ASSOCIATION PRESENTATION
TO APEC TRANSPORTATION
WORKING GROUP ON
28 MARCH 2000
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SINGAPORE SHIPPING ASSOCIATION PRESENTATION TO APEC TRANSPORTATION WORKING GROUP ON 28 MARCH 2000 |
A PRESENTATION TO APEC
TRANSPORTATION WORKING GROUP
Tuesday, 28 March 2000
MARITIME INITIATIVE MEETING
Mr Tokuyuki Sudo, Chairman
Distinguished Delegates,
Ladies & Gentlemen
Good Morning and a very warm welcome to Singapore.
Firstly, let me thank Sudo-San for inviting me to make a presentation at this Maritime Initiative meeting. This morning I am proud to represent the Singapore Shipping Association (SSA) in providing a presentation on the Singapore maritime sector to all of you.
(Slide 1)
My presentation this morning will basically focus in five main areas:
A brief history of the Singapore shipping industry
(Slide 2)
Singapore’s history began as a little fishing village back in the 14th century. She was then known as Temasek or Sea Town. The origin of the modern name of Singapore came from its Sanskrit name of Singa-Pura which means "lion city".
The history of Singapore shipping can be traced to its origins at the mouth of the Singapore River. It was here that Sir Stamford Raffles stepped ashore and founded Singapore in 1819. Raffles, an agent of the East India Company, set up a British trading post on the island after signing an agreement with the Sultan of Johore. He was then the Lieutenant-Governor of Bencoolen who saw the need for a new outpost to secure Britain’s trade route to China through the Straits of Malacca and to expand the British commercial interests in the Malayan archipelago. In 1824, a treaty with the Sultan of Johor gave the British possession of Singapore.
Soon after the foundation of Singapore, Raffles laid down as his objective the development of "a great commercial emporium" and "free port" in Singapore which would become the "pride of the East". Singapore’s strategic location and free trade policy therefore made it the natural choice for a port of call for trading vessels from the Indonesian archipelago, China, Vietnam, Cambodia, India, the Arab countries, and Europe. Spices and silk were the main commodities that were traded in those days.
The Singapore river soon became developed as the main commercial centre with a supplementary trading area for small craft at the estuary of the Rochore and Kallang Rivers. The port started to develop and flourish as an entrepot port for its first 40 years. It was sustained by a growth in coastal shipping and a thriving barter trade. Its free port status and natural harbour also contributed to its being a main port of call and a refueling station for steamers.
The opening of the Suez Canal in 1869 also benefited Singapore. By 1902, Pulau Bukom, an island off Singapore became the leading oil supply centre in the Far East. In 1903, Singapore became the fourth largest port in the British Empire and the seventh in the world in terms of shipping tonnage.
The Singapore Harbour Board, which took over the Tanjong Pagar Dock Company, was constituted in 1912. Immediately upon its formation, the Board embarked on a building programme to upgrade the port facilities. By-laws and a tariff of rates and charges were also formally introduced. The port limits were extended and re-defined by the Government.
The Second World War from 1941 to 1945 however interrupted the steady expansion of the port. During the war about 70% of the warehouses in the Keppel Harbour suffered damages from the bombing raids. When the Singapore Harbour Board resumed control in 1946, it was faced with a monumental task to rebuild the harbour. At that time, the port also had to cope with a sudden influx of heavy sea traffic transporting food and other essentials which were necessary to alleviate the war time sufferings of the people. With the restoration of the port facilities, shipping and trade quickly resumed. Shipping tonnages steadily increased from 20.4 million NRT in 1947 to 83 million NRT in 1963.
The Formation of the Singapore Shipping Association
(Slide 3)
Following the continued expansion of shipping and trade after the Second World War, a few local shipowners in Singapore saw the need and importance to set up an Association to represent their interests. The first Singapore Shipping Association (SSA) was therefore formed in 1953. It basically represented the interests of shipowners in the home and local trades, particularly their shipping activities with Indonesia.
In 1955, a second Association known as the Singapore Shipowners Association (SSOA) was formed. This Association mainly represented the interests of foreign shipowners and shipping companies that had strong shipping interests in Singapore. At the same time, the Singapore Maritime Employers' Federation (SMEF) was formed with the primary objective to promote good industrial relations between the seafarers and the employers.
Responding to the phenomenal growth in port expansion and related infrastructure immediately following Singapore's independence from the British in 1959, the tugs and barges community in Singapore also flourished. The operators in this community were instrumental in the land reclamation programme that was then taking place. A vast area of the Jurong industrial estate and the Tanjong Pagar Container Terminal were built on the reclaimed land, the sand and earth of which were brought in by barges from the neighbouring countries. The Singapore Barges and Tugs' Association (SBTA) was thus formed in 1973.
