MINISTRY OF TRANSPORT

MR YEO CHEOW TONG Minister for Transport

1. MOT will maintain and build on Singapore's leading position as a global transportation and logistics hub. We will also continue to provide Singaporeans with a high quality yet affordable public transport system.

Maritime Sector

2. To meet the intensifying competition from neighbouring ports, MOT will continue to liberalise port and marine services where appropriate, to ensure that Singapore continues to provide high quality, cost competitive value-added services. To support activities of the maritime sector, we will develop new ancillary services, including maritime R&D.

3. We will also leverage on our excellent port, road, IT and e-commerce infrastructure to facilitate the development of an integrated logistics industry, covering the entire chain of handling, processing, storage and transportation of goods, as well as the management of information flow.

4. To consolidate our lead as a regional cruise hub, we will continue to work with other government agencies and industry players to attract fly-cruise passengers by leveraging on Changi's large foreign passenger base.

Air Transport

5. Passenger traffic and airfreight through Changi have declined following the 911 attacks in the US. Singapore is also facing more intense competition from newer airports in neighbouring countries.

6. To stay the premier air hub in the region, the Government will continue its liberal air transport policy, to extend Changi's air network and connectivity especially to rapidly growing and emerging aviation markets such as China and India. We will review incentives to attract new airlines and to entrench existing ones in Singapore. CAAS will launch joint promotion and marketing activities with airlines to increase their business through Singapore.

7. CAAS will also ensure adequate capacity at Changi Airport. CAAS will soon embark on a major upgrade of Terminal 2. Development of Terminal 3 will proceed in tandem with projections in traffic growth. Changi has opened a Business Aviation Centre, offering speedy clearance for business travellers travelling in executive jets. New cargo terminals are also being built and the Airport Logistics Park of Singapore (ALPS) will open in 2003 to help maintain Singapore's position as the premier integrated transport and logistics hub in the Asia-Pacific region.

Land Transport

8. MOT will continue to develop our road network to increase road capacity, improve connectivity and strengthen strategic linkages between major activity and residential centres.

9. MOT will also review the vehicle restraint measures to allow more people to own cars. We will progressively shift from a reliance on ownership to usage control measures to manage the demand. The Electronic Road Pricing (ERP) System together with the Vehicle Quota Scheme (VQS) have been effective in checking congestion on our roads. The ERP will be expanded further to form a second cordon beyond the Restricted Zone, and extended to other areas and times of day where traffic conditions warrant.

10. There are limits, however, to road capacity. Beyond a certain car population, congestion is inevitable. We must continue to develop our public transport system as a viable alternative. We will expand the Rapid Transit System (RTS) network into a comprehensive network to form the backbone of the public transport system. The North-East Line together with the Sengkang LRT will be completed this year. Punggol LRT will be ready in 2004. Beyond that, we are building the Circle Line, which is targeted for completion by 2010. There are also plans to build the Bukit Timah Line, the Eastern Region Line and the Jurong Region Line within the next 10 to 15 years. With the completion of these 3 new lines, the total RTS network will more than double to 240 km.

11. We will also leverage on technology. We will create a transport information hub that can provide public transport commuters and motorists with real-time information on public transport arrival times and road traffic conditions. We will review public transport quality standards to better meet the needs of the commuter population.