News Content
Singapore's role as transshipment port at risk from Belt and Road
SINGAPORE had better guard against the consequences of China's Belt and Road scheme if it hopes to retain its role as a transshipment port, says a leading maritime law firm.
"Transshipment hubs need to upgrade facilities or risk losing business," says Ton van den Bosch, head of the global ports and maritime infrastructure practice of Ince & Co.
"It makes little difference if transshipment takes place in the Port of Singapore, Indonesia or Sri Lanka," said the Singapore-based lawyer writing in the American Journal of Transportation.
Challenges differ between transshipment and gateway ports, he said in a clear reference to Singapore, a key global transshipment port, said Mr van den Bosch.
"The more successful ventures may well be those that focus on serving as gateway terminals since they can capitalise on captive markets.
"Port operators must seize the chances being created by what is a time of change for the industry. Belt and Road will liberalise access to new markets and drive global commerce.
"Belt and Road has had a high profile in Asia since 2013. Western companies and experts are only now scrambling to catch up on the challenges the initiative is set to transform east-west trade flows," Mr van den Bosch said.
"The Belt and Road initiative has two prongs: the Silk Road Economic Belt (the Belt) and the 21st Century Maritime Silk Road (the Road, somewhat confusingly, referring to the shipping lanes)," he said.
"Arguably forming the biggest infrastructure project in history, this initiative is investing huge sums in the development of new infrastructure to strengthen energy security, improve connectivity and trade routes, linking China with countries and emerging markets in Asia and Africa - and then on to hubs in Europe.
"Estimates vary, but the sum invested is said to be US$150 billion a year. This covers overland links - roads, railways and pipelines - and terminals and port infrastructure. With the goal of bridging Asia's infrastructure gap, the initiative covers 60 countries from Pakistan to the Netherlands.
"Belt and Road promises to be a game-changer for the industry. With these developments comes another important trend - that of consolidation in ownership," said Mr van den Bosch.
"Transshipment hubs need to upgrade facilities or risk losing business," says Ton van den Bosch, head of the global ports and maritime infrastructure practice of Ince & Co.
"It makes little difference if transshipment takes place in the Port of Singapore, Indonesia or Sri Lanka," said the Singapore-based lawyer writing in the American Journal of Transportation.
Challenges differ between transshipment and gateway ports, he said in a clear reference to Singapore, a key global transshipment port, said Mr van den Bosch.
"The more successful ventures may well be those that focus on serving as gateway terminals since they can capitalise on captive markets.
"Port operators must seize the chances being created by what is a time of change for the industry. Belt and Road will liberalise access to new markets and drive global commerce.
"Belt and Road has had a high profile in Asia since 2013. Western companies and experts are only now scrambling to catch up on the challenges the initiative is set to transform east-west trade flows," Mr van den Bosch said.
"The Belt and Road initiative has two prongs: the Silk Road Economic Belt (the Belt) and the 21st Century Maritime Silk Road (the Road, somewhat confusingly, referring to the shipping lanes)," he said.
"Arguably forming the biggest infrastructure project in history, this initiative is investing huge sums in the development of new infrastructure to strengthen energy security, improve connectivity and trade routes, linking China with countries and emerging markets in Asia and Africa - and then on to hubs in Europe.
"Estimates vary, but the sum invested is said to be US$150 billion a year. This covers overland links - roads, railways and pipelines - and terminals and port infrastructure. With the goal of bridging Asia's infrastructure gap, the initiative covers 60 countries from Pakistan to the Netherlands.
"Belt and Road promises to be a game-changer for the industry. With these developments comes another important trend - that of consolidation in ownership," said Mr van den Bosch.
Latest News
- For the first time, tianjin Port realized the whole process of dock operati...
- From January to August, piracy incidents in Asia increased by 38%!The situa...
- Quasi-conference TSA closes as role redundant in mega merger world
- Singapore says TPP, born again as CPTPP, is now headed for adoption
- Antwerp posts 5th record year with boxes up 4.3pc to 10 million TEU
- Savannah lifts record 4 million TEU in '17 as it deepens port
