With Competitors Hot on Its Heels, How Can Singapore's Port Stay the Course?
•February 13, 2026
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Companies Mentioned
Why It Matters
The port’s performance underscores Singapore’s vital role in global trade networks and its economic resilience despite intensifying competition from mega‑ports in China.
Key Takeaways
- •2025 throughput: 44.66 million TEUs, 3.22 bn gross tonnes.
- •Port contributes 7% of Singapore’s GDP, 170k jobs.
- •Strategic location enables fast transshipment, low vessel wait times.
- •Automation at Tuas aims for 65 million TEU capacity by 2040s.
- •Decarbonisation and alternative fuels critical for future competitiveness.
Pulse Analysis
Singapore’s maritime dominance rests on a unique blend of geography and market positioning. While Chinese ports such as Shanghai and Ningbo‑Zhoushan benefit from massive domestic cargo flows, Singapore functions primarily as a transshipment nexus linking Southeast Asia, India, the Middle East and Europe. This role insulates it from single‑economy shocks and makes the port a critical conduit for intra‑Asian trade, which now accounts for the world’s largest container volume. Analysts note that the port’s ability to keep vessel waiting times low, despite handling the world’s highest aggregate arrivals, reinforces its reputation for reliability and efficiency.
Operational excellence is amplified by strategic investments in automation and digitalization. The Tuas Port project, already the world’s largest automated terminal, will consolidate container handling into a compact footprint, enabling rapid container transfers between mainline and feeder vessels. When fully phased, Tuas is slated to process 65 million TEUs annually, far exceeding current volumes and positioning Singapore to capture growth from shifting supply‑chain routes, including the post‑Red Sea crisis re‑routing. Complementary services—bunkering, ship finance, legal and engineering—create an integrated ecosystem that attracts global shipping lines seeking one‑stop solutions.
Looking ahead, the port’s sustainability agenda will be decisive. Decarbonisation pressures demand low‑carbon bunkering, shore‑power adoption, and fuel‑trial frameworks, while a skilled talent pipeline ensures the adoption of AI‑driven logistics and advanced vessel services. Public‑private partnerships, such as those championed by the Singapore Maritime Foundation, are expanding scholarships and upskilling programs to meet these needs. Together, automation, green initiatives, and human capital development will help Singapore preserve its edge as a resilient, high‑value maritime hub in an increasingly competitive regional landscape.
With competitors hot on its heels, how can Singapore's port stay the course?
Singapore’s port remains second to Shanghai but thrives in 2025
In January, Singapore authorities reported that in 2025 there were a record 3.22 billion gross tonnes of vessel arrivals at the port along with 44.66 million twenty‑foot equivalent units (TEUs) of container throughput. That measure of vessel arrivals was up 3.5 % from 2024, while container throughput jumped 8.6 % from the previous year.
The strong performance is set against intense competition from China, which is home to six of the world’s top 10 busiest container ports. While Singapore sits in second place behind Shanghai’s over 50 million TEUs, Ningbo‑Zhoushan is hot on its heels, reporting more than 43 million TEUs for 2025.
WHY IT SHOULD MATTER TO THE AVERAGE SINGAPOREAN
Given that about 90 % of the world’s trade is carried by sea, Singapore’s port serves as a “vital gateway” connecting the country seamlessly to the global marketplace, said a PSA Singapore spokesperson.
The majority of the country’s international trade is handled by the Port of Singapore, which includes terminals at Tanjong Pagar, Keppel, Brani, Pasir Panjang, Sembawang, Jurong and the new Tuas Port.
In terms of containers alone, the port handled around 370 million tonnes in 2025, compared with just about 2.1 million tonnes of air freight at Changi Airport in the same period, said Associate Professor Yap Wei Yim, head of the minor of maritime management at the Singapore University of Social Sciences (SUSS).
The COVID‑19 pandemic offered a stark reminder of Singapore’s dependence on ports: when flights were grounded, it was shipping that kept global supply chains intact, Prof Yap added.
Beyond the quays and cranes, the port sustains a wider ecosystem – from shipyards and marine logistics firms to fuel suppliers, equipment manufacturers, marine insurance and legal services.
The maritime sector contributes 7 % of Singapore’s gross domestic product (GDP) and supports over 170 000 jobs across some 5 000 companies. Last year, 35 maritime companies opened or expanded operations here, taking the total to more than 200 international shipping groups in Singapore.
Collectively, key maritime companies contributed an estimated annual total business spending of around S$5 billion (US$3.96 billion) to Singapore’s economy, said the Maritime & Port Authority of Singapore in a January media release.
For Mr Sean Lee, chief executive officer of Marco Polo Marine, the sector has meant steady work and diverse long‑term opportunities in an industry that many Singaporeans rarely think about. The company, founded in 1991, has added a shipyard business and recently shifted its vessel services from oil and gas to offshore wind farms and renewable energy.
