SINGAPORE MARITIME POSITION (Maintenance of)

Mr Yeo Choo Kok asked the Minister for Communications and Information what steps his Ministry will take to ensure that Singapore maintains its maritime competitive edge.

Dr Yeo Ning Hong: Sir, the maritime industry covers a wide range of activities, from ship-owning, ship-management, port services and other shipping and port related activities.

As regards port services, from October 1984 up to December 1986, PSA has granted several concessions on tariffs amounting to about $150 million. These concessions have resulted in a saving for ships that call at our ports, eg, savings of up to 22% in port costs for the latest third generation container ships and savings of up to 32% for a feeder vessel. These concessions have helped to maintain Singapore's competitive edge as a major transhipment port. The results speak for themselves. In 1986, cargo handled at the port increased by 14% to 121 million tonnes. Shipping tonnage which is the tonnage of ships that call at Singapore also increased in 1986 by 23% to 325 million gross registered tonnes. This tonnage is expected to make Singapore the world's busiest port for the year 1986.

Ships and cargoes are attracted to Singapore because of the high level of service and productivity of our port. It is this high productivity that has given us the competitive edge. To ensure that we maintain this competitive edge, additional port facilities will be built and cargo handling equipment will be added to cater for expected growth in shipping tonnage and cargo. PSA expects to spend about $1.2 billion over the next five years. With higher productivity, the resultant savings can then be passed on to port users, thus lowering their cost of operations in Singapore.

With regard to ship-owning and ship-management, I understand that the Singapore National Shipping Association is presently studying a report by its consultants on the promotion of Singapore as an international centre for ship -owning and ship-management services. The recommendations of the Association will certainly be given serious consideration by the relevant Government authorities.