The Port of Singapore: a Reflective Essay

Compe truly Address 08 F all in all The appearance of capital of capital of capital of capital of capital of capital of capital of capital of capital of capital of capital of capital of capital of capital of capital of Singapore Prep bed by Rajib Das, Student 38410098 This roll disc economic consumptions closely the fashion wine of Singapore and the strategic im larboardance of its location to the modern traders. It likewise discusses the g every spotlightnment incentives and the Advanced nurture engine room that the style has been using to attract bleak trans mienation companies in the recent past. Anything beyond is non discussed for the limitation of the term paper. display board of Contents The look of Singapore3 Singapore strategical sizeableness of the Geographic Location. 4 The Adoption of IT 6 governance Incentives9 Competition10 Conclusions11 accompaniment12 Citations16 The expression of singapore over the final stage 40 age, the sphere has been a wed with the unbelievable return of the is shoot nation into a major trans lookholeation epicentre of spherical trading. In the 1970s ,the port of Singapore pioneered the firstly container port in the history. By 1980s the port hit its first milestone of handling 1 trillion TEUs and within the next 10 days by 1990s ( way of Singapore yearly Reports), the port was handling 5 jillion TEU (Twenty foot equivalent container units)per annum.Today, near 20 years by and by the big landmark, the port handles over 28 zillion TEUs (Port of Singapore Annual Reports) per year qualification it the mo largest port in the entire creative activity after the Port of Shanghai in monetary value of Container job. The container venturements from the Port of Singapore symbolize of one fifth of the humans container postment volume (Authority). The port in like manner takes immense pride in transport half of the orbits yearly crude oil supply. In terms of total cargo volume, the port handles about 500000 thousand freight tonnes per year (Authority) which makes it the reciprocal ohm 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 roughly important ports of the world. Singapore Strategic Importance of the geographical Location The immensity of the Geographical location of Singapore has been largely satisfying since trading commencement exerci gossipd mingled with Asiatic, North Ameri fag end and the European continents. The Singapore passport has been apply intemperately for trading by the Romans, Chinese, Arabs, Greeks and the Indians since cadence immemorial (Gupta).After the Suez Canal opened in the mid 1800s, the Singapore Strait pay off become a vital gene linkage of trade between the powerful European nations and East Asia. The Singapore Strait is pleasing to traders because it is the shortest and gimcrackes t sea-link between the Pacific marine and the Indian Ocean (Gupta). With the advent of the large japanese car manufacturing labor , the textile industriousness 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 in the first place exports low-valued raw materials to be processed in the West.The flow of more expensive fabricate goods from the East to the West live with proliferated in the last 30 years. (Sie) As a result, fare and transportation costs involve become even further slight inelastic fostering the immense growth of the conveyance industry of Singapore. Although it is often not in the limelight, but the South-east Asiatic nations have a large prove of oil- refineries which have led to the heavy shipping traffic of the crude oil with the strait of Singapore. Taiwan has a oil refining capacity of . 54 trillion b/cd and South Korea has a capacity of 1 million b/cd alongside Singapore.Japan and China go past the list with a capacity of 4. 7 and 2. 2 million b/cd respectively. (Olson) Apart from China which has a self-sufficient production of crude oil, every separate 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 respectively (Olson). owe to these heavy demand for crude oil, the Port of Singapore has been responsible for transporting half of the worlds oil supply in the year 2010.Owing to its prime geographic location and heavy political science incentives and a base of culture engineering science discussed subsequent in the paper, majority of the exports from Singapore is base on re-exports from other(a) countries . There are about 60000 ship movements annually in the Strait of Singapore. In 2010, the Port of Singapore transhipped 17447,000 TEUs which constituted al or so 82 ( Statistics)% of Singapores annual export . Today, the port of Singapore is the busiest Port in the population in terms of transhipment of containers.Port of Singapore operations The Port of Singapore has 6 terminals to withstand all types of vessels-ocean literary argumentrs, lighters, cargo freighters, coasters, break mint carriers and container ships. The 6 terminals are Keppel Terminal, Brani Terminal, Pasir Panjang Terminal, Sembawang Wharves and Pasir Panjang Wharves . The Wharves terminals can drive all kinds of vessel while the other terminals are specialized meant for the containers vessels. The Port of Singapores containers facilities are listed as follows * Number of Terminals 4 Area 436 hectares * k outrighting capacity 24700 kTEU * Quay cranes 143 * Maximum draft 16 m * Quay length 12800 m jibe to the Global Competitive Report create by the World economical Forum, Port of Singapore ranked the best port in terms of facilities and received a rating of 6. 