the launch of 'Maritime Now!'.

'The SMF is really trying to make sure Singaporeans at large understand the breadth of the entire maritime sector from the port to the shipyards, to finance, to arbitration - the opportunities available and the overall contribution of the sectors,' said SMF board member and Maritime & Port Authority (MPA) chief RAdm Lui Tuck Yew.

The common perception among many Singaporeans, particularly the youth, is that the maritime industry consists simply of a gritty world of ports, ships and shipyards.

'There are so many white collar aspects to the maritime industry which is why we felt there was a compelling need to get the message out,' added SMF board member and maritime lawyer Jude Benny.

Aside from raising the general public's awareness, the SMF is also hoping to encourage students and professionals to consider maritime careers.

'We want to show that the industry is a progressive, vibrant one that is relevant to Singapore, not just in the past, but even more so in the future,' said SMF chairman and managing director of Pacific International Lines Teo Siong Seng.

'This is critical if Singapore is to catch the next wave of opportunities in the global maritime economy,' he added. Nearly 7 per cent of Singapore's GDP now comes from the maritime industry.

This next wave is in part the rising Asian influence in global shipping, with 40 per cent of the world's cargo-carrying fleet controlled by Asian shipowners and ship managers, 12 of the top 20 container lines Asian and the top six global container ports in Asia.

But to tap this wave and to realise Singapore's ambition of becoming an International Maritime Centre (IMC), more people are needed, Mr Teo said. Currently the industry employs 120,000 people, a figure forecast to rise to 200,000 by 2019.

In particular, the SMF is hoping to further develop the maritime arbitration, ship finance and marine insurance sectors, which the industry-led body says will strengthen Singapore's position as an IMC.

The shortage of qualified professionals is across-the-board, said SMF board member and chairman of Pacific Carriers Ltd, Teo Joo Kim, who added that this is why there is such a large number of expatriates working in the maritime industry here.

Included under the 'Maritime Now!' campaign will be ongoing efforts to collaborate with various sectors of the industry through dialogue sessions, informal get-togethers, forums and working groups.

The public outreach aspect will include port and ship visits, roving road shows and maritime heritage trails.

The SMF will also be organising the Great Maritime Adventure, modelled after television reality game shows. Up to 40 teams will compete in a day-long race involving various maritime-related activities for prizes worth about $25,000.

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

babystan03

October 28th, 2004, 01:33 PM

Business Times - 28 Oct 2004

SembCorp Marine clinches long-term LNG fleet repair deal
The US$45m contract will involve dry docking for refits, repairs and other services
By GEORGE JOSEPH

(SINGAPORE) SembCorp Marine has made a breakthrough in repair contracts for LNG carriers, clinching a long-term deal from Australia's North West Shelf (NWS) venture to repair and service its fleet.

The contract for an initial five years comes at a time when Singapore is gearing itself up to become a hub player in the booming liquefied natural gas (LNG) sector and signals SembCorp's lead in the business.

The contract, estimated at a total of US$45 million over the five years, will involve dry docking for refits, repairs and other marine services at SembCorp's Sembawang and Jurong shipyards.

The company said yesterday that this is the first time a major LNG consortium has committed itself to a long-term maintenance and refit contract in the region. SembCorp said the five-year contract comes with an option for extension.

SembCorp is already one of the biggest repair and maintenance specialists for oil tanker fleets, with long-term 'favoured customer' alliances with oil majors, including Shell, BP, ChevronTexaco and BHP.

The NWS fleet will come for 30-month service checks and repairs which will require dry docking.

The company also said it will undertake about half the refits required by NWS ships while the remainder will be performed at the sites of the original Japanese consortiums of builders of the vessels.

'This is a strong affirmation from large LNG operators of SembCorp Marine's capabilities in the highly specialised LNG refit market,' said Sembawang Shipyard executive director and general manager Lee-Lin Wong. Sembawang Shipyard is a subsidiary of SembCorp.

SembCorp, which is already performing repair jobs on NWS ships, expects the first vessel to be drydocked under the new long-term contract early next year.

The NWS fleet of nine LNG carriers ply the Australia-South Korea-Japan trade routes. Each of the 93,000 tonne ships is equipped with four spherical tanks with a total cargo capacity of 125,000 cubic metres.

NWS is a joint venture equally owned by BP, BHP Billiton, ChevronTexaco, a Mitsubishi and Mitsui joint company MIMI, Shell and the Woodside companies.

The listed SembCorp Marine, which is the marine engineering arm of Singapore conglomerate SembCorp Industries, said yesterday in a statement that the contract is not expected to have any material impact on its net tangible assets and earnings per share for the year ending Dec 31.

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

babystan03

October 28th, 2004, 03:03 PM

Business Times - 28 Oct 2004

NOL reports 3Q net profit of US$234 million

SINGAPORE - Neptune Orient Lines has reported net profit of US$234 million for the third quarter (3Q), taking net profits for the year-to-date to US$588 million - almost double the earnings over the same period last year.

Core Earnings Before Net Interest Expense, Tax and Exceptional Items (EBIT) for 3Q rose to US$254 million, representing an 88 per cent year-on-year growth while net profits were US$234 million, a 13 per cent increase over last year.

Gains from exceptional items fell from US$99 million in 3Q03 to US$8 million in 3Q this year.

NOL says this year's gains were mainly from the cessation of goodwill amortisation following the early adoption of Financial Reporting Standard (FRS) 103, which no longer permits the amortisation of goodwill.

Excluding these exceptional items, 3Q net profits grew 111 per cent over the corresponding period last year.

NOL Chairman Mr Cheng Wai Keung said: 'Both the Liner and Logistics businesses have recorded consecutively higher quarterly profits as well as an improving margin trend this year'.

NOL said the outlook for the remainder of the year remains buoyant as the liner is expected to benefit from continuing strong demand growth, which should sustain utilisation rates at healthy levels.

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

babystan03

November 1st, 2004, 12:28 PM

Nov 1, 2004
Maritime industry embarks on publicity blitz to attract new talent

THE maritime industry, facing a shortage of skilled workers in some sectors, is going full steam ahead with a multimillion-dollar campaign to raise its public profile and attract students and young professionals to come aboard.

As old salts near retirement age, the industry wants to attract new blood - with plenty of openings for all, including women and foreigners - a group of maritime organisations said last week.

Skilled workers are needed not only in the shipping and engineering fields, but also in ancillary services such as ship financing, arbitration, law and information technology.

'Currently, the industry employs 120,000 people, and this is projected to go up to 200,000 by 2018. There is, therefore, great employment potential here,' said Singapore Maritime Foundation (SMF) chairman Teo Siong Seng.

The SMF has teamed up with the Association of Singapore Marine Industries and the Maritime and Port Authority of Singapore to launch the 'Maritime Now!' campaign.

Mr Teo declined to give specific numbers when asked for details of the current manpower shortage, but said the campaign would address an industry-wide concern - that new blood was urgently needed to succeed the generation of maritime veterans nearing retirement age.

The SMF will pump 'several hundred thousand dollars' into the campaign over the next year, he said.

Copyright © 2004 Singapore Press Holdings. All rights reserved.

babystan03

November 2nd, 2004, 02:39 PM

http://sg.yimg.com/i/sg/providers/reuters.gif

Tuesday November 2, 7:59 PM

Singapore PSA in talks to buy HK's Asia Container

SINGAPORE, Nov 2 (Reuters) - Singapore's state-owned port operator PSA International is in talks to buy a controlling stake in Hong Kong's Asia Container Terminals Ltd. (ACT), as it seeks to establish a foothold in the rival port city.

PSA, which is owned by investment agency Temasek Holdings [TEM.UL] and owns ports from Belgium to China, is offering to buy Hongkong Land Ltd.'s 28.5 stake in ACT, a shipping source familiar with the deal said.

"PSA has also made a bid for a separate 29.5 percent stake in ACT held by U.S. logistics and ports group, CSX World Terminals," he said, adding that a deal could be reached in two weeks.

CSX World Terminals is a unit of New York-listed CSX Corp. . PSA, together with Hong Kong's Hutchison Whampoa , were among a group of seven bidders shortlisted in September to buy CSX World Terminals, a container terminal network with assets also including stakes in ports in China, South Korea and Australia.

According to Hong Kong media reports, PSA has offered the Hongkong Land, part of the Jardine Matheson Group , HK$600 million ($77 million) for the stake.

ACT's other two shareholders are Sun Hung Kai Properties Ltd. and NWS Holdings Ltd. .

A PSA spokesman said he could not comment on the reports.

If the deal goes through, PSA would become the dominant shareholder in ACT, which is one of the five operators that run Hong Kong's main container terminal hub in Kwai Chung.

ACT Chief Executive Officer Craig Grossgart declined to comment when contacted.

Copyright © 2004Reuters Limited. All rights reserved.

babystan03

November 3rd, 2004, 03:37 PM

A more detailed report......

Business Times - 03 Nov 2004

PSA makes HK$600m offer for stake in HK port operator: report
The bid is for 28.5% stake in ACT held by Hong Kong Land Holdings: SCMP
By DONALD URQUHART

(SINGAPORE) Despite signs that Hong Kong may soon be overshadowed by Pearl River Delta ports, PSA International is said to have made a HK$600 million (S$128.5 million) offer for a stake in Kwai Chung container terminal operator Asia Container Terminals (ACT).

The PSA offer is for the 28.5 per cent stake in ACT held by Hong Kong Land Holdings Ltd, one of four shareholders which also include Sun Hung Kai Properties, CSX World Terminals and NWS Holdings.

ACT is one of three key developers for CT9, along with Hongkong International Terminals Ltd, part of Hutchison International Port Holdings Ltd and Modern Terminals Ltd (MTL), at Hong Kong's main Kwai Chung container port.

In April this year, ACT took over the two, currently idle, berths at CT8 West after the completion of its portion of CT9. The two berths equipped with eight quayside cranes have an estimated annual capacity of 1.5 million TEUs.
'PSA Corporation wrote to us a few weeks ago with its proposal and the shareholders are now looking at it,' the South China Morning Post (SCMP) quoted an unidentified executive from one of the shareholding companies as saying. The deal is expected to be concluded within two weeks.

When contacted yesterday, a PSA spokesperson declined to comment on the report.

'The price at HK$600 million is extremely aggressive and it would be hard for others to match it. PSA seems to be very keen on the stake,' the SCMP quoted another unidentified executive within the ACT consortium as saying.
The purchase would require the approval of all ACT shareholders who are understood to have the first right of refusal on the purchase of any ACT stake.

Port operators in Hong Kong and South China are ineligible to bid because they are classified as competitors, the report noted, but because PSA is Singapore-based it is free to purchase a stake. There is speculation, however, that the bid might be thwarted by either CSX or one of the other shareholders, based on the fact that PSA is one of the shortlisted bidders for part, or all of CSX's global terminal network.

In September, PSA confirmed to BT it had been shortlisted by CSX Corporation which is seeking to sell off its global terminal network which includes logistics centres in Hong Kong and Shanghai as well as terminals in Tianjin, Yantai and Hong Kong.

If it were successful in acquiring both CSX's 29.5 per cent share and Hong Kong Land's 28.5 per cent, it would effectively gain majority control of ACT.
Hong Kong's container terminals have steadily been losing ground to rapidly developing container ports located at the doorstep of China's southern manufacturing belt in the Pearl River Delta. As much as US$300 cheaper per 40-foot container, the rapidly developing terminals there have seen throughput growing in the region of 30-35 per cent per year with forecasts estimating they will overtake Hong Kong's total throughput volume by 2008. The development of CT9 has been fraught with difficulties, the original concept finally getting off the ground in 1996 after four years of political wrangling between the Chinese and British governments.

Under that deal, the consortium previously led by British-controlled Jardine Matheson Holdings would give up its rights to the planned CT9 development in exchange for two existing berths in the older CT8 owned by Hong Kong-based Modern Terminals Ltd (MTL).

