[vc_row][vc_column][vc_column_text]The truth is that Singapore outgrew Neptune Orient Lines (NOL) a long time ago, said NOL chief executive Ng Yat Chung.
“It might have been useful in the early days,” he noted, pointing to the national flag carrier’s initial role of promoting and cementing Singapore’s status as a global hub.
Mr Ng was speaking to reporters on Monday even as French shipping giant CMA CGM forged ahead with its $3.4 billion bid to take over the Singapore line.
“But Singapore has become such a success now. Nearly all major carriers from around the world have a substantial presence here,” he told.
NOL was founded by the Government in December 1968 to pave the way for industrial development by carrying some of the nation’s trade at fair freight rates, while maintaining its own ships to carry cargo in times of crisis.
Said Mr Ng: “People ask if NOL helps to bring volume to Singapore – but we don’t decide where to bring volume, our customers do that. They choose to use Singapore as a major trans-shipment hub, and that is only because Singapore is competitive.
“Singapore’s status as a maritime hub has outgrown NOL for some time. It is not dependent on NOL. It is attractive to the offshore sector, the LNG (liquefied natural gas) sector, there are other sectors that have come up.”
Mr Ng said he remains “bullish” on Singapore’s future as a maritime hub. He acknowledged that as the industry down-cycle stretches out, the intensifying competition has led some shipping firms to seek locations with lower costs.
“But some shipping companies have also come here,” he noted, citing CMA CGM. “This is a constant game. Competition is on, it never stops. You gain some and lose some, that is how it is.”
Still, he said that Singapore’s competitive position depends on the quality of infrastructure, the transparency of laws and regulations, and good policies that promote the maritime industry – all of which are “pluses” and unlikely to change.
Both the Maritime Port Authority of Singapore and port operator PSA have announced measures to strengthen Singapore’s position as the world’s largest trans-shipment hub, including an additional 10 per cent concession on port dues.
Plans for a new mega port in Tuas, which will house all container operations from the next decade, will allow Singapore to handle up to 65 million standard containers a year, up from 40 million units today.
“Of course, the high cost of doing business here is an issue, but I think if we can continue to improve our productivity, we will be able to offset some of that,” added Mr Ng.[/vc_column_text][/vc_column][/vc_row]
