Shanghai tipped to overtake Singapore port

Singapore could lose its crown as the world's busiest container port to Shanghai this year, reported the Strait Times.

The Chinese port moved more containers than Singapore did from April to last month, and may clinch the leader's status by year-end.

"Shanghai could beat Singapore this year, but it will be a close match,'' said Divay Goel, head of Asia operations at Drewry Shipping Consultants.

Last month's data from the Maritime and Port Authority of Singapore (MPA) showed that Shanghai moved 2.44 million TEUs to Singapore's 2.39 million.

For the six months to June 30, Singapore moved 14.05 million TEUs compared with Shanghai's 13.85 million, 200,000 container boxes more, or a difference of about 40 average-sized container ships.

A strong rebound in world trade this year has had container traffic through Shanghai's ports growing at a blistering pace of 19 per cent over last year's figure, compared with Singapore's 14 per cent.

Analysts had expected Shanghai to pip Singapore as early as two years ago, but that did not happen when the global recession put a dent in Chinese exports.

And while it now seems inevitable that Shanghai will surpass Singapore, the result is not so cut and dried.
The region's rapid development means Shanghai faces more competition from other ports, such as Shenzhen, Guangzhou and Ningbo-Zhoushan, while growth in emerging economies such as Vietnam and Indonesia should continue to benefit Singapore's transhipments.

And though Singapore may lose the bragging rights that come with being No. 1, it should continue to benefit from its hub status; the maritime industry contributes seven per cent to gross domestic product and employs more than 100,000 people.

An MPA spokesman said: "Regardless of the eventual results come year end, the port of Singapore remains a key transhipment hub and one of the top container ports in the world.
"The port of Singapore continues to see good growth and strong demand, and MPA will continue to invest in the development and expansion of the port to meet future demands.''

CIMB-GK economist Song Seng Wun said: "We should not be looking in terms of Shanghai or Singapore. As long as we see that the numbers here are still growing in line with economic growth, it means we are participating in the growth rather than competing for it.''

Singapore surpassed Hong Kong as the port with the highest container traffic five years ago, and has held the unofficial title since then.

Large ships laden with goods stop in Singapore, a major transhipment hub on the Asia-Europe trade route, to load and unload to smaller ships.

The recent growth in intra-Asia trade has also boosted Singapore's container traffic.

Shanghai's growth has been a story of China's rapid economic rise, as it is the major gateway port to the massive Chinese hinterland.

Besides huge volumes of exports, Shanghai ports are dealing with growing amounts of imports coming in to meet the demands of the country's fast-expanding domestic markets.
The value of China's imports grew from US$259 billion in 2002 to $1.1 trillion in 2008, while exports surged $326 billion to $1.4 trillion.

DBS economist Irvin Seah said: "Asia has become the most important engine of growth in the global economy, with China at the centre of all this action.'

"So we can expect trade flows in and out of China to grow exponentially. This is a trend that will persist in the years ahead as China contributes more and more to global growth.''

Shanghai has been breathing down Singapore's neck since it overtook Hong Kong in terms of containers moved three years ago.

Shanghai is already the world's biggest port including goods not moved in containers, as it is a huge consumer of raw materials such as iron ore.
(Source:www.cargonewsasia.com)