The Port of Singapore and its logistics network are on the rise. With Baltic Hub

/in /by

By Marek Grzybowski

94.8 million TEU of transshipment in terminals around the world and 2023 ended with sales of services amounting to USD 7 billion. gross – this is synthetic information from the PSA annual report for 2023. An interesting result, because Baltic Hub, in which PSA has a 40% share, also contributes here.
Anyone interested in PSA’s activities and visits the annual report website has the opportunity to listen to the original recording. This is a metaphor that introduces the reader of the report to the atmosphere of cohesion and harmony that PSA’s management embodies in this global organization of container terminals scattered around the world.
– When I think about 2023, two words come to mind: volatility and resilience – says Ong Kim Pong, CEO of PSA Group.
– We have lived through a capricious year, marked by wars, political unrest, economic upheaval, climate change and trade conflicts. These have significantly impacted maritime trade routes and supply chains, notes Ong Kim Pong.
He emphasizes that “However, we have seen the world show extraordinary resilience, coupled with technological advances and a renewed focus on sustainability.”

Almost 95 million containers on quays
The business activity of the management boards of PSA terminals allowed for a new record in transshipment. In 2023, 94.8 million containers were transhipped between ships and quays in TEU terms. This means an increase in container supply by 4.3% compared to 2022.
PSA Singapore contributed to this amount with throughputs of 38.8 million TEUs, which were 4.8% higher than in 2022. PSA terminals operating outside Singapore achieved 56 million TEUs, which were 3.9% higher than a year earlier . About 85 percent of containers arriving in Singapore are reloaded and transferred to another port of call.
PSA logistics units were active. PSA BDP, operating in 42 countries, handled almost 1.5 million shipments during the year. 139 customer service offices provide services on all continents.
PSA BDP, among others pays great attention to the transport of chemicals. He is a long-time member of the American Chemistry Council. For organizing the transport of chemicals “in the safest, most responsible and environmentally friendly way”, the company was awarded the Responsible Care® Partner of the Year title three times.
PSA BDP announced the opening of its first office in the Philippines, located in Paranaque City on April 2, 2024. The reason is that “the Philippines is a key manufacturing and manufacturing market, and this expansion strengthens PSA BDP’s global growth strategy to be present in the main markets where there is a diverse group of clients.”

The terminal network is growing
PSA’s activities continued to focus on investments enabling the development of services. An example of this is the construction of the Tuas terminal in Singapore, where the transshipment of the first million TEU of containers was achieved in February 2023. This was only six months after the official launch.
At the end of last year the port has expanded to eight operational stations and now supports the world’s largest fleet of automatically guided vehicles. Once fully completed in the 2040s, it is expected that the port will be able to accommodate vessels longer than 400 m and will be able to handle 65 million TEUs annually. A cargo hub is being built next to the Tuas port – Tuas Port+ Hub. There will be container freight stations, storage and traffic control centers here.
In November 2023, the East Med Hub 2 (EMH2) project was launched at Mersin International Port (MIP). This is an investment worth USD 455 million. EMH2 is expected to make a significant contribution to activating Turkey’s vast region. As a result of the modernization, the MIP quay will be extended to 880 m with a draft of 17.5 m, and the annual reloading capacity of the terminal in 2026 will increase from 2.6 to 3.6 million TEU. MIP also signed a Memorandum of Understanding (MOU) with Mersin Tarsus Industrial Zone regarding the establishment of a logistics center on an area of ​​200,000 m2. m2.
The investment activity of Baltic Hub is also noticed, which added a new space of 36 ha for the new T3 terminal. After completion of the expansion project, the annual capacity of Baltic Hub will increase by 1.5 million TEU.
In January 2023, Saudi Global Port (SGP) began investing in a 30-year concession to operate and develop container terminals at King Abdulaziz Port Dammam (KAPD). The modernizations will allow SGP to accommodate more and larger ships. SGP SandboX will be a separate space for testing new equipment and technologies.
Modernization continued at PSA Genova Pra’ in Italy. Demolition works and the construction of the ro-ro station have started. The work is scheduled to be completed in 2024 and will allow three megaships to dock at the same time. PSA Venice has obtained a 25-year concession extension (with effect from October 1, 2024) from the North Adriatic Sea Port Authority.

Investments in the logistics network, AI and 5G
PSA is intensively expanding its global logistics network. In June 2023, PSA signed agreements to purchase shares in Duisburg Gateway Terminal GmbH (DGT) in the port of Duisburg, Germany. The DGT currently under construction will be the largest inland container terminal in Europe. The operator announces that it will be a leading center for providing ecological logistics services for Germany’s industrial base.
PSA BDP expanded its operations in 2023. And this is where Gdańsk appears again, where the facility was opened. New offices were also opened in Bucharest and Lisbon. PSA Group also acquired 75% of the shares of Alisan Logistics (Alisan) in April 2023. Alisan is a logistics company based in Istanbul. It operates in Turkey in the FMCG, chemical, automotive and agricultural industries.
PSA BDP has become involved in logistics supporting the operation of automotive companies, companies producing batteries for electric cars, and is developing logistics services in China and the Saudi Ports Authority area. PSA has acquired a minority stake in the SOTRANS Group, a leading logistics service provider in Vietnam with three main business areas: ports, inland container depots and barges; forwarding and contract logistics; and transportation of heavy loads and project loads.
PSA invests heavily in digital technologies. PSA Singapore has introduced, among others: OptETruck, a proprietary solution using artificial intelligence. The system allows you to plan trips, thanks to which you can eliminate operational inefficiency of carriers. OptETruck enables transport companies to combine resources to optimize their fleet and routes. Many trucking companies that have joined OptETruck have reduced the number of empty truck trips by over 50%.
– This translates into an annual reduction of CO2 emissions by approximately 10 million kilograms – emphasizes Ong Kim Pong, CEO of PSA Group, and graphically explains that “this is equivalent to planting 300,000 trees per year.”
OptEVoyage is an important solution for fleet operators reaching constantly congested ports. It is a digital solution that enables ships to arrive at port on the scheduled date. This saves fuel and reduces greenhouse gas emissions. During the year, OptEVoyage recorded significant growth in services.
PSA’s assets reached almost $27.5 billion at the end of 2023. As a result, significant resources could be allocated to innovation and decarbonization, the development of container terminals and storage centers, and other logistics services. The report mentions the business and social activities of Baltic Hub several times. To learn more and see and… listen to the unique presentation of PSA International, it is worth visiting the website: https: //www.psaannualreport.com/.