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1 PRIDE AND PASSION 26
2 PSA INTERNATIONAL ANNUAL REPORT
3
4 CHAPTER IV ONCE UPON A JOURNEY: SHORT STORIES FOR EVERY MARKET Best-In-Class Services With Vision And Ingenuity In the hands of gifted writers, simple words are transformed beyond their linguistic components in a sentence. Arranged with narrative insight and ingenuity, they form the building blocks that give rise to the most memorable stories of our time. Likewise, in writing the story of PSA, we are guided by a shared vision of our future aspirations and the desire to innovate to our customers advantage. Through our passion, commitment and the deep and multifaceted expertise of our people, we seek to transform our port projects around the world into outstanding stories of success.
5 PRIDE AND PASSION OPERATIONS REVIEW SOUTHEAST ASIA As the deployment of more mega containerships and the formation of bigger liner alliances gathered pace in 2014, PSA Singapore Terminals (PSA ST) had to manage not only greater container volumes, but also the growing complexity of liner services and transhipment connections of its customers. The world s largest transhipment hub achieved several records in 2014 its highest ever monthly throughput (2.94 million TEUs in October), and a record annual total of 33.6 million TEUs (4.1% growth over 2013). These also enabled Singapore to cross the 500 million-teu mark since 1972 when the country opened its first container terminal the first port in the world to do so. In addition to its container business, its multi-purpose terminal handled some 1.3 million vehicles and nearly one million tonnes of cargo in During the year, over 1,200 mega vessels called at PSA ST, representing a 13.0% increase over With more of such giant ships expected to enter service, PSA ST added new mega quay cranes at Brani Terminal. It also accelerated its Pasir Panjang Terminal (PPT) Phases 3 and 4 expansion, with the first two berths commissioned for operations in the second half of the year. The S$3.5 billion project, with a total of 15 berths, is expected to be fully operational by end Innovation continues to be a key driver in securing a quantum leap in port productivity, efficiency and competitiveness. As PSA ST gears up for the future, it is working closely with the government on the future 65 million-teu Tuas mega container port, which will start operations in the next decade. The Maritime and Port Authority of Singapore (MPA) and PSA ST extended their existing Memorandum of Understanding (MOU) in April 2014 to continue developing nextgeneration technologies for future container terminal operations such as automation initiatives, intelligent planning and control systems, and environmentally-sustainable solutions. One project is the automated guided vehicle (AGV) system. PSA ST has begun live operational trials of four AGVs, and they will be joined by another four in These innovations will require employees with the right technical knowledge and skill sets. PSA ST opened more talent pipelines in 2014 by signing MOUs with Ngee Ann Polytechnic and the Institute of Technical Education, which will focus on areas including joint curriculum development, and longer and more structured internships and scholarships. PSA ST s continuous dedication to best-in-class customer service in an increasingly complex business environment has made it Best Container Terminal Asia (over 4 million TEUs) for the 25th time at the 2014 Asian Freight & Supply Chain Awards, and Container Terminal of the Year for the seventh time at the Supply Chain Asia Awards last year. PSA ST s bizsafe Partner certification was also extended an endorsement of its commitment to fostering a culture of workplace safety with its suppliers and contractors. In other parts of Southeast Asia, Eastern Sea Laem Chabang Terminal in Thailand enjoyed a 19% increase in its container volumes while SP PSA International Port in Vietnam continues to explore liner opportunities. NORTHEAST ASIA PSA s Northeast Asia region achieved 11% volume growth in 2014 despite the challenging economic landscape. Dalian Container Terminal and Dalian Port Container Terminal (DPCT) achieved a combined throughput of three million TEUs in 2014, an improvement of 4% over 2013, due in part to a new service calling at Dalian. In addition to successfully commissioning two new quay cranes (with 23-row outreach), DPCT also welcomed Morten Maersk, the largest containership to call at Dalian, in November PSA s terminals in Tianjin handled over 3.7 million TEUs. Following an upgrade of its port equipment during the year, Tianjin Port Pacific International Container Terminal is now capable of receiving mega vessels. After a year of successfully consolidating management set-up with our partners Fuzhou Port Group under the umbrella of Fuzhou Container Terminals, the three sub-units Fuzhou International Container Terminal, Fujian Jiangyin International Container Terminal (FJCT) and Fuzhou Qingzhou Container Terminal registered an impressive increase of 22.8% in container volumes, resulting from the addition of new services by Maersk, PIL and Haohai Shipping Company. FJCT also acquired two new berths which are currently under construction and are expected to be completed in Fuzhou Container Terminals also made progress in the expansion of hinterland. In addition to acquiring new port equipment, Guangzhou Container Terminal achieved a 14% increase in its container volumes to reach over 1.1 million TEUs for the year. PSA Dongguan Container Terminal nearly doubled its volumes over 2013, thanks to the introduction of several new domestic services. It also signed a MOU with Shekou Container Terminals Ltd and Chiwan Container Terminal to promote joint operation of feeder services between Humen Port and west Shenzhen also saw the successful addition and start-up of LYG PSA Container Terminal with active involvement by various Group Functions to introduce PSA Franchise values to this JV. PSA s investment in Lianyungang Port in Jiangsu Province commenced