Recently a Chinese company in the dredging, waterway, land reclamation and port construction appointed us to help them enter the Singapore Maritime market.
Seaborne world trade is the most important driver for the dredging industry. According to the International Monetary Fund (IMF), global world trade is projected at 3.3% in 2015, slightly lower than in 2014 but with a gradual increase in advanced economies and a slowdown in emerging market and developing countries.
According to the World Economic Outlook July 2015 update, growth in advanced economies was 1.8% in 2014 and is predicted to increase gradually in 2015 (2.1%) and 2016 (2.4%). Emerging markets and developing economies did better with a 4.6% growth (a drop from 5.0% in 2013) but the World Trade Organisation (WTO) expects this growth to dip to 4.2% in 2015.
Today, the port construction in Tuas Mega Port would be a major development in Singapore’s maritime landscape. It is a proposed project to consolidate all container port activities. The long term project would rolled out in phases and the first few berths to be operational in 2020. It is a pull factor for major companies as listed above. The contracts for phase 1 has been awarded but the prospects continue to look positive as the mega port would eventually handle 65 million twenty-foot equivalent units (TEUs) of cargo annually – nearly double the amount Singapore handled last year. In addition, the end of port leases in 2027 at Tanjong Pagar, Keppel and Brani. It is evident that the Mega Port is the way ahead.
Singapore dredging market is expanding and we are confident that our client will successfully develop its business in the region.