Analyze the Singapore Container Port Competitiveness.
In recent times the port of Singapore has become a leading port in the region offering terminal container operator solutions. The port is playing a leading role in shaping the country economy and making it to be a world class container handling solution. Factual reports show that the port contributes to 7% of the country gross domestic product (GDP). Pasir Panjang terminal 5 one of its terminal is becoming the largest container terminal with innovative systems. Jiang, Chew & Lee (2015) state that there several factors which contribute to competitiveness of port in container management industry. Singapore performance report as per July 2017 shows an increased performance of 7.3%. In July 2017 the total number containers handled totaled to 18.85 million which increased from 15.57 million in July 2016 (Xiao & Lam, 2017).
Thai (2016) explain that in order to understand port competitiveness in container handling there are a number of performance metrics and indicators that can be used. Lee & Lam (2015) provided a categorization of elements and indicators that can be used to analyze competitiveness. Table 1 shows the measures and indicators.
Table 1 Performance measures and indicators
Category |
Measure/indicators |
Ship |
No. of ships docking. No. of turnabout time per ship in the port |
Cargo |
No. of cargo’s in tons handled Average handling time per cargo |
Berth |
No. of used Berth/Length of Berth |
Labour |
No. of labour units/total working times |
Service |
Road/ship/rail turnabout time |
Technology |
Innovative systems/No. of linkages |
Others |
Awards, legislations, compliance, standards |
(Source: Lee & Lam, 2015)
Performance provided by Kisi in 1999 can be used to analyze the factors that make the port to be competitive. Findings from Singapore port performance of 2017 show a number of factors contributing to its performance (Lee & Meng, 2014). The port has the largest transparent hub handling approximately 30-62 million units of containers per year. The number of units handled by the port makes it to be ranked number top ten in the world. To improve nature of service offered to its clients the port has four terminals connected to service bays in which customers can choose upon. Each section is provided with sufficient independent facilities and tools to avoid dependency syndrome in their system. The use of Keppel distripak is a preferred distribution facility for the shippers. The facility enables special delivery of cargo in and out of the port. Good management of the port has improved the ship turnabout time to be less than 20 hours, road vehicle turnabout to be less than 12 hours, and that of railway transport to be less than 18 hours. The turnabout improvement is a good indication of quality service provision.
The port has not left behind the use of technology in increasing efficiency and effectiveness of operations. The port management has invested on a data management a processing system that enables quick flow of trucks. The use of remote controlled bridges gives advantage to operators for they can handle comfortably a six yard crane. The data system facilitates quick clearance of trucks within 25 seconds. Other technology business to business solution employed is that of B2B e-community that directs organization with more than 9000 international and local users. It provides a marketing and communication for both port management and the customers (Okorie, Tipi & Hubbard, 2016). The company is using a technology known as CITOS (computer integrated terminal operation system) an enterprise resource planning systems that plans, monitors and controls operations in terminals. CITOS integrates port operations in all container terminals and ensures full optimization of resources, equipment’s and facilities. The combination of the technology has enabled more than 200 million transactions to be performed per year (Tongzon, Ng & Shou, 2015).
The port has qualified personnel estimated to be more than 6204 working in different sections in the organization. The employees are provided with a health safety service and environment policy, others including customers and contractors are not left out in the policy. The four container terminus hosts 32 Berths with 125 quay cranes that are distributed along the Berth length. The length of Berth shows enough capacity and spacing in the port which avoid congestions and accidents. The port capacity is estimated to hold more than 50 million containers in a year. Their region and international competitiveness is supported by several awards for being best global container terminal service provider. Example of the awards include: Singapore quality awards, sea trade Asia awards and Asian freight and supply chain awards.
Customers can take part in competitive analysis by outlining factors that make their choices over other competitive ports. The factors include: affordability, quality of service, port facilities adequacy, port efficiency, and connectivity to other mode of transport and support services. The number of business performed support improved performance and competitiveness. The performance of the organization can be presented in pie chart 1 a summary of the last 4 years.
