Significance of World Shipping and Sea-borne TradeShipping is an international and capital

intensive businessIn today’s interconnected world of

commerce, more than 90% of the world’s trade is carried by sea.

Seaborne trade remains the most energy-efficient and environmentally friendly mode of transporting cargo. Without it, half the world would starve and the other half would freeze.

Importance of World Shipping and Sea-borne TradeThe three main types of goods transported by sea are dry

bulk, oil and containerized cargo.Dry bulk accounted for 38% of the world’s seaborne trade in

2006. Oil trade formed the second largest type of cargo accounting for 36% and containerized cargo contributed 15%.

These trades are carried by more than 20,000 merchant ships to various ports around the world, leading to a global cargo throughput of 14.8 billion tonnes and container throughput of 440 million TEUs. The operation of these ships generates an estimated annual income of about US$630 billion (S$1.05 trillion) in freight rates within the global economy. That’s about 5 percent of total world trade.

Southeast Asian Maritime TransportationIn recent years, the world has seen the centre of

maritime gravity moving to Asia.

Asian countries’ share of world seaborne trade increased to 39%.

Container traffic provides a window on trade patterns and the state of the global economy because it is the most closely tied to consumer demand. Six of the world's 5 busiest ports are located in Asia, when measured in terms of cargo shipped in standard containers

Southeast Asian Maritime Transportation

Busiest Ports By Containers (TEUs)

1. Hong Kong, China2. Singapore 3. Pusan, South Korea 4. Kaohsiung, Taiwan5. Rotterdam, Netherlands6. Shanghai, China

Busiest Ports By Volume

1. Singapore2. Rotterdam, Netherlands3. South Louisiana, U.S.A.4. Shanghai, China5. Hong Kong, China6. Houston, U.S.A

Singapore Becoming Hub for Southeast Asian Maritime TransportationIn terms of logistics, Singapore is in a prime

location.Singapore is a maximum seven-hour flight

from any of the key port destinations of Southeast Asia

The Singapore port is the world's busiest port for large-container trans-shipments and is home to a network of about 250 shipping lines. These, in turn, are connected to about 600 ports in 123 nations.

SINGAPORE PORT

Singapore is a major international transportation hub in Asia, positioned on many sea and air trade routes.

The Port of Singapore, managed by port operators PSA International and Jurong Port is the world's busiest port in terms of shipping tonnage handled, at 1.78 billion gross tons, and in terms of containerized traffic, at 25.9 million (TEUs). It is also the world's second busiest in terms of cargo tonnage, coming behind Shanghai with 472 million tons handled Last year. In addition, the Port is the world's busiest for transshipment traffic and the world's biggest ship refuelling centre.

Singapore's 2009 Maritime Performance

Year Vessel Arrivals (billion gross tons)

Container Throughput

(million TEUs)

Cargo Throughput

(million tonnes)

Bunker Volume

(million tonnes)

S'pore

Registry of Ships

(million gross tons)

2005 1.15 23.2 423.3 25.5 33.0

2006 1.31 24.8 448.5 28.4 34.8

2007 1.46 27.9 483.6 31.5 39.6

2008 1.62 29.9 515.3 34.9 43.7

2009 1.78 [+10.1%]

25.9 [-13.5%]

471.5 [-8.5%]

36.4 [+4.2%]

45.6 [+4.4%]

Maritime and Port Authority of Singapore (MPA)

The Maritime and Port Authority of Singapore (MPA) was established on 2 February 1996, with the mission to develop Singapore as a premier global hub port and international maritime centre (IMC), and to advance and safeguard Singapore's strategic maritime interests. MPA is the driving force behind Singapore's port and maritime development, taking on the roles of Port Authority, Port Regulator, Port Planner, IMC Champion, and National Maritime Representative.��MPA partners the industry and other agencies to enhance safety, security and environmental protection in our port waters, facilitate port operations and growth, grow the cluster of maritime ancillary services, and promote maritime R&D and manpower development

PSA SINGAPOREIn Singapore, PSA Singapore Terminals operates

four container terminals at Tanjong Pagar, Keppel, Brani and Pasir Panjang, with a total of 54 container berths. They operate as one seamless and integrated facility.

Pasir Panjang Terminal is PSA's most advanced terminal. It is equipped with berths up to 16 m deep and with quay cranes able to reach across 22 rows of containers to accommodate the world's largest container ships. The terminal's bridge crane system allows each operator to handle up to six cranes.

