[SINGAPORE] The Republic could beat its own cargo-handling record for the second consecutive year as US tariffs send businesses rerouting their shipments, and the nation’s largest port operator intends to increase its headcount by some 2,500 employees this year.
Singapore handled 14.2 million twenty-foot equivalent units (TEUs) – a measure of cargo capacity – from January to April this year, representing a 6.1 per cent year-on-year jump over the same period in 2024.
The fresh figures were revealed by Transport Minister Chee Hong Tat at a media doorstop during a visit to PSA’s Pasir Panjang Terminal on Friday (May 16) morning.
“Container has remained strong despite what’s happening around the world with greater turbulence, uncertainty and shifts in global supply chains,” said Chee, who added that this is something he hopes can continue.
When asked about the factors driving the year-on-year growth, the minister replied: “In the near term, because of the pause in higher tariff rates, there is actually a boost in terms of companies trying to do some front-loading and catching up, trying to make full use of this 90-day window. In the near term, certainly there is some growth due to that.”
South-east Asia earlier faced levies ranging from a baseline 10 per cent to as high as 49 per cent, until US President Donald Trump on Apr 9 announced a 90-day pause on these reciprocal taxes.
BT in your inbox
Start and end each day with the latest news stories and analyses delivered straight to your inbox.
The US also shaved its earlier tariff of 145 per cent on Chinese goods to 30 per cent on May 12 after a temporary deal for 90 days was brokered from weekend trade talks in Geneva. Further negotiations are expected to follow.
Admitting that the situation is “a bit more mixed” for dry bulk and tankers, Chee said: “A lot depends on the shifts in global supply chains as the countries have their trade negotiations with the US.” He added: “But beyond port operations, if you look at maritime Singapore as a whole, it has done well and the outlook is quite promising.”
Last year, the Republic set a record of 41.1 million TEUs, eclipsing its earlier record of 39 million TEUs in 2023. In 2023, it surpassed its previous record of 37.6 million TEUs in 2021.
Total container throughput in April this year stood at 3.6 million TEUs — a 7.1 per cent increase from 3.4 million TEUs in April last year, the nation’s transport ministry told The Business Times.
On the nation’s upcoming Tuas Port, the minister noted that operations are “going well” with 11 berths currently in operation. Chee reiterated that one more will be added by the end of this year, followed by four in 2026 and an additional two in 2027. Once completed in the 2040s, the port will have a handling capacity of 65 million TEUs.
To support its growth and expansion in operations, PSA will be hiring more than 2,500 staff this year across different roles, such as in frontline port operations or in the information technology and data science fields, revealed the minister.
Chee was given a briefing on PSA’s autonomous prime movers and a tour of its control centre.
These technology innovation projects that the port operator is embarking on will support the future growth of its operations in both Pasir Panjang Terminal and Tuas Port, said the minister after the visit.
“We must invest to stay ahead, and technology is one of those areas that can give us that additional boost in our competitiveness and productivity,” he noted, giving the example of how technology helped to alleviate the shortage of heavy vehicle drivers.
Looking ahead and beyond the port ecosystem, the transport minister highlighted the need to look at the maritime industry as a whole and improve on other services as well.
“This is what MPA (The Maritime and Port Authority of Singapore) will want to continue to focus on in the years ahead: look for new opportunities; attract new investments; work with existing players to expand their operations here in Singapore; identify new training needs and skills companies require; and work very closely with our institutes of higher learning to be able to train our students,” explained Chee.
“No matter how global supply chains are to shift, what’s key is for Singapore to remain an important hub port and a key node in global supply chains,” he added.
“They may shift the origins and destination; they may shift the way cargo is transported; but what we want to make sure is we put forth a strong value proposition to our customers, so that no matter how these shifts happen, they will all want to still pass through Singapore, they will still want to call at PSA,” concluded the minister.