The development rights to CT9 were originally awarded by the Hong Kong government to the Jardine-led Tsing Yi consortium, but the Chinese government refused to give its blessing for the deal because it was angered by Jardine's overt support to then-governor Chris Patten's unilateral political reforms in the territory.

The reorganised group became known as Asia Container Terminals led by the local unit of Sea-Land Service Inc - its Hong Kong terminal stake to later become part of CSX with the acquisition of Sea-Land by Maersk - and MTL.

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

RafflesCity

November 4th, 2004, 06:23 AM

4 Nov 04

Jurong Shipyard wins US$84m German deal

(SINGAPORE) SembCorp Marine subsidiary Jurong Shipyard has clinched a US$84 million contract to build two 2,600-TEU container ships for German shipowner Reederei F Laeisz (RFL).

The custom-designed ships will have a high-speed of 22.7 knots and come equipped with 400 reefers (refrigerated boxes).

Construction of the first vessel is expected to be completed and delivered by March 2006 with the second vessel due in September that year.

Jurong Shipyard decided in 2002 to get back into the building of container vessels, anticipating an expected rise in demand for box ships of that size.

'This decision coincides with the rising market trend, and corresponding firming of prices and owner's delivery schedules,' SembCorp Marine vice-president of marketing Chua Teck Lian said in a statement yesterday.

SembCorp Marine expects a positive contribution to its earnings from this contract, although it will not have any material impact on its net tangible assets and earnings per share for the year ending Dec 31. Hamburg based RFL owns and manages a diversified range of vessels, including container, ro-ro, reefer and bulker vessels.

huaiwei

November 5th, 2004, 04:38 PM

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

November 5th, 2004, 04:45 PM

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

cool! But the Dutch forumers are always convinced Rotterdam is No.1

so at least we're the largest port in Asia :yes:

huaiwei

November 7th, 2004, 04:11 PM

Nov 4, 2004
Jurong Shipyard bags $140m order

ONE of SembCorp Marine's shipyards has won a contract worth US$84 million (S$141 million) to build two high-capacity container vessels for a German company.

Jurong Shipyard announced yesterday that it will construct two 2,600 TEU (20-foot equivalent unit) container vessels for Reederei F. Laeisz, which is privately owned by the Schues family.

The senior vice-president of marketing at SembCorp Marine, Mr Chua Teck Lian, said: 'We are pleased that the design of our 2,600 TEU container series is well received by customers. The idea of building them was mooted in 2002 in anticipation of an expected rise in demand for this size of container ship.'

The German company already has a diversified fleet of 50 vessels that include containers, roll-on-roll-off vessels and gas carriers.

The design of the 2,600 TEU container vessel is proprietary to Jurong Shipyard, and the two ships are scheduled for delivery in March and September 2006.

SembCorp Marine said yesterday that it expects a positive contribution to its earnings from the contract. However, the deal is not expected to have any material impact on the net tangible assets and earnings per share for the financial year ending Dec 31.

In June, Jurong Shipyard won a US$628 million contract to convert a crude carrier into one of the world's largest oil rigs for a unit of the Brazilian state oil company, Petrobras.

The contract was the biggest ever secured by SembCorp Marine.

For the first half of this year, SembCorp reported a 15.5 per cent rise in net profit, spurred by a recovery in ship-repair rates and higher contributions from its ship-conversion and offshore-rig businesses. -- ARTHUR POON

babystan03

November 8th, 2004, 02:15 PM

Time is GMT + 8 hours
Posted: 08 November 2004 2019 hrs

S'pore wants to double its share of global maritime arbitration business
By Chua Chin Chye, Channel NewsAsia

SINGAPORE : Singapore wants to double its share of the global maritime arbitration business to 8 percent over the next few years.

To get the ball rolling, it has launched the Singapore Chamber of Maritime Arbitration, or C-Ma.

The Chamber will market and raise Singapore's profile as a maritime arbitration centre.

Six major Singapore shippers, including NOL, Keppel, Sembawang and Pacific Carriers, have already pledged to use C-Ma.

Singapore is well-placed to become a global maritime arbitration centre.

Its strategic geographical location has resulted in some 4,000 international shipping companies basing their regional operations here.

Yet, many firms have chosen London to arbitrate in maritime disputes.

To change all that, the C-Ma is going all out to raise Singapore's profile.

The key message: Singapore has the legal expertise for maritime arbitration, and can do it at competitive costs.

Jude Benny, Board member, Singapore Maritime Foundation, said, "As a centre, London... they have identified very high cost of doing business, and going to London, spending two weeks there, for the purpose of resolving a dispute.. We think comparatively Singapore is about 50 percent cheaper."

Singapore's strategy will be three-pronged.

The government will build a conducive regulatory environment, help develop maritime legal expertise and promote Singapore as a regional maritime legal hub and dispute resolution centre.

Ms Lim Hwee Hua, Minister of State, Finance and Transport, said, "The whole idea of a hub is that you have the entire suite of activities. So, it's not just the major port and shipping business. You also need to have the support and ancillary services. So, having legal services here would complement that... We feel that that's an area that we can promote and beef up. And it's also an area that the legal firms in Singapore are very well placed to fulfill."

She added, "Ultimately, people must have faith and confidence that there would be clear and efficient resolution in Singapore."

She went on to say, "Firstly, not many people know that Singapore law is very closely modelled after the English law. Secondly, you only need to choose Singapore as venue for arbitration, but you can use any law that you are comfortable with."

One initiative that Singapore is offering is a "fast-track" procedure.

For example, in cases below US$75,000, a sole arbitrator can resolve the dispute within 21 days. - CNA

Copyright © 2004 MCN International Pte Ltd

RafflesCity

November 8th, 2004, 07:35 PM

I like the aggressive steps theyre taking, sounds good :yes:

babystan03

November 9th, 2004, 04:21 PM

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

babystan03

November 10th, 2004, 12:42 AM

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.

babystan03

November 10th, 2004, 11:15 AM

Business Times - 10 Nov 2004

PSA, Jurong box volumes up in Oct

(SINGAPORE) Containerised cargo volumes through Singapore continued to rise with both PSA International and Jurong Port recording increases last month, over the same period last year.

PSA saw a 13.3 per cent rise in volume to 2.82 million TEUs (20-foot containers) in October over the same period last year, while Jurong Port saw its volumes jump 58 per cent to 79,000 TEUs for the period, year on year.

For the first 10 months this year, PSA handled 17.1 million TEUs locally, an increase of 14.3 per cent, while Jurong Port more than doubled its volumes to 554,000 for the period, year on year.

PSA's international terminals handled 10.4 million TEUs over the first 10 months this year, a 20.8 per cent increase over the same period last year. For the month of October, PSA's overseas terminals handled 1.04 million TEUs, a 14.3 per cent increase compared with the same period last year.

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

babystan03

November 10th, 2004, 11:18 AM

Business Times - 10 Nov 2004

NOL cargo volumes soar on China growth

(SINGAPORE) Riding the wave of China exports, Neptune Orient Lines (NOL) reported a 16 per cent rise in cargo volumes for the period Sept 18 to Oct 15, compared with the same period the year before.

The group said its APL container division carried 141,000 FEUs (40-foot containers) during the period with average revenues per FEU up 7 per cent on the corresponding period a year earlier, to US$2,867 per FEU.

This was, however, down 2 per cent from the previous period this year which NOL said was due to a change in cargo mix.

Revenue from its contract logistics services and international services rose 11 per cent to US$69,500 and 16 per cent to US$24,600 respectively for the period, year on year.

The growth in international services was a result of the group's on-going focus on international forwarding activities, it said in its monthly operational update.

Last week, NOL reported a doubling of net profit to US$587.6 million for the nine months ended Sept 17, 2004. Its third-quarter net earnings was up 13 per cent at US$233.5 million.

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

babystan03

November 14th, 2004, 09:34 AM

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

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

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

babystan03

November 14th, 2004, 09:35 AM

PSA's Braní terminal:

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

babystan03

November 15th, 2004, 11:14 AM

Some regional news......

Business Times - 15 Nov 2004

Syed Mokhtar jumpstarts Johor petrochemical complex

Work on the project is likely to start in over a year

By EDDIE TOH

(SINGAPORE) Malaysian tycoon Syed Mokhtar Al-Bukhary is set to expand one of his two ports in Johor and jumpstart his group's petrochemical complex in the state to rival Singapore.

Last week, his group engaged in another asset reshuffling involving his private stable and Johor Port, which runs the port on the eastern side of the southern state. He also controls the other port in Johor - Port of Tanjung Pelepas (PTP) on the south-western tip of Malaysia.

In the latest exercise, his listed Johor Port will buy Seaport Worldwide for RM403 million (S$175.3 million). The seller is Syed Mokhtar's Indra Cita, which is also a major shareholder of Johor Port.

Seaport Worldwide's main assets are five parcels of land at the small town of Pontian, which is located near PTP. The landbank has a combined area of almost 2,300 acres, which have been earmarked for a petrochemical complex.

An executive close to the group told BT the deal will allow Johor Port to broaden its earnings base and help kickstart the petrochemical project. Work on the project - the fifth major petrochemical complex in Malaysia - could start in over a year, he added.

But Johor Port is not expected to go it alone in the petrochemical project the cost of which is still unknown. The Johor state government is expected to be a partner as it has alienated some land for the project. They are also expected to rope in a strategic partner such as national oil corporation Petronas Nasional or a foreign party.

The petrochemical project will help complete Syed Mokhtar's blueprint in the southern Malaysian state neighbouring Singapore.

The state government will build a road network to complete the businessman's key infrastructure projects and boost the viability of the petrochemical complex. Apart from PTP, he controls a bunker port, Senai Airport, the Tanjung Bin power station and a new university project in the state.

'This linkage will ease the transportation time of raw materials and/or finished petrochemical products to other parts of Malaysia and the world,' Johor Port said.

Almost all of his projects could have a direct impact on Singapore. His PTP, which has captured two of Singapore's biggest shipping clients in the last four years, is still trying to lure the third major liner in Singapore.

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

RafflesCity

November 16th, 2004, 06:04 AM

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

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

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

2 ships docked side by side? :eek:

looks very cool :D

babystan03

November 16th, 2004, 09:57 AM

2 ships docked side by side? :eek:

looks very cool :D

Yes they are docked side by side.......A little overwhelmed that I decided to take a picture of it.....:D

babystan03

November 16th, 2004, 12:11 PM

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

RafflesCity

November 16th, 2004, 11:28 PM

Yes they are docked side by side.......A little overwhelmed that I decided to take a picture of it.....:D

I feel overwhelmed just looking at it from my screen, cant imagine standing there :yes:

anyway did u take the pic from the carpark or the cruise terminal waiting area?

RafflesCity

November 16th, 2004, 11:30 PM

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.

this does sound quite ambitious indeed. I think the new land will be reclaimed at Pasir Panjang

babystan03

November 17th, 2004, 12:13 AM

I feel overwhelmed just looking at it from my screen, cant imagine standing there :yes:

anyway did u take the pic from the carpark or the cruise terminal waiting area?

Took it from Harbourfront Centre's carpark.......:yes:

drwho

November 17th, 2004, 12:32 AM

have you guys seen the stocks on maritime-sectors?..buy buy buy!:)

babystan03

November 19th, 2004, 02:43 PM

Time is GMT + 8 hours
Posted: 19 November 2004 2126 hrs

PSA International loses bid for HK's Asia Container Terminals
By Channel NewsAsia's Hong Kong Correspondent Roland Lim

Port operator, PSA International, has apparently lost out on its bid to acquire a 29 percent stake in Asia Container Terminals in Hong Kong.

Hong Kong's biggest property developer, Sun Hung Kai Properties, told Channel NewsAsia that it had put in a rival bid for ACT, which is part of the Kwai Chung terminals that handle most of the territory's container traffic.

