(Commonwealth_ PSA Singapore is on track to achieve a record-breaking milestone in 2024, surpassing the 40 million twenty-foot equivalent unit (TEU) mark before the end of the year. This achievement eclipses the port’s previous annual high of 38.8 million TEUs handled in 2023, solidifying its position as the world’s largest transshipment hub. PSA Singapore handles nearly all container traffic passing through the Port of Singapore, making its performance a critical barometer for global trade.
Commenting on the record volume, Ong Kim Pong, Group CEO of PSA International, stated, “This record throughput for PSA’s flagship terminal in Singapore is a remarkable milestone and exemplifies our commitment to keep global trade flowing.” Despite the challenges the industry faced, PSA Singapore’s ability to maintain efficiency and adaptability has contributed to this extraordinary accomplishment.
Several operational challenges marked the year 2024, particularly during May and June, when congestion at Singapore’s container terminals presented significant hurdles. The congestion arose from a bunching of vessel arrivals caused by the rerouting of ships from the Red Sea via the Cape of Good Hope, a response to geopolitical disruptions in the region. The sudden influx of vessels overwhelmed terminal capacity, resulting in container ships waiting up to seven days to berth. Some vessels even opted to skip their calls at the port due to delays.
In response, PSA Singapore implemented swift and strategic measures to alleviate the congestion. The organization reactivated older, decommissioned berths to create additional capacity and expedited the development of new infrastructure at Tuas Port. These proactive actions not only resolved immediate issues but also underscored PSA’s resilience and commitment to maintaining Singapore’s reputation as a leading transshipment hub.
Reflecting on the year’s challenges and triumphs, Nelson Quek, Regional CEO for Southeast Asia at PSA International, remarked, “In what has been an eventful year for the industry, this achievement cements PSA Singapore’s position as the world’s transshipment hub of choice.” PSA International’s global operations, poised to achieve another major milestone, mirror the record-breaking performance in Singapore. At the TOC Asia conference in November 2024, Group CEO Ong Kim Pong announced that PSA International might handle 100 million TEUs worldwide by the end of the year. To illustrate the enormity of this achievement, Ong noted that if the 100 million containers were lined up end-to-end, they would encircle the earth approximately 15 times. This impressive scale underscores PSA’s pivotal role in facilitating global trade.
PSA Singapore is focusing on leveraging this momentum to further enhance its operations in the future. Ong highlighted the company’s commitment to its “Node to Network” strategy, which aims to create a cohesive and integrated port ecosystem. “Building on this positive momentum, we will strive to strengthen the synergies between our port operations and port-adjacent services, connecting our strategic nodes to create a more cohesive and integrated port ecosystem,” Ong stated.
The Node to Network strategy emphasizes the importance of linking PSA’s operations across various locations to provide seamless connectivity and optimized logistics solutions for customers. By integrating port activities with adjacent services, PSA aims to enhance operational efficiency and strengthen its value proposition as a global trade enabler.
PSA’s achievements in 2024 also reflect the broader resilience and adaptability of the shipping and logistics industry amid ongoing disruptions. The organization’s ability to handle record-breaking volumes while addressing operational challenges highlights the importance of strategic planning, infrastructure investment, and innovative solutions in maintaining a competitive edge.
As PSA Singapore looks ahead, its focus on sustainable growth, technological innovation, and operational excellence will remain key drivers of its success. The achievements of 2024 not only reinforce PSA’s position as a leader in the global shipping industry but also set a benchmark for future performance, as the organization continues to shape the landscape of global trade and logistics.