Operations HighlightsDaily Sailings to:United States 2Europe 4Japan 5China, Hong Kong, Taiwan 9South and Southeast

Asia 70

No. of Shipping Lines

200No. of Ports

Connected600

No. of Countries Linked

123

BRANI TERMINAL

Container Berths 9

Quay Length (m) 2600

Area (ha) 80Max Depth (m) 15 m

Quay Cranes 32

KEPPEL TERMINAL

Container Berths 14

Quay Length (m) 3200

Area (ha) 100Max Depth 15.5 m

Quay Cranes 42

TANJONG PAGAR TERMINAL

Container Berths 8

Quay Length (m) 2300

Area (ha) 85Max Depth 14.8 m

Quay Cranes 29

PASIR PANJANG TERMINALContainer Berths 23

Quay Length (m) 7900

Area (ha) 33Max Depth 16 m

Quay Cranes 87

Pasir Panjang Automobile Terminal

Pasir Panjang Automobile Terminal (PPAT) is PSA's vehicle transhipment hub and Singapore's first dedicated car terminal. It started operations in January 2009. PPAT has three dedicated berths and is supported by an open car yard and a multi-level car storage yard, which together provide some 20,000 car park slots.

ReeferCarePSA Singapore Terminals has more than 6,500 reefer points

and handled about 1.1 million TEUs of reefers in 2009 Purpose-built reefer platforms provide good infrastructure

for electricity cabling and also allow plug-in and plug-out operations for easy access to reefers which require immediate attention

Highest Cargo Integrity – supported by a reliable and uninterrupted supply of electricity from the national grid.

Timely and Accurate Information – Integrated Reefer Monitoring System (iRMS) is linked to CITOS® and which allows real time and online tracking at each stage of operations. Customers are able to monitor the status of their reefer boxes anywhere in the world via Internet. Reefer Maintenance & Repairs (RMNR) system tracks all malfunctions to ensure prompt response for repair of reefers which can contain sensitive and high-value cargo

Jurong Port international multi-purpose PortThe Port’s General Cargo Terminal and Bulk

Cargo Terminal are the hubs for steel products, metals, mechanical appliances and machinery, cement, copper slag, sugar and project cargo, among others. In addition, there are ample column-free warehouses and open yards to support cargo storage, packing, consolidation and distribution activities in its Free Trade Zone (FTZ).  Selective warehouses have also been approved by the London Metal Exchange (LME) Limited for the storage of LME-traded metals.

FacilitiesStorage Facilities Capacities No. of Warehouses 28 Warehousing Facilities >174,000 square

metres Open Storage Yard >215,000 square metres Container Yard >35,000 TEUSThe warehouses serve as transit warehouses

for cargo which are being planned for shipment, and back-up warehouses, which are under long-term lease arrangement.

BERTHSFacilities Capacities Total number of Berths 30 + 2 Ro-Ros Total Berth Length 5,629 m Maximum Draft 15.7 metres Maximum Vessel Size 150,000 dwt Total Area : 124 hectares (Free Trade Zones) B28 hectares (Non-Free Trade Zone

Container Terminal Management System (CTMS Benefits Improve overall planning efficiency and utilization of resources

like berths and yard space Provide for a highly automated operations process with system

directed operations Provide real-time status of vessel and container activities Provide for a centralised control centre to handle exceptions and

to modify plans Support UNEdifact EDI messaging

Strengths.

Strong physical infrastructure : road, airport, warehouse, etc

-Good connectivity to major trading hubs and manufacturing bases (both air and sea)

-Major shippers and logistics company regional head office-Stable political, economical and social conditions and openness of economy such as FTAs

Educated and trained workforce and strong legal system and business friendly tax structure

Weakness

Relatively high cost of operation (especially, land rental and wage)-Small geographic space (especially territorial water) and domestic market-Fragmented industry and lacks of scale, very few global players-Lack of a logistic cluster and ecosystem-Shortage of skilled, experienced maritime and logistics professional

OpportunitiesStrong growth potential of Southeast and

Northeast Asia. The recent growth in intra-Asia trade has also boosted Singapore's container traffic.

Steady growth of Singapore economy (GDP), 5,000 maritime companies contributing some 7% to Singapore’s GDP.

Great reputation as a secure logistics hub in Asia

Good connectivity to the Asia-Pacific regionSingapore based offshore trading companies

(USD120Billion)

Threats.

Global relocation of manufacturing and distribution base, especially China

Keen competition among Asian countries for prior occupation of Asia logistics hub Singapore could lose its crown as the world’s busiest container port to Shanghai this year. The Chinese port moved more containers than Singapore did from April to last month, and may clinch the leader’s status by year end

Increase in size of ocean linersSmall territorial waters, congested waterway

and increasing maritime accidents