76 out of a supreme 7. The adoption of instruction technology Over the last few years The Port of Singapore has invested heavily in Information Technology which means that processes now are a push-down stack faster, more genuine and more cost effective for the consumers.Making the most out of the in vogue(p) automation technology, breeding technology and wireless communications, the Port of Singapore combined its large ground experience in container operations with the latest technology much(prenominal) as CITOS( data processor integrated Terminal Operations System), PORTNET and scat through with(predicate) Gate Technology. CITOS(Computer Integrated Terminal in operation(p) System) Singapore Ports vast meshing and heavy shipping traffic is very efficiently controlled by Computer Integrated Terminal Operations System(CITOS).CITOS is a Resource Planning System that prevents crosscut of every asset from prime movers to gm cranes to quay cranes to containers and drivers. sooner CITOS was introduced, preferences were allocated to a certain place in the port and they stayed there unless it was unavoidable somewhere else. With CITOS, resources can be a great deal easily coordinated and allocated. 60 incompatible vessels harbour the Singapore Port on a given day. Although a lot of these vessels arrive out of schedule, CITOS make convinced(predicate) that they take ont have to expect in the harbour for a minute.When any shipping line applies for a berth, the ship stowage and the shipping connection breeding is sent to the port through PORTNET . The CITOS establishment begins planning the berth of the shipping line virtually 72 hours prior stretch which means that the scheme also encrypt other alternatives in case that the vessel is off schedule. This means that for almost all the vessels that harbour the Port of Singapore, there is almost zero waiting time. (Authority) Once a ship is harboured, the quay cranes operated by the CITOS system s tart discharging containers destined for other ports and load boxes brought in by other vessels.Once containers are discharge on the give chase, they are not haphazard voluptuous on the yard. The Information about the container is fed into the system and CITOS generates a ship stowage and yard layout plans base on the following factors in order of importance * Special requirements (e. g. Dangerous goods, tight connections etc) * refinement * Ship stability (for further stowage planning) * Size * Weight The CITOS system provides numerous private-enterprise(a) advantages to the Port of Singapore. It allows the system to keep track and locate every whiz container on the port.It allows the maximum use of land and optimize efficiency. Last, but not the least, it ensures maximum utilization of each individual resource since it is pre-planned by the system beforehand. PORTNET PORTNET is a cyberspace service that provides internet connectivity to the entire port community with a si ngle sign-on network portal. The system provides interconnectivity between vessels, freight forwarders, government agencies and haulers. This helps them to synchronize and manage discipline much give away.PORTNET Singapore has about 8000 users who use the system to get true(a) time, detailed information on all port, logistics and shipping processes and use it to make critical decisions in their business. The briny functions of PORTNET Singapore is summarized below * Enable shipping companies to monitor their own performance * tin a documentation portal between the consumers and the shipping company, * Managing efficiency for transhipment processes of the vessels * Supporting real time information exchanges between shipping line alliances. FLOW THROUGH GATEThe Flow through gate system is a sustainable paper-less system that helps motortruck drivers to set the specific containers that is needed to be laden onto the truck within a brace of 20-25 seconds. On average, the system p rocesses about 8000 trucks per day. Before the driver arrives at the dock, he submits a requisition for the containers through the PORTNET system. After the driver arrives at the Port gate, he verifies his personal identity through a fingerprint biometric lector or by punching in his laughable identification play. The gate scans the trucks dashboard and identifies the truck.The Container number Recognition system captures the container number with a close circuit camera. The system wherefore matches these information against the information provided during requisition and clears the truck for entry. After the driver enters the port, the system sends a text message to the drivers mobile phone with the precise information about the location in the dock where the containers would be ready to be stacked onto the truck. Government incentives The Government of Singapore had a major role to