The Port of Singapore, renowned for its efficiency as the world’s largest trans-shipment hub, is grappling with significant congestion issues. To tackle the delays, the port is reopening older berths to increase its capacity, a strategic move aimed at alleviating the current backlog.
In recent weeks, container ships calling at the Port of Singapore have encountered unprecedented berthing delays, some extending up to seven days. This situation has led to a substantial increase in the total capacity waiting at the dock, reaching a staggering 450,000 twenty-foot equivalent units (TEU) as reported by Seatrade Maritime News.
The Maritime & Port Authority of Singapore (MPA) has attributed this congestion to the Red Sea crisis and the subsequent diversion of vessels via the Cape of Good Hope. These diversions have resulted in off-schedule arrivals and what MPA describes as “vessel bunching.” Compounding the issue is a notable surge in vessel arrivals, with the port handling 13.36 million TEU in the first four months of the year—a robust 8.8% increase.
The heightened demand for container handling in Singapore stems from several container lines opting to discharge more containers at the port. This decision is driven by the need to forgo subsequent voyages to catch up on their schedules. Consequently, the number of containers handled per vessel has seen a significant rise.
In response, the MPA, in collaboration with Singapore’s Ministry of Transport and terminal operator PSA, has been proactively preparing for the increased vessel arrivals since late 2023. As part of these efforts, PSA has reactivated older berths and yards at Keppel Terminal. This initiative has successfully boosted the port’s capacity from 770,000 TEU weekly to the current 820,000 TEU.
Keppel Terminal, located near Singapore’s city center, is in the process of being phased out as operations transition to Tuas Port, situated in the far west of the island. In line with this transition, three new berths are slated to become operational at Tuas Port later this year. PSA plans to expedite the development of these berths to enhance overall container handling capacity in the short term.
The MPA and PSA are also working closely with container lines and regional feeders to keep them informed about berth availability. This collaboration includes advising shipping lines on arrival times to minimize berthing delays.
The Port of Singapore’s efforts to reactivate mothballed berths underscores its commitment to maintaining its status as a leading global transshipment hub. By strategically increasing capacity and streamlining operations, the port aims to alleviate congestion and ensure smoother, more efficient handling of the evergrowing volume of container traffic. These measures are vital to sustaining the port’s operational excellence and accommodating future growth in maritime trade.