The Maritime and Port Authority of Singapore (MPA) announced additional port dues concessions for box vessels in a bid to stimulate dock activity, as the Port of Singapore reported declines in both cargo and box throughput in 2015.
The MPA said throughput in 2015 contracted by 8.7% for containers and 1.1% for cargo, respectively, amidst weak global economic conditions and structural changes in the maritime industry.
“This was largely caused by the overall slump in Asia-Europe volumes, compounded by developments such as the rebalancing of volumes across alliances agreements, and an increase in direct sailings due to lower bunker prices,” it added in a statement.
Advance estimates show, however, that vessel arrival tonnage grew 5.6%, and volume of bunkers sold rose 6.5%, enabling Singapore to remain the world’s top bunkering port.
“In light of the current shipping downturn and to demonstrate the government’s commitment to maintain Singapore as a global hub port, MPA will grant an additional 10% concession on port dues payable by ocean going container vessels carrying out cargo works with port stay of not more than 5 days,” the agency said.
As indicated in MPA’s Port Marine Circular No. 2 of 2016 dated January 14, the program will run for one year effective January 15, 2016.
“The additional concession will be granted on top of existing port dues concessions such as the Green Port Programme incentives and the 20 per cent concession first introduced in 1996,” MPA said.
In all, these concessions are expected to amount to more than S$17 million (US$12 million) in annual savings for container lines, it continued.
For its part, Singapore port operator PSA Corporation Limited (PSA) will also put in more resources to help its customers through this period.
“PSA is working with their customers to enhance vessel productivity at the port and optimise network planning activities such as service deployments and phasing in and out of vessels, with the aim of lowering their operational costs,” said MPA.
PSA will also be “actively engaging container lines which wish to establish a long-term strategic presence in the Port of Singapore.”
Khaw Boon Wan, coordinating minister for infrastructure and minister for transport, said that “the measures are another reflection of the Singapore Government’s consistent commitment to stand with and help our partners through challenging times.”
HK establishes new marine services development body
On the other hand, the Hong Kong government will merge the Maritime Industry Council and the Port Development Council to form the new Maritime & Port Board, Chief Executive CY Leung announced at his 2016 Policy Address recently.
The new board to be chaired by the secretary for transport and housing will promote manpower development, marketing, and research to develop a high value-added maritime services sector.
It will also assist the government in formulating strategies and policies to enhance the territory’s status as an international transportation center and spur further growth in the maritime services cluster.
Photo: DearEdward
