SINGAPORE : Swiss company Mediterranean Shipping Co (MSC) has
become the second major global shipping line to operate a container
terminal in Singapore.
The terminal, at Pasir Panjang, is a joint venture between MSC and
port operator PSA.
It was officially launched on Monday.
This is only the second time PSA has allowed such foreign
investment in its Singapore facilities, following a similar joint
venture with Cosco Shipping in December 2003.
The MSC-PSA Asia Terminal (MPAT) manages and operates three berths
at Pasir Panjang Terminal.
It has an annual capacity in excess of two million TEUs or standard
container units.
These berths are capable of handling the world's largest
containerships or mega vessels with capacity in excess of 9,000
TEUs.
This is the second such joint venture between PSA and a major
shipping line in Singapore.
These tie-ups are part of efforts by the port operator to provide
better service to customers and underpin its bottomline amid
growing competition.
"We are guaranteed that for the life of the agreement, MSC will
continue to base their operations in Singapore and not be scouting
to go somewhere else. Basically it guarantees us their business,"
said Transport Minister Yeo Cheow Tong.
"Of course it has to be a win-win situation. That means the joint
venture must be profitable so that they find it beneficial and will
bring more volume to Singapore," he added.
And the volume game is important as PSA seeks to grow its presence
in the global shipping industry.
Singapore regained its position as the world's busiest port last
year after seven years. To maintain pole position, PSA hopes to
increase domestic capacity by about 55% come 2011.
Organic growth is not the only strategy PSA is adopting for its
growth strategy.
"I am sure they are looking for acquisitions, which they have done
before in Europe, like the HNN terminals in Europe. They bought
them over and that gave them a very big footprint in Europe. They
also did similar acquisitions in other parts of Europe," said Mr
Yeo.
PSA's overseas terminals accounted for 46% of its global throughput
in 2005.
- CNA /ls