Impact of Thailand’s Proposed Land Bridge Project on Singapore’s Competitiveness as Global Seaport

8 Mr Saktiandi Supaat asked the Minister for Transport (a) what is the projected impact on Singapore’s seaports of Thailand’s project to build two deep seaports with a rail and road system to link access between the Andaman Sea and the Gulf of Thailand; and (b) how can the competitiveness of Singapore’s seaports be further boosted to maintain their contribution to Singapore’s economy.

9 Mr Liang Eng Hwa asked the Minister for Transport what is the likely impact of Thailand’s proposed land bridge project on Singapore’s status and competitiveness as a global seaport.

The Senior Minister of State for Transport (Mr Chee Hong Tat) (for the Minister for Transport): Mr Speaker, may I have your permission to answer Question Nos 8 and 9 on today's Order Paper?

Mr Speaker: Please proceed.

Mr Chee Hong Tat: Thank you. Sir, my reply will also address written Question No 14 by Miss Cheryl Chan for today's Sitting.

A land bridge in Thailand could shorten the travelling time for some vessels by a few days, compared with sailing through the Straits of Malacca and Singapore. The exact time saving will depend on many factors, such as the time needed to unload the cargo from the vessel, then transport it across the land bridge and load onto the vessel at the other end. These would likely incur additional expenses for shipping companies. So, they need to consider the overall costs versus the benefits, compared to sailing through the Straits of Malacca and Singapore.

Singapore will continue to focus on enhancing our port's connectivity, productivity and competitiveness. This includes the use of technology to make port calls more efficient and working with industry to catalyse the development and availability of cleaner bunkering fuels. The development of Tuas Port will also allow us to accommodate mega container ships, providing shipping companies with the necessary capacity and connectivity to meet their future needs.

Mr Speaker: Mr Saktiandi.

Mr Saktiandi Supaat (Bishan-Toa Payoh): Mr Speaker, I would like to thank the Senior Minister of State for his answer. I would just like to seek clarification and also his views. In terms of relationships between countries, for example, between Thailand and the neighbouring countries within ASEAN, has this sort of deliberation been discussed and, in terms of ASEAN transport-to-transport ministries, whether such deliberations have actually emerged and discussions started on this issue?

Second, with regard to the worst-case scenario, if this does go ahead in the southern part of Thailand and into the Andaman Sea and the rail-and-road like what the Minister mentioned, the ramifications on Singapore's hub status as a seaport does get affected. In the worst-case scenario, will it be a total 100%, the feel from the MOT perspective, and what is the impact as well? I think the Minister mentioned just now, but what would be the worst-case scenario?

Mr Chee Hong Tat: Mr Speaker, I think we recognise that when it comes to port operations, this is a global industry and, therefore, the nature of the competition is also global. We cannot prevent others from enhancing their port facilities, their infrastructure, whether it is the land bridge that I addressed in my reply to the questions or some other type of infrastructure enhancements as well as building new capabilities. So, therefore, the key for us is really to focus on how we, the Port of Singapore, can stay competitive and relevant.

And there are a few elements here. First, of course, is productivity. So, we are investing heavily in technology to raise the productivity of our port operations, working very closely with the port operators, and also with our unions and workers.

Second, is to look at how we can coordinate better with our shipping lines so that they arrive without waiting too long in our ports, and that when they arrive in our ports, they are able to get good services from a whole suite of services that they will require – bunkering, supplies – not just to load and offload cargo.

Finally, and perhaps most importantly, if we look at port operations, it is a network effect that we have to protect. So, the connectivity of our port is the most crucial. And there is a network effect because the more people call at a particular hub, the more value there is to others in a network.

So, therefore, we must always safeguard our competitiveness, connectivity and productivity.