Mr Lee acknowledged that the maritime industry can seem “not so exciting” to outsiders, but this image is one he is keen to change. The firm’s commissioning service vessel MP Wind Archer, which won the prestigious global Offshore Energy Vessel of the Year this year in London, was designed with gyms, a cinema and even karaoke facilities to improve crew welfare and attract younger workers.
“People (used to talk) about working offshore as if it’s dirty – and it’s nothing like that … working on the vessel is actually a cool thing,” he said.
Experts and businesses agree that Singapore’s brand as a maritime hub is not just about accolades and statistics; it shapes how the nation is perceived globally. Global rankings are signals of how Singapore is seeking to anchor its ecosystem and preserve the jobs, businesses and economic resilience built around its status as a global maritime hub.
MORE THAN ONE RIVAL
When asked how Singapore stacks up against its rivals, experts noted that maintaining a second‑place position is itself an impressive achievement.
Associate Professor Goh Puay Guan (NUS Business School) observed that most Chinese ports draw their volumes from domestic imports and exports. Prof Yap (SUSS) said Shanghai’s leading container volumes stem from its strategic location at the mouth of the Yangtze River, serving as a key hub for Chinese trade. The Yangtze and its tributaries account for 50 % of China’s GDP, and are the main hinterland for the port of Ningbo‑Zhoushan.
While Shanghai and Ningbo‑Zhoushan depend heavily on China’s domestic economy, Singapore’s port serves a hinterland centred on Southeast Asia and major shipping routes that connect East Asia with Europe, the Middle East and Africa.
“This means that our container throughput performance will largely be dependent on the economic performances of these geographical areas, and being a reliable partner and efficient transshipment hub to shipping lines that serve these markets,” said Prof Yap.
“While raw volume remains relevant, it is no longer the sole determinant of competitiveness,” said Mr Samrat Bose (Monitor Deloitte) and Ms Christina Zhuang (professional services firm). Competition is increasingly driven by operational efficiency, service quality, resilience and embeddedness in the global supply chain.
Mr Sanshray Agarwal (London Stock Exchange Group) noted that Singapore receives a far larger number of tankers and leads in aggregate arrivals across all vessel types. Despite handling some of the world’s highest traffic volumes, Singapore maintains average vessel waiting times comparable to other major ports, an indicator of its competitiveness and resilience.
Mr Jayendu Krishna (Drewry Maritime Services) argued that comparing Chinese ports with Singapore is “not necessarily appropriate”. China’s ports are mainly gateway ports supported by their hinterland, whereas Singapore is primarily a transshipment port – where containers are transferred from one vessel to another before being shipped onward. Singapore competes with regional ports such as Port Klang and Port Tanjung Pelepas in Malaysia for container transshipment volumes.
In 2025, the Gemini Alliance formed by Maersk and Hapag‑Lloyd gave “considerable benefit” to Port Tanjung Pelepas, which recorded a throughput of 14.03 million TEUs (up 14 % from 2024). Port Klang reported a 3.4 % increase to 15.14 million TEUs.
Future rivals could include ports such as Can Gio and Cai Mep Ha in Vietnam or a newly planned container terminal in Port Dickson, Malaysia.
WHERE SINGAPORE HAS AN EDGE
Maritime businesses agree that Singapore’s enduring advantage begins with its strategic location. Sitting between China, Southeast Asia, India and the Middle East, the Port of Singapore lies along one of the world’s busiest maritime corridors – the Strait of Malacca and Singapore Strait.
This positioning allows Singapore to benefit from strong seaborne trade flows, particularly intra‑Asia trade, which is now the largest container trade in the world, said Prof Yap.
The port’s status as the world’s largest bunkering hub and a leading provider of ship management, spare parts, financing and insurance further reinforces its advantage. Bunkering refers to the supply of marine fuel.
“Vessels calling at Singapore can address multiple operational needs in a single stop, a key factor that strengthens its position as a global maritime hub,” said Mr Agarwal.
Singapore’s small size and compact port infrastructure are also advantages. The two main container terminals – Pasir Panjang and Tuas – are less than 20 km apart, allowing containers to be shifted quickly when shipping schedules change. By contrast, Shanghai’s major container facilities are more than 80 km apart, and Ningbo‑Zhoushan’s are even more dispersed.
Proximity matters because transshipment operations are inherently more complex than handling export or import cargo. Containers arriving on large mainline vessels must be transferred to feeder ships within tight time windows, often across different shipping alliances.
During global trade disruptions – such as the Red Sea shipping crisis that began in October 2023 – ports that could adapt quickly gained traffic, noted Prof Yap.
Singapore’s relevance is also tied to businesses’ shifting priorities as they look to future‑proof supply chains. Mr Bhavan Vempati (Maersk) said more companies are diversifying away from a single origin in China toward emerging markets in Southeast Asia and the Mekong region. This shift is boosting intra‑Asian trade volumes of both raw materials and finished goods.