Pie chart 1 Performance in tonnes per year
The pie chart 1 show the company performance (tonnes per year) has been increasing over the last four years showing good performance in the industry. The port performance supported with port efficiency which can be used to analyse competitiveness of the port in the industry.
The port efficiency is critical requirements in determining competitiveness in the shipping industry (Ng, Shi, Tan & Song, 2014). The port efficiency can be explained by the different facilities and methodologies employed by the port management (Oei, 2015). A summary of performance can further be explained using measures of productivity and measures of occupancy to show port efficiency (Lam, 2016). Measures of productivity explain the tonnes of ship in the port in working hour. It explains how efficient the port to handle number of tonnes per hour is. Measures of occupancy shows the duration in which the ship stays in port and relates to waiting time. Measure of occupancy explains the speed in which trucks are cleared or transactions are completed in the port. Bar chart 1 shows summary of measures of productivity for the port (Lam, 2016).
Bar chart 1: Measure of productivity of the port
The bar chart 1 shows an increase of tonnes handled per hour over the four years. The more tonnes handled per hour is a statistical measure that prove competitiveness of the port. From statistical calculations from the port operations and findings one is able to calculate the measure of occupancy. The statistics showed that it takes 25 seconds to clear a truck and approximate 2152 tonnes cleared in one hour. There are 4 terminals which handle an average of 12,912 tonnes in an hour from 51,648 tonnes handled in a day. The terminal can handle 50 trucks in a day. It means that occupancy is about 20 minutes per truck to be cleared in the port which is a good indication of competitiveness.
In conclusion the port showed good performance with the measures of occupancy and productivity supporting are clear indication of the port efficiency. Operative functions and facilities can additionally provide the port competitiveness. Analysis show that the port handles more tonnes of containers in an hour and the occupancy per truck is less than 20 minutes. That shows the efficiency and quality in operations in the port that makes it competitiveness. Other factors like technology and skilled manpower employed have also increased the company competitiveness. The management of Singapore port services need to continue making strategic decisions to hold on their position has a leading container terminal operator.
References
Jiang, X., Chew, E. P., & Lee, L. H. (2015). Innovative container terminals to improve global container transport chains. In Handbook of Ocean Container Transport Logistics (pp. 3-41). Springer International Publishing.
Lam, J. S. (2016). Strategy of a Transhipment Hub: The Case of Port of Singapore. In Dynamic Shipping and Port Development in the Globalized Economy (pp. 12-38). Palgrave Macmillan UK.
Lee, C. Y., & Meng, Q. (2014). Handbook of Ocean Container Transport Logistics: Making Global Supply Chains Effective (Vol. 220). Springer.
Lee, P. T., & Lam, J. S. (2015). Container port competition and competitiveness analysis: Asian major ports. In Handbook of Ocean Container Transport Logistics (pp. 97-136). Springer International Publishing.
Ng, R., Shi, P., Tan, H. X., & Song, B. (2014). Avoided impact quantification from recycling of wood waste in Singapore: an assessment of pallet made from technical wood versus virgin softwood. Journal of cleaner production, 65, 447-457.
Oei, P. (2015). Establishment of the Hydrographic Department-The Singapore Experience. The International Hydrographic Review, 68(2).
Okorie, C., Tipi, N., & Hubbard, N. (2016). Analysis of the potential contribution of value-adding services (VAS) to the competitive logistics strategy of ports. Maritime Economics & Logistics, 18(2), 158-173.
Thai, V. V. (2016). The impact of port service quality on customer satisfaction: The case of Singapore. Maritime Economics & Logistics, 18(4), 458-475.
Tongzon, L., Ng, A. K., & Shou, E. (2015). Institutions, transport infrastructure governance, and planning: lessons from the corporatization of port authorities in East Asia. Environment and Planning C: Government and Policy, 33(6), 1467-1483.
Xiao, Z., & Lam, J. S. (2017). A systems framework for the sustainable development of a Port City: A case study of Singapore’s policies. Research in Transportation Business & Management, 22, 255-262.
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