Upcoming port projects  in Southeast Asia-

Maritime transport is crucial for the economic growth of the Association of Southeast Asian Nations (ASEAN). For a region which includes 24,000 islands, spread across 5,200 km east to west and 3,400 km from north to south, a modern and well-managed maritime sector is crucial to economic progress. The member countries of ASEAN have been undertaking various projects to improve the level of productivity and capacity of the ports. Country-wise major port projects are discussed below.

Singapore

After Shanghai, Singapore is not only the world’s largest container port, but it also handles 50 per cent of global crude oil production and is the world’s busiest transit port. The Maritime and Port Authority of Singapore (MPA) has been implementing various projects to improve the overall efficiency of the maritime sector of the country.

One of the major port projects under way is the Tuas terminal development project. The terminal has been planned to be built in four phases over a period of 30 years, with Phase 1 scheduled to be completed by early 2020. At present, works are in full swing for the project. Reclamation work is ongoing for two out of four phases and more than 3 km of caisson has already been installed to form the wharf.

When fully completed by 2040, it will be  able to handle up to 65 million twenty-foot equivalent units (TEUs) of cargo per annum. The MPA is exploring new technologies and automation for the Tuas terminal development project, including the use of robotics and drones that will make the port operations more effective and efficient.

Another important project being undertaken by the MPA is the liquefied natural gas (LNG) bunkering facility at the port. In 2016, it awarded two LNG bunkering supply licences. A sum of S$12 million from the MINT Fund has been set aside for the LNG bunkering pilot programme, which will support the development and trial of six LNG-fuelled vessels taking LNG in Singapore.

Indonesia

The construction of a new port, New Priok port (also known as Kalibaru port), involving an extension of Indonesia’s busiest port, Tanjung Priok, is one of the biggest public projects currently under development in the country. When fully operational in 2023, New Priok port will more than triple the annual capacity of Tanjung Priok. State-owned Pelindo II is the developer and operator of this mega project. The entire project has been divided into three phases. Construction work on the project started in 2012.

Earlier, in May 2016, Pelindo II had conducted a trial operation at New Priok Container Terminal I involving the Kapal Sinar Sumba Voy ship with a gross tonnage of 18,000 tonnes, owned by Samudera Indonesia Shipping Line.

Thailand

One of the key upcoming projects in the country is the development of Laem Chabang port. The Port Authority of Thailand is implementing the project on a build-operate-transfer basis. The project is being implemented in three phases. Construction work on the first two phases has been completed and at present, work on the third phase is under way. The third phase will increase the capacity of the port to a maximum of 18 million TEUs. Currently, with the completion of the two phases, Laem Chabang can accommodate up to 10 million TEUs.

Vietnam

A major new port facility has been planned to alleviate congestion at the Da Nang port complex. The study for the project was prepared by the port engineering consultant Tediport. According to the study, the project will be implemented in three phases. The first phase of the project is expected to entail an investment of $332 million and will create 1.87 million tonnes (mt) of capacity by 2020.

The two subsequent phases are expected to entail an investment of $353 million and $792 million and would take the port capacity to 17.53 mt by 2030 and 46 mt by 2050.

Other projects in the pipeline include a seaport project in Ca Mau province at an investment of $2.5 billion, two additional wharfs in the Vung Ang port area at an investment of $114 million and the Nha Trang port project with two terminals (Phase I) of the North Van Phong project being built at an investment of $18.71 million (417 billion dong).

Malaysia

As part of the development of new ports in the country, Adani Ports and Special Economic Zone Limited (APSZEL) signed a memorandum of understanding (MoU) with MMC Port Holdings Sdn Bhd (MMC Ports) to study the feasibility of developing a Greenfield container port, mainly at Carey Island. Simultaneously, MMC Ports and APZEL have signed a separate MoU to explore the feasibility of the Carey Island port project as an extension of Port Klang. Another project in the pipeline involving high investment is the deep-sea dredging project at Penang port at an investment of $110.2 million (RM 353 million).

Talks are also on between the port authorities of Malaysia and China for the development of the third terminal at Port Klang. China is expected to invest funds amounting to $2.5 trillion in the project.

The Philippines

The Philippine Ports Authority (PPA), the central authority for ports of the Philippines, has undertaken three-port reclamation and modernisation projects in Manila, Cebu and Davao. The three-port development is expected to form the backbone of the national port network.

The three-port network, which is expected to entail an investment of PhP 7.4 billion, is a long-term solution to the shallow 5 km draught of Manila Bay and is expected to address the growing volume of cargo entering the country, which has increased from 3 mt to 6 mt over the past five years. The project will add another 20 hectares with a km long berthing facility to the harbour centre port terminal to enable it to accommodate the fast increasing volume, size of vessels and cargo at the port.

