Port authority launches proactive measures as container throughput sinks to drastic low

The slump in Asia-Europe volumes is sinking maritime performance.

It seems like the city-state’s maritime performance has been lost in the middle of the sea as the port of Singapore mustered a mixed performance for 2015 against the backdrop of weak global economic conditions and structural changes.

According to a press release by the Maritime and Port Authority of Singapore (MPA), while vessel arrival tonnage grew by 5.6%, container throughput and cargo throughput shrunk by 8.7% and 1.1% respectively.

The press release added that this was caused by the slump in Asia-Europe volumes and aggravated by the rebalancing of volumes across alliances agreements, and an increase in direct sailings due to lower bunker prices.

To aid the struggling container lines sail through the challenging environment, the Khaw Boon Wan, coordinating minister for infrastructure and transport minister, announced that it will be granting an additional 10% concession on port dues for container vessels calling at the Port of Singapore if they are carrying out works with a port stay of not more than five days.

“The additional concession will be in place for one year, and will be granted on top of existing port dues concessions such as the Green Port Programme incentives and the 20 per cent concession first introduced in 1996. In all, these concessions are expected to amount to more than S$17 million in annual savings for container lines,” the press release said.

The press release added that PSA Corporation will also put in more resources to help their customers weather this period.

“PSA is working with their customers to enhance vessel productivity at the port and optimise network planning activities such as service deployments and phasing in and out of vessels, with the aim of lowering their operational costs,” the press release said.

“The measures are another reflection of the Singapore Government’s consistent commitment to stand with and help our partners through challenging times,” Khaw Boon Wan said.