S'pore port facing slump

S'pore port facing slump

SINGAPORE (DPA): Singapore's share of regional container volume is expected to shrink by more than 15 per cent by 2015 amid rising competition from other ports, a maritime consultancy's forecast said on Thursday.

The U.K.-based Ocean Shipping Consultants (OSC) latest report said Singapore is still likely to remain Southeast Asia's principal container hub.

"With direct calls now more common at other regional ports such as Klang and Laem Chabang and further inroads into both direct and transshipment traffic expected, Singapore's share of regional throughput can be expected" to decline, the consultancy said.

"The port will also face increasing price competition, as other facilities, notably Tangung Pelepas in Malaysia, are established and expanded," it said.

It noted "the full impact of the loss of Maerski Sealand's traffic to Tanjung Pelepas" will be felt by Singapore this year.

The world's largest container line last year terminated a 10- year agreement it had with the Port of Singapore Authority (PSA) Corporation.