Progress on Construction and Operation of Tuas Mega Port and Strategic Adjustments Made for Post-COVID-19

Mr Desmond Choo asked the Minister for Transport (a) what is the current progress on the construction and operation of the Tuas Mega Port; and (b) what are the strategic adjustments made in view of potential realignment and reorganisation of supply chains for post-COVID-19.

The construction of Tuas Port has continued amidst COVID-19 whilst adhering to strict safe management measures. Tuas Port will be developed in four phases. The Maritime and Port Authority of Singapore (MPA) is on track for the completion of land reclamation works for Phase 1 of Tuas Port, which will create 400 hectares of land to support the operation of 21 berths handling 20 million TEUs a year by 2027. Reclamation works for Phase 2 are also progressing well and the planning for Phase 3 has commenced. PSA is on target to operationalise the first two berths in Phase 1 by the end of the year.

The development of Tuas Port will sustain our port’s competitiveness and secure Singapore’s connectivity to the world. With an eye to the future, Tuas Port is designed to be able to handle the mega container vessels of tomorrow. Its location also allows it to be integrated into an extensive and well-connected port logistics ecosystem in the Tuas industrial area, which will further improve Singapore’s value proposition to manufacturers. When fully operational in the 2040s, Tuas Port, with a design capacity to handle 65 million TEUs per annum, is expected to be the world’s largest fully automated container terminal.

Amidst the COVID-19 pandemic, our port has stayed open and provided critical connectivity to the region and the world. Container throughput in the first six months of this year increased by 5% compared to the same period last year.

Due to COVID-19, companies are re-evaluating and strengthening the resilience of their supply chains, balancing between “just-in-time” and “just-in-case” to benefit from adequate resilience while achieving efficiency and competitiveness. The increased pace of digitalisation in the maritime sector will also result in greater efficiency and integration of the global supply chain. These disruptions could affect future demand for seaborne transport and our port services. We thus monitor these developments closely and are prepared to make strategic changes when warranted. For instance, PSA has ventured into the wider supply chain ecosystem to develop cargo solution initiatives, both physical and digital, that create resilience, agility and flexibility for cargo owners. The modular design of Tuas Port also allows us flexibility in staging its construction to respond to changes in demand.

To stay ahead and remain valued by the shipping lines and global supply chains, the Port of Singapore will continue to provide world-class port efficiency and reliability and offer a comprehensive suite of value-added port services by leveraging technology and automation.