Written Reply by Minister for Transport Khaw Boon Wan to Parliamentary Question on Opening of Arctic and Other Regional Trade and Connectivity Routes

Mr Desmond Choo asked the Minister for Transport with the increasing viability of the Arctic shipping route and the potential opening of other regional trade and connectivity routes

a.     how is Singapore re-positioning itself to meet such challenges; and 

b.     how will PSA need to transform to thrive in the new trade landscape. 

Reply by Minister for Transport Khaw Boon Wan:

1.     At present, it is too early to determine the long term impact of the opening of the Arctic shipping routes on the port of Singapore. Current commercial viability of these routes is low for a number of reasons. Sailing through the Arctic is still largely confined to the summer months, making it difficult to operate scheduled services, which is critical to container shipping. There are also limited opportunities for shippers to lift and drop off cargo as areas enroute through the Arctic are largely unpopulated. Further, ships sailing through the Arctic require specialised ice-breaking equipment, and have to pay higher insurance premiums due to the extreme conditions. In 2016, only 19 sailings were made through the Northern Sea Route, which is the main Arctic sea route. 

2.     Regardless of the competition posed by the Arctic shipping routes and other regional trade and connectivity routes, our priority has been to ensure that the port of Singapore continues to improve its competitiveness. We have plans to increase port capacity, so that Singapore has the capacity to meet the long term needs of container lines. To this end, development on the new Tuas Terminal has commenced and when fully completed, this terminal will be able to handle up to 65m twenty-foot equivalent units (TEUs). 

3.     The Maritime and Port Authority of Singapore is also working closely with PSA to build a better port through investing heavily in technology. For instance, PSA has deployed a fully-automated yard crane system at the new berths at the Pasir Panjang Terminal to enhance efficiency, reliability and workplace safety. 

4.     The Government will continue to monitor global developments and work with industry partners to ensure that Singapore retains its edge as a global hub port and international maritime centre.