Business

Why does Singapore need a brand new megaport?

It is one of the ambitious projects undertaken within the country thus far, aiming to secure the country’s maritime future, with implications for jobs, trade and native businesses.

At the guts of port operator PSA’s recently expanded Pasir Panjang terminal, the Republic’s long-term maritime ambitions are being put to the test.

A fleet of 30 autonomous vehicles deployed to maneuver cargo containers across the terminal are on the forefront of the move to the Tuas megaport. More than 1,000 of the battery-powered quadricycles can be developed for the longer term Singapore port.

Image from: CNA

Towering over these vehicles is the world’s largest fleet of automated shipyard cranes – almost 200 in number. At Tuas, that number will grow to almost 1,000.

These are only two examples of the automation systems PSA is considering for the Tuas. And the teachings to be learned can be crucial.

Mr Nelson Quek, head of Tuas planning at PSA Singapore, told Channel NewsAsia on Looking Ahead. The two-part special (premiering 7 Feb at 8pm) examines how Singapore’s mega infrastructure projects are positioning the country for the longer term.

HIGH STAKES

The advantages of automation are closely linked to the aim of constructing the Tuas megaport: to make sure Singapore is as connected as possible to the world and maintain a competitive edge at a time when countries within the region are making major investments of their port capability.

The project is predicted to cost billions of dollars and last greater than 20 years. And the stakes are high – not least since the maritime sector contributes 7 percent to the economy and creates greater than 170,000 jobs.

    Land reclaimed for future port | CNA
Land reclaimed for future port | CNA

The local marine ecosystem supports many domestic corporations, including small and medium-sized enterprises operating in sectors corresponding to manufacturing, logistics and technology.

And with PSA set to phase out its city terminals by 2027 and the Pasir Panjang terminal by 2040 when the Tuas megaport is accomplished, the industry’s future will depend solely on the brand new port.

To achieve success, “the Tuas we’ll manage should be different from the port we manage now,” said PSA International Group Chief Executive Tan Chong Meng, who added: “Tuas is a probability for us to have a brand new starting.”

THE STRIVE TO BE BUSIER…

By the tip of the yr, PSA’s existing terminals may have a combined annual capability of nearly 50 million 20-foot equivalent units (TEUs), a measure based on standard 20- or 40-foot shipping containers.

The Tuas megaport will surpass that port with a throughput of 65 million TEUs – almost twice the 33.7 million TEUs that passed through Singapore last yr.

According to Mr Tan, by 2040, demand within the Straits of Malacca alone will exceed 100 million TEU.

Photo by CNA
Photo by CNA

“It’s a question of our… scale and our market position – we want to maintain PSA’s strength in our neighbourhood,” he said.

TO BE FASTER…

As essential as that role is, the transshipment business can be fiercely competitive, with rivals “from Busan (South Korea) all the way to Europe,” Mr Tan added.

That’s why Singapore must earn its business “every day,” said Nicolaj Noes, head of Asia-Pacific operations at Maersk Line, a world leader in container shipping.

“It’s a bit like deciding where to go on holiday. The first choice is… to fly direct,” Mr Noes said.

“(To) undergo a transshipment hub like Singapore, there must be a price proposition there… Singapore has to supply a more cost effective solution. It has to supply more flexibility; it has to supply more alternative.”

This is where automation is useful.

Mr Quek said: “With automation, performance might be rather more predictable and consistent. And that is very essential to customers… (Shipping lines) also want speed and quicker turnaround for his or her ships.”

He added that the Tuas megaport may have a “better layout that will enable more efficient transshipment operations” and, consequently, faster service.

BE BIGGER

The recent port, with 8.6 km of quays, also has to deal with the trend of increasingly large container ships. For example, Maersk’s Triple-E ships are 400 m long and are amongst the biggest ships on the planet.

“One ship can carry about 111 million pairs of sneakers,” Mr. Noes said. Seven ships can carry enough sneakers for everybody in Europe to get a brand new pair. “That gives you a good idea of ​​the dimensions of the ships.”

Photo by CNA
Photo by CNA

The Danish company is working closely with PSA and on this front, Mr Noes said: “There is an understanding that there has to be infrastructure to support large ships.”

HOW BUSINESSES CAN GAIN

In addition to its bid to retain its title because the world’s best maritime capital (a title it has held for 3 consecutive years) and Asia’s best port (29 times and counting), Singapore can create more opportunities for local businesses with its massive Tuas Port.

Mr Tan said: “Through innovation, we envision a future that… is able to support both Tuas as a port and the Tuas hinterland, so that future manufacturers, commercial, industrial and logistics entities can take advantage of future opportunities.”

This includes start-ups corresponding to visual effects company SideFX Studios, one among the highest two competitors within the recent Smart Port Challenge organized by the Maritime and Port Authority (MPA), which used virtual reality to coach crane operators and engineers.

Ng Teow Koon, co-founder of SideFX, said: “This is where we come in, together with the traditional players (in the Tuas area), to build out this space with all these exciting technologies and leverage them to bring them to the next-generation port.”

Software provider Glee Trees, last yr’s second-best performer, is working to streamline freight handling and shipping processes using its Gleematic AI platform.

Digitalization is already opening up growth areas in Singapore’s logistics sector, which employed greater than 230,000 people in 2015. For a decade, it has been ranked by the World Bank as the perfect logistics center in Asia.

Infrastructure investments just like the Tuas megaport “will translate into new opportunities, new opportunities for companies to come in and grow Singapore together,” agreed Ian Dyason, CEO of the Supply Chain and Logistics Academy.

PSA’s Mr Quek believes that early engagement with stakeholders corresponding to the community, industry and relevant agencies – along with learnings from technology testing – will indeed be “critical to the project’s success”.

Finance Minister Heng Swee Keat said careful planning was also required, citing the Jurong Industrial Zone for instance of the efforts needed to make such projects successful.

“But the very fact that we have maintained such a competitive economy is largely due to our connectivity,” he added, highlighting the port’s role in importing and exporting raw materials and cargo “at very competitive prices” for businesses.

FOUNDATION STONES

As Singapore now considers constructing a serious port on the western end of the island, work there’s ongoing across the clock.

By 2020, the primary of 4 phases of the project can be accomplished. Land reclamation for all future terminals, which has just passed the 40 percent mark, can even be accomplished by the identical time.

At Pasir Panjang Terminal, container equipment specialist Alan Lee is one among the few individuals who has already seen what the longer term port will seem like.

Mr. Lee, a 23-year veteran, used to must move up and down the shipyard’s cranes. Now that the cranes are fully automated and not require an operator, 18 to 25 employees within the control center operate 186 cranes at a time.

“It was very good for me – developing myself, improving my skills,” he said. “For future ports like Tuas and for the world that is developing, it is important for me to improve… so that I can continue the good work.”

In this manner, the inspiration is being laid for the development of a megaport at Tuas, not only using concrete on reclaimed land, but additionally using skills, technology and automation.

Source: Channel NewsAsia

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