‘Pasir Panjang’ in Malay means long beach. I grew up not far from here. I must confess that I rather liked the quiet and leisurely pace of life. I feel nostalgic each time I travel through Pasir Panjang. Little would I imagine that this salubrious suburb would be transformed into a bustling container port. But I am also excited by the thought of Pasir Panjang hosting a world-class port.

Our port had humble beginnings on the muddy banks of the Singapore River. There, tongkangs and bumboats carried goods to and from ships anchored in the Inner and Outer Roads. Stevedores and coolies carried heavy sacks of rice, coffee, spices and bales of rubber on their muscular backs. They worked under the blazing sun. Productivity was low and working conditions were poor.

As Singapore’s entrepot trade grew, our port also expanded. Our planners kept up with developments in the shipping industry and in 1972, Singapore commissioned its first container berths at the Tanjong Pagar Terminal. With container handling facilities, the productivity of the port improved dramatically. As more shipping lines replaced their conventional ships with container ships, the PSA converted more conventional berths into container berths. Today, Singapore is a mega container transhipment hub and the world’s busiest port. It has received many international awards such as the inaugural Lloyd’s List Maritime Asia Award for the Container Terminal category. Just three days ago, Singapore won the Asian Freight Industry Award for the Best Seaport in Asia for the 12^th time. The PSA also topped the container terminal category for the 11^th time.

Like the development of Singapore, the success of our port is not pre-ordained. Foresight in planning, bold investments and continuous upgrading of our workforce and facilities have enabled us to become a world-class port. Each milestone in the development of our port is the culmination of many years of forward planning and implementation. For example, the plan for this new terminal at Pasir Panjang was made more than eight years ago. At that time, the place on which we now stand was still part of the sea. It was not an easy decision to make available this beautiful stretch of seafront for port development. There were many competing uses for waterfront land in land-scarce Singapore. But our port is the lifeline of our economy. And there was no room for further expansion in Tanjong Pagar. Pasir Panjang, given its deep, sheltered waters and capacity for expansion, was the best site for a new terminal.

The PSA designed Pasir Panjang Terminal not only to meet its customers' current needs but also their future demands. It has taken into account the possibility of ships reaching sizes not considered commercially viable today. These ships would be physically too large for many of today’s ports. It has also made provision for a future when shippers would demand Just-In-Time delivery and total flexibility to make last-minute booking changes. The PSA recognises that physical cargo handling is but one dimension of the complex services offered by terminal operators. Information management and financial services are also needed by users of our port.

Technologically, Pasir Panjang Terminal boasts many advanced handling features. Its remote-operated bridge cranes are the first of its kind. An operator controls up to 4 bridge cranes at any one time, compared to one crane per operator now. The intensive use of IT has allowed PSA to achieve a world record of moving 234 containers per vessel per hour in January this year. In future, PSA will set new records for containers handled per hour per operator!

Our port connects Singapore and the region to the world. Manufacturers here and the region benefit from the extensive shipping network and high-sailing frequencies from our port. By using our port, they are able to import raw materials and export finished goods quickly and at competitive freight rates. By cutting down shipping and turnaround time we help reduce inventory costs and enhance the competitive position of businesses in the region. This is a significant economic contribution by our port to Singapore and the region.

Yet, this is not enough for Singapore to survive in a fiercely-competitive globalised economy. Singapore must be more than a major hub port. We should develop Singapore into a leading international maritime centre by leveraging on our existing strengths in financial services, IT, telecommunications and transportation.

To be a leading international maritime centre, we need to build up our ship registry, develop the human resource required and establish Singapore as a centre for maritime research and technology. We should have more maritime insurance and ship financing and other shipping-related financial activities. We welcome more financial institutions to play an active role in these sectors. We must also continue to attract and develop the necessary talents to support the port and shipping industry in Singapore.

There are key trends and profound changes in the shipping and port industry which we must monitor closely. For example, consolidation in the shipping industry in recent years has resulted in mergers and alliances among major shipping lines in the world. As of 1999, the six major shipping alliances control 44% of the world’s ship capacity. Our port must be able to cater to the different needs of these alliances and other shipping lines. Service quality and cost-competitiveness will have to meet their needs.

In addition, competition among ports has intensified. Some ports have openly declared their intention to challenge Singapore as the hub port of the region. This is not unexpected and, in fact, is an acknowledgement of the market-leader position of our port. Singapore cannot afford to be complacent. Economic history shows that market leaders will be displaced if they are not responsive to changes. Our port must, therefore, continually provide better-customised services to stay on top.

Let me conclude by reiterating that the Government is committed to making Singapore into a leading international maritime centre. The Pasir Panjang Terminal demonstrates our commitment to serve the complex needs of the shipping and trade communities. We will continue to work closely with them to improve our infrastructure and to increase our capabilities in line with global trends and demands. We welcome more global players to our shores.

It is now my pleasure to declare the Pasir Panjang Terminal open.

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