Among its accolades
is
being ranked
the
world's top logistics
hub
by theWorld
Bank
in 2007. Further boosting that status
is
the fact that 21 of the world's top25 third-party logistics service providers(3PLs) have significant operations in Singapore, offering high-value, integratedsupply chain services. These include keyplayers such as Agility, DHL, Expeditors,FedEx, Kuehne
&
Nagel, Menlo Worldwide, Nippon Express, Toll Logistics,TNT and
UPS.
"Singapore provides Maersk Logistics with opportunities to offer a broadrange of logistics services to clients,with its good geography, security, tradeprocesses, and efficient shipping and airfreight capabilities," said Maersk Logistics Asia-Pacific regional manager TonyHotine.Singapore has become the preferredlogistics and supply chain management
hub
for leading players across industriessuch
as
aerospace maintenance, repairand overhaul (MRO), biomedical sciences, electronics, telecoms, fine foods andluxury goods.
As
Singapore becomes a globalmanufacturing and trading site for theseindustries, top 3PLs have invested
in
specialised facilities and solutions here.These include Vopak's oil terminals onJurong Island, TNT's largest regional lifesciences hub, and CWT's logistics hubsthat offer specialised handling and warehousing services for chemical and oilproducts.Leading industry players that haveset up supply chain towers and regionaldistribution centres in Singapore include Avaya,
BASF,
Diageo, Du Pont,Embraer, Hewlett Packard, LVMH, Numonyx, Roche Diagnostics and Schering-Plough.The presence ofthese
mw-
tination-
als adds
•
to
the
business environment for logisticsproviders. "There are many businesstransactions
due
to
the presence of
the
financial
hub
in Singapore. Most of
our
customers have their regional headquarters, as well as their supply-chain decision makers, based here. This attractslogistics providers like Maersk Logistics,who want to be close to their customers,to Singapore," said Mr Hotine."Maersk Logistics has been providing logistics services in Singapore formore than
30
years; and we have foundthat this unique combination of proactive trade policies, supportive government policies, transparent procedures,developed infrastructure, and ease andefficiency of handling the entire importation and exportation process, makesthe
country
a vibrant trading and logistics hub,"
he
added.
Noted
Michael Gildea, Agility AsiaPacific senior vice-president: "Logistics
is
designated a strategic industry by theSingapore government, and while
it
continues to invest and develop
the
industry
it
will continue to attract internationalcompanies. While it faces many challenges, Singapore remains alert and continues to develop strategies
in
response
to
these challenges."In April, Agility was one of the latest logistics players to open a regionaldistribution centre and establish its AsiaPacific
headquarters
in Singapore.
"The
Singapore government has been proactive in developing
the
city into a leadinglogistics hub in the Asia-Pacific," said MrGildea."From Agility's point of view thelogistics infrastructure
is
very advancedin Singapore. There
is
an excellent tal
ent
pool, supported by first-rate trainingand world-class university courses.
The
general infrastructure
is
good and
it
is
an
attnlctive place
to
base
people
and talent." Agility has a significant
number
ofregional management functions in Singapore such as logistics,
IT,
chemicals,
'TO
STO
Y]
CONTAINER VOLUMES
lMonlhly
TEUs
rOOOj
YTD
TEUs
('OOO)
S'POIll
Shanghai
S'POte Sl\angltal
2007
27,935
26,150
I
-
008
29,918
27,984
Jan
'091,9741,901
1,9741,901
Feb
'09
1,851
1,5283,825
3,429
Mar
'09 2,193 2,180 6,018 5,609
Apr
'09 2,085 1,9508.103
7,559
operations, and will continue to use Singapore as a base,
Mr
Gildea said.The Port of Singapore, meanwhile,
is
linked to 600
other
ports in 123 countries via over
200
shipping lines.
It
maintained
its
position as the world'stop transshipment
port
last year, movingalmost
30
million TEUs.But the competition
is
getting tougher, especially in Asia where eight of thetop
10
container ports last
year
werelocated. Singapore port's closest competitor, Shanghai, was two million TEUsbehind
in
terms of container throughputlast
year and
was growing at the samepace. And
as
traditional powerhouse
Hong
Kong slipped into third position,
other
southern Chinese ports such asGuangzhou and
Shenzhen
are all looming, driven by booming export-drivenproduction
in
the region. Guangzhou,for example, saw
19 per
cent growth lastyear, which leapfrogged it to seventhplace from
12th
previously.This will have both positive and negative effects on Singapore.The most dramatic developmentthat industry watchers
see
in
the
nextfew years
is
a sharp rise in intra-Asiantrade. This should benefit Singapore, dueto its strong feeder network. However,cost competition will naturally arise
as
ports fight for a bigger share
of
the pie.In
the
past year, especially, as most ports
r
UWe
have
found
that
this
unique
combination
of
proactive
trade
policies,
supportive
government
policies,
transparent
procedures, developed
infrastructure,
and
ease
and
efficiency
of
handling the
entire importation
and
exportation
process,
makes
the
country
a
vibrant
trading
and logistics hub."
-
Maersk
Logistics'
Mr
Hotine
JULY
2009
_
PULSES
_ 13
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