Global port operator PSA International will zero in on technology and innovation in order to create a “port of the future” that can adjust to the uncertainties and challenges of the years to come.
Tan Chong Meng, group CEO, said they are now seeing how the application of digital technology “has started to make strong headway into our industry, presenting in some cases great opportunity for workflow and process improvement, and in other cases, cause for concern given their disruptive potential.”
Knowing this, Tan said, “PSA is channelling our energy and resources towards technology and innovation. We are diligently exploring the use of technologies that will shape and drive the port of the future—one that is more efficient, connected, automated, responsive, and with adaptive and pre-emptive capabilities to meet [shipping lines’] requirements in the years ahead.”
PSA made the statement as it noted that tonnage handled and revenue realized in 2016 went up, but net profit declined. Group revenue for the full year ending December 31, 2016 rose 3% to SGD3.68 billion compared to the same period in 2015. Its box throughput likewise improved, rising 5.5% to 67.63 million TEUs last year.
But profit from operations declined 5.4% to SGD1.62 billion, partly due to higher depreciation, and overall net profit for the year was 7.5% lower at SGD1.17 billion.
PSA’s flagship Singapore terminals contributed 30.59 million TEUs in 2016. Its terminals outside of Singapore delivered a total throughput of 37.04 million TEUs, increasing 10.6% over 2015.
Said Tan, “2016 was for the ports and shipping industry a period of unrelenting trials and tribulations. Burdened with a prolonged period of sluggish trade, sustained low oil prices, excess liner shipping capacity and depressed freight rates, the industry also had to deal with an unprecedented scale of consolidation through alliancing and merger of major shipping lines, and the complicated coordination tasks needed to ensure containers get to the importers in the aftermath of a major player becoming defunct.”
Fock Siew Wah, group chairman, said, “In 2016, we witnessed a world beset with pivotal events that shook the social, political and economic fabric of nations. Significant among them were the heightened geopolitical tensions in the Middle East and other parts of the world, Britain’s decision to exit from the European Union, and changes in the US political leadership which could raise the spectre of protectionism and slow down global trade. It did not help that the world was still recovering from the protracted economic woes in Europe and from a lacklustre China which had lost much of its steam as the global growth engine.”
“Despite these challenges, our global PSA team pulled through admirably to achieve a set of creditable results,” Fock added.
He said that for this year, the company expects another year “fraught with uncertainties but also opportunities.”
“More than ever, PSA is firmly committed to work alongside all our stakeholders with the very best-in-class service that we have become renowned for. We will continue to strive to ensure that goods flow smoothly through the global maritime supply chain to touch and improve the lives of many,” he said.
