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Cosco-PSA Terminal, a joint venture of Cosco Pacific and PSA Corp., has decided to increase its space in Singapore's next high tech shipping terminal at Pasir Panjang.
It had reserved a two-berth terminal but has now upgraded to three new mega container berths in anticipation of economic prospects from new trade initiatives.
The joint venture firm is investing in three new container berths designed to handle mega container ships. The berths will begin operations starting next year.
Josephine Teo, Senior Minister of State (Prime Minister's Office, Foreign Affairs and Transport), highlighted the importance of the investment.
It is "strategically important to both partners and also a clear demonstration of their confidence in Singapore as an international maritime center with a well-connected transshipment hub," she said.
Cosco Pacific, one of Asia's largest container terminal operators, is a unit of China Cosco Shipping, the world's fourth-largest container carrier.
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In 2003, Cosco Pacific and PSA signed an agreement to establish a two-berth terminal at PSA's Pasir Panjang Terminal.
"PSA needs to arrest shipping volume decline at its ports. It is losing shipping volumes to Malaysia. The deal with Cosco Pacific... is slanted towards Cosco to keep its transshipment volume in Singapore," said a shipping analyst at a local brokerage.
"Cosco Pacific being affiliated to China Cosco Shipping, one of the world's top five shippers, will help arrest that decline and ensure the commercial viability of the new port," he added.
Teo said she believes the project will contribute positively to China's Maritime Silk Road initiative and "One Belt, One Road" vision.
Singapore sits on the sea route dubbed the "21st Century Maritime Silk Road" linking China with the Southeast Asian region, South Asia, the Middle East and beyond.
For more of the Straits Times news story: www.straitstimes.com
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