play in the boom of the shipping industry in the last 40 years.Singapore has 5 go off Trade Zo nes to encourage Re-exports of goods from other countries. low the Free Trade Act goods could be cleaned ,sorted, distributed, repacked, assembled or sold in treaty with the Act. Under the Act, transhipment goods can be stored in Singapore free of charge with very little custom bureaucracies. In 1991 , The Singapore government enacted the Approved International Shipping(AIS) effort incentive under which shipping companies found on Singapore could be exempted from unified taxes for the initial 10 years and can be renewed even if they dont own their own vessel.In 2009, the Government of Singapore announced their goal of making Singapore the global maritime knowledge hub of the world. Since then the government have heavily invested in research and development of Information Technology in the shipping industry and the Port of Singapore. It has introduced the Maritime Cluster blood line which offers financial funds for training ,various research, engine room and innovation under this field. Such HR incentives have definitely smoothened the transformation of a lot of shipping companies to Singapore in the last two and a half years.COMPETITION As discussed earlier, the Singapore Strait have grown massive importance in the last few decades. Today, Singapore faces massive disputation from the neighbouring ports especially from the port of Tenjung Peepas in Malaysia. In the early 2000, 10 % of the Singapores container volume go to the port in Malaysia owing to the cheap handling charges in the neighbouring country. Statistics shows that, handling charges were about 30-40% lower than Singapore. Many of the neighbouring ports have below-par facilities compared to the Port of Singapore.Hence many of these ports can afford to have much lower handling and receiving charges. Although Singapore have a much better study, the comparatively more expensive character of the Port of Singapore is going to affect to pose a threat to the port in the years to come. COnclusi on The Port of Singapore has a great reputation being the trade epicentre of the world and for being one of the best sea port in the world. Although the port has an small past reputation, the 21st century willing bring about new challenges and competition from neighbouring ports such as Malaysia.The Government of Singapore is doing its best by harnessing advanced Information technology at the Port and providing divergent government incentives to hold its competitive standing. In response, many of the foreign companies such as Clarkson, Swiss Re, Shipowners P&I club and Rolls Royce have moved their devil dog headquarters to Singapore in the last few years. As the supremacy for star ports unfolds, more shipping companies will be taking government incentives and Information Technology for granted.Today more firms are showing fire in ports which have established legal, financial and logistics sector. It will be interesting to see ho the Port of Singapore serve to these new challe nges in the years to come. concomitant Table 2. Containers handled at the prostate specific antigen terminals (source PSA annual report 2000) Year meg TEUs handled 1989 4. 36 1990 5. 22 1991 6. 35 1992 7. 55 1993 9. 04 1994 10. 39 1995 11. 84 1996 12. 93 1997 14. 12 1998 15. 1 1999 15. 9 Appendix 2 Port Rankings according to the World Economic Forum Table 1.Ranking of ports on port facilities as presented in the global competitiveness report published by the world economic forum Rank estate Rating for port facilities are elongated and efficient (1 powerfully disagree, 7 strongly agree) 1 Singapore 6. 76 2 Netherlands 6. 64 3 Canada 6. 42 4 Germany 6. 38 5 Hong Kong SAR 6. 38 6 United States 6. 27 7 Finland 6. 26 8 Belgium 6. 17 9 Denmark 6. 16 10 New Zealand 5. 82 Appendix 3 14. 1 SEA commitment AND SHIPPING STATISTICS 2000 2005 2006 2007 2008 2009 2010 Vessel Arrivals Number 145,383 130,318 128,922 128,568 131,695 130,575 127,299Shipping tonnage (000 GT) 910,180 1,151,791 1, 314,990 1,459,221 1,621,065 1,784,669 1,919,408 Total Cargo (000 tonnes) 325,591 423,268 448,504 483,616 515,415 472,300 503,342 General 199,577 262,265 281,393 314,917 336,425 280,349 313,683 people 126,014 161,003 167,111 168,699 178,991 191,951 189,659 Total Container Throughput (000 TEUs) 17,087 23,192 24,792 27,935 29,918 25,867 28,431 Bunker Sales (000 tonnes) 18,651 25,479 28,379 31,546 34,936 36,387 40,853 Singapore Ship Registry (End of Period) Number 3,335 3,219 3,249 3,553 3,843 3,950 3,978 000 GT 23,043 32,963 34,793 39,603 43,702 45,632 48,783Works Cited Authority, Port of Singapore. www. singaporepsa. com. Gupta, Sen. The malacca cane Straits and the Indian Ocean A Study of the Strategic and lawful Aspects of a Controversial Sea-lane. New Delhi, 1974. Olson, Hal F. oil well traffic and shipping routes. n. d. Port of Singapore Annual Reports. Port of Singapore, 1970-2010. Sie, Chia Lin. The Straits of Malacca and Singapore Navigational, Resources, and Environmental Considerations. Southeast Asian Seas Frontiers for Development, 1981. Statistics, Singapore Department of. Yearbook of Statistics? . 2011.