The Port of Singapore
Prepared by : Rajib Das, Student # 38410098
This document discuses about the Port of Singapore and the strategic importance of its location to the modern traders. It also discusses the government incentives and the Advanced Information Technology that the port has been using to attract new shipping companies in the recent past. Anything beyond is not discussed for the limitation of the term paper.
Table of Contents
The Port of Singapore3
Singapore: Strategic Importance of the Geographic Location……………………. 4
The Adoption of IT 6
The port of singapore
Over the last 40 years, the world has been awestruck with the unbelievable growth of the island nation into a major transportation epicentre of global trading. In the 1970s ,the Port of Singapore pioneered the first container port in the history. By 1980’s the port hit its first milestone of handling 1 million TEUs and within the next 10 years by 1990’s (Port of Singapore Annual Reports), the port was handling 5 million TEU (Twenty foot equivalent container units)per annum. Today, about 20 years after the big landmark, the port handles over 28 million TEUs (Port of Singapore Annual Reports) per year making it the second largest port in the entire world after the Port of Shanghai in terms of Container traffic. The container shipments from the Port of Singapore comprise of one fifth of the world’s container shipment volume (Authority). The port also takes immense pride in shipping half of the world’s annual crude oil supply. In terms of total cargo volume, the port handles about 500000 thousand freight tonnes per year (Authority) which makes it the second busiest port in the world after the Port of Shanghai .Today the Port Singapore is connected to 123 ports of the world spreading over 123 countries and 6 continents, making it one of the most important ports of the world. Singapore: Strategic Importance of the Geographical Location The importance of the Geographical location of Singapore has been largely significant since trading started between Asian, North American and the European continents. The Singapore Strait has been used heavily for trading by the Romans, Chinese, Arabs, Greeks and the Indians since time immemorial (Gupta). After the Suez Canal opened in the mid 1800s, the Singapore Strait have become a vital linkage of trade between the powerful European nations and East Asia. The Singapore Strait is attractive to traders because it is the shortest and cheapest sea-link between the Pacific Ocean and the Indian Ocean (Gupta). With the advent of the large Japanese car manufacturing industry , the textile industry of South Asia and the heavy outsourcing of the North American manufacturing plants in the last 30 years, Asia is no longer a continent which mainly exports low-valued raw materials to be processed in the West. The flow of more expensive manufactured goods from the East to the West have proliferated in the last 30 years. (Sie) As a result, shipping and transportation costs have become even further less inelastic fostering the immense growth of the shipping industry of Singapore. Although it is often not in the limelight, but the South-east Asian nations have a large base of oil- refineries which have led to the heavy shipping traffic of the crude oil through the strait of Singapore. Taiwan has a oil refining capacity of .54 million b/cd and South Korea has a capacity of 1 million b/cd alongside Singapore. Japan and China tops the list with a capacity of 4.7 and 2.2 million b/cd respectively. (Olson) Apart from China which has a self-sustaining production of crude oil, every other nations depend on the Middle-Eastern countries for their oil supplies. Japan alone imported 130 million tonnes and 195 million tonnes of crude oil from the Middle-East and the African nations in the years 1990 and 2010...