Singapore Grants Extra 10% Port Dues Discount for Containerships

by Ship & Bunker News Team
Friday January 15, 2016

The Maritime and Port Authority of Singapore (MPA) Wednesday announced that, effective January 15, container vessels at the Port of Singapore will receive an additional 10 percent discount on port dues "if they are carrying out cargo works with a port stay of not more than five days."

The 10 percent concession will be in place for one year, and the discount will be awarded in addition to existing port dues concessions, including incentives delivered under the Green Port Programme, and the 20 percent concession that was introduced in 1996.

"In all, these concessions are expected to amount to more than S$17 million ($11.83 million) in annual savings for container lines," stated the MPA.

Bunker Sales Up, Cargo Throughput Down

The announcement came alongside news of advance estimates of the port's 2015 performance, which showed that, while Singapore held its place as the world's top bunkering port with a 6.5 percent sales volume growth and vessel arrival tonnage increased by 5.6 percent, container and cargo throughput declined by 8.7 percent and 1.1 percent, respectively.

"This was largely caused by the overall slump in Asia-Europe volumes, compounded by developments such as the rebalancing of volumes across alliances agreements, and an increase in direct sailings due to lower bunker prices," said the MPA.

The MPA says that, along with the PSA Corporation Limited (PSA), it has proactively developed a number of measures "to help the container lines cope with the challenging economic environment."

With the intention of decreasing operational costs, the PSA is said to be working with their customers to increase vessel productivity at the port, as well as to optimise network planning activities, including service deployments and phasing in and out of vessels.

The PSA is also said to be working to engage container lines that may be interested in establishing a strategic long-term presence at the port.

"The measures are another reflection of the Singapore Government's consistent commitment to stand with and help our partners through challenging times," said Khaw Boon Wan, Coordinating Minister for Infrastructure and Minister for Transport.

In June, Ship & Bunker reported that the newest addition to Singapore's container port had opened with the aim of handling more mega-ships.