Reports say that offer could be marginally better than PSA's.

When contacted, PSA International declined to comment.

Our correspondent has been tracking this story from Hong Kong.

It seems that Sun Hung Kai's trump-card was the fact that existing shareholders had the right of first refusal.

Sun Hung Kai is also said to be offering to assume part of the seller's debt at Asia Container Terminals of some US$385 million.

So it is doubling its stake in ACT at what appears to be a considerable premium.

The seller, Hongkong Land, reportedly stands to reap up to US$38 million from the deal.

According to the South China Morning Post report, PSA was willing to pay a high premium because it would get them a foothold into the world's biggest container port.

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

Word is that Sun Hung Kai only marginally upped their offer in a bid fend of PSA's advances.

However the story is not over because PSA is still in the running for a piece of Hong Kong's port.

It is one of five bidders for CSX Corp's global port assets - CSX is the other majority shareholder of Asian Container Terminals.

If this deal succeeds, then PSA will still win an effective 17 percent stake in Asian Container Terminals, and a minority stake in Asia Terminals, the world's biggest distribution centre,

A decision on CSX's disposals will be known by the end of next month. - CNA

Copyright © 2004 MCN International Pte Ltd

babystan03

November 23rd, 2004, 02:08 AM

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.

babystan03

November 24th, 2004, 10:24 AM

Business Times - 24 Nov 2004

PSA bids for Gujarat port project: report

By DONALD URQUHART

(SINGAPORE) PSA International appears to be taking another stab at securing a stake in an Indian port venture with the submission of a financial bid for Royal Dutch Shell's proposed LNG and dry cargo port project in Gujarat. The Singapore-based global container terminal operator has reportedly made a bid for a 74 per cent share in the multi-cargo port project at Hazira, according to India's Financial Express newspaper.

The Dubai Ports Authority - a growing, expansion-minded regional port operator - was also identified as one of the bidders. 'These two companies have submitted bids for the project and plan to execute it with other consortium partners, if their bids go through,' the Express quoted unnamed sources as saying.

A PSA spokesperson declined to comment on the report when contacted by BT yesterday. The Hazira port project was originally conceived purely as a container port, but this was changed to include an LNG (liquified natural gas) import and regasification terminal to help meet the energy needs of Gujarat's industries.

Shell is expected to complete construction of the over US$500 million LNG facility by end-December with imports beginning in the first quarter of 2005. The terminal will have an import capacity of 2.5 million tonnes of LNG annually.

'Shell is committed to bringing value-adding partners with specialised expertise and experience to develop our multi-cargo port venture in Hazira,' the report quoted a Shell spokesperson as saying.

'However, for reasons of commercial confidentiality, we are unable to share any details.'

For PSA this marks yet another attempt to gain a more meaningful foothold in India after recent failures to secure stakes in port tenders in the country, including the key Jawaharlal Nehru Port's third container terminal expansion.

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

babystan03

November 24th, 2004, 11:08 AM

Time is GMT + 8 hours
Posted: 24 November 2004 1642 hrs

PSA Int'l denies reports it is bidding for Hazira port stake
By Melvin Young, Channel NewsAsia

SINGAPORE : PSA International has denied reports that it had submitted a bid for a port project at Hazira, India.

Media reports had said that PSA was planning to buy a 74 percent stake in a multi-cargo port project at Hazira, being built by Royal Dutch Shell Group.

The Dubai Ports Authority was also named as one of the bidders.

PSA says although it had been looking at the project at one time, it did not eventually submit a bid.

The original vision for the Hazira project was to build a container port.

But the idea evolved to include a liquefied natural gas import and regasification terminal to help meet the energy needs of Gujarat's industries.

Construction of the LNG facility, costing more than US$500 million, is supposed to be completed by the end of the year, with imports starting in the first quarter next year.

The terminal can import 2.5 million tonnes of LNG annually. - CNA

Copyright © 2004 MCN International Pte Ltd

RafflesCity

November 25th, 2004, 11:08 AM

PSA sounds like its really aggressive at expansion lately

babystan03

November 30th, 2004, 02:52 AM

November 30, 2004

Port's systems win innovation awards

By Christopher Lim

TWO projects by the Maritime Port Authority of Singapore (MPA) were among 10 which won awards for innovation last Tuesday.

The winners thought up transport projects related to the land, air and sea. They received the Ministry of Transport's (MOT) Minister Innovation Awards, from Mrs Lim Hwee Hua, Minister of State for Finance and Transport last Tuesday.

The MPA's first project, Vessel Information System, allows ship inspectors to access the previous inspection records of ships, using Internet-enabled personal digital assistants (PDAs).

Seven off-the-shelf Hewlett-Packard iPAQ PDAs have been in use by MPA inspectors since January.

According to project leader Ma Yoke Long, deputy manager of MPA's operation systems, the PDAs have led to time savings as well as removed the need for inspectors to carry around bulky printed documents.

Mr Ma said that the MPA may consider using PDAs to access other MPA systems in future.

The second MPA project, the Digital Tidal Atlas (DTA), is an Internet-based system that can forecast the flow of tides and currents in the Pulau Sudong anchorage area.

This gives ships the option of not hiring harbour pilots and tugs to help them navigate.

Captain Donald D"Cruz, head of the DTA team, said: The DTA system can translate into cost-savings of some $8,000 per vessel.

The DTA is accessible by the public at www.singaporemaritimeportal.com for free.

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

babystan03

November 30th, 2004, 01:35 PM

Posted: 30 November 2004 1814 hrs

Singapore's PSA to take majority stake in Hong Kong port operator

SINGAPORE : Singapore's PSA will acquire a 57 percent stake in Hong Kong's Asia Container Terminals (ACT), giving it a slice of the territory's lucrative container business, the port operator said Tuesday.

PSA will buy the stake from Hong Kong real estate developer Sun Hung Kai Properties

"PSA has agreed to buy the 57 percent stake in Asia Container Terminals," the Singapore port operator said in an e-mailed statement to AFP.

PSA declined to disclose the value of the deal but a report in Hong Kong's South China Post on Tuesday quoted unnamed sources saying the Singapore port operator wold pay at least 2.6 billion Hong Kong dollars (333 million dollars).

The newspaper quoted a spokeswoman from Sun Hung Kai saying the company received a "very satisfactory return" for its stake in Asia Container Terminals.

The acquisition appears to be a delayed victory of sorts for PSA, whose bid earlier this month for a 28.5 percent stake in ACT owned by Hongkong Land Holdings was blocked by Sun Hung Kai Properties, which exercised its right to match any bids from outside parties.

Sun Hung Kai Properties raised its ACT stake to 57 percent after buying Hongkong Land Holdings' 28.5 percent interest.

PSA has been agressively expanding its international presence by investing in container terminals in India, China and South Korea, as well as in Europe.

It has long sought a presence in Hong Kong, which is among the world's busiest container ports on the back of the booming Chinese economy. - AFP

babystan03

November 30th, 2004, 03:28 PM

Here's a more detailed report........

Time is GMT + 8 hours
Posted: 30 November 2004 2214 hrs

PSA takes 57 percent stake in Hong Kong's Asia Container Terminals
By Roland Lim, Channel NewsAsia

HONG KONG : Port operator PSA International has agreed to acquire a 57 percent stake in Hong Kong's Asia Container Terminal, or ACT, from developer Sun Hung Kai Properties.

No financial details were given, but the deal is reported to be worth US$333 million, with PSA assuming $77 million worth of debt.

Analysts say that puts the selling price at four times the estimated book value.

Three years ago, Asia Container Terminals was worth about US$159 million, so PSA may be paying a huge premium, going by the reported price.

But it indicates just how much PSA wants this strategic foothold in Hong Kong.

PSA has been expanding its international presence aggressively around Asia in recent years.

And now, it has finally landed a presence in Hong Kong, one of the world's busiest container ports.

The purchase comes less than two weeks after PSA lost a bidding battle with Sun Hung Kai Properties to buy Hongkong Land's 29 percent stake in ACT.

ACT is one of five operators in the Kwai Chung container hub, which handles the majority of Hong Kong's container traffic.

But still, it has yet to secure its first customer, despite having acquired two berths there.

Said Francis Lun, general manager at Fulbright Securities, "It's doubtful that with these kind of figures that PSA will be able to make a profit from Terminal 8 in the foreseeable future.

"But you also have to look at it another way: how much is a meaningful contributing stake in Terminal 8 worth? Because Hong Kong is one of the largest ports not only in Asia and China but the world, if PSA is to be a global player in the cargo handling container terminal business, it has to have a contributing stake in one of the key terminals."

ACT aside, PSA is also taking the lead in the race to buy US rail giant CSX Corp 17 percent stake in its global port network.

Reports say PSA is willing to shell out upwards of US$1 billion for its assets in Hong Kong, Germany and Venezuela. - CNA

Copyright © 2004 MCN International Pte Ltd

RafflesCity

November 30th, 2004, 10:59 PM

hmmm..not bad, and I wouldnt have expected them to secure that stake with all the opposition

babystan03

December 1st, 2004, 02:26 AM

Dec 1, 2004
PSA gains foothold in HK port operations

A 57% stake in Asia Container Terminals after earlier bid failed
By Nicholas Fang
Transport Reporter

PSA International snapped up a majority stake in Hong Kong's Asia Container Terminals (ACT) yesterday to gain a foothold in the much sought after container port business in the Fragrant Harbour. The deal caps a complex and fast-moving series of corporate manoeuvres over the coveted container market.

PSA is buying the stake for an undisclosed price from real estate developer Sun Hung Kai Properties (SHKP). This was the firm that had dramatically foiled an earlier PSA bid for a smaller stake in ACT, one of Hong Kong's four main terminal operators, when SHKP amassed its shareholding less than two weeks ago.

PSA's plans to widen its global footprint seem to be advancing on another front as well, with reports yesterday that it is leading a group of bidders for CSX World Terminals' global port assets. These include locations in Asia, Europe and Latin America.

PSA's latest acquisition gives the company a crucial entry point into Hong Kong, the home base of its long-standing rival Hutchison Port Holdings (HPH). HPH's Hong Kong International Terminals is the territory's largest port operator. It topped the list of global container terminals last year, handling 41.5 million 20-foot equivalent units (TEUs) containers.

PSA, in second spot, handled 28.7 million TEUs. Industry insiders said PSA's latest deals would move it closer to No. 1 and keep it clear of the chasing pack.

Last month, PSA was pipped to a 28.5 per cent stake in ACT by SHKP, which also has interests in finance, telecommunications and transport. SHKP exercised its right of first refusal as an existing ACT shareholder to buy the stake from Hongkong Land.

Reports at the time said PSA had made a HK$685 million (S$145 million) cash offer to HongKong Land. Although no price was disclosed yesterday for the 57 per cent stake, a report in Hong Kong's South China Morning Post quoted unnamed sources as saying that the deal would cost PSA at least HK$2.6 billion.

The newspaper also quoted a Sun Hung Kai spokesman as saying the company had received a 'very satisfactory return' for the sale of its ACT stake. It also said the deal includes SHKP's portion of ACT's debt, estimated at some HK$600 million. ACT's assets are two berths in Hong Kong's main container port in Kwai Chung.

Some industry watchers believe PSA will pay a significant premium for the ACT stake, compared to its offer bid for the 28.5 per cent last month. Others say it is a small price to pay for a strategic foothold in Hong Kong.

Ms Aveline Chan of Commerzbank Asset Management Asia in Singapore told Bloomberg News yesterday: 'It's always good to extend their global reach, because they can't just rely on their own home markets. It is potentially a good move for them... and a good way to boost themselves ahead of listing in the future.'

PSA declined to comment on the price yesterday. It has expanded its overseas operations in recent years to include 17 ports in 11 countries across Europe, India, East Asia and China. More than a third of its total cargo volume comes from its overseas ports. Its largest acquisition so far has been its Belgium venture, which cost almost $1 billion.

