CHARTING SINGAPORE FORWARD AS A HUB PORT AND INTERNATIONAL MARITIME CENTRE

(B) Livelihoods - Growing and supporting the maritime industry as an engine of economic growth

Tuas Port Development

Tuas Port development remains on track. Tuas Port will be developed in four phases. When completed in the 2040s, Tuas Port will be one of the world’s largest fully automated terminals with a handling capacity of 65 million twenty-foot equivalent units (TEUs).

In 2023, three more berths under Phase 1 were opened, increasing the total operational berths in Tuas Port to eight. Three more berths will be opened by the end of this year.

Reclamation works for Phase 2 are currently about 70% completed. Reclamation works for Phase 2 are expected to be completed in 2027.

Planning for reclamation works for Phase 3 has commenced. MPA is partnering with the National Environment Agency to explore using treated landfill mixed materials from Semakau Landfill as an alternative to sand for the reclamation works for Phase 3. Reclamation works for Phase 3 are expected to be completed in the mid-2030s.

Implementation of Digital Bunkering

In November 2023, MPA launched the digital bunkering initiative, becoming the first port in the world to implement electronic bunker delivery notes. Licensed bunker suppliers, ship owners, operators and crew using the mobile and cloud solutions approved by MPA to complete and issue digital bunkering documents can save close to 40,000 man-days per year, reducing compliance costs and improving productivity of the bunkering sector. To date, four solution providers2 have been approved by MPA, and about 24% of the licensed bunker suppliers and barge operators in the Port of Singapore have embarked on digital bunkering operations. For more details on the digital bunkering initiative, please refer to http://www.go.gov.sg/digital-bunkering

To support companies in the early adoption of digital bunkering and manpower upskilling, MPA also collaborates with Enterprise Singapore and Workforce Singapore and the National Trades Union Congress to provide funding and training support.

Just-In-Time Planning and Coordination Platform under digitalPORT@SG™ Phase 2

MPA has developed a Just-In-time Planning and Coordination Platform (JIT platform) under Phase 2 of digitalPORT@SG™. The JIT Platform provides advanced and real-time information on vessel schedules in port, allowing vessels to maintain optimal voyage speeds, minimise idling time at anchorages and reducing ships’ turnaround time. Marine Service Providers can also use the JIT Platform to plan and optimise the deployment of port resources such as pilotage, towage, bunker tankers and suppliers more effectively.

Companies utilising the JIT Platform can enjoy cost savings or cost avoidance with shorter port stays and optimised voyage planning. Through voyage optimisation, vessels can also lower their fuel consumption and reduce overall carbon emissions, and catch-up on arrival delays into Singapore, including those due to route disruptions.

From 1 October 2023, vessels berthing at the terminals of PSA Singapore and Jurong Port for cargo operations can use the JIT platform. The JIT platform will be available to tankers berthing at the energy terminals and to all vessels calling at the anchorages by the 3rd quarter 2024.

Revised Credit Management Policy

From 1 April 2024, MPA will waive the need for security deposit and banker’s guarantees for billing parties assessed to be of lower credit risk. About 80% of the over 1000 MPA’s existing billing parties will benefit from this revised credit management policy. The policy is expected to improve the businesses’ cash flow, including Small-And-Medium Enterprises (SMEs), by more than S$20 million yearly.

The revised credit management policy will help maritime businesses improve liquidity and help them manage rising business costs. MPA will conduct engagement sessions, partnering with the Singapore Shipping Association to reach out to the maritime community, so that the businesses could benefit. MPA will refund the security deposit and discharge the banker’s guarantee from April 2024.

Alternative Net Tonnage Basis of Tax for Selected Maritime Sector Incentive Sub-Schemes

To better align Singapore’s tax regime for shipping entities with common international practices, an alternative basis of tax where the qualifying income of qualifying shipping entities is taxed by reference to the net tonnage of their ships will be available from year of assessment 2024 under the following Maritime Sector Incentive (MSI) sub-schemes: