PSA breaks ground on Singapore supply chain hubPSA breaks ground on Singapore supply chain hub

The groundbreaking of PSA Supply Chain Hub @ Tuas (PSCH) on Friday was attended by Singapore Prime Minister Lawrence Wong which “another milestone in our multi-decade project of developing Tuas Port”.

Tuas Port started operations two years ago and when fully complete in the 2040’s it will the world’s largest fully automated port capable of handling 65 million teu annually. The port currently has 10 berths operational.

The PSCH facility will span more than 2 million sq feet and be situated in the Free Trade Zone next to Tuas Port acting as a regional distribution and container freight station. It will include advanced robotics and automation systems, including the Automated Storage and Retrieval Systems (ASRS) and the Intelligent Warehouse eXchange (iWX)

In his speech at the groundbreaking PM Wong noted that unlike ports in many countries which cater to large production and consumption bases, the city-state does not have a hinterland of its own.

“So, we must remain plugged into global supply chains, so that ships – be it container vessels, tankers, or bulk carriers – will continue to call in our waters, and everyone around the world will see value in connecting with Singapore.”

^{Image Credit: PSA Singapore}

This means not just investing in the port itself but also value-added capabilities.

Related:World’s largest automated terminal: PSA Tuas Port pioneering automation transformation with event-driven architecture

Peter Voser, Group Chairman of PSA International, said, “The PSA Supply Chain Hub @ Tuas (PSCH) is strategically positioned to create exceptional synergy with Tuas Port and it will be instrumental in enhancing value capture within the port and supply chain ecosystem. This new hub is well-positioned to support not only Singapore’s trade and logistics sector, but also the wider Southeast Asia region and beyond. PSCH will be Singapore’s gateway to the world.”

PM Wong also noted a trend towards in container shipping of “supersizing” both in terms of ship sizes and shipping line alliances. “The major alliances today hold over 80% of the world’s container shipping capacity; changes in their service networks could significantly affect traffic to hubs like Singapore.”

He also noted that competition was getting fiercer and more intense with ports such as Shanghai, Rotterdam, and Ningbo-Zhoushan upgrading their infrastructure.

“They are offering value-added services beyond just moving containers. They have cold storage facilities and regional distribution centres to help customers deal with more complex and volatile supply chains.
“So, we too will have to sharpen our competitive edge, to remain the preferred port of call,” PM Wong said.

Related:Singapore officially opens Tuas Port

The supply chain hub will include facilities for cold storage, dangerous and delicate cargoes allowing to handle higher value cargoes such pharmaceuticals and chemicals.

Such facilities are not available at the current Keppel Distripark which will close in 2027. Unlike the current distripark PSCH is located within the Free Trade Zone meaning goods will no longer have to be trucked in and out of the port.

Recent years have seen PSA expand its capabilities considerably between terminal operations into the adjacent supply chain.

Ong Kim Pong, Group CEO of PSA International, said, “Rapidly evolving global trade patterns require us to rethink our business strategy and model. While we continue to secure our positions in key locations, we also need to connect our strategic nodes to form a cohesive and integrated network, in alignment with our Node to Network strategy.

Concluding his remarks PM Wong described Tuas Port as “multi-generational project” and that they were “not done yet”.

“There will be many more developments in the coming years – to ensure that Tuas Port can continue to serve the largest container vessels and orchestrate end-to-end supply chain solutions,” he said.