Singapore, one of the world’s most advanced economy is increasing its presence in the global shipping industry. According to the World Bank, Singapore has the second busiest port just behind Ningbo Zhoushan port where China’s leading foreign trade happens.
With the state of the current global world shifting to a more online presence, the need for shipments has been skyrocketing. This opportunity presents a better economic advantage to Singapore as it holds such an important shipping lane.
In fact, in the past, the wealth accumulated early on within the region was because Singapore hosted one of the world’s most important seaport hubs. Today, however, the maritime industry presents several challenges to the world and Singapore in terms of technological advancement, labor shortages, and more.
It is such a necessity to find innovative ways to navigate in the world we live in today and that’s why Singapore came out with a $20 billion massive plan to create the world’s largest fully automated terminal also known as the Tuas Mega Port project.
This grand infrastructure plan will be like no other. With automation being the key centerpiece, it is expected to be powered with 1,000 automated cranes and 1,000 driverless vehicles to ensure that it becomes as efficient as it can.
There will even be state-of-the-art smart sensors to detect privacy products and the usage of data analytics to combat traffic congestions.
To ensure that Singapore is targeting a green environment, it is incorporating the use of the internet of things (IoT) to help deliver sustainable solutions. Singapore’s government has also taken into account the need for better marine tech focused businesses in its country, enough for it to justify a massive $15 billion framework for funding startups that operates in green data processing and cyber security companies.
This investment will help businesses operating in Singapore with international transactions. As this is a port where there will be a lot of shipments, then the necessity to have good communication, good security, and efficient use of data is such a vital key point for the usage of this port.
Cyber security is such an essential industry in years to come. Especially knowing that this infrastructure will be operated with the use of technology, it poses a risk for cyber attacks, hence, Singapore’s investment in better security is an excellent move.
The size of Tuas Mega Port will be twice that of Ang Mo Kio New Town. This means that it will have a total capacity of over 65 million 20-foot equivalent units which is more than the current 50 million capacity of current terminals combined.
It will even have 8.6 kilometers of wharfs and infrastructure to accommodate the world’s largest container ships. It will also construct 21 deep-water births that will have the capacity to handle 20 million standard size container units a year.
The estimated fully operational date of Tuas Mega Port is still quite far away, which is somewhere around 2040. The construction started in 2015.
The construction of the Tuas Mega Port will increase Singapore’s economy to a new level. It is known that over 7% of Singapore’s overall GDP is because of the maritime sector and even more so that it contributes to over 170,000 workers.
With the creation of this Mega Port, even though it will take away several other jobs because of automation and artificial intelligence, it will create newer jobs for people who function in the technology world.
This is especially important as Singapore is shifting to a more technology stance. Once the completion of Tuas Mega Port has finished, it will finally end the long-running operations of the current PSA City terminals and Pasir Panjang terminal which started way back in 1819.
This means that Tuas will be the only port Singapore will have. Although they are ending the other ports, the massive structure of Tuas will obviously be big enough to accommodate future logistics operations with Singapore’s government targeting an increase of the industry worth by $4.5 billion and 5,000 new jobs by 2025.
The contractors of Tuas come from a consortium of several giant companies, some notably are that of Penta-Ocean Construction, Hyundai Engineering & Construction, Boskalis International, and a few more internationals.
To finish, we all know that the current pandemic has caused strains on the international supply chain and is expected to continue to operate in bottlenecks. This really sets Singapore into a brighter future as it aims to accommodate the increasingly global shipment containers that sway around the world.
Giant projects like this will undoubtedly have their own set of risks and challenges. One of the major challenges is China’s belt and road project which will recreate how we see land connectivity and is a threat to shipping focused products. Competition around Southeast Asia is also surfacing as other countries are steadily growing and are said to have their own Mega Ports.
But Singapore is a leading country. With that in mind, we know that they have the strategy to plan things ahead and stay ahead.