In 1978, Singapore also saw the formation of its fifth Association known as The Shipping Agents and Brokers' Association of Singapore (SABAS). As if there were not enough Associations to represent shipping interests in a small country like Singapore, a sixth Association, The Singapore National Shipowners' Association (SNSA) was formed in 1979 to represent the interests of Singapore shipowners that ply internationally. This was also in response to the need for a more representative national body to represent Singapore shipowners in international forum such as the Federation of ASEAN Shipowners' Associations (FASA) that was formed in 1975.
By 1980, the shipping community in Singapore was represented by no less than 6 shipping associations. At the 5th Anniversary Dinner of the Singapore National Shipowners’ Association held on 7 December 1983, Mr S Chandra Das, Chairman of the newly formed Trade Development Board(TDB), a statutory board which took over the functions of the Department of Trade, made a call to the shipping community to merge to form an umbrella association which would be more effective in meeting the needs and in safeguarding the interests of all sectors of the shipping industry in Singapore. The shipping community decided to take the TDB’s advice in big strides and formed discussion groups to consider the integration of 5 shipping associations for Singapore. The SMEF was somehow not included in the amalgamation.
The new Association, which became known as Singapore National Shipping Association (SNSA), was formed on 29 January 1985
Although the SNSA was functioning well over the next ten years, a review was however undertaken in 1996, to re-position it better to keep pace with the fast-changing shipping environment. A new organisation structure was put in place in 1997.
(Slide 4)
The Association took its present name, Singapore Shipping Association (SSA) in 1997. The "national" was dropped because the Association had been open to non-nationals as well. The new name better reflects the multi-national composition of its membership and projects a more international outlook. It was also a shipping and not a solely shipowners' association because the Association caters to the entire spectrum of shipping interests including, among others, ship finance, ship insurance, maritime law, ship classification, ship broking and chartering.
(Slide 5) (Slide 6)
It also set out its renewed objectives and laid out the activities that it will undertake to benefit its members and the shipping community at large.
The Association currently has 229 Ordinary and Associate members. As its Mission includes the promotion of Singapore as an International Maritime Centre, the SSA is keen to attract more ancillary service providers as Associate Members. The total number of Associate members has grown from 8 in 1996 to 49 today.
The role of the Association in Singapore Shipping
The Association took active steps to promote Singapore as a leading maritime centre. Following its amalgamation in 1985, it hired consultants to make comparative studies between Singapore and other maritime centres, such as Rotterdam, London, New York and Piraeus. The recommendations from the studies were presented to the government in 1987. Some of them were adopted and implemented.
The years that followed saw the Association's Council took active steps together with the Port of Singapore Authority and the Marine Department at that time, and the Trade Development Board (TDB) to make promotional visits to Europe, United States and various Asian countries to attract shipowners, ship managers and other related companies to operate from Singapore.
(Slide 7)
The Association has also reviewed and put in place a set of bold and visionary Mission Statements that would provide the guiding principles to help navigate the Association well into the new millennium.
(Slide 8)
Consistent with our ambition to promote Singapore as an International Maritime Centre, the Services Committee in the SSA also works closely with the authorities to make it more attractive for shipping and shipping-related companies to set up operations in Singapore.
On the domestic front, the SSA Domestic Committee works closely with the Government authorities to help alleviate ship operation problems and business costs in Singapore.
On international shipping, the SSA has taken on a higher international profile. It has been actively building on its existing ties and seeking new ones with international bodies with which it shares common interests and objectives. This is the responsibility of the International Committee working hand-in-hand with the Technical, Safety, Environment & Training Committee.
(Slide 9)
The SSA is also a very active member of the Federation of ASEAN Shipowners' Associations (FASA) which brings together the shipowners associations of Indonesia, Malaysia, Philippines, Singapore, Thailand and Vietnam. FASA appointed SSA as FASA's Permanent Secretariat in 1995 and of which I have been appointed by FASA as its Secretary General.
(Slide 10)
Through its affiliation in FASA, the SSA also takes a keen interest in the Asian Shipowners' Forum(ASF). The ASF brings together the shipowners associations of Japan, Korea, China, Taiwan, Hong Kong, ASEAN and Australia. FASA chairs the ASF's Safe Navigation Committee, which FASA delegated to SSA. In view of the FASA Secretariat being based in the SSA, FASA also asked SSA to organise and host the 6th Asian Shipowners Forum, which it did very successfully in Singapore in May 1997.
An Overview of the Singapore shipping industry today
Over the years, Singapore has strived to serve as an effective transport and logistics hub and the region’s key distribution centre. Despite the recent economic crisis, Singapore remains strongly committed to be a Premier Maritime Hub in Asia and a major International Maritime Centre.
Thus, the Singapore Trade Development Board (TDB) - the national lead agency for the logistics, distribution and commercial shipping sectors, and the Maritime and Port Authority (MPA) of Singapore as the sole regulatory body overseeing Singapore's port and maritime affairs - have adopted a few key thrusts to ensure Singapore’s competitiveness as a one-stop shipping hub. These include the adoption of a total approach to develop an efficient trade system, an excellent transport and logistics infrastructure and creating a conducive business environment. The MPA and TDB have also expended continuous efforts to attract ship owning and operating activities to Singapore, while encouraging the growth of shipping ancillary services.
