Sabang. Presentation at Siminar (Part 1)

Experience That CountsExperience That CountsOverseas Port Management (S) Pte Ltd

1

BKPS Sabang Port SeminarBKPS Sabang Port Seminar

Singapore Transshipment HubSuccess Story

byMMJ Subramaniam

Managing Director, OPM 28th August 2013

Singapore Transshipment HubSuccess Story

byMMJ Subramaniam

Managing Director, OPM 28th August 2013


2

Overseas Port Management (OPM)Overseas Port Management (OPM)

• OPM’s core business: Port Management & Consultancy

• Management/Project Management Aden Container Terminal, Yemen. Bandar Abbas CT (#T1), Iran Bandar Abbas CT (#T2), Iran Tripoli Port (Master Plan & Equipment M&R), LIbya Port Sudan (T/S Strategy & Equipment M&R), Sudan

• Consultancy In 14 countries: China, India, Thailand, Philippines,

Indonesia, Australia, Aden, Egypt, Ajman, Syria, Jordan, Saudi Arabia, Kenya, Libya, Sudan

• OPM’s core business: Port Management & Consultancy

• Management/Project Management Aden Container Terminal, Yemen. Bandar Abbas CT (#T1), Iran Bandar Abbas CT (#T2), Iran Tripoli Port (Master Plan & Equipment M&R), LIbya Port Sudan (T/S Strategy & Equipment M&R), Sudan

• Consultancy In 14 countries: China, India, Thailand, Philippines,

Indonesia, Australia, Aden, Egypt, Ajman, Syria, Jordan, Saudi Arabia, Kenya, Libya, Sudan


3

OPM – A “Spin-Off” from Port of Singapore (PSA)OPM – A “Spin-Off” from Port of Singapore (PSA)

• OPM, my company, can be considered in many ways a spin-off from PSA but not in shareholding.

• Our roots are in the PSA, strengthened by experts from other international terminal operators as well as from shipping & logistics companies.

• My OPM colleagues & I are thankful for our PSA experience but now we have our own identity and our own journey.

• OPM manages container terminals of up to 6m TEUs.

• OPM, my company, can be considered in many ways a spin-off from PSA but not in shareholding.

• Our roots are in the PSA, strengthened by experts from other international terminal operators as well as from shipping & logistics companies.

• My OPM colleagues & I are thankful for our PSA experience but now we have our own identity and our own journey.

• OPM manages container terminals of up to 6m TEUs.


4

Key Factors for Singapore’s Successin Containerization in the 70s

Key Factors for Singapore’s Successin Containerization in the 70s

• Strategic Location

• Political Will

• Efficient Labor Support & Productivity

• Good industrial relations

• 24-hour, 365-day working Port

• Supportive Environment

• Strategic Location

• Political Will

• Efficient Labor Support & Productivity

• Good industrial relations

• 24-hour, 365-day working Port

• Supportive Environment


5

Singapore - Strategic LocationSingapore - Strategic Location


6

Strategic LocationA Natural Advantage

Strategic LocationA Natural Advantage

• Between Europe, ME, India & Far East, US West Coast.

• Between North and South (Indonesia, Australia & NZ).

• An natural entrepot center in SEA.

• Ships must pass Singapore at some point from West to East & North to South and vice versa.

(Sabang also has the same advantages potentially)

• Between Europe, ME, India & Far East, US West Coast.

• Between North and South (Indonesia, Australia & NZ).

• An natural entrepot center in SEA.

• Ships must pass Singapore at some point from West to East & North to South and vice versa.

(Sabang also has the same advantages potentially)


7

Political WillPolitical Will

• Modern container ports first appeared in US and Europe in the late 60s.

• In 1969, Singapore Govt decided to develop Singapore into a modern container port.

• Much opposition to the idea at the time, ironically mainly from the port management itself.

• Govt steadfastness, courage & foresight gave Singapore a first mover advantage in region.

Lesson 1: Political Will is the foremost, overriding factor for success

• Modern container ports first appeared in US and Europe in the late 60s.

• In 1969, Singapore Govt decided to develop Singapore into a modern container port.

• Much opposition to the idea at the time, ironically mainly from the port management itself.

• Govt steadfastness, courage & foresight gave Singapore a first mover advantage in region.

Lesson 1: Political Will is the foremost, overriding factor for success


8

Disciplined Labor Disciplined Labor

• Singapore labor scene not always what it is today. • In the 50s, 60s, militant labor, strikes, work stoppages,

slowdowns were common.

• Why? Partly a result of poor wages & employment terms & manipulations by politicians for their own ends.

• Govt intervened & came up with formula for tripartite consultation between labor, employers & Govt.

• Policy: fm confrontation to consultation.

• Singapore labor scene not always what it is today. • In the 50s, 60s, militant labor, strikes, work stoppages,

slowdowns were common.

• Why? Partly a result of poor wages & employment terms & manipulations by politicians for their own ends.

• Govt intervened & came up with formula for tripartite consultation between labor, employers & Govt.

