PORT OF SINGAPORE (Choice port of call for international shipping lines)

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PORT OF SINGAPORE:

(Choice port of call for international shipping lines): 8.

Mr Andy Gan Lai Chiang asked the Minister for Transport whether (a) the Port of Singapore is still the choice port of call for international shipping lines; and (b) Singapore is still commanding the strategic geographical location for ships passing through the Straits of Malacca.

The Minister of State for Transport (Mrs Lim Hwee Hua) (for the Minister for Transport): Sir, the Singapore port is of strategic importance to our economy and remains the choice port of call for international lines.

Singapore is the largest transshipment hub in the world, connected by more than 200 shipping lines to some 600 ports in 123 countries world-wide. The Singapore port is the world's busiest port by vessel tonnage, with total tonnage of 986.4 million gross tonnes in 2003. We are also the top bunkering port in the world, having supplied 20.8 million tonnes of bunkers last year. Singapore handled 18.4 million TEUs or containers in 2003, up 8.7% from 2002, retaining our position as the world's second busiest container port, after Hong Kong.

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Our port achieved new records in several areas such as container throughput, cargo throughput, shipping tonnage and bunker sales in 2003, and is on track to achieve record-breaking performance again this year. However, we must not rest on our laurels as competition in this sector remains intense.

Sir, Mr Gan has also asked whether Singapore is still commanding the strategic geographical location for ships passing through the Straits of Malacca. The Straits of Malacca remains a vital international waterway for ships passing through this region. A significant part of the world's maritime trade passes through the Malacca Straits. This includes cargo carried by container ships, bulk carriers, car carriers and tankers. Owing to our strategic location and hub port status, many of these ships now call at our port to load or unload cargo, take bunker, replenish supplies and change crew.

For the Malacca Straits to remain open to such heavy traffic, it is vital to ensure the safety and security of the Straits. In this regard, Singapore has been working closely with the other littoral states, Indonesia and Malaysia, to implement various maritime safety measures, such as the Traffic Separation Scheme as well as a mandatory ship reporting system known as STRAITREP.

As part of on-going efforts to enhance security in the Malacca Straits, the initiative, Trilateral Coordinated Patrols, involving Indonesia, Malaysia and Singapore was launched in July this year. This initiative involves ships from the three littoral states patrolling their respective waters. Besides patrols, there will also be enhanced communications links between the three states to enable greater information sharing. In addition, Indonesia, Malaysia and Singapore are also working with other stakeholders in the

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international community to enhance navigational safety and security of ships sailing through the Malacca Straits.

Mr Andy Gan Lai Chiang: I thank the Minister of State for her reply. I have two supplementary questions, Sir.

Firstly,since the Minister of State has mentioned that Singapore will be a major transshipment hub, does she see this as an increasing trend for the port here? Secondly, is our share of market for all the international shipping lines increasing as well?

Mrs Lim Hwee Hua: Sir, the bulk of Singapore's shipping business is indeed transshipment and that would remain, as our proportion of trade of domestic origin remainssmall. In terms of our share of the overall market, that would really depend on the trade flows. Suffice it to say that Singapore is well positioned to capture the increasing trade flows around the region, especially within theFar East and European routes.

As an anecdotal indication, I wish to inform the House thatPSA will be actually building 15 new berths at its Pasir Panjang Terminal over the next five to seven years to boost its capacity from 20 million TEUs to 31.3 million TEUs to tap the increased flow.