Involving an investment of PhP 18.99 billion, the Davao Sasa port modernisation project is another important project in the pipeline. Reportedly, the PPA has requested the Department of Transportation to ask the National Economic and Development Authority (NEDA) to reconsider the project, citing cost and other issues. A final decision in this regard is awaited.

The PPA has also approved the start of work on a proposed PhP 9.2 billion ($186 million) container port in Cebu. The port project has also been approved by the NEDA board. Construction work on the project is expected to commence by the third quarter of 2017 after the detailed engineering designs, preparatory works, and biddingare completed. Funding for the project is being provided by the central government and the Government of South Korea. The port will focus exclusively on containers and is scheduled to commence operations by 2020. It will be built on a 12 hectare (29.6 acre) site at Barangay Tayud.

Cambodia

The Sihanoukville Autonomous Port (SAP) is Cambodia’s only commercial and international deep-sea port. The port authority of Cambodia has been working on the development of the port, which comprises a terminal, container yard, and customs and administrative buildings on reclaimed lands, just north of the existing port facility. The new terminal will be equipped with a 350 metre quay with a depth of 14.5 metres. Construction work on the terminal is expected to commence by July 2017, and is scheduled to be completed by 2022. The subsequent phases of port development will allow for more terminals along with a dedicated rail link.

In a separate project, the Japan International Cooperative Agency has provided a $74.2 million soft loan to build a new 330 metre long and 13.5 metre deep multi-purpose terminal at SAP, which will handle imports/exports of coal, steel, fertilisers, rice and oil. It is scheduled to open in 2018.

Myanmar

Ports in Myanmar are regulated by the Myanmar Port Authority, an organisation under the authority of the Ministry of Transport and Communications. The port authority has been undertaking port development projects to improve the overall efficiency of the maritime sector of the country.

The Dawei seaport project involves the development of port facilities to facilitate growth and development in this fast growing region. The master planning and concept development of the project has been undertaken by a joint venture of the Halcrow Group and Aurecon. The project includes eight container terminals, five coal import berths, two iron ore import berths, two petrochemical import berths, four petrochemical export berths, two crude oil import berths, 10 steel product export berths and 17 general cargo berths. To support this projected trade, an 18,000 hectare industrial estate surrounding the proposed port is planned. After years of delay, the project’s implementation has been revived and is expected to gain pace shortly.

Another important project being implemented in the country is the Kaladan multimodal project, a project that will connect the eastern Indian seaport of Kolkata with the Sittwe seaport in Myanmar by sea; it will then link the Sittwe seaport to Paletwa in Myanmar via the Kaladan river boat route and then from Paletwa on to Mizoram by road. Mooted in 2003, construction works on the project commenced in 2008. The project is aimed at constructing a port at Sittwe – near the Chinese port and special economic zone at Kyaukphyu – at the estuary of the Kaladan river – and an inland terminal 225 km upstream of the river at Kaletwa; developing a navigational channel; purchase of dredgers and barges and construction of a 129 km highway connecting the terminal to Lawngtlai in Mizoram. Being implemented at an investment of Rs 29.04 billion, the entire project is scheduled to be completed by 2019.

Brunei

Muara Port Company Sdn Bhd, a JV between Guangxi Beibu and Brunei’s Darussalam Assets, will manage operate, maintain and develop the Muara container terminal in Brunei, on the north coast of Borneo. An agreement to this effect was signed between China’s Guangxi Beibu Gulf Port Group and Brunei’s Darussalam Asset in February 2017.

Timor-Leste

One of the important projects being implemented by the Port Administration in Timor-Leste is the Tibar Bay project. It will be the first public-private partnership project in Timor-Leste and will be delivered by Bolloré and its consortium under a Timor-Leste registered company, Timor Port SA. The port project is currently at the detailed design stage; construction is expected to begin in October 2017, with commercial operations scheduled to start three years after the construction starts.

Conclusion

By virtue of their favourable geographical locations and long coastlines, Southeast Asian economies have tremendous potential for rapid economic growth if they are able to monetise their maritime assets. Singapore and Malaysia have already set an example. However, achieving this objective will require a massive infusion of capital, seamless infrastructure connectivity to other transport modes, and better leveraging of technology. According to the World Bank’s global competitiveness report on port infrastructure (the report which assesses the competitive landscape of economies and gives them score ranging from 1 [extremely underdeveloped] to 7 [well developed and efficient]), the ASEAN countries have performed poorly. With the exception of Singapore and Malaysia, all the other countries have scores ranging from 2.6 to 4.5. The timely completion of capacity augmentation projects is critical for the maritime development of the region.