Hong Kong newspapers reported yesterday that PSA is leading the race to snap up CSX World Terminals' assets, which include a further stake in ACT estimated at about 20 per cent, as well as shares in other Hong Kong terminals. CSX World Terminals is owned by United States rail-road operator CSX Corp.

The Post report said firms are required to bid for the entire CSX network, which includes existing terminals or undeveloped sites in ports in China and in South Korea. The bidders include Hong Kong tycoon Li Ka-Shing's flagship Hutchison Whampoa and Wharf Holdings.

babystan03

December 1st, 2004, 11:23 AM

Business Times - 01 Dec 2004

Keppel wins US$164m Mexican contract

SINGAPORE - Keppel Corp said on Wednesday it won a joint US$164 million (S$269.3 million) contract to build two platforms for Petroleos Mexicanos, Mexico's national oil company.

Keppel said the accommodation platforms will be used to support offshore energy exploration in the Gulf of Mexico, and will be installed by the third quarter of 2006.

Keppel is part of a consortium which includes UK-based SLP Engineering and Gulf Island, a specialised fabricator of offshore structures in the Gulf of Mexico that won the contract.

It has a 60 per cent share of the consortium through its subsidiaries, Keppel Offshore & Marine USA and Keppel AmFELS.

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

babystan03

December 7th, 2004, 12:12 PM

Business Times - 07 Dec 2004

NOL's monthly cargo volumes jump 20%

(SINGAPORE) Neptune Orient Lines Ltd, Singapore's biggest shipping line, said it transported 20 per cent more cargo between Oct 16 and Nov 12 from a year earlier, helped by new services and rising export demand. The company's container shipping unit, APL, carried 142,900 40-foot-equivalent container units in the period, it said in a statement to the Singapore Stock Exchange. Average revenue rose 5 per cent to US$2,783, the company said.

'Volumes increased supported by the impact of new services deployed in the second half, healthy utilisation levels and growth in overall ship capacity this year,' the company said. Neptune Orient and other shipping lines are benefiting from rising demand for toys, clothes and other products made in Asia from North America and Europe. About 80 per cent of global trade is carried by sea. Container volumes and freight rates have reached records this year.

Sales from contract logistics services rose 20 per cent to US$70.6 million, while revenue from international services rose 29 per cent to US$28.6 million. - Bloomberg

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

babystan03

December 9th, 2004, 03:15 PM

Time is GMT + 8 hours
Posted: 09 December 2004 1852 hrs

Dubai Ports International buys CSX's port assets for US$1.15b
By Channel NewsAsia's Hong Kong Reporter Roland Lim

HONG KONG : PSA International has lost out in its bid for CSX's global port assets which include its most profitable terminal in Hong Kong.

Dubai Ports International, the investment arm of the Dubai Port Authority, came up tops with its bid of US$1.15 billion.

Until a few weeks ago, PSA was thought to be the front runner in the race for CSX's port assets in Hong Kong, China, South Korea and Australia.

Thursday's announcement is seen as a blow for PSA, which just bought a 57 percent stake in Asia Container Terminals last month.

When contacted, PSA declined to comment.

According to media reports in Hong Kong, PSA put in a tender of about US$1 billion, short of the US$1.15 billion put up by Dubai Ports.

The Dubai offer is understood to have come in at a very late stage, and analysts say it comes at a huge premium.

Some estimate that the Dubai offer is some 20 times earnings before interest, tax and depreciation.

But its management is confident that business will grow, and says it expects EBITDA to double within the next five years in China alone.

Container Terminal 3 at Hong Kong's main Kwai Chung Container Port is the most profitable asset in CSX's portfolio.

And when the deal is completed in first quarter of next year, Dubai Ports will become the world's sixth biggest container port operator.

The premium paid seems indicative of the rare opportunity to buy Hong Kong, into one of the world's busiest container ports.

Right now, more than 60 percent of the Pearl River Delta's cargo goes through the territory.

Sultan Ahmed Bin Sulayem, Executive Chairman, Dubai Ports, said, "This is a growth area, we have confidence in this market..."

Other than Hong Kong, the deal also involves a combined nine terminals, with a total capacity of 14 million TEUs across the globe.

For PSA, Thursday's deal may have more than just one downside.

It means Dubai Ports will own the 29.5 percent stake in Asia Container Terminals, now held by CSX.

And it can scuttle the PSA deal, if it decides to match the offer dollar for dollar.

The option expires on Saturday and Dubai Ports says it is weighing its options.

There is also market speculation that Dubai Ports may try to flip its Asian assets of the CSX network to Hutchison, which is a rival port operator to PSA. - CNA

Copyright © 2004 MCN International Pte Ltd

babystan03

December 9th, 2004, 03:52 PM

Business Times - 09 Dec 2004

PSA handled 12% more containers in Nov

SINGAPORE - PSA has reported that it handled 12 per cent more containers last month at its ports globally as demand for products made in Asia increased in Europe and North America.

The port operator handled 2.74 million standard boxes in November, an increase from 2.44 million a year earlier.

PSA handled 1.69 million containers in Singapore last month and traffic at the ports in which PSA invests, such as China's Dalian and Belgium's Antwerp, rose 15 per cent to 1.06 million.

PSA handled 30.2 million standard containers globally in the first 11 months of this year, 16 per cent more than the same period in 2003.

In Singapore, it was 18.8 million containers in the same period, a 14 per cent rise from last year's 16.5 million boxes.

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

drwho

December 14th, 2004, 12:47 AM

Singapore ship mgmt company opens Kochi liaison office

Our Bureau

Kochi , Dec. 13

THE Singapore-based Executive Ship Management Pte Ltd, one of the leading international ship managers, has opened its Kochi liaison office in its efforts to reach out more number of seafarers from various parts of the country.

Kerala has a vast population of quality seafarers and the opening of the new office will provide an opportunity for capable seafarers from the State to reach a new height of a successful shipping career, Capt J. Verma, Resident Director of ESM, said at a press meet. The company is in the process of opening new manning bases to reach the vast maritime fraternity spread out across the country, he added.

Despite severe competition from South East Asian countries, ESM is whole-heartedly promoting and patronising the Indian seafarers in the international market. The company employs only Indians in vessels under its management as it had currently more than 50 ships in its fleet.

ESM, Mumbai is the head of full manning operations while the liaison offices are spread out in Chandigarh, Chennai and Delhi. Founded in 1998 with its corporate office in Singapore, he claimed that ESM has become one of the most professionally run ship management companies in the Far East. Besides the technical and commercial operations have now spread out to Houston, Tokyo etc, he added.

All the crewmembers are provided free training at Samudra Institute of Maritime Studies, the in-house training institute of ESE in Mumbai, in a wide range of value-added training courses recognised by the Directorate-General of Shipping.

http://www.thehindubusinessline.com/2004/12/14/stories/2004121400960700.htm

babystan03

December 20th, 2004, 11:06 AM

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.

babystan03

December 20th, 2004, 11:08 AM

Business Times - 20 Dec 2004

PSA valuation seen driven by overseas gains

It could be as high as 16x earnings if port operator buys aggressively

By JOYCE KOH

WITH PSA's listing back in the speculative spotlight, valuation of the port operator takes centre stage. And market watchers say that it hinges on PSA's overseas growth.

If PSA shows it can be aggressive in acquiring ports around the world and its overseas operations are able to drive the bottom line, then valuation could be toppish at 14-16 times earnings.

On the other hand, should PSA be seen to be hampered by the shrinking local market and intense overseas competition, it would have to fall back on its stable dividends and strong cashflow to attract investors.

In its last annual report, PSA, which employs 12,144 people, reported FY2003 earnings of $682.7 million and turnover of $3.4 billion. Its net assets stand at $3.44 billion, and it has cash and cash equivalents of $1.45 billion.

Back in 2002, when PSA aborted its listing aspirations, its parent Temasek Holdings had said it would review the possibility again 'when the market is more conducive'.

Temasek spokeswoman Eva Ho added at the time: 'We expect PSA's overseas investments to contribute strongly over the next couple of years. Before that happens, we think it may not be prudent to go ahead with the IPO.'

These are the same issues market watchers are once again raising.

Said Kevin Scully, managing director of Netresearch-Asia: 'Is there going to be any compelling earnings story? When SingTel listed, 70 per cent of its business came from Singapore, but today this is less than 50 per cent. PSA has to start demonstrating it can do the same.'

Mr Scully added that investors would be interested to know if PSA's listing would be a vendor or new share issue, since the former might just mean that its major shareholders are divesting.

Indeed, analysts say the question of where growth is going to come from is especially pertinent for PSA's valuation since Singapore's role as a manufacturing and regional hub looks to be declining as it moves more into services and high-value-added industries.

Market watchers say that with PSA's own ability to generate tonnage likely to fall, and neighbouring ports such as Malaysia's Tanjung Pelepas up and running, PSA needs to stamp its presence in overseas markets such as China and Indochina to arrest pressure on rates and to tap those growing economies.

Others, however, remain sanguine about PSA's prospects, noting that as a 'national asset', it is in a 'uniquely strong position' in tying up overseas deals.

Said one analyst with a foreign bank: 'I am surprised that the listing hasn't taken place since throughput last year had been very strong and had hit historical highs both in terms of volume and financials. It might make more sense to capture the upturn rather than the peak.'

But he noted that with greater global economic growth in the pipeline and more free trade agreements expected to be signed, port operations can be a booming business - and PSA will have to convince investors of that.

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

babystan03

December 21st, 2004, 11:27 AM

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.

babystan03

December 21st, 2004, 02:51 PM

21 December 2004

MPA to reduce Singapore's port fees from 1st January 2005
By Michael Lim, Channel NewsAsia

SINGAPORE : Some good news for ship owners whose vessels are calling at Singapore's port.

The Maritime and Port Authority is revising down its port fees starting from 1st January next year to make Singapore's port more competitive.

The review will cover 3 sectors within the maritime industry: ship repairs, bunkering and cruises.

It is not yet Christmas, but the shipping community already has something to cheer about.

From Jan 1, the rate for vessels undergoing shipyard repairs exceeding 95 days will be reduced by 50 per cent.

Vessels staying at the port for less than 24 hours as well as seasonally-based passenger ships will also see a 20 per cent rate reduction.

Those making at least six calls in the period of six months will be able to enjoy a 20 per cent rebate.

Yeo Cheow Tong, Minister for Transport, said: "These revisions in port dues are expected to benefit some 4,000 ships annually and save about S$2.5 million a year for the shipping community. If we add to this the existing 20 percent port dues concession for container ships, it means a total savings of some S$8 million per annum for the shipping community."

That's not all.

MPA will be reducing its rates by 20 percent for car carrier operators who are committed to growing their car trans-shipment business in Singapore.

Choo Chiau Beng, Chairman and CEO, Keppel Offshore and Marine, said: "I think the industry will be very happy that the government has taken a very pro-industry trend to attract shipowners to repair their ships in Singapore."

Heng Chiang Gnee, President, Association of Singapore Marine Industries, said: "I am sure the industry players will see that it is a very positive. I think in terms of comparing ourselves with other shipyards in other parts of the world currently in term of port dues we are still high. So such a reduction will certainly help the industry."

Transport minister Yeo Cheow Tong says 2004 promises to be another record-breaking year for Singapore's port

It was a historic maritime moment for the city state on Tuesday as total vessel arrivals for its port crossed the one billion gross ton mark.

Cosco Shanghai, which arrived at 8 o'clock in the morning, helped set the 185-year record.

Singapore is expected to maintain its position as the world's busiest port in terms of shipping tonnage, ahead of Rotterdam and Hong Kong.

The city state is also the number one bunkering hub in the world. - CNA

Copyright © 2004 MCN International Pte Ltd

RafflesCity

December 21st, 2004, 11:59 PM

wow this is great news for the port! :banana:

MPA slashes port dues to bolster S'pore's position

22 Dec 04

Move will benefit 4,000 ships, with $2.5m in fees saved

By DONALD URQUHART

(SINGAPORE) Upping the ante in a competitive industry, the Maritime & Port Authority of Singapore (MPA) has slashed port dues in a bid to maintain Singapore's status as a regional maritime hub.