operations in January 2014, setting up four representative offices and introducing four new domestic services within the year. The terminal was officially opened in June 2014 at a ceremony that was witnessed by over 200 distinguished guests from the port and shipping industry and government agencies in Lianyungang. In South Korea, Incheon Container Terminal (ICT) achieved over 630,000 TEUs in 2014 the top annual throughput among terminal operators in the Port of Incheon. The introduction of two services one by Evergreen and another joint service by CNC, COSCO and Yang Ming boosted ICT s strong performance. Pusan Newport International Terminal (PNIT) moved over 1.8 million TEUs. New yard equipment was also added during the year. In recognition of its quality service levels and commitment to safety, PNIT received the Busan New Port Productivity Award from Busan Port Authority in September It also won the Emerging Terminal Award at the Seatrade Asia Awards MIDDLE EAST & SOUTH ASIA Bharat Mumbai Container Terminals, a wholly owned subsidiary of PSA Bharat Investments Pte Ltd (a subsidiary of PSA International), signed the concession with Jawaharlal Nehru Port Trust (JNPT) in May 2014 to develop JN Port s fourth container terminal on a design, build, operation, finance and transfer basis in Navi Mumbai for a period of 30
6 PSA INTERNATIONAL ANNUAL REPORT years. With a 2,000-metre quay length, a water depth of 16.5 metres and a designed capacity of 4.8 million TEUs per annum, the terminal will be equipped with the latest technology and equipment to serve important industrial and manufacturing centres and cities in India s largest hinterland. PSA secured a 10-year supply, operations and maintenance contract to handle container volumes in Kolkata Port, a gateway to the hinterland comprising northeastern India, as well as neighbouring land-locked countries of Nepal and Bhutan. The fully-owned subsidiary, Bharat Kolkata Container Terminal, commenced operations in November Chennai International Terminals reported a throughput of 725,000 TEUs for the year and the introduction of two new shipping services between Chennai and Singapore by BTL and Wan Hai. Tuticorin Container Terminal was operating at full capacity in Saudi Global Ports, PSA s port project in Damman in the Kingdom of Saudi Arabia conducted its full operational trial in November 2014 and is now operationally ready. EUROPE & THE MEDITERRANEAN PSA Antwerp in Belgium handled 8.8 million TEUs, while PSA Zeebrugge moved about 700,000 TEUs. Infrastructure development to transform our berths at Deurganck Terminal into a facility with capacity for nine million TEUs, which will be home to the 2M alliance of Maersk and MSC, began during the year. Known as the MSC PSA European Terminal (MPET), it will be equipped with 39 quay cranes (with 25-row outreach). With a quay length of 3,550 metres and an area of 240 hectares, MPET will be the largest container terminal in Europe. Works to deepen the quay wall at Noordzee Terminal to a 17-metre water depth are progressing well. Upon completion, it will enable vessels with 18,000-TEU capacity to berth at the terminal. Meanwhile, the multi-purpose facilities of Zeebrugge International Port (ZIP), were designated as the main hub for Stora Enso s short sea system which moves freight along coastal and inland waterways to mitigate congestion on land transport infrastructure. An affordable waterway network can also provide environmental benefits and alleviate gasoline consumption. The terminal also welcomed new direct sailings to several European cities, as well as Brazil and the US. In southern Europe, PSA s three terminals in Italy had a combined throughput of 1.85 million TEUs despite the country s challenging economic outlook. In addition to renewing contracts with Maersk and MSC, Voltri Terminal Europa also celebrated its 20th anniversary in June 2014 at an event attended by 350 guests. It also gave special recognition to employees who have been with the terminal since its beginnings. May and celebrated it with an event graced by the Portuguese Minister of Economy António Pires de Lima. SCT capped the year with the handling of one million TEUs within a year, for the first time in its history, in October The terminal was also recognised as the Best Company in the Alentejo Region. Our project in Turkey, Mersin International Port (MIP) continued to do well in 2014, with an 8.7% increase in throughput from the year before. Work for a new berth at the terminal has begun. When completed, it will add another 400 metres of quay length and the capability of berthing 18,000-TEU ships. The new berth will also be equipped with the latest handling gear, including super post panama quay cranes and electric rubber-tyred gantry cranes. During the year, three new services called at the terminal. MIP also won its fourth consecutive Port Operator of the Year award at the 2014 Turkey Logistics Awards. THE AMERICAS Exolgan Container Terminal (ECT) in Argentina completed its major upgrading works and is now capable of receiving vessels with a capacity up to 10,000 TEUs. The completion was celebrated in conjunction with the christening of Cap San Lorenzo in a ceremony graced by representatives from Hamburg Sud, PSA, ECT, customers and port authorities. Besides taking delivery of a new super post-panamax quay crane and 26 prime movers, ECT also signed new agreements with HSUD and NYK. PSA Panama International Terminal s volumes surged by a remarkable 82% to nearly 245,000 TEUs. The terminal will embark on expansion works later this year. When completed in 2016, it will have increased its annual capacity to two million TEUs. Sociedad Puerto Industrial Aguadulce, PSA s new terminal in Colombia accelerated its pace of construction in Operations are expected to commence later this year. PSA MARINE PSA Marine established its towage presence in the Arabian Peninsula by winning the tender to provide towage services for Oman Liquefied Natural Gas LLC in Sur, Oman. 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