As the booming digital economy drives rising demand for the faster shipment of goods, the port and maritime industry should tap on new opportunities offered up by the logistics and e-commerce sectors, said a committee set up to help chart Singapore's future as an international maritime hub.

Strengthening linkages with related industries was one of five proposed strategies (see below) in the International Maritime Centre (IMC) 2030 Strategic Review, which seeks to develop new growth strategies for the maritime industry amid changing global trends and increasing competition.

The report, released on Friday (Sept 22), recommended that Singapore look for new ways to explore cross-sector growth opportunities. For example, the rise of e-commerce logistics has created new opportunities for partnerships such as carrier-to-marketplace alliances. These include shipping companies' signing up with Chinese e-commerce giant Alibaba's OneTouch platform.

OneTouch allows merchants or suppliers to book spots directly on a container ship online, instead of going through the traditional route via freight forwarders. This provides smaller companies with ease of shipping while lowering costs. Previously, these smaller firms which ship only one container of goods at a time would have to pay a big difference in shipping fees compared to a big company that ships hundreds of containers, Alibaba noted.

Mr Andrew Tan, chief executive of Maritime and Port Authority of Singapore (MPA), said: "With the world becoming more inter-connected and multi-disciplinary, we will need to re-look business models, to collaborate more effectively with one another."

"As demand rises for more responsive shipment of cargo, and with disruption, even (port operator) PSA will have to re-think its model, and work more closely with logistics and shipping companies," he added.

The committee also urged the Government to work with the industry to accelerate the adoption of technology and enable productivity-driven growth in the longer term. The Government should ensure that the regulatory environment is conducive for cross-sector collaboration, by being open to pilot schemes and the test-bedding of innovative solutions. The industry can also work together through increased cross-sector promotion, organising joint events, industry forums and trade missions, according to the report.

The IMC 2030 Advisory Committee, comprising 23 experts mostly from the private sector, was set up by MPA last year.

Committee chairman Andreas Sohmen-Pao said: "There are significant headwinds that the committee took into consideration. These include slowing trade growth and changes in shipping routes. We also acknowledged accelerating technological changes, risk of disruption, and growing competition from other maritime centres. Combining these risks with an assessment of new opportunities and Singapore's strengths, the committee came up with its vision and five recommended strategic thrusts."

The maritime industry should make a "concerted effort" to transform itself through advanced technologies, including autonomous systems, robotics, data analytics and artificial intelligence to optimise operations. The committee noted that ships are becoming smarter as a result of new technologies and ports worldwide are turning to automation amid growing labour constraints.

However, the committee noted that the pace of digitalisation varies among companies and segments within the maritime industry. Despite the opportunities presented by advances in technology, digital investment by companies have "remained relatively low", said the report.

Drawing talent to the maritime sector is also a key strategy, as talent needs to be developed to take on higher-value job roles in the future economy, the report said. Currently, the maritime industry generates more than 170,000 jobs.

Dr Lam Pin Min, Senior Minister of State at the Ministry of Transport and the Ministry of Health, said at the Singapore Shipping Association's (SSA) 32nd anniversary dinner on Friday: "If we want to emerge in a stronger competitive position in the longer term, we need to… continue to invest in human capital development and measures to increase productivity."

He said the MPA will provide co-funding for training in areas such as IT, data analytics and leadership skills through its Maritime Cluster Fund. Calling for investments in emerging technologies, he said: "Increased digitalisation will enable seamless real-time data sharing, and can significantly improve operational efficiencies for all entities in the logistics value chain."

"Undergirding these efforts are skills, innovation and productivity. These are key areas forming the core of the sea transport industry transformation map, which MPA is co-developing with all of you and hopes to launch early next year… Indeed, a key factor that distinguishes Singapore from other maritime capitals is the close and strong partnership between the public and private sectors. SSA has been instrumental in forging this partnership, which has withstood the ebbs and flows of the industry," he added.

FIVE KEY STRATEGIES TO ENHANCE VIBRANCY AND COMPETITIVENESS

1: Expand and deepen the maritime sector.

- Increase the number of shipping players

- Expand sources of financing

- Capture more market share in shipbroking

- Advance Singapore's standing as an Asian insurance and maritime legal and arbitration hub

- Strengthen Singapore's port and develop opportunities related to the port ecosystem

2: Strengthen linkages and network effects

- Enhance links between the maritime industry and adjacent industries such as logistics and commodity trading

- Promote physical clusters of maritime-related activities within S'pore

- Strengthen linkages with other international maritime clusters

3: Develop a vibrant maritime innovation ecosystem and promote digitalization

- Align innovation as well as research and development efforts between public and private sectors

- Tap on Big Data, Internet of Things and intelligent systems

4: Develop a multi-skilled maritime workforce with a global mindset

- Enhance quality of maritime education and training

- Raise standards of professionalism in the industry

- Raise profile of maritime industry to attract talent

5: Establish Singapore as a global maritime standard bearer

- Position S'pore as a leader in areas such as port management, risk management, as well as safety, and sustainability among others

- Promote a regulatory environment that supports innovation and standards

Source:
courtesy of TODAY

by TAN WEIZHEN

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