SPEECH BY MR ANDREW TAN, CHIEF EXECUTIVE, MARITIME AND PORT AUTHORITY OF SINGAPORE ON NORWAY AND SINGAPORE COOPERATION ON MARITIME RESEARCH AND EDUCATION AT THE RESEARCH AND ENTERPRISE SEMINAR ON 11 OCTOBER 2016

11 October 2016

SPEECH BY MR ANDREW TAN, CHIEF EXECUTIVE, MARITIME AND PORT AUTHORITY OF SINGAPORE ON NORWAY AND SINGAPORE COOPERATION ON MARITIME RESEARCH AND EDUCATION AT THE RESEARCH AND ENTERPRISE SEMINAR ON
11 OCTOBER 2016, 2.00PM,AT FORSKNINGSRÅDET, THE RESEARCH COUNCIL OF NORWAY, OSLO

Distinguished Guests,

Ladies and Gentlemen,

Introduction

1     Good afternoon. It is my pleasure to be here today to share on the longstanding collaboration between Singapore and Norway on maritime research, education and training and where we see further opportunities for cooperation.

Norway and Singapore

2     Norway and Singapore share many similarities. We are both small nations with a population of just over 5 million, although Norway has a much larger land mass. We are both strategically located. Norway is close to the Arctic, which could possibly open up as a new trade route one day, while Singapore is close to the equator, and sits at the confluence of major trade routes connecting Asia with Europe and vice versa. Both Norway and Singapore are also major international maritime centres, with Norway being strong in the offshore sector while Singapore is strong in port, shipping and jack-up rigs. Here the similarities end. Norway has access to large reserves of oil and gas while Singapore has virtually no natural resources. Yet both countries have managed to buck the trend facing many small nations with high GDP per capita and standards of living through good governance, prudent use of resources, investing in their people, and of course, leveraging on technology. 

3     As the world braces itself for slower growth, I note that a similar discussion is taking place in Norway as it is in Singapore, as to how best to find new ways to make a living and stay relevant in an increasingly volatile world driven by disruptive events, technological innovation and socio-economic and demographic changes. Perhaps we can learn from one another as we tackle these common challenges.

Norwegian Presence in Singapore

4     Some of you may not be aware that Norway and Singapore have enjoyed close relations for more than a century since Norway first established an honorary consulate in Singapore in 1906. Norway is Singapore’s 8th largest trading partner in Europe and 5th largest investor from Europe. I have been told that there are more than 250 Norwegian companies in Singapore mainly in maritime and offshore, including shipping banks and brokerages. This is the highest concentration of Norwegian companies in Asia, and many Norwegian companies have their regional headquarters in Singapore, which serves as a springboard to Asia and ASEAN markets.

High Level Networking Events in Singapore

5     Beyond the business activities, both sides have also actively participated in each other’s flagship events, namely Norshipping and Singapore Maritime Week (SMW). More recently, Norway held the inaugural Norway Night during SMW in 2015. The Norwegian Business Association also organises the highly popular Norwegian Seafood Dinner. These activities have helped to foster a stronger sense of community between Singapore and Norway. 

The Singapore Maritime Cluster

6     Let me now turn to the Singapore Maritime Cluster. The Cluster includes the Port, Shipping, Offshore and Marine Engineering and Maritime Services sectors, and contributes about 7% of Singapore’s GDP and employs some 170,000 people in more than 5,000 companies and organisations. Despite the present economic downturn and mounting challenges faced by the global shipping and offshore sectors, Singapore continues to invest in infrastructure, technology and manpower. Precisely because the industry is cyclical, we believe that we have to think and operate in counter-cyclical terms to build long-term capabilities in the maritime sector. I will touch on some of these initiatives later. 

Norway-Singapore Collaboration 

7     The Research Council of Norway (RCN) and the Maritime and Port Authority of Singapore (MPA) first cooperated in maritime research and development, education and training by signing a MOU in 2000. It started off with research collaboration between the Norwegian University of Science & Technology (NTNU) and National University of Singapore (NUS), and education partnership between BI Norwegian Business School and Nanyang Technological University (NTU). The MOU has since been extended five times, broadening the scope of collaboration to include joint call for maritime research proposals between Norway and Singapore. 

8     RCN and MPA have also joined hands in organising the International Maritime-Port Development and Technology Conference or MTEC, held alternately between Norway and Singapore, with the last MTEC held in Trondheim (Norway) in 2014. Academics, industry players and research communities from various countries participated and gathered at the conference to exchange ideas and knowledge. 

9     During SMW 2015, to give greater prominence to maritime technology, MPA organised an inaugural Singapore Maritime Technology Conference (SMTC) and included among its partners the Royal Norwegian Embassy in Singapore, Innovation Norway, the Research Council of Norway and the Norwegian Coastal Administration (NCA) together with Singapore partners. The next SMTC together with MTEC and e-Navigation forum will be held in Singapore during SMW in April next year and we hope to see many of you participating at both events.

