SINGAPORE : Swiss company Mediterranean Shipping Co (MSC) has become the second major global shipping line to operate a container terminal in Singapore.
The terminal, at Pasir Panjang, is a joint venture between MSC and port operator PSA.
It was officially launched on Monday.
This is only the second time PSA has allowed such foreign investment in its Singapore facilities, following a similar joint venture with Cosco Shipping in December 2003.
The MSC-PSA Asia Terminal (MPAT) manages and operates three berths at Pasir Panjang Terminal.
It has an annual capacity in excess of two million TEUs or standard container units.
These berths are capable of handling the world's largest containerships or mega vessels with capacity in excess of 9,000 TEUs.
This is the second such joint venture between PSA and a major shipping line in Singapore.
These tie-ups are part of efforts by the port operator to provide better service to customers and underpin its bottomline amid growing competition.
"We are guaranteed that for the life of the agreement, MSC will continue to base their operations in Singapore and not be scouting to go somewhere else. Basically it guarantees us their business," said Transport Minister Yeo Cheow Tong.
"Of course it has to be a win-win situation. That means the joint venture must be profitable so that they find it beneficial and will bring more volume to Singapore," he added.
And the volume game is important as PSA seeks to grow its presence in the global shipping industry.
Singapore regained its position as the world's busiest port last year after seven years. To maintain pole position, PSA hopes to increase domestic capacity by about 55% come 2011.
Organic growth is not the only strategy PSA is adopting for its growth strategy.
"I am sure they are looking for acquisitions, which they have done before in Europe, like the HNN terminals in Europe. They bought them over and that gave them a very big footprint in Europe. They also did similar acquisitions in other parts of Europe," said Mr Yeo.
PSA's overseas terminals accounted for 46% of its global throughput in 2005.
- CNA /ls