Box Story: Port and The City - Balancing Growth and Liveability

Long before its colonial history, Singapore was already known as a thriving trading post at the crossroads of ancient maritime routes. As early as the 3rd century, Chinese records identified Singapore—then known as Temasek—as a strategic hub for regional trade. Merchants from across Asia sailed here to exchange prized goods such as porcelain, spices and textiles.

This rich history as a meeting point for global commerce laid the foundation for Singapore’s modern maritime success, enabling it to become the world’s busiest transshipment hub and a premier international maritime centre today. The maritime industry currently contributes about 6% of Singapore’s GDP.

Singapore’s geographical position at the intersection of key trade routes has certainly been beneficial, but its status as a leading global hub port has not been accidental. Strategic foresight and leadership, along with the willingness to make courageous decisions, have been essential for Singapore to remain future-ready, be a pacesetter, reap first-mover advantages, and thrive in a dynamic global industry.

Foresight and Bold Action

Singapore’s decision to build a container terminal in 1969 reflected foresight, and was a forward-looking response to the potential of containerisation in global shipping.216 At the time, demand along the Europe–Far East route was still uncertain, but the risks of not adapting were clear.

The establishment of Singapore’s first container terminal at Tanjong Pagar in 1972 enabled Singapore to capitalise on the trend of containerisation ahead of its widespread adoption, and helped Singapore secure a valuable first-mover advantage in the region. Singapore overtook Rotterdam in 1982 as the world’s busiest port and remains among the top 10 ports today.

Development of Tuas Port

In 2012, Lui Tuck Yew, Minister of Transport (2011–2015), announced plans for a port at Tuas, which would consolidate existing container terminals into one location. This move aims to streamline transshipment operations, reducing turnaround time and business costs by eliminating the need to transfer containers between terminals. When completed in the 2040s, Tuas Port, spanning about 13.37 km², will be able to accommodate the largest container ships and handle up to 65 million twenty-foot equivalent units (TEUs) annually. Together with Singapore’s International Maritime Centre, Tuas Port will ensure Singapore remains trusted by the maritime industry, as well as resilient and ready for the future.

Singapore’s port strategy revolves around 3 Cs—Connectivity, Capacity and Competitiveness. The port is connected to over 600 ports worldwide, reinforcing its role as a critical node in global trade. Long-term planning ensures Singapore’s port capacity keeps pace with shipping demand—an essential factor in maintaining strong network connectivity. Competitiveness is driven by consistent value creation and efficient service delivery, helping shipping lines reduce transit times and costs. This strategic approach has firmly established Singapore as the world’s leading transshipment hub.

As with the Pasir Panjang Terminal, the development of Tuas Port will take place over several phases:

• Reclamation of Phase 1 of the development commenced in 2015 and was completed in 2021.

• Phase 2’s reclamation works commenced in March 2018.

• Phase 3’s planning is currently in progress, and Phase 4 will follow.

Artist's impression of Tuas Port (Maritime and Port Authority of Singapore)

The container terminal operator, PSA, intends to relocate its operations at Keppel and Brani terminals to Tuas Port by 2027, and its operations at the Pasir Panjang Terminal to Tuas Port by 2040. All container port operations will be consolidated at Tuas Port when it is completed in the 2040s.

Building a Smart and Sustainable Port

As a greenfield site, Tuas offers a blank slate to test and deploy innovative technologies such as automated container port systems, optimisation techniques and technologies, and green port technologies. Automation is key to ensure that operations can be handled safely and efficiently. One such example is the deployment of versatile and manoeuvrable Automated Guided Vehicles (AGVs) to automate container transport operations and move containers efficiently and securely in Tuas Port. Other new innovations and applications, such as maritime surveillance drones and remotely piloted and autonomous vessels, are being trialled and implemented to improve productivity and the safety of maritime workers.

Sustainability is another consideration in the construction of Tuas Port. For example, electrified port equipment such as quay cranes, yard cranes, and AGVs have been implemented. AGVs can reduce carbon emissions compared to diesel prime movers. The PSA will further reduce energy consumption at Tuas Port through smart grid solutions, battery energy storage systems and optimisation of container handling processes. In addition, Tuas Port’s Maintenance Base building was constructed with intelligent energy management strategies and solar photovoltaic panels to harvest energy, making it one of Singapore’s first Super Low Energy Buildings, using 58% less energy compared to other similar sized buildings. The PSA aims to achieve net zero emissions by 2050.

To future-proof Tuas Port against climate risks, it will be built at least 5 m above mean sea level in anticipation of rising sea levels. Further adaption measures are being studied to ensure Tuas Port remains climate resilient. As port operations gradually shift from the city ports to Tuas, vessel traffic is expected to increase in density and complexity. The Maritime and Port Authority of Singapore (MPA) is developing an artificial intelligence-enabled Next Generation Vessel Traffic Management System to replace the existing Vessel Traffic Information System to strengthen vessel navigational safety and efficiency in Singapore’s waters.

Involving the Maritime Community

In addition to investing in technology and innovation, the Singapore government has actively sought input from the maritime community to enhance port efficiency and strengthen Singapore’s competitive position. For example, the solutions provided by mVizn, a deep-learning machine vision technology provider, have been instrumental in alleviating port congestion at the PSA's Tuas Port and City Terminals, ensuring operational safety and bolstering supply chain resilience.

Marine technology startups such as mVizn are nurtured by the MPA's Port Innovation and Ecosystem Reimagined at Block 71 (PIER71™) programme, which serves as an incubator and accelerator to curate innovative proposals under four key focus areas: Maritime Green Technologies, Next Generation Ports, Smart Shipping and Digitalisation. Since its inception in 2018, PIER71™ has nurtured over 150 marine technology startups, which have raised over S$100 million in investments from venture capitalists, and are supported by a growing network of over 60 corporate partners.

Exemplifying Thinking Ahead

The decision to consolidate Singapore’s container port operations at Tuas reflects a long-term strategic vision. Tuas Port enhances Singapore’s competitiveness and resilience in an era of shifting trade patterns and growing complexities in maritime logistics.

This move also aligns with broader urban planning efforts. Port expansion over the decades has had a profound impact on Singapore’s urban development. Looking to the future, by relocating port operations away from the city centre, Singapore frees up valuable land along the southern waterfront, paving the way for new residential, commercial and recreational developments under the Greater Southern Waterfront project.

Singapore’s transformation into a global hub port in just six decades is not simply due to geography. Its success stems from deliberate investments in scale, connectivity and operational excellence that offer strong value to shipping lines. Strategic foresight and the willingness to make bold decisions have been key. These qualities remain essential as Singapore positions itself to stay ahead in an increasingly competitive global transshipment landscape.