[100517.EN.SEA] PSA Adopts New Strategies to Cope With Alliances' Mega Ships

AMID the upheaval in the container shipping industry, including the knock-on effects of mega ships and now alliances, Singapore port operator PSA's Southeast Asia regional CEO, Ong Kim Pong, reveals the company has "looked at drawing down our operations at older terminals such as Tanjong Pagar Terminal, and instead bringing more ships to berth at our expanded facilities at Pasir Panjang Terminals".

He explained the move would allow the company to better handle the increasing complexity of container transshipment,.

"At these new facilities, we currently deploy automated yard cranes on a scale unseen anywhere else in the world, with over 144 automated yard cranes at our Pasir Panjang Terminal Phases 3 and 4. These cranes are completely unmanned.

"Complementing this, we are also developing automated guided vehicles (AGVs) for our future terminals. We will have 30 of such units by the end of this year on live trials at the PSA Living Lab," he added.

What was a relatively stable grouping of 16 major carriers in four major alliances has become 12 lines in three alliances, with another two major independent lines. The merger of the two major Chinese lines has reduced two behemoths in North Asia to one and this will be further whittled down as the three major Japanese lines, MOL, "K" Line and NYK Line, also merge by next year, reported Singapore's Business Times.

"Consolidation has been a key driver in the industry and terminal operators have been needed to adapt and respond," said Mr Ong. "We are working closely with our customers and partners in established joint venture terminals, including Cosco-PSA Terminal (CPT), CMA-CGM PSA Lion Terminal (CPLT), and MSC-PSA Asia Terminal (MPAT)," he said.

"PSA Singapore is already planning to develop a 65 million-TEU mega-terminal in Tuas, where all container port activities in Singapore will be consolidated. The first set of berths will be operational in 2021 and the facility will boast full terminal automation, including automated cranes and vehicles and we are planning to introduce effective ecosystems interfacing with the supply chain locally and internationally," Mr Ong noted.

Other container terminal operators within the region meanwhile have also risen to the challenge. Malaysian commodities conglomerate MMC Corp has been methodically consolidating its operations in Malaysia, now owning three container terminal operators all along the west coast of Peninsula Malaysia.

Indonesia's Tanjung Priok Port is undergoing expansion works to raise capacity to 19.5 million TEU a year by 2024. The Indonesian government is also moving to secure Japanese funding to begin construction of a new 7.5 million-TEU-capacity port at Patimban in west Java by 2027 when it is fully completed. It will help alleviate some of the pressure on Tanjung Priok which is currently operating at full capacity.

Another factor that could affect the future for terminal operators in Asia in is China's Belt and Road initiative.

"I think the One Belt One Road initiative brings a lot of opportunities for PSA. Singapore is geographically well-positioned along the Maritime Silk Route, and there is space for PSA to facilitate potential trade growth as economic activities increase in this region," said Mr Ong.

"We are also working closely with China Cosco Shipping, the world's fourth largest container shipping line, and have expanded our already existing partnership in our joint venture terminal Cosco-PSA Terminal to include three new mega berths at our Pasir Panjang Terminals. In line with this commitment, China Cosco Shipping has also chosen us as their main transshipment hub port in Southeast Asia," he added.

Source : HKSG.