Shipping Experts Call for Collaboration and Consolidation

04 April 2014

Maritime industry leaders have today called for greater collaboration and consolidation in Asia to tackle challenges such as the rise over capacity, talent shortages and environmental sustainability, which are impacting the potential of the industry.

Speaking at an industry insights briefing today ahead of the launch of Sea Asia 2015, the Maritime and Port Authority (MPA) of Singapore Assistant Chief Executive (Development) Ms Tan Beng Tee; PIL Managing Director and Singapore Maritime Institute (SMI) Chairman S.S. Teo; Singapore Maritime Foundation (SMF) Chairman and Keppel Offshore & Marine MD (Marine & Technology) Michael Chia; and Seatrade Chairman Chris Hayman, said the region’s maritime industry is facing significant growth opportunities but further collaboration and consolidation is needed.

The leaders at today’s conference said consolidation and stronger alliances across public and private sector would help navigate these challenges.

The world’s container fleet stood at 5,043 vessels at the end of 2013, up from 5,010 at the end of 2012, with excess capacity amplified through the introduction of larger vessels1. This has led to an oversupply which impacts the profitability of the industry.

“We will see further  consolidation,” added Mr Teo. “It is a matter of bringing people together to realise the challenges and the opportunities, and look at how we can overcome them together.”

He added that it’s not all about size and scale.

“We are seeing ships continuing to get bigger and bigger and a lot of focus on scale. However we need to remain equally focused on the ‘softer side’ of shipping such as customer service and information technology,” he said.

Collaboration is also important to tackle the shortage of highly trained talent within the industry and environmental sustainability.

The world fleet is expanding at a rate of 2.3 per cent per annum, fast outstripping the supply of global maritime talent2. A recent BIMCO report highlighted that the world’s global supply of 624,000 officers falls 13,000 short of demand3 with 4,500 fewer workers employed in Singapore’s maritime sector in 2012, versus the previous year.

Maritime centres across Asia are working to address this challenge. Singapore, for example, has a number of initiatives in place. Its Maritime Cluster Fund – Manpower Development (MCF-MD) was established to develop and attract talent. In 2013 alone, MPA provided co-funding support to more than 4,400 participants of maritime training through the MCF-MD.

Ms Tan commented that MPA is focused on developing a “pipeline of strong Singaporean talent”. The development of new technology as well as the increased productivity of the existing workforce will help reduce the demand for as many human resources.

“We also need to work together to share ideas and technology to develop more environmentally-friendly solutions,” said Mr Teo.

“This is one focus area under the SMI Research and Development (R&D) Roadmap. We are planning an R&D programme to pursue issues and opportunities related to ballast water and exhaust emission, among others,” he said.

Mr Chia commented that by working together to overcome these challenges, the maritime industry in Asia is set for future growth.

“The basic driving force behind shipping will be the growth of the Asian economies. We see China continuing to grow. ASEAN has a reasonable growth pace; India is coming up and Vietnam is a hidden tiger. These economies will continue to sustain shipping.”

He added this is already clearly demonstrated in the region’s growing prominence in a number of critical areas, such as ship building. Asia now controls more than 90 per cent of the shipbuilding market, with China alone accounting for around 44 per cent of the current global order book for new ships4.

Seatrade Chairman Chris Hayman said: “Asia is the world’s engine room for growth.”

“Increasing intra-and-extra regional trade, a rapidly growing ‘consuming class’ and emerging economies are all fuelling fast-paced growth in the region’s maritime industry. However, there are a number of challenges that the region needs to navigate,” he said.

MPA’s Ms Tan agreed that Asia was fast growing in prominence. She commented, “The opportunities for partnership and collaboration in the region are undoubtedly on the rise. With her strategic location and pro-business environment, Singapore is positioned well as a gateway to key Asian markets. Singapore continues to keep abreast of global developments and will continue to work with the industry to address and tackle key challenges and position ourselves strategically for future growth.”