The move is expected to benefit nearly 4,000 vessels calling here annually, amounting to total savings of nearly $2.5 million. Combined with the ongoing 20 per cent concession on port dues for container vessels, the total savings amount to about $8 million a year, the MPA said.

The reduced tariffs were announced by the MPA yesterday at a ceremony marking the handling of more than one billion gross tons at PSA Corporation's Pasir Panjang container terminal.

'It's a gesture and that's because port dues do not make up a large part of the cost of calling at a port,' Transport Minister Yeo Cheow Tong told reporters. 'But for the MPA, it is a big gesture as it is a significant reduction in what the MPA is collecting,' he added.

Asked about PSA's competitiveness, where box-handling charges make up a far larger proportion of a container vessel's expenses when calling at Singapore, Mr Yeo said: 'The government can play a small part, but the biggest part really is PSA as a key port operator.'

Mr Yeo added that PSA had increased its competitiveness over the last two to three years. On PSA's recent failure in its bid for the global container terminal assets of US-based CSX Corporation, which included prime Hong Kong terminals, Mr Yeo said: 'I think they are being prudent in the amount they are prepared to pay.

'If you have unlimited funds, you can pay any amount; but the amount you pay may make the project uncompetitive, so I think PSA has to be very careful in how it bids for projects to ensure the price it pays is the reasonable one, the fair one and results in the project being viable.'

On PSA's bid for a 57 per cent stake in Asia Container Terminals (ACT) from Hong Kong's Sun Hung Kai Properties, PSA International's chief executive officer Eddie Teh declined to be drawn into discussion.

The revision in port dues, to take effect from Jan 1 next year, was taken after consultation with industry participants.

In particular, the new port charges will benefit vessels calling at the port for periods of less than 24 hours for the sole purpose of taking on bunker and ship supplies, or for crew changes. These ships will now pay $1.80 per 100 gross tons.

In a bid to woo more offshore oil and gas business to Singapore shipyards, port dues for vessels undergoing shipyard repairs for more than 95 days in duration will be cut by 50 per cent to $0.50 per 100 gross tons.

This typically includes conversion jobs for floating production storage offloading vessels - an area in which Singapore is a global leader.

And to regain lost cruiseship business, passenger vessels of 300 gross tons and above will get a 20 per cent rebate on port dues subject to various conditions. These include requirements that vessels make at least six calls at PSA terminals or the Singapore Cruise Centre within a six month period under the same agent.

babystan03

December 22nd, 2004, 01:57 AM

Some praise from the customer of PSA......:yes:

December 22, 2004

S'pore cuts port fees by 20-50%

Move to sharpen competitive edge, attract more ships

By Khushwant Singh

SINGAPORE, already the world's busiest port and the leading bunkering hub, has further sharpened its competitive edge by announcing cuts in port dues yesterday.

From January, vessels sailing in to pick up bunker oil and ship supplies or to change crew, and are in port for less than 24 hours will enjoy a 20 per cent reduction in port dues to $1.80 per 100 gross tonnes.

Ships can go up to 16,500 gross tonnes and beyond.

There is also a 50 per cent discount for vessels undergoing long-term repairs, and other discounts for large passenger vessels and car-carrier operators, which call here regularly.

These discounts would total $2.5 million in savings next year for shipping operators.

Transport Minister Yeo Cheow Tong announced these discounts yesterday at a ceremony marking the first-ever crossing of the one billion gross-tonne mark in terms of shipping tonnage within a year.

Addressing a 100-strong audience comprising diplomats and members of the shipping community at the Pasir Panjang Terminal building, he said that the reductions would take effect from Jan 1.

Reacting to the cuts, Mr Nick Papadeas, director of Ceres Shipping, said: Singapore already offers one of the lowest rates among major ports and these discounts will definitely attract more ships.

He also praised the service offered to shipping operators by the Maritime and Port Authority (MPA) and the Port of Singapore Authority (PSA).

He said: Pick up the phone any time of the day or night and somebody will look into your problem and rectify it. There are few ports in the world with this level of efficiency.

The vessel, which helped the port cross the one billion shipping tonnage mark, is the 65,531 gross-tonne container ship, Cosco Shanghai.

Cosco is the biggest shipping line in China and in December last year, it embarked on a joint venture with PSA to develop two dedicated berths at Pasir Panjang Terminal.

In his speech, Mr Yeo said: We will maintain our position as the world's busiest port in terms of shipping tonnage, ahead of Rotterdam and Hong Kong.

Singapore will also retain its position as the number one bunkering hub in the world with total bunker sales expected to rise by 12 per cent to reach more than 23 million tonnes this year.

Mr Yeo also said that the high level of understanding and trust between PSA and its two trade unions was a competitive advantage which Singapore offers to investors and customers.

He added that this good industrial relationship enabled PSA to quickly overcome the port congestion problems it faced earlier this year, when there was a huge surge in the number of ships calling at the port.

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

babystan03

December 22nd, 2004, 01:06 PM

Business Times - 22 Dec 2004

Lower port dues may hasten PSA listing

Move will make it more competitive and boost its appeal to investors: analysts

By JOYCE KOH

BESIDES benefiting the Port of Singapore Authority (PSA), the lower port dues announced yesterday look set to hasten the pace for a possible PSA listing, said analysts. The steps to protect PSA's current business by upping its competitiveness vis-a-vis other regional players will boost its attractiveness among investors, market watchers told BT yesterday.

'It is positive for PSA since it makes it more competitive, but it is also positive for a flotation since it looks like the government is preparing it for listing,' said Wong Kok Hoi at APS Asset Management. 'These things are seldom coincidental.'

BT reported on Monday that after a three-year hiatus, some market insiders think the world's second busiest container port could finally be ready for a listing on the Singapore Exchange.

Yesterday, Singapore's Transport Minister Yeo Cheow Tong said port fees will be lowered for ships calling to take on supplies or to change crew, as well as for some cruise ships and car carriers.

But even as analysts applaud the move to improve overall cost competitiveness at the port, some are sceptical this will really boost business for PSA, calling it a 'defensive strategy'.

'Its business volume might not go up since there's only a certain cargo going through Singapore. Basically, this will deter people to go elsewhere,' said Kevin Scully, managing director of Netresearch-Asia. 'It (lower port fees) is to prevent more traffic from going over to lower cost ports rather than to attract new shippers,' he reckoned.

Mr Scully noted even though PSA has an edge over other regional port operators because of its faster turnaround time, the fact that port dues have to be slashed could signal it is in danger of losing business to other players.

Indeed, while still small compared with PSA, Tanjung Pelepas has often been seen as a nifty challenger to PSA's business. The Johor-based port most notably clinched two of PSA's biggest customers, Maersk Sealand and Evergreen Marine Corp, in 2000 and 2002 respectively.

The Johor-based port is expected to exceed the four million TEUs mark by the end of the year. Last Thursday, its chief executive Mohd Sidik Shaik Osman said in an interview with Lloyd's FTB Asia: 'Newbuildings are at an all-time high, global trade is still high. We need to continue investing in facilities and equipment to meet expectations of even higher productivity and turnaround.'

Certainly, the fee-cutting exercise announced yesterday is only part of an ongoing process to make PSA more competitive.

After it lost its Evergreen business to Tanjung Pelepas, PSA cut handling charges for empty containers by half and fees at its cargo terminals by 10 per cent. It also allowed shipping lines to take stakes in its terminals, and embarked on an expansion strategy outside its Singapore base, acquiring more port terminals in countries including Belgium, China and Japan.

In July last year, the port operator cut the wages of virtually all its 5,182 staff based here by up to 14 per cent, and said it was revising its wage system.

In March this year, Transport Minister Mr Yeo said that while PSA faces strong challenges from other emerging regional ports, the government will continue to release more land for container terminal development to meet Asia's growing cargo volumes, and keep a tight rein on costs to remain competitive.

'The Singapore government will continue working with our port operators to help them enhance their cost competitiveness,' he said then.

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

babystan03

December 22nd, 2004, 01:21 PM

Dec 22, 2004
PSA close to gaining foothold in Tianjin

PSA International is close to obtaining a foothold in the northern Chinese port of Tianjin under a joint venture with three other partners, reports said yesterday.

PSA will join Orient Overseas (International), P&O Nedlloyd and Tianjin Port Group in a US$200 million (S$329.6 million) deal to build, manage and operate a new terminal complex in the city, a two-hour drive from Beijing.

Sources close to the deal said yesterday that the shareholding structure of the joint venture had been agreed upon, Hong Kong's South China Morning Post (SCMP) newspaper reported. 'We are just waiting for some of the listed firms to gain approval from their shareholders,' a source was quoted as saying.

The SCMP report said that Orient Overseas, P&O and PSA would each take 20 per cent stakes in the Tianjin venture, expected to start next year. It will involve extending the port's waterfront by 1.1km, creating space for a further three or four berths.

Trade journal Lloyd's List reported on Monday that a signing ceremony for the deal had been carried out last week but PSA declined to comment yesterday.

The project could give a welcome boost to PSA's international expansion plans, which faltered over its recent aggressive bid for CSX World Terminals' international assets, which included operations in Tianjin.

That deal would have secured PSA its first operations in northern China apart from Dalian, where it made its first foray in the mid-1990s.

But Dubai Ports International (DPI) outbid it. Missing out on the deal also dented PSA's ambitions to gain a foothold in Hong Kong through CSX's shareholding in Asia Container Terminals (ACT), one of the main terminal operators there.

The SCMP report also said that PSA's plans to acquire a 57 per cent stake in ACT from Sun Hung Kai Properties (SHKP) could be in jeopardy as ACT's other shareholders were said to be preparing to exercise their options to match PSA's offer.

The deadline for exercising options was understood to have been on Monday. When contacted then, DPI and SHKP declined to comment. \-- NICHOLAS FANG

Copyright © 2004 Singapore Press Holdings. All rights reserved.

RafflesCity

December 23rd, 2004, 05:54 AM

In his speech, Mr Yeo said: We will maintain our position as the world's busiest port in terms of shipping tonnage, ahead of Rotterdam and Hong Kong.

nice to know we actually handle more substance than those ports :yes:

babystan03

December 23rd, 2004, 12:10 PM

Business Times - 23 Dec 2004

PSA in the dark over Asia Container Terminals bid

(SINGAPORE) PSA International Pte, operator of the world's second-biggest port, has not been told whether its bid for Hong Kong terminal operator Asia Container Terminals Ltd is being overridden by existing shareholders, group chief executive Eddie Teh said.

PSA International said on Nov 30 it would buy Sun Hung Kai Properties Ltd's 57 per cent stake in Asia Container Terminals for an undisclosed amount. Original shareholders CSX World Terminals, which was acquired by Dubai Ports International this month, and NWS Holdings Ltd, then said they have pre-emptive rights to block the deal and buy the stake themselves.

'We don't really know what's happening,' Mr Teh said on Tuesday. 'We don't have any access into the internal shareholders arrangements and haven't been informed of the outcome yet.'

Dubai Ports International on Dec 9 successfully bid US$1.15 billion to beat PSA's offer for the port unit of CSX Corp, the third-largest US railroad operator. The deal was a blow to PSA's expansion ambitions, as CSX World Terminals owns 29.5 per cent of Asia Container Terminals, and also operates a network of global terminals.

The CSX takeover first raised the possibility Dubai Ports would also veto PSA's offer, in a second blow to the Singapore-based company's Hong Kong ambitions. NWS said it may also exercise its rights, according to a Dec 13 report in the Hong Kong Economic Journal.

Spokespeople for the companies would not comment on their decisions although the deadline passed at 5pm Hong Kong time on Monday.

