The port of Singapore has served as a focal point for trade and cargo, bringing life to the city and contributing immensely to the Singapore’s economy.
The new Tuas Mega Port, when completed, will be strategic in helping Singapore cope with the anticipated growth in container volume and enhance its position as the leading container transshipment hub in Southeast Asia.
The move is an economic win. The construction of the new port at Tuas cannot be timelier, as the leases for Singapore port’s three city terminals (namely, Tanjong Pagar, Keppel and Brani) and Pasir Panjang will expire in 2027 and 2040 respectively.
Tanjong Pagar operations is currently concentrated on ancillary services such as car transshipment. Since 2016, Singapore port operator PSA has begun to relocate container operations from the city terminals at Keppel and Brani to the newer Pasir Panjang Terminal. However, Pasir Panjang does not have enough land to accommodate the predicted future growth.
After the lease at Tanjong Pagar expires, the site can be more profitably redeveloped into a commercial and residential district as part of the Greater Southern Waterfront City project. Environmentally speaking, port operations is pollutive, and therefore unsuited to continue its place in the city.
The move will bring new shipping opportunities. The new port can accommodate mega-vessels that hold 24,000 standard-sized containers or more, with long linear berths and deep-water capabilities, and will run on the latest port technologies and systems including digitalisation and automated guided vehicles, yard cranes and quay cranes.
Tuas is a fantastic location because it enjoys proximity to major domestic industrial areas and international shipping routes.
The consolidation of container port activities at Tuas can help cater to the complex needs of shipping alliances, achieve greater economies of scale and boost efficiency by eliminating the need for inter-terminal haulage, which can also cause road congestion.