• Policy: fm confrontation to consultation.


9

No Retrenchment but Re-trainingNo Retrenchment but Re-training

• PSA had more than 11,000 port workers before containerization.

• Govt ordered a “no retrenchment” policy in PSA when containerization started in 1972.

• PSA was to re-train the workers to equip them with new skills for the container port.

• Now PSA work force in Singapore is around 6,000, thru a natural process of attrition.

Lesson 2: Disciplined Labor & Good Industrial Relations are critical.

• PSA had more than 11,000 port workers before containerization.

• Govt ordered a “no retrenchment” policy in PSA when containerization started in 1972.

• PSA was to re-train the workers to equip them with new skills for the container port.

• Now PSA work force in Singapore is around 6,000, thru a natural process of attrition.

Lesson 2: Disciplined Labor & Good Industrial Relations are critical.


10

24-hour,365-day Working Port24-hour,365-day Working Port

• PSA worked 2 shifts up to late 60s.• A new policy & milestone with start of

containerization – 3 shifts• Result: The port that never sleeps.• Rationale – no delays to container ships,

productivity and growing competition.

Lesson 3: Productivity counts

• PSA worked 2 shifts up to late 60s.• A new policy & milestone with start of

containerization – 3 shifts• Result: The port that never sleeps.• Rationale – no delays to container ships,

productivity and growing competition.

Lesson 3: Productivity counts


11

A Supportive EnvironmentA Supportive Environment

• A container port needs a large pool of well trained and skilled labor.

• Govt instituted steps to ensure good education and training facilities.

• Primary, secondary school system, Institute of Technical Education, Polytechnics & Universities.

• Transparent laws and regulations & good governance in private and public sectors.

• Commercial infrastructure, e.g. banks, active traders, freight forwarders, etc.

Lesson 4: PSA couldn’t have done it in isolation. It needed a supportive environment.

• A container port needs a large pool of well trained and skilled labor.

• Govt instituted steps to ensure good education and training facilities.

• Primary, secondary school system, Institute of Technical Education, Polytechnics & Universities.

• Transparent laws and regulations & good governance in private and public sectors.

• Commercial infrastructure, e.g. banks, active traders, freight forwarders, etc.

Lesson 4: PSA couldn’t have done it in isolation. It needed a supportive environment.


12

The OutcomeThe Outcome

• Tanjong Pagar Container Terminal (3 berths) was officially commissioned in early 1972

• Handled 1 million TEUs by 1981 – this took ten years.

• In 2012, Singapore handled 31.26 million TEUs.

• Among the world’s largest refrigerated (reefer) ports handling 1.44 million reefer TEUs in 2012.

• Voted best Container Terminal (Asia) – 23 times

(Asian Freight & Supply Chain Award)

• Tanjong Pagar Container Terminal (3 berths) was officially commissioned in early 1972

• Handled 1 million TEUs by 1981 – this took ten years.

• In 2012, Singapore handled 31.26 million TEUs.

• Among the world’s largest refrigerated (reefer) ports handling 1.44 million reefer TEUs in 2012.

• Voted best Container Terminal (Asia) – 23 times

(Asian Freight & Supply Chain Award)


13

1972: MV Nihon at Official Opening of Tanjong Pagar Container Terminal

1972: MV Nihon at Official Opening of Tanjong Pagar Container Terminal


14

The Growth Years 1981-1992The Growth Years 1981-1992

14000 191000865000

1554200

5092900

11850000

17086900

23980000

02000000400000060000008000000

100000001200000014000000160000001800000020000000220000002400000026000000

1970 1975 1980 1985 1990 1995 2000 2006

TEU


15

The Growth Years fm 1981 to 1993The Growth Years fm 1981 to 1993

• It took 10 years for PSA to achieve the first 1m TEUs in container throughput.

• In the next 10 yrs PSA achieved 8.3m TEU.

• PSA became world No.1 container port in 1993 with 9.3m TEU-throughput.

• I was fortunate to be operating all the PSA container terminals from 1978-1993 as Chief Traffic Manager.

• It took 10 years for PSA to achieve the first 1m TEUs in container throughput.

• In the next 10 yrs PSA achieved 8.3m TEU.

• PSA became world No.1 container port in 1993 with 9.3m TEU-throughput.

• I was fortunate to be operating all the PSA container terminals from 1978-1993 as Chief Traffic Manager.


16

PSA Tanjong Pagar Breakbulk Terminal PSA Tanjong Pagar Breakbulk Terminal


17

PSA Tanjong Pagar CT TodayPSA Tanjong Pagar CT Today


18

PSA Breakbulk Wharves Before Conversion PSA Breakbulk Wharves Before Conversion


19

PSA Keppel Container TerminalConverted

PSA Keppel Container TerminalConverted


20

Brani Container Terminal Brani Container Terminal


21

Vision & PlanningVision & Planning• PSA did not rest on its laurels as a hub port.

Its Vision: A world class port; a super-hub for the largest container ships, a ‘catch-up’ port for transshipment business.

