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In
a move aimed at overcoming the
eroding competitiveness of Singapore
port posed by dramatic inroads made
by Pelabuhan Tanjung Pelepas into
its territory, Singapore has
announced a S$80 million fund aimed
at boosting its flagging fortunes.
The
fund, that is aimed at ensuring that
Singapore remains competitive
against low-cost competition, was
announced by the Republic’s
Minister of Transport, Yeo Cheow
Tong.
The
S$80m maritime cluster fund over
five years will focus on providing
incentives and concessions to
container shipping lines and the
upgrading of workers skills.
According
to the Maritime & Port Authority
of Singapore, S$30m will be set
aside to help shipping lines reduce
costs in the Port of Singapore.
“Part
of this amount will be used for the
further extension of the 20% port
dues concessions to containerships
for another two years from July
2002,” the MPA said.
The
container port dues concessions
first introduced in 1996 are worth
around S$5m per year to container
port operators, leaving around S$20m
for other incentives.
“Incentives
for shipping lines that bring in new
business for the Singapore port will
also be provided,” the authority
said.
The
port of Singapore, the world’s
second largest container port, has
been under increasing pressure with
the recent withdrawal of its second
biggest customer, Evergreen barely a
year after its number one client,
Maersk Sealand deserted the port in
favour of PTP.
Cumulatively,
the withdrawal of the two lines
sliced off about 30 per cent of
Singapore container throughput which
last year handled about 15 million
TEUs.
In
a separate but related development,
Temesak Holdings, sole shareholder
in PSA Corp, said it was postponing
plans for an initial public offering
for the terminal operator and is
instead working on ways in which
shipping lines could take a stake in
PSA.
PSA
is said to be considering other
options as well, such as offering
dedicated terminals and
shareholdings by shipping lines.
Aggressive
Chinese line Cosco has already
publicly indicated its interest in
taking a stake in PSA.
Analysts
see a deal between PSA and Cosco
also potentially giving PSA access
to port development in Shanghai as
well tying Cosco and its alliance
partners to Singapore.
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