Singapore port to catch first wind of recovery, says minister

WHILE "2009 was a tough year with our port recording a steep 13 per cent drop in containers handled, we maintained global leadership in bunkering, vessel tonnage and overall container flows," said Singapore's junior transport minister Lim Hwee Hua in response to a parliamentary question.

"The maritime industry remains a key pillar of our economy, contributing some seven per cent to GDP and employing more than 100,000 people in over 5,000 companies," she told MP Ahmad Mohd Magad.

Dr Magad has asked what the government was doing to position Singapore's maritime industry for the upturn, and how did the government intend to encourage the industry to innovate and increase productivity.

Said Ms Lim: "We are optimistic of 2010. Cargo volumes have picked up and freight rates have regained some ground. However, it is still too early to tell if the recovery is sustainable. The excess supply of vessels continues to be a structural problem for the industry.

"However, the government will do what we can to keep business costs competitive. We will extend the port dues concessions announced last year for another six months and take stock of the situation at the end of September," she said.

To prepare for an upturn, she said, the government will continue to invest in port infrastructure.

"We are also pressing ahead with the expansion of the Pasir Panjang Terminals, and our port's size and overall connectivity will provide an enduring competitive advantage," Ms Lim said.

"We are also enhancing our incentive schemes to help grow services. Our programmes have attracted some 120 international shipping groups with business spending of S$2.8 billion [US$2 billion] annually; and six ship financing companies managing some S$3.5 billion worth of assets.

Ms Lim said that Finance Minister Tharman Shanmugaratnam had already announced incentives during the budget statement for the shipbrokers as well as the forward freight agreement (FFA) traders.

"The MPA [Maritime and Port Authority of Singapore] will release details shortly," she said.

"As for the hike in foreign worker levy, the impact on the marine sector is unlikely to be large. Nonetheless, the companies can still tap into several schemes administered by the MPA to encourage investments in process improvements and human capital. These will complement the productivity and innovation credit scheme that Dr Magad referred to. We have the Maritime Cluster Fund (MCF), which is available for companies to build manpower capabilities as well as the Maritime Innovation and Technology (MINT) Fund.

"MPA will harness technology as well to enhance customer service and the efficiency of our port services. One example is the BUNKERNET which enables the bunkering industry to enhance their delivery and back-end processes through the strategic use of information technology," said Ms Lim.

(Source: www.schednet.com)