Asia Container Terminals operates two berths at container terminal 8 in Kwai Chung. - Bloomberg

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

babystan03

December 23rd, 2004, 12:19 PM

Dec 23, 2004
SHIPBUILDING ORDERS
Jurong Shipyard pulls in $143m deals

JURONG Shipyard, a subsidiary of listed SembCorp Marine, has won two shipbuilding contracts worth $143 million from Taiwan's Wan Hai Lines.

The shipping line is also keen to have Jurong Shipyard repair its ships.

'In addition to shipbuilding, Wan Hai and Jurong Shipyard should look into expanding in the business relationship to cover shiprepair activities,' said Wan Hai chairman Chen Chao-Hon.

'Jurong Shipyard, with her shiprepair facilities in both China and Singapore, could serve as an alliance partner to service Wan Hai's container fleet dry docking requirements,' he said at a signing ceremony.

Wan Hai's new orders for the two 2,646 twenty-foot equivalent units (TEU) container ships were signed in Taipei recently and brought the total order from Wai Hai to six container ships.

SembCorp Marine senior vice-president for marketing Chua Teck Lian said it looked forward to expanding its cooperation with Wan Hai to include shiprepair.

Jurong Shipyard will start building the first ship in the second quarter of next year, with the second one to follow in the third quarter. Both vessels are scheduled for delivery in 2007.

SembCorp Marine shares yesterday slipped two cents to $1.23.

Copyright © 2004 Singapore Press Holdings. All rights reserved.

babystan03

December 23rd, 2004, 02:59 PM

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

December 25th, 2004, 03:33 AM

24 December 2004

Analysts say shipper NOL in good shape to go into the new year
By Michael Lim, Channel NewsAsia

SINGAPORE : One company that came under the spotlight this year was Neptune Orient Lines.

And that's after investment company Temasek Holdings surprised the markets with a general offer for the company.

The move has caused much speculation about the future of the shipping line.

It came as a big surprise to the market in August when investment firm Temasek Holdings made a general offer for all the remaining shares of Neptune Orient Lines that it did not already owned.

It is now three months after the event, and Temasek owns some 69 percent of the shipping line - but there is still plenty of speculation as to why Temasek made the move in the first place.

Kevin Scully, Managing Director, Net Research Asia, NRA Capital, said: "I think it's still not clear. I think there was some speculation NOL was about to make a major acquisition and there would be no dominant shareholders. So I think Temasek wanted to protect Singapore's interest."

Chris Sanda, Associate Director, Equity Research, DBS Vickers Securities, said: "There is always recurring rumours that they will be out there buying something. NOL has consistently message that they are looking to prudently acquire capacity. I don't think they are going to go out there and do a big giant blockbuster deal. The last time they did a big blockbuster deal it almost cost them the entire company."

But that speculation aside, there are also other questions still waiting to be answered such as Temasek's future plans for NOL.

Temasek has said that it will not change the operations at NOL.

But there was talk it would completely privatise the shipping line.

Then again - there are some who think the direct opposite might happen.

Mr Scully said: "If you look at it, it's actually one of the companies that has been identified as non-core holding by Temasek. So to me they should actually divest if no acquisition really materialises in the next 12 to 24 months."

Even as the market awaits clearer signs from Temasek about the future for NOL, one thing is for sure.

As a company, NOL is in pretty good shape.

The shipping line has benefited from a rising demand for cargo, thanks to an improving economy.

And expectations are, that demand will continue to rise - allowing NOL to raise freight rates.

Chris Sanda said: "NOL the company is doing exceptionally well. They are adding capacity very prudently. Their rates are going up quite nicely. They are looking quite good in 2005. They are controlling cost quite nicely...their profits are growing quite well and they should continue to grow well into 2005."

But there are downside risks.

Some analysts warn that an impending slowdown in the global economy may impede growth.

And competition may become more intense - as rival shipping lines take delivery of new super large container ships.

Mr Scully said: "There is a lot of new capacity coming on stream. So I think business will start to slowdown especially when rates start to ease off and there could be a little bit more competition in terms of rate for cargo."

But until then, its performance this year should put NOL in good stead to fight for its market share. - CNA

Copyright © 2004 MCN International Pte Ltd

huaiwei

December 25th, 2004, 11:22 AM

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.
I wish there is a comparison between PSA and that of PTP thou. Anywhere we can get that info? ;)

babystan03

December 28th, 2004, 12:27 PM

Business Times - 28 Dec 2004

Some port delays, but no major damage to shipping

But ports in Sri Lanka and eastern India are closed

By DONALD URQUHART

(SINGAPORE) Shipping in the region escaped relatively unscathed from the deadly wave surges that swept across South and South-east Asian waters on Sunday. But ports along India's east coast and Sri Lanka were forced to close as water levels rose.

For the hundreds of ocean-going commercial ships that ply the waters of the Indian Ocean and adjoining waters it was pretty much a day as any other, with most shipping executives polled by BT indicating no damage to vessels or injuries to crew. This included one vessel belonging to Singapore-based Pacific International Lines (PIL), which was located nearly on the epicentre of the earthquake responsible for the monster surges. According to PIL managing director SS Teo, the vessel's crew felt virtually nothing.

The reason ships at sea were not affected is because the destructive potential of a quake-generated wave is only realised close to shore as the water becomes shallow, according to Lee Fook Hou, associate professor of engineering at the National University of Singapore.

'In deep water, the tsunami is often not so obvious and not so damaging because there is a lot of water depth to hold the energy,' Prof Lee said.

'The problem is when it hits the coastline, the water depth becomes much shallower, and this transforms the tsunami into the damaging large wave that we have come to know.'

But the force of Sunday's waves did cause varying degrees of damage to ports along India and Sri Lanka's eastern coastlines.

While PSA International's Tuticorin Container Terminal on India's south-east coast was not damaged according to a PSA spokesperson, the Port of Chennai to the north did not escape the ocean's wrath.

Three ships collided in port after their mooring lines snapped, damaging a quay crane and Hyundai cars waiting for export.

At the container terminal, half-a-dozen boxes were washed off the pier, but most of these have been accounted for, although port operations there have been suspended.

PIL's Mr Teo said one vessel of the consortium PIL is a member of is waiting to dock, and the company is assessing damage to containers that were sitting dock-side.

Similarly, Bengal Tiger Line director Bill Smart said that while there was no damage to any of BTL's vessels, the Chennai closure means a delay of three days per vessel, if the port is up and running by last night.

Regional Container Line reported no impact on its operations, adding: 'We will monitor all our ships deployed around and plying through the affected areas to ensure that they keep their usual schedules with business as normal.'

At least one vessel was not so lucky. Singapore-based Sea Consortium's container ship Jaami had the bad luck to enter Sri Lanka's Colombo port just as waves pounded the island nation.

The vessel was pushed into the breakwater repeatedly. The hull was punctured and the vessel took on water, forcing the crew to abandon ship.

Salvage operations are about to get under way, a spokesman for the company said last night.

A Neptune Orient Lines spokesperson said one of its APL container ships was temporarily delayed at Colombo following the completion of cargo operations as port authorities closed the port following the wave surges.

The impact of the surges was felt as far away as Oman, where a Maersk Sealand vessel was grounded in Salalah Port.

Meanwhile, not far from the epicentre of the underwater earthquake, ExxonMobil Oil Indonesia reported a minor disruption to gas processing. The problem was fixed on Sunday afternoon, a spokesperson said.

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

babystan03

December 29th, 2004, 11:13 AM

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.

babystan03

December 29th, 2004, 11:18 AM

Dec 29, 2004
QUAKE AFTERMATH
Freight rate hikes unlikely as port damage is limited

By Nicholas Fang
Transport Correspondent

FREIGHT rates are unlikely to rise in the wake of Sunday's tsunami disaster as most ports in the region suffered minimal damage, said shipping lines yesterday.

Most major shipping players said the bulk of the damage had been restricted to urban or tourist areas and had left commercial and port districts largely untouched.

However, one line - Thailand's Precious Shipping - said there might be a hardening of rates as countries increase shipment of supplies to affected areas.

Precious Shipping's managing director, Mr Khalid Hasim, told Bloomberg News yesterday: 'I suspect freight rates will start to harden in areas where ships have been caught in congestion or unable to load and discharge cargo.

'The industry unfortunately thrives on disasters.'

He added that there would likely be an increase in the amount of steel, cement and wood carried into these areas as rebuilding begins.

But other mainline operators said that their operations have seen little impact and that they do not expect significant increases in rates in the immediate future.

Mr Ji Hai Sheng, president of Singapore-listed shipping firm Cosco Corp, said the company's operations in Malaysia, India, Bangladesh and Singapore had not experienced any delays or disruptions.

He told The Straits Times yesterday: 'Most of the damage was in scenic areas and not at ports or commercial districts. In fact, our offices in Sri Lanka said that there was no effect on our operations there.'

But he also agreed that there may be an increase in the shipment of cargo from international aid organisations to the worst-hit areas.

'Most of this will be air cargo but there may be a spillover into sea freight,' he said.

Other lines, such as Singapore's Neptune Orient Lines, Taiwan's Wan Hai and global giant P&O Nedlloyd, said operations are unaffected.

Among some of the ports affected by the recent disaster, the major ports of Chennai and Colombo in the Bay of Bengal, were shut immediately after the first waves hit on Sunday, but both were operating yesterday.

Bengal Tiger Lines (BTL), a feeder line which operates two vessels to Chennai from Colombo and four from Singapore, said that two out of six quay cranes at Chennai had been damaged by the tsunamis, creating delays of four to five days per vessel.

BTL director Bill Smart said there had also been some delays in Colombo. 'I understand this is a manpower issue as there have been slowdowns in the local transport systems there and this has meant some delays in workers getting to the port,' he said.

But he said it was too early to assess the cost implications of these delays and the subsequent impact on freight rates.

Copyright © 2004 Singapore Press Holdings. All rights reserved.

babystan03

December 29th, 2004, 03:47 PM

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

RafflesCity

December 29th, 2004, 06:05 PM

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.

this sounds very exciting...I cant wait to hear more news of this plan :cool:

babystan03

December 31st, 2004, 08:31 AM

Dec 31, 2004
New ferry terminal to open

THE new ferry terminal that replaces the two existing jetties at Changi Point will open next Wednesday.

And when it does, the area surrounding the two jetties will be converted into a waterfront park and a walkway overlooking Changi Creek.

The Urban Redevelopment Authority (URA), which is developing the site, is still studying the plans, and no decision has been made on the size of the area to be re-developed or the time frame for its completion.

A spokesman for the URA was only able to say that the old jetties will be demolished and dredging will be carried out 'so that the unsightly seabed will not be exposed during low tide'.

The new terminal, located next to the jetties, will have seven berths for boats sailing to islands in Singapore waters and another for vessels sailing to Pengerang in Johor, as well as a lounge for passengers, and its own customs, immigration and quarantine facilities.

Pengerang, a fishing town and eco-tourist destination, is located at the eastern tip of Peninsula Malaysia, 10km from Desaru.

The Maritime and Port Authority of Singapore (MPA), which will manage the terminal, said in a statement that the new premises will be able to handle more than the 450 or so travellers who use it daily.

People travelling to Pulau Ubin or Pengerang make up the bulk of these passengers.

Copyright © 2004 Singapore Press Holdings. All rights reserved.

babystan03

January 1st, 2005, 12:37 PM

01 January 2005

PSA waives port charges for transportation of relief supplies
By Debra Soon, Channel NewsAsia

SINGAPORE : PSA is donating S$100,000 to the Singapore Red Cross Society for the tsunami victims.

This is to support a drive by the Singapore Port Workers' Union (SPWU) and the Port Officers' Union, who have appealed to staff to raise funds.

In addition to cash, the port operator will waive all port handling charges incurred in its Singapore Terminals for the transportation of relief supplies bound for victims of tsunami-stricken countries.

