Key Elements of a Successful Port

Singapore’s strategic vision for its port has been about ensuring the 3 Cs of Connectivity, Capacity, and Competitiveness.

Connectivity is a measure of the frequency and range of feeder and deep-sea connections. Connectivity is key for shippers, and Singapore offers a high level of connectivity as the primary transhipment hub in the region. By anchoring key shipping lines and alliances that ply the main shipping route from Asia to Europe, and establishing a strong complementary feeder network to smaller ports in the region, Singapore has built up a reliable and densely connected network. We are able to handle increasingly fragmented and dispersed connections across shipping lines and feeders.

Long-term, strategic port planning must ensure that the port can provide adequate capacity to meet the demands of key shipping lines and their alliance partners in sizeable blocks of volume. This means being able to berth their vessels and conduct cargo operations efficiently. Scale, and the availability of space to grow the port, are essential for retaining Singapore’s edge in connectivity and network strength. Shipping lines prefer partnering with ports that can accommodate their long-term growth plans. Adequate port capacity and operational capability to keep pace with shipping lines’ demands provide certainty and distinguish Singapore’s port. Together with Singapore’s competitive advantage in connectivity, assurance of capacity goes a long way in helping PSA to ink new joint ventures¹ with leading shipping lines and secure long-term commitments in Singapore.

Creating value for key stakeholders² or bettering our business proposition (e.g., by leveraging technology to deliver more efficient service) is vital to sharpening competitiveness. Singapore’s value proposition is that of a “catch-up port” that offers shorter transit times and enables vessels to make up for delays upstream. Delivering efficient service in an optimum manner helps shipping lines reduce costs. To this end, Singapore has continually invested in technology and innovation to extract productivity gains and enhance our competitiveness.

The decision to expand Pasir Panjang Terminal in 2004 provided the necessary capacity to cater to growth in container throughput.

With this, Singapore has been able to maintain its position as the world’s leading transhipment port. In addition, it has enabled Singapore to anchor global shipping lines such as China’s Cosco and France’s CMA CGM, both of which have joint-venture agreements with PSA to operate berths at Pasir Panjang Terminal.

Reference : Connecting to the World: Singapore as a Hub Port (csc.gov.sg)