Indeed, the challenges and opportunities facing the region’s maritime industry will be the focus of next year’s Sea Asia – an event which has firmly established its position as the leading platform for discussion, debate and analysis on the maritime industry.

“Sea Asia’s importance in the global maritime calendar continues to grow,” said Mr Hayman.

“Last year’s exhibition was attended by over 13,000 participants from 68 countries, and featured 385 maritime businesses from 39 countries. Next year’s event will be even bigger.

“The exhibition will grow by over 30 per cent to accommodate greater interests and showcase of more services and new products. The opening session of the Sea Asia conference which has traditionally been drawing the Who’s Who of maritime leadership, will be upgraded in terms of format and content.

“We have confirmed the participation of journalist and broadcaster, Stephen Sackur, who will undoubtedly keep us all on the edge of our seats as he leads a gruelling debate of key maritime issues,” he said.

1 Data Hub: World Fleet Update, Lloyd’s List, 31 Jan 2014

2 Issue 41 Singapore Shipping Association Waves Magazine

3 Issue 41 Singapore Shipping Association Waves Magazine

4 http://app.mof.gov.sg/newsroom_details.aspx?type=speech&cmpar_year=2013&news_sid=20130409939899311420

About Seatrade

Established 40 years ago, Seatrade (www.seatrade-global.com) is a leader in maritime and cruise
publications, conferences and exhibitions, training, awards and other special projects. Regular events include international trade exhibitions and conferences across all maritime sectors such as the Sea Asia exhibition and conference held biennially in Singapore, management training courses for shipping professionals, training seminars for travel agents and maritime award schemes, including the prestigious Seatrade Awards held at the Guildhall in London. Seatrade publications include magazines, supplements and yearbooks, whilst daily maritime news is provided online by Seatrade Global.

About Singapore Maritime Foundation

The Singapore Maritime Foundation (SMF) was established on 27 January 2004 to facilitate dialogue and cooperation among maritime stakeholders from the public and private sectors. As the bridge between the public and private sectors, SMF aims to provide the industry with a clear and representative voice, and spearhead projects to boost its development.

SMF also organises and participates in a host of maritime events to strengthen the Maritime Singapore brand. To date, SMF has significantly benefitted from strong support from all sectors of the industry which has enabled the organisation to reach out directly to the community for new areas of work to improve the current maritime ecosystem.

For details, please visit www.smf.com.sg.

Media Contacts

Baldwin Boyle Shand
Lyna Hanis
lyna.hanis@bbspr.com.sg
(65) 6239 4108

Inaugural MSC Maritime Digital Challenge Grand Finals Prize Presentation

Over 129 tertiary students across 35 teams took part in the inaugural MSC Maritime Digital Challenge that seeks to plug Singapore students with a passion for technology into the maritime industry.
Students from the Singapore Management University and Nanyang Polytechnic were announced as winners of the challenges posed by Eastport Maritime, Kanda and Torvald Klaveness at the Prize Presentation held on 13 November 2021.

MSC Maritime Digital Challenge 2021

Three challenge statements, 35 teams, 129 students and 12 finalist teams from 4 universities & 3 polytechnics. Catch behind-the-scene highlights of the MSC Maritime Digital Challenge 2021.

Singapore Maritime Foundation | MSC Maritime Digital Challenge 2021

Catch highlights of the MSC Maritime Digital Challenge 2021. We thank Senior Minister of State, Ministry of Transport Mr. Chee Hong Tat for being our Guest-of-Honour at the event.

SMF New Year Conversations 2022: Year-in-Perspective Video

The past two years of learning to live with Covid-19 has been challenging, but Maritime Singapore has remained resilient. What are the fundamental tenets that attract companies to anchor their business in Singapore and grow their operations here? And what more can be done to leverage on Singapore’s strengths to enhance its attractiveness as a global business hub for maritime companies? How will the Singapore Maritime Foundation organize its work around Connectivity, Innovation and Talent to strengthen the maritime ecosystem? Find out in this Year-in-Perspective video.

