MPA extends port dues concession for container ships

Agency also tops up Maritime Cluster Fund to $145 million.

To boost Singapore's attractiveness as a transhipment hub port, the Maritime and Port Authority of Singapore (MPA) will extend the 20% port dues concession for container ships calling at Singapore for another two years from 1 July 2010 to 30 June 2012, according to an MPA report.

Introduced in May 1996, the port dues concession was part of MPA's efforts to enhance the competitiveness of the Port of Singapore. This is particularly so for container ships which form the mainstay of cargo terminal activities. Since then, the initiative has been regularly reviewed and extended.

Singapore's port charges for container ships remain competitive. In the year 2009, vessel calls by containers ships made up 14% of the total 130,575 vessel calls in Singapore ports.

"This extension of port dues concession for container ships underscores our commitment to the maritime industry and our commitment to continue to provide a pro-business environment," said Mr Lam Yi Young, Chief Executive of MPA.

In line with this extension, MPA will also top-up the Maritime Cluster Fund (MCF) by S$20 million to S$145 million. Set up in 2002, MCF was aimed at facilitating the growth of the maritime cluster in Singapore and this includes development of manpower, local training infrastructure and capabilities within the maritime industry. S$50 million of the MCF is allocated for incentives like the port dues concession for container ships to enhance port competitiveness.