Singapore remains #1 transhipment port
PSA, the Singaporean port operator, has entered into an agreement with Japan’s leading carrier, Ocean Network Express (ONE) last month to operate four mega container berths in Singapore starting from the first half of 2020, making the country the major port of call for ONE’s services.
The deal was the missing link bringing the three major global container shipping alliances, which together account for more than three quarters of the world’s container trade, to Singapore.
PSA handling 4 million TEU
It is scheduled the PSA-ONE cooperation will be able to handle approximately four million TEU annually. The Port of Singapore currently holds the title as the world’s top transhipment port – an intermediate stop for cargo on its way to another destination – and the second-busiest port globally, after Shanghai.
shipping consultancy Alphaliner’s chief analyst Tan Hua Joo, who is based in Singapore said that the joint venture will moor ONE’s shipping volumes to Singapore, effectively removing the immediate threat of THE Alliance moving to Port Klang, an idea that had been mooted over the past two years.
Port of Hong Kong and Port Klang down under
“Port Klang is the main loser as the move limits their ability to draw away Singapore’s customers, now that all three of the global shipping alliances are tied to PSA through various joint-venture arrangements,” Mr. Tan said.
Hong Kong in recent years has dropped out of the top spot as the world’s leading container port, having ceded volumes to mainland China ports that are increasingly automated.