At the Crossroads of Global Trade, Singapore Redefines the Power of the Port

0
2495
PSA Singapore operates the world’s largest container transshipment hub. Photo: Richard Emblin

In 1819, when Sir Stamford Raffles first set foot on the small island that would become modern-day Singapore, he recognized its immense potential. Perched at the narrowest choke point of the Malacca Strait – the gateway between the Indian Ocean and the South China Sea – this unassuming trading post offered a strategic perch for moving spices, silk, and tea from the Far East to imperial Britain. Raffles may not have envisioned giant container ships or AI-powered cranes, but he understood one thing clearly: a nation’s destiny is defined by its geography.

Two centuries later, Singapore has risen from a colonial outpost to become the beating heart of global maritime commerce – and at the center of it all is PSA Singapore. Once known as the Port of Singapore Authority, this state-backed operator has transformed into PSA International – one of the world’s most advanced and efficient port groups, managing operations in 179 locations across 45 countries.

Established as a statutory board in the 1960s, the Port of Singapore Authority was tasked with regulating, operating, and expanding the nation’s maritime facilities. The port handled its first container ship in the 1970s and quickly capitalized on the containerization revolution. By 1990, it had crossed the 5-million TEU threshold, making Singapore the world’s busiest container port. A TEU equals one 20-foot-long shipping container. A 40-foot container (the most common size today) is counted as 2 TEUs.

In 1997, a parliamentary bill corporatized the authority, giving birth to PSA International as a commercial entity and transferring regulatory functions to the newly formed Maritime and Port Authority of Singapore (MPA).

Today, PSA Singapore operates the world’s largest container transshipment hub, with 55 berths and an annual capacity of 43.9 million TEUs. In 2024, it achieved a record throughput of 40.9 million TEUs – surpassing its previous high of 38.8 million in 2023. With connections to over 600 ports worldwide and 24/7 operations year-round, Singapore is a vital link in the global supply chain.

Roughly 85% of all containers handled at PSA Singapore are transhipped – arriving from one port, briefly processed, and then sent onward to another destination. This hub-and-spoke model dramatically improves cost-efficiency and time-to-market, making Singapore the preferred port of call for major shipping lines. Small feeder vessels bring cargo into PSA, where it is consolidated and transferred onto larger vessels for long-haul routes – a logistical ballet performed with surgical precision.

Much of PSA’s modern transformation is anchored in Tuas Port, Singapore’s futuristic maritime hub. Since opening in 2022, Tuas Port has handled more than 10 million TEUs and now operates 11 berths. It is the world’s largest fully automated container terminal, designed to handle growing trade volumes while advancing smart port technologies. Robotics, data analytics, and AI-enabled systems are integrated into every aspect of operations, reinforcing Singapore’s edge in maritime innovation.

“Tuas Port is a vital node in PSA’s expansive global network and serves as the focal point of a well-integrated supply chain and logistics ecosystem in Singapore,” said Mr. Ong Kim Pong, Group CEO of PSA International. “With its unparalleled scale, capacity, and advanced capabilities, the mega port is well-positioned to meet the evolving needs of the global supply chain industry.”

PSA’s strategy goes far beyond terminal operations. Its “Node to Network” approach aims to integrate global port operations with digital supply chain solutions, enabling smoother physical, financial, and regulatory flows of cargo. The port group is evolving into a full-service logistics enabler, offering end-to-end solutions to shippers, freight forwarders, and cargo owners.

At the core of its long-term vision lies sustainability. PSA Singapore has committed to decarbonizing its operations in line with Singapore’s national climate ambitions. With a three-pronged strategy involving low-carbon fuels, renewable energy, and electrification, PSA aims to reduce its greenhouse gas emissions while scaling up operations. Sustainability, the company insists, is not an afterthought – it’s at the heart of Singapore’s ambitious 2030 Climate Change agenda.

“Our success is founded on the trust and partnership we share with our management, staff, unions, customers, and partners,” said Mr. Ong. “We remain dedicated to integrating advanced technology with our operational expertise while reinforcing our role as a reliable global port operator and trusted partner.”

From the days of perilous spice trade routes to today’s mega-terminals, Singapore’s evolution has been nothing short of legendary. At the helm of this journey that began with clippers navigating the 800-kilometer-long strait, PSA Singapore continues to redefine what’s possible in global logistics – anchoring this city-state’s status not just as a port but as a paradigm for the future of global trade.

The year 1819 not only marked Sir Stamford Raffles’ founding of colonial Singapore, but the birth of Colombia as a new republic, with the defeat by Liberator Simón Bolívar of Spanish royalist forces at the Battle of Boyacá. While these two events unfolded oceans apart, today they converge in a global context defined by trade, logistics, and economic interdependence. Through modern shipping corridors and supply chains, Colombia and Singapore are more connected than ever – proof that commerce can bridge continents, histories, and a shared future.

This article was made possible thanks to an invitation from Singapore’s Ministry of Foreign Affairs with the FEALAC Journalists’ Visit Programme.

Watercolor of boats along the Malacca Strait at Singapore. Photo: Richard Emblin/National Gallery