ST : Tuas mega port: Experts back idea

Feb 7, 2010

Tuas mega port: Experts back idea

By Shuli Sudderuddin

Yes, go west and make Tuas the new mega port, if a proposal to free the Tanjong Pagar port area for a waterfront makeover gets the green light, experts suggest.

Although the lease at Tanjong Pagar, Keppel and Pulau Brani terminals ends only in 2027, it was a proposal by the Economic Strategies Committee (ESC) last week that sparked the buzz among shipping and property analysts.

The ESC had mooted turning Tanjong Pagar into a new waterfront development. It also called for a study on the long-term possibility of consolidating current port facilities at Tuas into a mega container port.

The Tanjong Pagar port area currently boasts an area of 85ha and a quay length of 2.3km.

The Maritime and Port Authority of Singapore (MPA) said that under the Government's Concept Plan review, it will assess the feasibility of a consolidated mega port.

The MPA will take into account its need to achieve best-in-class efficiency and sustain Singapore's long-term competitiveness.

Mr Ho Eng Joo, executive director of investment sales for real estate consultancy Colliers International, said giving the go-ahead would be good both for the Tanjong Pagar and Tuas areas.

He said: 'With its good location and easy access to Raffles Place and Shenton Way, Tanjong Pagar will be a very exciting waterfront and developers will be interested in it.

'Tuas, mostly industrial, will have the complementary infrastructure for a port.'

Mr Karamjit Singh, managing director of Credo Real Estate, said it makes sense to relocate the port as it is unproductive to have it so close to the heart of town as the land could be better used.

'Tanjong Pagar will be of interest to developers and investors alike,' he added.

Dr Thomas Menkhoff, practice associate professor of organisational behaviour and human resources at the Singapore Management University's Lee Kong Chian School of Business, said many ports elsewhere have moved because they were no longer competitive at their original location or because of 'strategic common sense'.

Citing the German city of Bremerhaven, he said its new riverside quay on the mouth of the River Weser enhanced the competitiveness of the city's port.

Associate Professor (Practice) Tan Kok Choon from the department of decision sciences at the National University of Singapore Business School, said Singapore's main container traffic is now distributed over two locations: Tanjong Pagar and Pasir Panjang.

He agreed that if all container traffic could be concentrated at one place, efficiency and utilisation will go up.

Prof Tan said the new port must have such capabilities as turning around container vessels fast and getting vessels to berth quickly on arrival.

'As Singapore's container volume continues to grow beyond 2027 to become a super mega trans-shipment hub, the new location should be large enough to cater to more container vessels calling at Singapore,' he said.

He added that given Singapore's geography, the new port will most likely have to be along the southern coast, which leaves Tuas as the ideal choice since Changi Airport is in the east.

Dr Menkhoff said: 'The Jurong Island project and the successful extension of the Tuas Peninsula over the last few years show that the western area has what it takes to have new port facilities.

'However, concerns might include balancing development needs and protecting marine life as the waters around Tuas contain dozens of marine species.'

At least one shipping line is keen to see such a move.

Mr Teo Siong Seng, president of the Singapore Shipping Association and managing director of Pacific International Lines, said most of the container goods movement is towards factories in Tuas.

'So a port in Tuas would save on road transport greatly. It's a good plan and we definitely welcome it.'