“We will see further consolidation. It is a matter of bringing people together to realise the challenges and the opportunities, and look at how we can overcome them together,” SS Teo, managing director of Pacific International Lines (PIL) and chairman of Singapore Maritime Institute (SMI), spoke at a press briefing on Monday ahead of the launch of Sea Asia 2015.
Teo added that the business of shipping is not all about size and scale, and companies also need to focus on the “softer side” of shipping such as customer service and information technology.
The prolonged oversupply of ships has plagued the industry for several years, with the world's container fleet recorded at 5,043 vessels at the end of 2013, up from 5,010 at the end of 2012. The excess capacity is further amplified through the introduction of larger vessels.
Collaboration is also important to tackle the shortage of highly trained talent within the industry and environmental sustainability.
The world's fleet is expanding at a rate of 2.3% per annum, fast outstripping the supply of global maritime talent. Tan Beng Tee, assistant chief executive (development) of Maritime and Port Authority of Singapore (MPA), commented that for Singapore, the port authority is focused on developing a “pipeline of strong Singaporean talent”. The development of new technology as well as the increased productivity of the existing workforce will help reduce the demand for as many human resources.
Teo said that under the SMI Research and Development roadmap, they are planning an R&D programme to pursue issues and opportunities related to ballast water and exhaust emission, among others.
Michael Chia, managing director of Keppel Offshore & Marine and chairman of Singapore Maritime Foundation (SMF), said that by working together to overcome the present set of challenges, the maritime industry in Asia will be set for future growth.
“The basic driving force behind shipping will be the growth of the Asian economies. We see China continuing to grow. Asean has a reasonable growth pace; India is coming up and Vietnam is a hidden tiger. These economies will continue to sustain shipping,” Chia said.
Indeed, the challenges and opportunities facing the region's maritime industry will be the focus of next year's Sea Asia, an event which has firmly established its position as the leading platform for discussion, debate and analysis on the maritime industry.
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