MPA extends port dues concession for ocean-going ships

Ocean-going ships will get 5% port dues concession under Economic Resilience Package.

The Maritime and Port Authority of Singapore (MPA) will be extending the port dues concession for all ocean-going ships with a port stay of not more than ten days and harbour craft engaged in commercial activities, for another six months. This will take effect from 1 October 2010 to 31 March 2011, according to an MPA version.

Ocean-going ships will get 5 percent port dues concession and this is over and above existing port dues concessions already enjoyed by the industry. Harbour craft, with the exception of pleasure craft for personal use, will get 10 percent port dues concession.

As part of Government’s Economic Resilience Package for Budget 2009, MPA introduced a 10% port dues concession for all ocean going ships with a port stay of not more than 10 days, and a 20% port dues concession for harbour craft (excluding pleasure craft for personal use) from 1 Apr 2009 to 31 Mar 2010. This was to help the shipping industry during the economic downturn. In March this year, MPA announced the extension of the port dues concessions at the same quantum by another six months from 1 April to 30 September 2010.

The shipping industry has seen gradual recovery along with the rest of the economy since the turn of the year. However, there remain uncertainties for the shipping industry like the impact of the capacity overhang and uncertain economic outlook in the United States and in Europe.

Against that backdrop, MPA is extending the concessions at a reduced quantum as part of the phasing out of the port dues concessions under the Economic Resilience Package. This phased approach would allow the industry to make gradual adjustments.