Shipping lines that are transporting such cargo through the Port of Singapore, can contact PSA Singapore Terminals for the waiver of port handling charges. - CNA

Copyright © 2004 MCN International Pte Ltd

babystan03

January 2nd, 2005, 09:51 AM

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

January 3rd, 2005, 11:53 AM

03 January 2005

PSA Marine in towage service JV with Fuzhou Port Authority

SINGAPORE : PSA Marine, a unit of Singapore's port operator PSA International, has formed a joint venture with China's Fuzhou Port Authority.

The venture will provide towage services to shipping lines calling at the Port of Jiangyin, including PSA's Fuzhou-Jiangyin International Container Terminal.

Operations will start in March.

This is PSA Marine's first foray into providing towage services at a port in China.

It says the move will give the firm a strategic presence in a market with a large growth potential.

For a start, the joint-venture company, Fuzhou Jiangyin Fuxing Towage Limited, will invest in two modern harbour tugs.

More tugs will be added with the increase in number of vessels calling on the Port of Jiangyin. - CNA

Copyright © 2004 MCN International Pte Ltd

babystan03

January 5th, 2005, 02:33 AM

Jan 5, 2005
$8m Changi ferry terminal opens

A NEW $8 million ferry terminal at Changi Point opens today, making it safer and faster for travellers to board a boat to Pulau Ubin or Pengerang town in Johor.

Its sheltered gangways and floating pontoons can move up to 2.5m with the rising tide, allowing passengers to climb on and off the bumboats safely.

In addition, passengers coming from Pengerang can expect to clear Customs faster with improved immigration and quarantine facilities.

'What is even better is we don't have to pay to use this new terminal,' said boat operator Ah Heng, who is in his 40s.

The new terminal includes a 1.5km jogging and cycling track from Changi Beach Club to Changi Village and a 2.2km coastal walkway that hugs the scenic coastline from Changi Beach Club to the terminal.

Bigger, with more berths

THE terminal is split into areas: one for bumboats that ferry people within Singapore waters and the other for vessels that take people across international borders. The domestic terminal operates 24 hours daily, while the international terminal operates from 7am to 7pm every day.

With a built-in area of almost 2,000 sq m and 14 berths, the new terminal can handle far more passengers than the 440 handled daily at the four berths of the old terminal.

Copyright © 2004 Singapore Press Holdings. All rights reserved.

babystan03

January 8th, 2005, 01:48 AM

07 January 2005

Singapore announces tax breaks on forex and derivative gains for shipping firms
By Tan Soo See, Channel NewsAsia

SINGAPORE: The Government is making yet another move to enhance Singapore's status as an international hub for maritime and trading activities.

Owners of Singapore-registered ships and some transport companies with regional headquarters here will get tax breaks on foreign exchange and derivative gains.

This was announced by the Minister for Transport Yeo Cheow Tong at a function at the Singapore Maritime Foundation.

Until now, shipping companies have to apply for such tax exemptions on a case-by-case basis.

The Government is hoping to encourage more shipping companies to undertake their risk management activities from Singapore.

This is part of an overall effort to build up Singapore's maritime services sector. - CNA

Copyright © 2004 MCN International Pte Ltd

huaiwei

January 9th, 2005, 12:58 PM

Found out Singapore retained her top port position in 2004....via an article on Rotterdam! :D

Port Of Rotterdam Achieves Record Volumes In 2004

AMSTERDAM (AP)--The Port of Rotterdam Thursday reported a record volume of 354 billion metric tons of cargo for 2004, an 8% increase on the year.

But Rotterdam fell definitively behind both Singapore and Shanghai as the world's busiest seaport, with Singapore likely to finish the year at 390 billion tons of cargo and Shanghai at 380 billion tons. Both Asian ports benefited from strong growth in China, as did Rotterdam.

China "is often pointed to as the reason, but I see it more as the catalyst of a complicated process," incoming president Hans Smith said in a statement. Only in 1979 did Rotterdam grow more quickly.

Increases were seen in shipments of coal, dry mass goods, crude oil, oil products - and in containers, which showed a 16% increase. "Over a year or two containers will have passed raw oil as the largest category of goods" moving through the port, Smith said.

Rotterdam is located at the end of several major river systems and is the major departure point for goods leaving the European mainland.

The port's former president, Willem Scholten, resigned Nov. 1 after he was found to have exceeded his authority by signing secret agreements to back more than EUR100 million in loans to private companies. Scholten said he acted in interest of the port, and new management is currently in discussions with banks about whether the agreements can be enforced.

Dow Jones Newswires
12-30-041141ET
Copyright (C) 2004 Dow Jones & Company, Inc. All Rights Reserved

nicholasliha

January 9th, 2005, 05:40 PM

god, one wonders why the govt isn't capable of plugging the same rhetorics as the hk govt: asia's world city, culinary capital of the world, busiest port. NOW i know that singapore is THE busiest port, although hk constantly harps :busiest in terms of # of ships and we choose the ameliatory busiest by gross ship tonnage.

huaiwei

January 9th, 2005, 06:04 PM

Haha...try saying that in the world forums, and I would love to see people's reactions to it! :D

More surprises with regards to aviation even are revealed in this thread: http://www.skyscrapercity.com/showthread.php?t=165199

babystan03

January 11th, 2005, 12:16 PM

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

babystan03

January 12th, 2005, 11:11 AM

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

January 16th, 2005, 05:16 AM

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.

babystan03

January 17th, 2005, 12:27 PM

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.

babystan03

January 22nd, 2005, 12:41 PM

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.

babystan03

January 25th, 2005, 11:25 AM

Business Times - 25 Jan 2005

NOL cargo volumes jump 17% in six-week period

By DONALD URQUHART

(SINGAPORE) Singapore's Neptune Orient Lines (NOL) said it transported 17 per cent more cargo during a six-week period from mid-November to end-December compared with a year earlier, as the container shipping industry continues to enjoy buoyant volumes and freight rates.

The group, which operates the world's sixth biggest container line, APL, by capacity, said the volume growth was based on 'robust' cargo flow and additional services introduced in 2004.

Average freight rates grew by about 9 per cent (based on a seven-week period in 2004 compared with only six weeks in 2003), to an average revenue of US$2,532 per FEU (40-foot container). APL carried 244,700 FEU of cargo during the seven-week period.

NOL also said in its operational update that total revenue from its logistics unit had risen 25 per cent to US$149 million. The healthy revenue growth 'reflects the expansion of scope and service offerings to existing customers, as well as a growing customer base,' it said.

NOL, along with fellow member lines of the Transpacific Stabilisation Agreement, is forecasting 10-12 per cent growth for 2005 on the key transpacific trade lane which is an important revenue driver for APL.

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

babystan03

February 1st, 2005, 10:00 AM

01 February 2005

Singapore retains status as world's busiest port
By Melvin Yong, Channel NewsAsia

SINGAPORE : Singapore retained its position as the world's busiest port by shipping tonnage in 2004, according to latest figures by the Maritime and Port Authority.

For the first time in the country's history, total vessel arrivals by shipping tonnage crossed the 1 billion gross ton mark last year to a record 1.04 billion gross tons.

This was a growth of nearly 6 percent over 2003.

The Port of Singapore also set new records in other key areas like cargo throughput, container throughput, bunker sales and ship registration.

At the end of 2004, there were 3,109 ships registered under the Singapore flag, totalling nearly 28 million gross tons.

This is an 8.4 percent increase over 2003, extending Singapore's position as the country with the largest merchant fleet in Asia.

In terms of bunker sales, Singapore remained the world's top bunkering hub.

It set a new benchmark of 23.6 million tonnes of bunkers sold last year - 13 percent more than in 2003.

Container traffic for Singapore jumped 16 percent on-year in 2004 to hit 21.3 million twenty-foot equivalent units or TEUs, the industry standard measure.

The total cargo tonnage handled by the port rose 13 percent on year to more than 393 million tonnes. - CNA

Copyright © 2005 MCN International Pte Ltd

babystan03

February 1st, 2005, 11:18 AM

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

February 2nd, 2005, 01:48 PM

Business Times - 02 Feb 2005

Skaugen transfers nine vessels to Singapore RHQ

Two of the petrochemicalgas tankers to fly S'pore flag

By DONALD URQUHART

(SINGAPORE) Oslo-listed petrochemical gas and crude oil transportation company IM Skaugen ASA has transferred ownership of nine vessels to its newly established regional headquarters here, reaffirming the growing maritime significance of Singapore and the region.

The nine petrochemical gas tankers - two of which will be registered under the Singapore flag - are the first of more to come as the Norwegian-based shipping group gradually scales down its European presence to be closer to its key markets.

'We are shifting responsibilities from Europe to Singapore, basically taking functions and transferring them to Singapore,' Skaugen president and CEO Morits Skaugen Jr told BT.

He added that the winding-down of operations in Oslo was 'almost inevitable', but added that they would not be completely eliminated.

The main driver behind this is 'the need to be in Singapore to service our customers in Asia', which now account for 60-70 per cent of Skaugen's US$150 million annual revenue, according to Mr Skaugen.

'Singapore is definitely the best place to be if you have substantial business in Asia,' he added, noting that his group counts substantial customers among Singapore's petrochemical cluster.

The Skaugen group, which first established operations here a decade ago under its wholly owned subsidiary, Norgas Carriers Pte Ltd, operates a global fleet of 44 vessels. This includes nine Aframax tankers used in the US lightering trade (carrying 10 per cent of US seaborne oil imports), and 19 petrochemical tankers carrying primarily ethylene used in manufacturing plastics, along with LPG.

The group also has six aframax tankers on order for delivery in 2007.

Although Skaugen, started by Mr Skaugen's grandfather in 1916, has a significant precence in China's Yangsi River gas trade with an office in Shanghai, the conditions were not right to set up a regional office there.

'There is a lot of talent that is needed that is still not available in sufficient supply in China and which we found we can do better from Singapore,' said Mr Skaugen.

While the move will afford no cost savings on the vessel operation side, and only marginal if any on the shore-based side, it is the 'more ample supply of clever and highly motivated talent' that is crucial.

He also cited a more stable tax environment in Singapore where 'for a good 10-year period, you basically have a predictable tax regime', compared to Norway where the tax regime changes frequently.

The Maritime & Port Authority (MPA) of Singapore, which hosted Mr Skaugen's visit, has been actively promoting Singapore as an international shipping hub, with its flag registry growing over 8 per cent last year - making it the largest in Asia and the world's sixth largest.

In Singapore, Skaugen shares an office with AP Moller-Maersk's gas tanker subsidiary with whom it operates a revenue sharing alliance known as Maersk Norgas Gas Carriers.

'In the case of Maersk, we were competing head-on for a number of years and we saw that if we joined forces, together we could service our clients in a better way in as much as we could meet their global needs,' Mr Skaugen said.

The group will also focus on expanding in China where last year it was awarded a licence to operate along its vast coastline.

With several world scale petrochemical plants beginning operation in 2005 through to 2007, 'that is going to open up business on a trade that never existed before', Mr Skaugen said.

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

babystan03

February 7th, 2005, 11:56 AM

07 February 2005

Singapore's PSA International buys HK port assets

SINGAPORE: Singapore's port operator PSA International has bought NWS Holdings' port assets in Hong Kong, giving it a foothold in the world's biggest container port.

"PSA International Pte Ltd confirms that it has agreed to buy NWS Holdings Limited's Hong Kong port assets," said a PSA corporate spokesperson, without giving details.

Earlier Monday, NWS Holdings said it has agreed to sell its port assets in Hong Kong to PSA International for HK$3b (US$384.6m).

NWS, a unit of New World Development, said it would sell its entire 31.4 percent stake and shareholder loans in Asia Container Terminals (ACT) Holdings to PSA International for HK$1.9b.

It would also sell its 33.34 percent indirect stake in CSX World Wide Terminals Hong Kong to PSA International for HK$1.1b.

