Asia/Pacific News
Potential Economic Impacts on Singapore from Malacca Port Expansion Still Unknown, Says Minister
Singapore's Senior Minister of State for Transport Josephine Teo Monday said that potential economic impacts on the world's largest bunkering port stemming from the expansion of the Kuala Linggi International Port (KLIP) still remain unknown, local media reports.
As Ship & Bunker reported in November, a Memorandum of Understanding (MoU) between Toyota Tsusho Petroleum and T.A.G. Marine may help Malaysia's planned 12.5 billion ringgit ($2.84 billion) Kuala Linggi International Port (KLIP) to scoop some of the Singapore's bunker traffic.
Teo noted that a preliminary assessment shows that KLIP's planned oil storage capacity of 1.5 million cubic metres (cbm) is small compared to Singapore's own 20.5 million cbm capacity.
"In addition, our position as a regional bunkering and oil storage hub is anchored by a strong ecosystem of oil refineries and oil traders, and by the high volume of ships calling at Singapore for various services," said Teo.
However, Teo called the expansion a "timely reminder" for Singapore to continue working to ensure the port remains competitive.
"The shipping companies are always driven firstly by commercial considerations. They are not going to call on our port because of altruism or because they like us," said Teo.
"So the first thing we must do is to ensure that the product we offer to them meets their requirements and allows them to make a better goal of the commercial considerations than if they were to call at other ports."
Teo highlighted government investments in technology at the port shipping industry, noting that such investments are set to continue, while the Maritime and Port Authority of Singapore (MPA) will continue to regularly survey the needs of shipping companies to improve port competitiveness.
