S'pore port authority plans more expansion

S'pore port authority plans more expansion

SINGAPORE (AFP): The Port of Singapore Authority (PSA) has unveiled plans to expand beyond its home base after reporting another robust performance in 1994 when it retained its position as the world's busiest port.

The PSA's chief executive David Lim told reporters a panel was looking into the corporatization of the authority ahead of its possible privatization in what he called a "two-dance step."

Lim said Friday the PSA intended to look at how to expand into other parts of Southeast Asia and beyond to India and China, and eventually other parts of the world.

"This is the strategic intent," said Lim, 39, who became the PSA chief in February. "We will consider, we will smell out every proposal," he said.

"We are actively discussing one particular project and considering and exploring several others," Lim said.

Regional economies such as India, China and Indonesia are facing the challenge of "spreading out their industrialization," Lim said, creating the need for new infrastructure.

The PSA could set up overseas ports, offer managerial and technical assistance and set up logistic facilities such as warehouses and terminals.

Only projects that are cost effective, financially viable and are not treated as non-profit infrastructure by their promoters will be considered by the PSA, Lim said.

"I don't think we need to sell off anything to fund regional operations," he said. "They (overseas projects) will start at a much smaller scale. May be 20 years down the road, they will reach our size."

Corporatization under study now would give PSA additional flexibility in decision-making and reaching agreements outside Singapore.

Go-regional

The "go-regional" campaign will not be at the expense of the Singapore port, which the PSA intends to expand and strengthen to reinforce its reputation as one of the world's most efficient ports, Lim said.

In 1994, it retained its position as the world's busiest port in terms of shipping tonnage for a 10th straight year. According to Lim, 101,107 vessels called. Tonnage rose by nine percent from a year ago to 678 million tons.

In container traffic, it became the only port after Hong Kong to handle more than 10 million TEUs (Twenty-foot Equivalent Units), making for compound growth of 22 percent over 10 years. Container traffic rose 14.9 percent to 10. 4 million TEUs.

Operating income rose 15.4 percent to S$1.68 billion (US$1.2 billion). Operating surplus increased 14.7 percent to S$673.9 million.

Singapore also continued to be the world's top bunkering port, with 17.6 million tons of bunkers lifted by vessels last year.

At the recent Asian Freight Industry awards, PSA won three awards -- best seaport in Asia, best container terminal operator and best warehouse operator.

"It underscores the commitment we have to the customer, to keep our home base in Singapore strong, to run a little bit harder and faster," said Lim, an Australian-educated civil engineer.

He said the PSA would further fine-tune its operations to provide "very high value" services to its customers and enhance its reputation as an "intelligent port" with more investments in automation to increase throughput and reduce waiting time for ships.

PSA is investing S$188 million to boost capacity at existing terminals from 13 to 16 million TEUs. A new container terminal with eight berths in the initial phase is being built at a cost of S$2 billion.

"The outlook for business activities in 1995 remain bright," Lim said. "With our large infrastructure and technology, PSA is well-positioned to provide fast, comprehensive and reliable services."