Singapore Government Press Release

Media Division, Ministry of Information & The Arts, #36-00, PSA Building, 460 Alexandra Road, Singapore 119963, Tel: 3757794/5

SPEECH BY MR MAH BOW TAN, MINISTER FOR COMMUNICATIONS, AT THE COMMISSIONING CEREMONY OF VTIS2 (VESSEL TRAFFIC INFORMATION SYSTEM 2) OF THE MARITIME AND PORT AUTHORITY OF SINGAPORE AT TANJONG PAGAR COMPLEX, #03-00 ON 25 NOV 96 AT 3.00 PM

1995 was another busy year for the port of Singapore. The number of vessels which called at the port surpassed the 100,000 mark for the first time in its history. In the last 10 years, the number has more than doubled, from some 36,000 vessels in 1985 to 104,000 last year. This upward trend is expected to continue. Already, for the first 10 months of 1996, the number of vessels calling here has surpassed 97,000, an increase of more than 13% over the same period last year. The total number for this year is expected to exceed that of 1995.

As Singapore has limited sea space, managing such a large number of vessels which are using the port presents a great challenge for the Maritime and Port Authority of Singapore (MPA). Even as the number of vessels visiting Singapore grows, navigational safety must be maintained. It is important to assure ships calling at Singapore that they continue to enjoy a high level of safety in our waters.

In this connection, I am pleased to be here today to officiate at the commissioning ceremony for the Vessel Traffic Information System 2, or VTIS2 for short. The $21 million VTIS2 project builds on the success of the present VTIS system. Singapore was first among regional ports to implement a radar-based VTIS system at a cost of $42 million. With five radars installed along the southern coast of Singapore and the offshore islands, vessels navigating in the Singapore Strait can be monitored and kept in contact with the Port Operations Control Centre (POCC), giving the port an overview of the traffic in the Singapore Strait and port approaches. In addition, using an intelligent tracking software, the system is able to detect potential collisions and grounding situations. Such information is relayed to the vessels to enable them to take the necessary action to avert possible shipping accidents. Therefore, the VTIS not only facilitates communications between the port and the vessels, it also enables the port of Singapore to disseminate timely safety information to the vessels at all times. The results of the VTIS have been impressive so far. Since its implementation, the VTIS has enabled the port authority to provide a high level of navigational safety. The average rate of accidents has been reduced by more than 50%.

In view of the success of VTIS, 4 more radars were added to enhance the system in 1995. The enhanced system, the VTIS2, extends the radar coverage into the port waters, from the South of Changi to the South of Tuas. At any one time, the system is capable of tracking and providing safety coverage for up to 1000 vessels. The VTIS 2 is another demonstration of Singapore's commitment to ensure that the Port of Singapore and its approaches remain safe for all ships.

Safety alone however is insufficient to guarantee the success of the port. To be attractive, a port must not only be safe but also efficient, cost-effective and competitive. In other word, the port must always strive to help its customers gain a competitive edge and enable them to achieve their desired results. Globally, shipping lines are going through a rough patch. Freight rates have been low and competition has been very keen. It is therefore important for the port of Singapore to help its customers lower their costs.

This can be done in two major ways. Firstly, our port must continue to improve its already high levels of efficiency and service levels so as to help ship owners turnaround their ships within even shorter time. A shorter stay in the port means lower port charges and shorter voyage time. This translates into increased earning opportunities for the ship. Faster turnaround will also help the ship owners meet the exacting requirements of the shippers, who are increasingly demanding reliable and just-in-time shipping services to reduce inventory costs. By constantly improving our efficiency and reducing the turnaround time, we can pass productivity gains back to our customers and help lower their costs.

Secondly, the port must work to keep its costs down so that customers are not burdened with increased charges when calling at the port. In this connection, in April this year, when I officially launched the Maritime and Port Authority of Singapore, I announced a 20% reduction in the port dues for container ships calling at Singapore for the rest of 1996. The move was welcomed by the shipping community. Today, I am pleased to announce that MPA will extend the 20% reduction in port dues for container ships for another two years, that is 1997 and 1998. The concession will cost MPA about S$10 million. This is our commitment to the shipping community, that we value our relationship with the shipping lines and will do everything possible to strengthen this partnership.

The port of Singapore continues to receive increasingly more ships because we provide efficient and "value-for-money" port services, underpinned by a port and waters safe for navigation. As the Asia Pacific region grows, cargo and container throughput in the region's ports will increase. This is true not only for the Port of Singapore but also for other ports in the region. For the region as a whole to handle more cargo, navigational safety is fundamental. Only when our waters are safe for ships to sail can the region's ports reap benefits in handling more cargo. The VTIS2 system is Singapore's contribution to the shipping community in making the waters around the Port of Singapore safer for all vessels.

It is now my pleasure to officially commission the VTIS2.