Port of Singapore offers additional savings to container carriers

The Maritime and Port Authority of Singapore (MPA) will be granting an additional 10% concession on port dues for container vessels calling at the Port of Singapore from 15 January, MPA.

The concession applies to boxships carrying out cargo works with a port stay of not more than five days. The additional concession will be in place for one year, and will be granted on top of existing port dues concessions such as the Green Port Programme incentives and the 20% concession first introduced in 1996. In all, these concessions are expected save than S$ 17 million ($ 11 million) for container lines, according to MPA.

“PSA is working with their customers to enhance vessel productivity at the port and optimise network planning activities such as service deployments and phasing in and out of vessels, with the aim of lowering their operational costs. PSA is also actively engaging container lines which wish to establish a long-term strategic presence in the Port of Singapore,” PSA said.

The measures were announced by Khaw Boon Wan, Coordinating Minister for Infrastructure and Minister for Transport, at the Singapore Maritime Foundation New Year cocktail reception today. Khaw added that ‘the measures are another reflection of the Singapore Government’s consistent commitment to stand with and help our partners through challenging times’.

The Port of Singapore put in a mixed performance in 2015, amidst weak global economic conditions and structural changes in the maritime industry. Advance estimates show that vessel arrival tonnage grew 5.6%, while Singapore remained the world’s top bunkering port with a 6.5% increase in volume of bunkers sold.

Container throughput and cargo throughput, however, contracted by 8.7 and 1.1% 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.