Maersk continues to view Singapore as a key port for its network, citing strong growth opportunities for sea‑air transshipments via Changi Airport and warehousing. Mr Vempati described Singapore’s strong connectivity, high port efficiency and service quality as making it one of the “top international maritime centres of the world”.
Beyond containers, Singapore’s reputation for efficiency and reliability is resonating throughout the wider maritime ecosystem of shipyards, marine engineering and offshore services.
For shipyard owner and operator PaxOcean, Singapore remains competitive as a base for shipyard and maritime engineering operations, particularly for complex, time‑critical and high‑value work. The firm recently invested S$200 million in a new shipyard, an innovation hub and centre of excellence.
Mr Pankaj Porwal (Hafnia) highlighted Singapore’s high cargo availability, fast turnaround times and stringent safety standards, as well as advanced port facilities and strong backing from equipment makers that facilitate prompt technical assistance.
FUTURE‑PROOFING OPERATIONS
While Singapore’s port continues to attract international firms and investment, it operates under structural constraints. Mega ports such as Shanghai and Ningbo‑Zhoushan benefit from vast domestic cargo bases, whereas Singapore relies heavily on transshipment volumes, which are more sensitive to network reconfigurations by shipping lines.
Nevertheless, Monitor Deloitte’s Mr Bose and Ms Zhuang say Singapore remains well‑positioned as a global leader because of its strong maritime professional ecosystem – spanning ship finance, legal services, logistics and a pro‑business environment. They note that Singapore has demonstrated resilience, hitting historical highs in 2025 across multiple indicators despite geopolitical uncertainty and rerouting pressures.
Potential concerns would arise only if a decline in market share were accompanied by deteriorating service reliability, weakening connectivity quality, or an erosion of Singapore’s role within global liner networks – outcomes they do not expect in the near term.
For maritime businesses, Singapore’s attractiveness hinges on maintaining high standards and adapting to shifting industry priorities such as decarbonisation. Operators are willing to pay a premium for predictability, efficiency and reduced operational risk, said Mr Gurpreet Singh Sandhu (Berge Bulk). He added that Singapore will need to accelerate the provision of compliant and alternative fuels to address cost and decarbonisation challenges.
Strong public‑private collaboration supporting decarbonisation infrastructure – such as shore power for suitable vessel segments and structured frameworks for fuel trials – will be increasingly important, noted Mr Sandhu.
For AET, a global tanker operator headquartered in Singapore, the availability of safe, reliable bunkering for new fuels is critical for meeting emissions objectives. Its CEO, Nick Potter, said:
“As tanker owners and operators work towards decarbonisation targets and deploy dual‑fuel and next‑generation vessels, access to low‑ and lower‑carbon fuels becomes an increasingly important factor in port choice.”
Singapore’s authorities are keeping up with the times. PSA Singapore says it will continue to expand capacity, deepen automation, roll out more sustainable and energy‑efficient operations and invest in workforce upskilling. A key part of this strategy is the development of Tuas Port and its supply‑chain hub at Tuas, which will consolidate Singapore’s container terminals into a fully automated, digitally enabled port.
Tuas Port is currently the world’s largest automated terminal with 12 operational berths. When all four phases are completed in the 2040s, it will have a handling capacity of 65 million TEUs.
BUILDING HUMAN CAPITAL
Being a small state with no natural resources and limited land, Singapore’s competitive edge lies in a skilled and competitive talent pool, said Ms Tan Beng Tee (executive director, Singapore Maritime Foundation – SMF). The SMF, a private‑sector‑led organisation, seeks to develop and promote Singapore as an international maritime centre.
“The maritime industry is currently in a transition phase, and the pace of change will accelerate in the coming years. Hence, not only must we prepare those in school to be more industry‑ready, we must also build the skills of those in the current workforce so that they are equipped to support the transformation of the companies,” said Ms Tan.
The SMF works with universities to keep maritime curricula relevant and upskills mid‑career professionals in data analytics, artificial intelligence and sustainability. In 2025 it created 60 scholarships worth S$1.48 million; since 2007, more than 700 scholarships worth over S$19 million have been granted.
CO‑OPETITION IN THE REGION
Global competition is not purely a zero‑sum game. Associate Professor Goh (NUS Business School) describes a mix of co‑opetition – cooperation and competition – in the region, as increasing intra‑Asia and China‑ASEAN trade benefits both Singapore and neighbouring ports.
PSA has set up joint ventures with shipping lines to use Singapore as a hub for main trade routes, and its overseas investments help expand its network and integrated services. PSA Singapore is a wholly‑owned subsidiary of PSA International, a leading port group with a global network of 184 locations and 77 terminals in 45 countries.
Said Mr Lee (Marco Polo Marine):
“When we try to clinch projects, people feel more comfortable that it’s a Singaporean company doing the job, because they know we are not fly‑by‑night, we understand international law and best practices. We should leverage that reputation.”
Source: CNA/ny/ma
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