The maritime industry has been a cornerstone of Singapore’s economic prosperity over the decades. Our strategic location in the waterway that links the Straits of Melaka to the South China Sea enables our ports to play a vital role in the seaborne trade between the East and West.
With one-third of global container trade and one quarter of global seaborne oil trade passing through our waterways, the development of our ports is crucial to maintaining our status as a world-leading maritime hub.
The maritime sector contributes to around 7% of the country’s GDP and employs over 170,000 people across a diverse range of over 5,000 maritime-related businesses. These include major shipping lines and companies that provide specialised services like shipping finance, marine insurance, and ship brokering.
To ensure our continued success and to grow our port – which is ranked as the second busiest port in the world after Shanghai, China – amid the rise in competition from neighbouring countries, the government is investing an estimated $20 billion into the Next Generation Port (NGP) in Tuas. Billed as the world’s largest fully automated terminal in a single location, it represents the future of Maritime Singapore in terms of its scale and capability.
Tuas Mega Port Will Increase Handling Capacity To 65 Million Twenty-Foot Equivalent Units (TEUs)
Known collectively as the Port of Singapore, the four terminals are Tanjong Pagar Container Terminal, Keppel Brani, Pasir Panjang Terminal 1, and Pasir Panjang Terminal 2. They have a combined handling capacity of 50 million twenty-foot equivalent units (TEUs). PSA Corporation Limited and Jurong Port are the commercial port terminal operators in charge of managing these terminals.
These four terminals will be consolidated into one mega port – Singapore’s fifth terminal – at Tuas Terminal, which will occupy about 1,227 hectares of land, or approximately 3,300 football fields. When fully operational by 2040, the Tuas Mega Port will have a handling capacity of 65 million TEUs, which is almost double the 37.3 million TEUs handled by the Port of Singapore in 2022. The Tuas Port will have 66 berths spanning 26km capable of handling mega container ships exceeding 450m in length, including the world’s largest container ships.
Completion Of The Tuas Port Will Span Over Four Phases
The development of the Tuas Port on reclaimed land twice the size of Ang Mo Kio Town will be carried out in four phases over the span of the next two decades.
Underseen by the Maritime and Port Authority of Singapore (MPA), phase 1 began with the reclamation of the land in February 2015. The 414-hectare site was completed in 2021 at a cost of $2.4 billion. With at least 500 workers already employed at two berths, it is expected to have at least five berths operationally ready by the end of 2022. When fully operational by 2027, it will have 21 deep-water berths that can handle 20 million TEUs annually.
Additionally, as of April 2022, the reclamation works and caisson fabrications under phase two have been completed, with the planning for phase three also commenced by MPA.
With its current state of completion, the Tuas Port was officially opened by Prime Minister Lee Hsien Loong in September 2022.
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Tuas Port Will Be A Port Of The Future
As the world’s largest fully automated port, the Tuas Mega Port represents the port of the future. It will adopt digital technologies and solutions like unmanned vehicles, drones, artificial intelligence (AI), and automation to reduce port congestion and bureaucracy.
For example, the MPA is developing the Next Generation Vessel Traffic Management System to provide accurate, real-time situational awareness of the shipping traffic, and the digitalPORT@SGTM to enhance the efficiency of port operations and reduce the turnaround time of ships.
Other technologies include the deployment of a private 5G network to power the use of manoeuvrable electrified yard cranes and automated guided vehicles (AGVs) to transport containers between the yard and the wharf. This would not only help reduce manpower requirements but also improve port productivity.
Aside from the automation, sustainability is another key design feature of the port, with the terminal operator, PSA, aiming for it to achieve net zero emissions by 2050. In addition to the use of electrified equipment and vehicles, which reduce carbon emissions by about 50% compared to the current diesel-powered prime movers, the Port will also incorporate green buildings, a smart grid management system, and battery energy storage systems to optimise energy use. As recognition for its sustainability efforts, the Tuas project won the award in the category ‘Community Outreach & Port City Dialogue: Port Development and License to Operate’ at the 2020 International Association of Ports and Harbors World Ports Sustainability Awards.
There Will Be Better Synergies And Efficiency
The consolidation of the container port services at Tuas will help achieve greater economies of scale and reduce inter-terminal haulage of containers. This will enable container lines and cargo owners to save time and reduce operating costs, thereby enhancing the attractiveness of using Singapore’s port services.
Furthermore, as the anchor of the future Western Gateway, the Tuas Port will also integrate with other major economic hubs in the Western region, such as the Jurong Lake District, the Jurong Innovation District, and the Tuas Industrial District. This would help create better synergies with other maritime businesses that have high levels of interaction with the port. It will also allow businesses to tap into the Tuas Port’s global connectivity with greater ease and generate more efficient trade flows. This would be beneficial, especially for businesses in advanced manufacturing, cold chains, e-commerce, and logistics sectors, with faster and cheaper port services and turnaround.
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More Opportunities And Jobs Will Be Created
When fully completed, the Tuas Port will solidify our status as an international maritime centre and be a critical engine driving the economy.
It will not only create more business and employment opportunities but also create higher-value jobs for workers. They would be required to embrace new technologies to handle the next generation of hardware and software deployed at the port.
Cementing Our Position As a Key Global Player In The Maritime Space
The investment in Tuas Port will help ensure Singapore maintains its position as the world’s biggest trans-shipment hub and a premier container port. The adoption of digital technologies and focus on sustainability provide a strong value proposition amidst fierce competition from neighbouring countries.
Furthermore, the Tuas Port will enhance the capabilities and add more value to businesses in Singapore, as they will be able to import and export more quickly and at a lower cost.
Top Image Credit: MPA – Artist Impression of Tuas Port
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