• Means to achieve the end: Planning & Technology

Its Planning Focus: man-machine-system.• Methodology: have the right type & amount of

men & machines, and the right system to make most effective use of the men and machines.

• PSA did not rest on its laurels as a hub port.

Its Vision: A world class port; a super-hub for the largest container ships, a ‘catch-up’ port for transshipment business.

• Means to achieve the end: Planning & Technology

Its Planning Focus: man-machine-system.• Methodology: have the right type & amount of

men & machines, and the right system to make most effective use of the men and machines.


22

Information Technology & SystemsInformation Technology & Systems

• Strong emphasis on use of information technology.

• Fm Manual to Electronic, EDP to EDI, Man-centric to System-centric to drive efficiency and productivity.

• PSA wrote its own terminal operating system - CITOS.

• Pioneered Portnet – a EDI port community system to interface port with ship lines, shippers, fowarders, customs and other stake holders.

• Automated gate, yard, berthing systems.

• Strong emphasis on use of information technology.

• Fm Manual to Electronic, EDP to EDI, Man-centric to System-centric to drive efficiency and productivity.

• PSA wrote its own terminal operating system - CITOS.

• Pioneered Portnet – a EDI port community system to interface port with ship lines, shippers, fowarders, customs and other stake holders.

• Automated gate, yard, berthing systems.


23

Controlling Operations RemotelyControlling Operations Remotely


24

Resource Allocation SystemResource Allocation System


25

Continuous Improvements in Infrastructure & Equipment

Continuous Improvements in Infrastructure & Equipment

• In the 70s PSA had one container terminal, 4 berths, 10 container quay cranes.

• By 1990, 2 terminals, 23 berths & 56 quay.• In 2013, 4 terminals, 52 berths & 188 quay cranes.

Quick turnaround of vessels at berth achieved

through not only high crane productivity but high crane intensity on ships.

More berths and equipment enable fast connectivity between mother and feeder vessels.

• In the 70s PSA had one container terminal, 4 berths, 10 container quay cranes.

• By 1990, 2 terminals, 23 berths & 56 quay.• In 2013, 4 terminals, 52 berths & 188 quay cranes.

Quick turnaround of vessels at berth achieved

through not only high crane productivity but high crane intensity on ships.

More berths and equipment enable fast connectivity between mother and feeder vessels.


26

Continuous Improvement in Supportive National Infrastructure

Continuous Improvement in Supportive National Infrastructure

• PSA did not, and does not, operate in an isolated environment.

• It exists in the larger national, social and economic environment.

• Key components in National Infrastructure:• Banking, Telecommunications, transparent

comprehensive Laws continued to be enhanced.• Wage increases were linked to productivity.• Govt and PSA adopted policy of life-long training

to continuously upgrade skills & acquire new skills.

• PSA did not, and does not, operate in an isolated environment.

• It exists in the larger national, social and economic environment.

• Key components in National Infrastructure:• Banking, Telecommunications, transparent

comprehensive Laws continued to be enhanced.• Wage increases were linked to productivity.• Govt and PSA adopted policy of life-long training

to continuously upgrade skills & acquire new skills.


27

Continuing Growth at Home from 2nd Half of 90s to Present

Continuing Growth at Home from 2nd Half of 90s to Present

• PSA continued to grow in 2nd half 90s to present.• It planned for a container handling capacity of

over 30m TEUs.• Result: a new hi-tech Pasir Panjang Container

Terminal.

• PSA continued to grow in 2nd half 90s to present.• It planned for a container handling capacity of

over 30m TEUs.• Result: a new hi-tech Pasir Panjang Container

Terminal.


28

Pasir Panjang Container TerminalPasir Panjang Container Terminal


29


30

4 Groups of Terminals in PSA4 Groups of Terminals in PSA

BraniPasir Panjang

Keppel Tanjong Pagar


31

ConclusionConclusion• What Singapore has done, you can do in Sabang,

on a progressive basis. • Adapt the Singpapore lessons to your own

circumstances:

Political Will to succeed above all else. Disciplined Labor & Good Industrial Relations. Train and Upgrade Skills continuously. Focus on Productivity. Build up a Supportive National Environment.

• What Singapore has done, you can do in Sabang, on a progressive basis.

• Adapt the Singpapore lessons to your own circumstances:

Political Will to succeed above all else. Disciplined Labor & Good Industrial Relations. Train and Upgrade Skills continuously. Focus on Productivity. Build up a Supportive National Environment.


32

ConclusionConclusion Convert break-bulk cargo to containers, where

possible. Have a Vision and Plan. Use Information Technology and Systems to

drive efficiency and productivity. Upgrade infrastructure and equipment in relation

to demand.

Convert break-bulk cargo to containers, where possible.

Have a Vision and Plan. Use Information Technology and Systems to

drive efficiency and productivity. Upgrade infrastructure and equipment in relation

to demand.

Sabang. Presentation at Siminar (Part 1)

Documents

Transcript of Sabang. Presentation at Siminar (Part 1)