Located at the heart of the Asia-Pacific, and at the crossroads of the main shipping routes, Singapore offers a vital link for international transport and logistics activities between the East and the West. It links some 400 shipping lines to more than 700 ports in 130 countries world-wide. Singapore’s outward-oriented economic policies coupled with her firm commitment to free trade have contributed to the country’s rapid growth as an international business and shipping hub.
Both local and international businesses enjoy a conducive business environment in Singapore. A stable political and economic climate, world-wide sea- and air-links, modern port and airport facilities, a sophisticated telecommunications network, a comprehensive land transportation system, financial expertise, and a skilled and disciplined workforce are some factors which have contributed to the Republic’s success.
Singapore has come a long way in her development as a maritime centre. According to UNCTAD, we have moved from the 19th position in 1991 to become the 12th most important maritime nation today. Singapore’s merchant shipping registry with a gross tonnage of more than 24 million is currently ranked as the 7th largest in the world. We are also the world’s busiest port in terms of shipping and cargo tonnage. In terms of container traffic, the port handled a total of 15.94 million TEUs in 1999. This was an increase of 5.3 percent from 15.14 million TEU in 1998. In addition, Singapore is the world’s leading bunkering port, supply some 18.89 million tonnes of bunker in 1999, an increase of 4.6 per cent over 1998.
(Slide 11)
With the continued expansion of Singapore as an International Maritime Centre, a dynamic shipping community is also fast developing. Singapore has successfully attracted a core group of international shipping companies to use Singapore as a base for ship-operating activities. Capitalising on Singapore’s status as a reputable financial centre, some of these companies have also chosen to list on the Stock Exchange of Singapore.
(Slide 12)
Concerted efforts are also taken to develop the shipping ancillary services by promoting the establishment and expansion of competent international ship management companies, ship agencies, and ship brokers in Singapore. The country’s sound banking and financial system, coupled with the presence of a critical mass of ship owners/operators, have also attracted reputable shipping banks to set up a regional base or expand their operations here. In addition, there is an increasing demand by shipowners/operators in using Singapore as a location to raise funds to finance the expansion of their shipping activities. In 1997 alone, banks in Singapore undertook shipping loan facilities amounting to some US$1 billion.
The marine insurance scene is gradually evolving and sprouting roots in Singapore. It has been observed that a viable marine hull insurance market is vital to the development of Singapore as a major international maritime centre. The P&I Clubs have also set their operating bases in Singapore.
Singapore has also made significant progress in developing marine legal services and maritime arbitration. Besides entrenching a core group of international maritime lawyers, Singapore is also fast building up its own pool of local expertise in this specialised field. Our local pool of maritime legal experts include seven judges, three permanent members of the Court of Appeal judges and three senior counsels specialising in maritime matters. Established in 1991, the Singapore International Arbitration Centre has developed a local panel of 23 accredited arbitrators and experts in the law and practice of international arbitration and conciliation for shipping/maritime and Marine Insurance.
(Slide 13)
Singapore as a major maritime hub has seen the Federation of ASEAN Shipowners’ Associations (FASA) and the renowned international shipping organisation such as the Baltic and International Maritime Council (BIMCO) setting up their presence here. INTERTANKO, the International Association of Independent Tanker Owners, which represents 74% of the world's independent tanker fleet, has also set up its first Asian representative office in Singapore in January 1999. These international maritime organisations are increasingly using Singapore as a networking venue as reflected by the international shipping conferences and meetings held here such as INTERTANKO’s Singapore Tanker Event, and the International Transport Intermediaries Club Ltd’s (ITIC) Board Meeting. Attracting such international maritime organisations to set up a presence or to stage key events here boosts Singapore’s profile as an international maritime centre and provides a forum for networking and the exchange of views.
Our Challenges Ahead
The economic benefits and spin-offs of the shipping industry have however attracted many countries, especially in the Asia Pacific region, to embark on their expansionary programmes. These include building new port and shipping infrastructures to take advantage of the fast developments in shipping and trade that are strongly anticipated to follow in the near future. The slowdown in the Asian region in the last couple of years was only a temporary phenomenon as economic activities have already started to recover fairly rapidly.
Singapore’s strategic geographic position has served well to build up its status as a hub and its international linkages. Together with the Maritime and Port Authority of Singapore, The Singapore Trade Development Board and other relevant government agencies, the SSA will continue to work towards enhancing Singapore’s competitiveness as a Premier International Maritime Centre and meet the needs and challenges of business in the new millennium.
On this note, ladies and gentlemen, I conclude my presentation this morning.
Thank you.
This page was last updated on 17 May 2000
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