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Singapore ports boost container handling capacity as more shipping lines call

straitstimes.com 2 days ago
Congestion is mounting at the Singapore port due to shipping disruptions caused by the Red Sea crisis.

SINGAPORE – In line with a national plan to expand Singapore’s port capacity, the first of three additional berths at a new megaport in the Republic began operating on July 1 amid congestion at the local port, as more container ships waited for their turns to berth.

The two other Tuas Port berths will commence operations in October and December, Transport Minister Chee Hong Tat said in his replies to several parliamentary questions on July 2.

The new berths are part of the phased opening of the $20 billion Tuas Port, where a total of nine container berths have already opened, including the one made operational on July 1.

Earlier this year, port operator PSA also reactivated some of the berths and yard space at its Keppel and Tanjong Pagar city terminals, which had been closed as operations move to Tuas Port by 2027.

Its Pasir Panjang terminal will remain open to support the transition to Tuas Port, which will be able to handle 65 million twenty-foot containers when fully complete in the 2040s, making it the world’s largest automated port.

PSA has been ramping up container handling capacity to ease waiting times for incoming container vessels at the Singapore port, about 90 per cent of which are arriving off-schedule, compared to an average of about 77 per cent for 2023, Mr Chee said.

This is because sailings between Asia and Europe are being diverted to a longer route around the Cape of Good Hope in South Africa to avoid the violence now taking place in the Red Sea. Many African ports are also ill-equipped to handle more frequent sailings, adding to the delays.

PSA, which runs a portfolio of 66 deep-sea and coastal terminals worldwide to support its cargo network, does not operate any terminals in Africa.

As a result, vessels now have less predictable and transparent schedules, and many more ships are arriving in Singapore at the same time.

Container lines are also using Singapore as a transhipment port to unload cargo bound for other ports in the region, and rearrange containers on their vessels before sailing back to Europe.

“These have lengthened the time container vessels stay in our port for cargo operations, which in turn increased the waiting time for incoming vessels, leading to congestion at our container berths,” Mr Chee said.

Depsite this, the total volume of containers passing through the local port increased to 16.9 million between January and May, up 7.7 per cent from 15.7 million containers during the same period in 2023.

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