China's Cosco Shipping Ports (CSP) is launching a new berth at its joint venture container terminal - Cosco PSA Terminal (CPT) - with PSA Corporation in Singapore.
The two parties inked a memorandum of understanding on Thursday for the berth, which will be Cosco Shipping Ports' third at the Pasir Panjang Terminal. Established in 2003, CPT has served as a hub for container shipping in the Southeast Asia region.
The launch of the third berth follows the CSP supplemental agreement signed with PSA on 18 March 2016, which replaced the original two berths in CPT located at Pasir Panjang Terminal 1 with three new and larger berths at Pasir Panjang Terminal 5.
These agreements are timely as the importance of Singapore as a pivotal regional maritime hub grows in tandem with the advent of mega vessels and new alliances in the shipping industry. The first two berths had earlier commenced operations on 1 January 2017, with an annual handling capacity of 2,000,000 TEU.
OCEAN Alliance, of which COSCO Shipping Corporation is a major member, commenced operations on 1 April 2017. With the strategic reshuffle of shipping routes by OCEAN Alliance, throughput will continue to grow at Singapore’s Port.
With a view to meet the new requirements from shipping alliances and mega-vessels, as well as maximize the utilization rate of the berths, COSCO SHIPPING Ports has decided to commence operations at the third berth on 1 January 2018. This will subsequently increase the handling capacity of CPT to 3,000,000 TEU annually.
The new berth, like the first two berths, will be supported by an automated yard, allowing for more efficient berthing arrangements, enabling the terminal to increase productivity and greatly enhance its service capability and quality.
The cooperation will further deepen the collaboration between CSP and PSA, enabling the two companies to seize the opportunities of globalization and further strengthen the role of the Singapore Port as a global container transshipment hub, reinforcing the shipping links between China and countries in Southeast Asia.