PSA Corp. reports 7.8% growth for Singapore container port

Asian Economic News, Jan 12, 2004

SINGAPORE, Jan. 9 Kyodo

Singapore port operator PSA Corp. said Friday the volume of containers handled by its terminals in Singapore, one of the world's busiest ports, grew 7.8% in 2003 despite a difficult year.

Although buffeted by economic uncertainties due to the war in Iraq, the outbreak of the SARS epidemic, and fierce competition from regional ports, container throughput at PSA terminals jumped to 18.1 million TEUs (20-foot equivalent units) last year from 16.8 million TEUs in 2002, PSA said in a statement.

The port authority, which runs almost all container terminals in Singapore, also said it will embark on an expansion plan by building five new berths to add its 37 existing container berths.

The additional berths will boost PSA's annual handling capacity by 20% from 20 million TEUs to 24 million TEUs.

The five new berths will be built at its Pasir Panjang Terminal, on the southern coast of Singapore, which currently has six berths. The first two berths are expected to be operational by 2005.

It targets container throughput to grow by 1 million TEUs every year for the next few years.

Singapore's position as a port hub has been threatened by stiff competition from new ports that have emerged in the region, especially the Port of Tanjung Pelepas on Malaysia's southern tip, which has drawn some of the city-state's customers away by offering cheaper and more flexible deals.

PSA has countered by offering incentives to shipping lines, such as allowing them to take a stake in and jointly operate its terminals. Cosco Corp., China's biggest shipping group, signed a joint venture with PSA last month to take a 49% stake in one of its terminals.