SMF New Year Conversations 2022: Opportunities Amid Disruptions

The 2022 SMF New Year Conversations that took place on 13 January 2022 was graced by Guest-of-Honour Mr S Iswaran, Minister for Transport & Minister-in-charge of Trade Relations. Over 250 industry leaders across the breadth of maritime attended physically and virtually.
Singapore was announced to have secured the overall top spot as an international maritime centre for the fifth consecutive time in the DNV-Menon Leading Maritime Cities 2022 report.
Thank you to our industry partners for your strong support.

Mr. Lars Kastrup

CO-PRESIDENT & EXECUTIVE DIRECTOR, PACIFIC INTERNATIONAL LINES

Mr. Lars Kastrup is the Co-President and Executive Director of Pacific International Lines (Pte) Ltd (PIL).
Prior to joining PIL, Mr. Kastrup was CEO of NOL/APL, and subsequently assumed the role of Executive Vice President, Strategy and M&A at CMA CGM Group. A veteran in the global shipping industry with over 30 years of experience, Mr Kastrup’s other roles include Executive Vice President of Assets at CMA CGM Group heading up CMA Terminals, CMA Ships, Container Logistics as well as regional carriers such as MacAndrews, OPDR and Mercosul; as well as Vice President at AP Moller-Maersk.
Mr. Kastrup complemented his tertiary education with leadership and management training at Penn State University and The Wharton School at the University of Pennsylvania.

Ms. Angeline Teo

MANAGING DIRECTOR & HEAD, GLOBAL TRANSPORTATION & OFFSHORE, OCBC BANK

Ms. Angeline Teo is the Managing Director and Head of Global Transportation and Offshore, Global Corporate Banking at OCBC Bank which focuses on the maritime, aviation, land & port ecosystems.
Ms. Teo has spent over three decades in maritime finance. Prior to OCBC, Ms. Teo was working at ING Bank, ABN Amro and DnB in Singapore focusing on maritime and offshore.
Ms. Teo graduated from the National University of Singapore with a degree in Business Administration.

Mr. John Martin

CHIEF EXECUTIVE OFFICER, GARD SINGAPORE

Mr. John Martin began his career in London in 1989 with Richards Hogg Lindley Average Adjusters, and qualified as a Fellow of the UK Association of Average Adjusters in 2000.
At RHL he worked in their offices in Australia, Taiwan and Hong Kong. In 2003 he joined Gard Hong Kong, as a claims handler. Mr. Martin also worked in Gard Japan, and in 2014 he moved to Singapore to set up the Gard Singapore office.
Besides running Gard Singapore, Mr. Martin also heads the P&I and H&M claims units and is the Senior Claims Representative for Gard in Asia.

Mr. Cyril Ducau

CHIEF EXECUTIVE OFFICER, EASTERN PACIFIC SHIPPING

Mr. Cyril Ducau is the Chief Executive Officer of Eastern Pacific Shipping Pte Ltd, a leading shipping company headquartered in Singapore for the past 30 years.

He is also currently the Chairman of Kenon Holdings Ltd and a member of the board of directors of Gard P&I (Bermuda) Ltd. and of the Global Centre for Maritime Decarbonisation Limited, which was established by the Maritime and Port Authority of Singapore. He was previously Head of Business Development of Quantum Pacific Advisory Limited in London from 2008 to 2012 and acted as Director and Chairman of Pacific Drilling SA between 2011 and 2018.
Prior to joining Quantum Pacific Advisory Limited, Mr. Ducau was Vice President in the Investment Banking Division of Morgan Stanley & Co. International Ltd. in London between 2000 and 2008.
Mr. Ducau graduated from ESCP Europe Business School (Paris, Oxford, Berlin) and holds a Master of Science in business administration and a Diplom Kaufmann.