The HK$3b deal would allow PSA International to grab a slice of Hong Kong's container traffic business after its earlier offer for a 57% stake in ACT in November was thwarted last month by existing shareholders, including NWS Holdings. - CNA

Copyright © 2005 MCN International Pte Ltd

huaiwei

February 11th, 2005, 02:48 PM

A more detailed report...

Feb 8, 2005
PSA clinches Hong Kong foothold

It is now set to buy stakes in two HK container terminals for HK$3b in surprise deal
By Nicholas Fang
Transport Correspondent

PORT operator PSA International has clinched a breakthrough deal to buy stakes in two Hong Kong container terminals for HK$3 billion (S$600 million).

That will give it a foothold in a booming market and the chance to challenge its arch-rival, the Hong Kong port giant Hutchison.

The deal also marks a major - and surprising - turnaround on the part of corporate Hong Kong, which only last year blocked PSA's attempts to buy into the territory's ports.

But it was one of those companies - Hong Kong-listed NWS Holdings - that yesterday agreed to sell PSA its port operations for HK$3 billion - a price attractive enough, said some market players, to override any qualms it may have had about letting in the Singapore player.

And this time PSA is virtually guaranteed a slice of the dockside as part of those stakes are not subject to any pre-emption clauses and therefore cannot be overturned.

The reluctance of Hong Kong firms to allow PSA to set up shop in their own backyard is understandable on one level: The territory is the world's busiest port, a bustling market with links to the burgeoning China economy and Hutchison's stronghold.

And while industry insiders said that PSA is unlikely to steal significant volumes from Hutchison, its presence there holds strategic value.

The complex deal is essentially in two parts.

First, NWS, a unit of property developer New World Development, said it would sell its entire 31.4 per cent stake and shareholder loans in Asia Container Terminals (ACT) to PSA for HK$1.9 billion.

ACT operates two berths at Hong Kong's Container Terminal 8.

The second stage involves NWS selling to PSA its 33.34 per cent share in CSX World Wide Terminals Hong Kong, which operates a one-berth terminal at Container Terminal 3 and has a further indirect stake in ACT.

This part of the deal will cost PSA HK$1.1 billion and will give it a total stake in ACT of some 54 per cent.

If the entire transaction goes ahead, NWS will earn an estimated profit of HK$1.8 billion.

The first part of the deal, to acquire the NWS stake in ACT, still hinges on approval from ACT's other shareholder, Dubai Ports International. .

The second part of the deal cannot be blocked and virtually assures PSA its Hong Kong foothold even if Dubai Ports stops PSA from taking over the NWS stake in ACT.

So at the very least, PSA will end up with 33.3 per cent of Container Terminal 3 and 22.9 per cent of Container Terminal 8.

PSA has been there before. Last year, it struck a deal to buy 57 per cent of ACT from Sun Hung Kai Properties for an undisclosed sum, but rumoured to be about HK$2.3 billion.

A month later, ACT's other two shareholders, Dubai Ports and NWS, exercised their pre-emption rights and shut the door on PSA.

Dubai Ports, the overseas arm of state-owned Dubai Ports Authority, gained its ACT stake when it snapped up the international port operations of the United States group CSX, beating PSA in the process.

That deal cost Dubai Ports US$1.15 billion before tax and liabilities and gave a significant boost to its bid to become a global force in port operations.

PSA declined to comment yesterday on the latest deal beyond confirming that it had agreed to buy the Hong Kong port assets of NWS.

NWS said it had invested in the Hong Kong terminals for the long-term but found PSA's offer 'exceptionally attractive'.

Sources close to the deal said it may have reversed its decision to sell its stake to PSA in order to secure a better deal.

One source said: 'It's hard to compare the two deals financially as PSA is getting more this time round.'

babystan03

February 21st, 2005, 11:06 AM

Singapore Cruise Centre:

http://img204.exs.cx/img204/8287/dscn256519aq.jpg

babystan03

February 28th, 2005, 01:04 PM

Business Times - 28 Feb 2005

PSA seals purchase of Hong Kong port assets

SINGAPORE - PSA International has completed the HK$3 billion (US$385 million) purchase of the port assets of Hong Kong's NWS Holdings, the Singapore port operator said on Monday.

'We are optimistic of the long-term future of Hong Kong port and confident that we are able to add value to the Hong Kong port scene,' Eddie Teh, PSA International's group chief executive, said.

PSA International also said in a statement the investment provides it with 'an important southern gateway into the world's most populous nation and market, China'.

Under the terms of the deal, NWS Holdings would sell its entire 31.4 per cent stake, as well as shareholder loans, in Asia Container Terminals Holdings to PSA International for HK$1.9 billion dollars.

The group would also sell its 33.34 per cent indirect stake in CSX World Wide Terminals Hong Kong Ltd to PSA for HK$1.1 billion.

Copyright © 2005 Singapore Press Holdings Ltd. All rights reserved.

babystan03

March 1st, 2005, 01:45 PM

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.

Pengui

March 1st, 2005, 03:51 PM

'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.'

Wow, sounds exciting ^^

babystan03

March 4th, 2005, 10:44 AM

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

babystan03

March 7th, 2005, 03:24 PM

07 March 2005

NOL reports strong freight demand on all its routes
By Joanne Lee, Channel NewsAsia

SINGAPORE : Neptune Orient Lines says sea freight rates have risen in the six weeks to February 11, due to strong overall demand on its routes.

For the period, NOL's average freight rate per forty-foot container rose 9 percent to US$2,802 - from US$2,564 a year earlier.

NOL says it shipped 215,300 such containers during the six weeks, up 24 percent from a year earlier.

Volumes across all the major trade lanes remained strong, and utilisation rates were healthy.

Freight rates for container shipping are at record levels, fueled by strong demand from China.

Last month, NOL reported that volume growth had been strongest on its intra-Asia and Middle East routes - specifically to and from destinations in China. - CNA

Copyright © 2005 MCN International Pte Ltd

babystan03

March 10th, 2005, 01:13 PM

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

March 11th, 2005, 05:21 AM

thats reassuring

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

March 14th, 2005, 04:04 PM

14 March 2005

PSA International handled 12% more containers in Jan-Feb
By Melvin Yong, Channel NewsAsia

SINGAPORE: Port operator PSA International handled some 5.4 million standard containers in its global operations in the first two months of this year.

This is an increase of 12 percent from the same period last year, due mainly to soaring trade from China's economic boom.

PSA's Singapore terminals handled 3.4 million twenty-foot-equivalent units (TEUs) in January and February, up 13 percent on year.

Its overseas ports moved 2.03 million TEUs in the first two months of 2005 -- 11 percent more than the year ago period.

PSA has operations in ports located in Belgium, Brunei, China, India, Italy, Japan, the Netherlands, Portugal, South Korea and Thailand.

Last month, it secured a foothold in Hong Kong, when it bought port assets from NWS Holdings for S$630m. - CNA

Copyright © 2005 MCN International Pte Ltd

babystan03

March 26th, 2005, 03:42 AM

March 26, 2005
PSA staff to get bigger bonus of between two and five months
The goodies, on top of the 13 month pay, come after its good showing last year

By Sue-Ann Chia

PORT worker Malik Pimboel has been wearing a big grin ever since learning from union leaders about the bigger bonus employees will receive this year.

It will be between two and five months this year - higher than last year's bonus, which ranged from one to four months.

The bigger bonus is due to PSA International's better showing in the last financial year.

It chalked up record profits of $881.3 million.

For Mr Malik, 37, a senior technical specialist who has been with the company for 17 years, it is payback time.

'I'm definitely happy. After all the contributions we've made, it is time for the company to reward its employees,' he said.

A PSA spokesman confirmed what Singapore Port Workers' Union president Lee Mun Hou indicated to members: that following the 2003 move to link wages more closely to performance, employees could look forward to between two and five months' extra this year.

And that will be on top of the 13th-month pay they received in December.

'As the company's performance in 2004 was better than in 2003, our staff are able to share in PSA's success by being paid a higher bonus,' the spokesman told The Straits Times.

'PSA is grateful to its staff and unions for their extended cooperation, especially in managing the surge in container volumes at PSA's terminals last year.'

Results showed that the port operator turned in its best performance last year, helped by a continuing surge in export cargoes from China and other Asian countries.

Full year net profit rose 29.1 per cent from $682.7 million in 2003 to $881.3 million last year.

It also handled 15.5 per cent more containers last year, moving 33.1 million 20 foot-equivalent-units (TEUs).

Mr Lee said the impending bonuses would be a 'fitting reward' for port workers.

'They went through various wage reduction measures.

Many workers also had to work on their days off, or put in additional hours to meet the upsurge in work volumes,' he said.

Employees will receive two types of bonuses next month.

The first is the company bonus that all will receive. It is capped at 1.5 months of their basic salary, up from 0.25 months last year, said Mr Lee.

The other payout is made up of individual performance bonuses, and ranges from 0.6 months to 3.5 months.

In fact, Mr Lee believes that news of increased bonuses is also what helped the union persuade the majority of its 4,000 members to agree to contribute $100 each towards a fund to build a new union office.

More than 80 per cent of delegates - who represent the larger membership - agreed to do so when a resolution was tabled at a meeting on March 17. Some, however, were unhappy with having to fork out the $100.

Mr Lee said he understood their frustrations and promised that the deduction would be waived for those who do not receive any bonuses due to poor performance last year.

But members like senior clerk K. H. Wong, 59, who has been with PSA for more than 40 years, do not mind: 'It's not a big matter. Since we're getting more bonus, we should contribute a little bit to get new premises.'

Copyright © 2005 Singapore Press Holdings. All rights reserved.

babystan03

March 28th, 2005, 11:21 PM

March 29, 2005
NOL open to buying rival shipping line

LONDON - NEPTUNE Orient Lines (NOL) chief executive David Lim is looking at possible acquisitions to expand both the breadth and size of the company's operations, the Financial Times (FT) reported yesterday.

He told the paper that he could be interested in purchasing a rival shipping line if it met a series of criteria.

Mr Lim, who was in London this month for a meeting of the Box Club - a regular gathering of chairmen and chief executives of large container shipping lines - also warned of the dangers of a downturn following the current boom in the industry.

His comments will fuel speculation that NOL might bid for a rival in an effort to move itself into the same league as the very biggest Asian container shipping operators, such as Taiwan's Evergreen Marine, said FT.

NOL has previously grown by acquisition. In 1997, it bought the much larger, United States-based American President Lines.

Mr Lim said NOL's acquisition strategy had two dimensions: increasing scale and broadening service provision.

'We want to intensify our service offerings to be able to have a denser network of ship operations,' he told FT.

The company also needs to broaden its capabilities in services, covering the whole of a container's journey from factory to destination.

'We want to be able to deliver throughput solutions,' he said.

'I think at the end of the day that's what the customer is interested in, not just the ship.'

Mr Lim said acquisitions in logistics might include investing in facilities to handle and distribute containers.

'If there was an inland container terminal that was for sale in a particular region and it fitted well with our operations, we would consider buying it.'

Any acquisition of a rival shipping line would have to be a good strategic fit with NOL's existing operations, which are mainly transpacific Asia-North America and Asia-Europe shipping, he said.

NOL would have to choose between an acquisition with similar strengths or one strong in north-south trades such as North America-Latin America. 'I would look for somebody else who would add to our east-west trades, rather than diversify away from those trades,' he said.

The acquisition should also be at the right price and it had to be possible to integrate the acquisition's operating culture and philosophy, information technology and other operating systems with NOL's.

On NOL's operations, Mr Lim revealed an apparent change in the company's distinctive policy on ship size.

The company has been almost alone among large container lines in not buying new, larger ships able to carry more than 8,000 20-foot containers.

'In the longer term, we will also be looking at buying the bigger ships,' he said. 'It's a question of when, not if.'

Copyright © 2005 Singapore Press Holdings. All rights reserved.