Singapore Government Media Release
Media Division, Ministry of Information and The Arts,
140 Hill Street #02-02 MITA Building, Singapore 179369.
Tel: 837 9666

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I am pleased to join you this evening for the launch of Jurong Port Pte Ltd which will henceforth operate at arm�s length from JTC.

The history of Singapore port is as old as the history of modern Singapore. Founded by Raffles as a free port in 1819, Singapore rapidly became a centre of international trade. We have now become one of the busiest seaports in the world. With the rapid growth of global trade, Singapore is the foremost transhipment hub in the world for sea cargo. Last year, PSA handled 17 million TEUs of containers.

Jurong Port complements PSA especially in the handling of conventional and bulk cargo. First established as Jurong Wharf in 1965, the port served the needs of fledgling industries in the new Jurong Industrial Estate. It brought in raw material such as grains, cement clinker, sugar and steel products, and facilitated the export of finished goods. Since those humble beginnings, Jurong Port has grown rapidly and now handles more than 13 million tonnes of cargo per year. Jurong Port has been able to meet the changing needs of its customers by investing in infrastructure and technology. As Singapore industrialised, PSA specialised in the container business while Jurong Port concentrated on general cargo.

As the world gets smaller, customers demand greater speed and efficiency. The entire shipping industry is now going through a revolution because of globalization and IT. Global manufacturing, global logistics and global trade are all now parts of one whole. Because of the pressure of competition, outsourcing has become a major trend in manufacturing. In logistics, however, competition favours those whose operations are integrated into manufacturing and distribution. All this unbundling and rebundling has led to dramatic changes in industry structure.

In this new game, Jurong Port must find new ways to create value for its customers. Otherwise, in today�s global operating environment, the Port�s customers can easily go somewhere else. Jurong Port must therefore be innovative and customise solutions for its customers instead of relying on outmoded one-size-fits-all solutions. No longer are ports merely centres for the loading and unloading of goods.

All over the world, ports are being corporatised and privatised to give them the necessary flexibility and autonomy to reposition themselves. Closer to home, we can expect greater competition from regional ports.

The corporatisation of Jurong Port will help us meet these new challenges. It is a logical step after the formation of the Maritime and Port Authority of Singapore in February 96 and the formation of PSA Corporation in October 97. Like PSA, a corporatised Jurong Port will make it more competitive. The greater flexibility will enable Jurong Port to respond more effectively to international competition and serve its customers better. Jurong Port will also be free to enter into new business ventures either by itself or in alliance with others to provide comprehensive and integrated services for its customers.

With Jurong Port corporatised, JTC Corporation can concentrate on its core business of providing industrial infrastructure and experimenting with different solutions for the New Economy. For example, JTC is responsible for the development of the new Buona Vista Science Hub.

Jurong Port is much smaller than PSA and must find its own niches. Jurong Port will continue to be an important gateway for Singapore�s bulk and conventional cargo. This strength, Jurong Port must continue to build on. In the container business, Jurong Port starts from a clean slate. Being small, it can hopefully seize opportunities more quickly. In selected areas, it should aim to do better than PSA. It can provide its customers with boutique options. Jurong Port should aim to become a world class multi-purpose port. Together with PSA, Jurong Port will strengthen Singapore�s position as a major maritime and logistics hub in the world.

With the expansion of Jurong Island, Jurong Industrial Estate and Tuas View, there will be an increasing volume of cargo generated in the western part of Singapore. Jurong Port is well-situated to capture part of this market. It has invested in modern container handling facilities. It has also built the Jurong Logistics Hub to meet the logistics and warehousing needs of companies in the area. These investments will benefit manufacturers in Jurong and provide them with more options and greater convenience.

Jurong Port is off on a promising start. I wish the management and staff success and profitability.

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