Singapore cuts port dues, providing US$8.9 million in savings to shipping THE Maritime and Port Authority (MPA) of Singapore has announced the introduction of changes to port dues that are expected to save the shipping industry an additional S$11million (US$8.9 million) a year.
This came after a review in consultation with the shipping industry and other stakeholders aimed at boosting Singapore's competitiveness as a cargo hub and to enable it to make more efficient use of its limited anchorage.
These savings in port dues are in addition to the S$11 million a year savings from the 20 per cent port dues concession for containerships that will be made permanent and the S$7 million a year from the waiver of Maritime Welfare Fee introduced in October 2012.
Under the revised port dues structure, up to 83 per cent of vessel calls are expected to pay lower port dues compared to today. About 10 per cent of vessel calls will pay the same and up to seven per cent of vessel calls, mainly long staying vessels, may pay more port dues, if call patterns remain the same.
"The current port dues structure consists of main rates and a series of incentive schemes. Under the revised dues structure, we have streamlined these into four categories of port dues and some specific incentive schemes," said the MPA statement. To maintain Singapore's attractiveness as a transshipment hub, the 20 per cent port dues concession for containerships which would have expired will be made permanent.
To better reflect its intended purpose, the 20 per cent port dues concession for containerships will only apply to containerships that call to take on or discharge cargo and not stay more than five days.
The MPA also said that the 50 per cent rebate for maiden voyage scheme will be discontinued as the authority provides other forms of recognition to vessels on maiden voyages. In addition, the MPA said to encourage more calls in Singapore, a new frequent caller concession scheme will be introduced.
In general, the revisions that would benefit, or have no cost impact on, the industry will take effect from July 1 while those that would lead to an increase in port dues payable will have a six months' notice period and take effect from January 1 2014, to provide sufficient time for the industry to adjust to the changes.
"Our current port dues structure has served us well since its introduction in 1990. The review aims to ensure that the port dues framework remains relevant. As part of the port dues review, MPA will also simplify the port dues structure and streamline various incentive schemes," the MPA statement said.
Said Singapore Shipping Association president Patrick Phoon: "I am pleased that the MPA has taken note of our industry's feedback to simplify the port dues tariff structure. Given the challenges faced by the shipping community, any cost savings is certainly welcomed. Today's announcement will not only stimulate the growth of the shipping sector; ancillary services such as bunkering and ships supplies are likely to receive a boost too."
This came after a review in consultation with the shipping industry and other stakeholders aimed at boosting Singapore's competitiveness as a cargo hub and to enable it to make more efficient use of its limited anchorage.
These savings in port dues are in addition to the S$11 million a year savings from the 20 per cent port dues concession for containerships that will be made permanent and the S$7 million a year from the waiver of Maritime Welfare Fee introduced in October 2012.
Under the revised port dues structure, up to 83 per cent of vessel calls are expected to pay lower port dues compared to today. About 10 per cent of vessel calls will pay the same and up to seven per cent of vessel calls, mainly long staying vessels, may pay more port dues, if call patterns remain the same.
"The current port dues structure consists of main rates and a series of incentive schemes. Under the revised dues structure, we have streamlined these into four categories of port dues and some specific incentive schemes," said the MPA statement. To maintain Singapore's attractiveness as a transshipment hub, the 20 per cent port dues concession for containerships which would have expired will be made permanent.
To better reflect its intended purpose, the 20 per cent port dues concession for containerships will only apply to containerships that call to take on or discharge cargo and not stay more than five days.
The MPA also said that the 50 per cent rebate for maiden voyage scheme will be discontinued as the authority provides other forms of recognition to vessels on maiden voyages. In addition, the MPA said to encourage more calls in Singapore, a new frequent caller concession scheme will be introduced.
In general, the revisions that would benefit, or have no cost impact on, the industry will take effect from July 1 while those that would lead to an increase in port dues payable will have a six months' notice period and take effect from January 1 2014, to provide sufficient time for the industry to adjust to the changes.
"Our current port dues structure has served us well since its introduction in 1990. The review aims to ensure that the port dues framework remains relevant. As part of the port dues review, MPA will also simplify the port dues structure and streamline various incentive schemes," the MPA statement said.
Said Singapore Shipping Association president Patrick Phoon: "I am pleased that the MPA has taken note of our industry's feedback to simplify the port dues tariff structure. Given the challenges faced by the shipping community, any cost savings is certainly welcomed. Today's announcement will not only stimulate the growth of the shipping sector; ancillary services such as bunkering and ships supplies are likely to receive a boost too."