Key Collaborations in R&D

10     Let me now cite some examples in R&D collaboration. In 2014, the MPA and DNV GL signed a MOU to jointly promote maritime R&D, safety and clean energy. DNV GL has undertaken several co-funded research projects relating to LNG, including a Joint Industry Project (JIP) on ‘Assessment of the South East Asian Market for LNG Shipping and Distribution’, and another JIP on ‘Assessment of LNG Bunkering’ with 18 research partners. With support from MPA, DNV GL also established its FutureShip ECO Research Centre focusing on energy efficiency solutions and has since undertaken several more projects such as ‘Zero-Emission Ferry Concept for Singapore’. 

11     Kongsberg is another major partner and has helped MPA built up one of the most advanced vessel traffic management system of today. More recently, Kongsberg and NCA are working with MPA to test-bed e-Navigation concepts relating to voyage planning system and VHF Data Exchange System (VDES) which is an advanced radio communication system. Another notable project is the ‘Development of a Ship Traffic Simulator’ by Kongsberg Norcontrol IT and Simplus, under the SESAME Straits initiative of e-Navigation. MARINTEK and the Singapore Maritime Academy are also jointly developing ‘Ship Handling Simulation Models’ under the MAROFF  programme led by Norway.

12     Under MPA’s Green Technology Programme (GTP), which aims to promote the adoption of green technologies to reduce emissions, Norwegian companies such as Norgas and Masterbulk have received funding support to retrofit their vessels with green technologies (e.g. trim optimisation system and propeller boss cap fins).

13     From the expanded scope of the MPA-RCN MOU, I am also pleased to note that from the RCN-SMI joint call launched in April last year, there were three approved projects relating to energy jointly carried out by the research institutions and universities from both countries.


Collaboration in Maritime Education and Training

14     Both sides have also invested significantly in maritime education and training. Through the MOU between NUS and NTNU in 2004, the Centre for Offshore and Research Engineering (CORE) in NUS has been collaborating with NTNU’s Centre for Ships and Ocean Structures (CeSOS). On the education front, the NTU and the BI Norwegian Business School jointly conduct Maritime Studies programmes at the Bachelor of Science (BSc) and Master of Science (MSc) levels. These programmes were launched in 2004 with the support of MPA’s Maritime Cluster Fund. As part of the BSc (Maritime Studies) programme, third-year undergraduates will spend a semester at BI. In recognition of the longstanding commitment on cooperation and knowledge exchange between Singapore and Norway, the programme was awarded a prestigious prize by the Norwegian Business Association Singapore (NBAS) on 17 March 2014. Student exchange programmes are also offered between NTU & NTNU, NUS & NTNU, and NUS & University of Oslo (UiO).

Exciting Maritime Developments in Singapore

15     Let me now touch on some exciting maritime developments in Singapore.

Next Generation Port 2030

16     The most significant development in Maritime Singapore today is the Next Generation Port 2030. The consolidation of container handling operations at a single location at Tuas from the City Terminals and Pasir Panjang Terminals will free up prime land in the city area for higher value purposes. It has also provided an opportunity for the Port of Singapore, together with the research and technology communities and businesses, to leverage on digital and automation technologies and new land-use ideas to increase efficiency, productivity, safety and security in a more sustainable and community-oriented environment. The first berths of the Tuas Next Generation Port will commence its operations in early 2020s and eventually reach a planned capacity of 65M TEUs when the four phases or fingers are completed by 2030s.

Developing an Efficient Port

17     First, I will share on developing an efficient port to improve land and manpower productivity. The Above Ground Space (AGS) platform allows port-related and industrial developments, such as container freight stations, logistic hubs, mixed developments, to be consolidated at Tuas Maritime Hub. The additional space created can be up to about 185 ha - as big as the entire East Coast Park. The AGS development will also enhance the efficiency of Tuas Terminal by locating port-related activities next to the container terminal, thereby reducing haulage of containers from other parts of Singapore. The Underground Space study (UGS) will also look at various uses that will be strategic and synergistic with the port activities.

18     Our container terminal operator, PSA has developed the Automated Guided Vehicles (AGVs) navigation system and fleet deployment system and is now testing the operations of the AGVs, automated yard cranes and quay cranes at two berths at PPT under a Living Laboratory environment using the developed systems. The Living Laboratory environment allows the testing of the whole automated system involving seven quay cranes, 16 yard cranes and 30 AGVs under actual operations before scaling up to full automation when Next Generation Port commences its first operations in 2021. With the support from MPA, PSA also embarked on other automation projects such as the use of UAVs for remote inspection of cranes and robotics to fix or remove container twist locks.

Developing a Safe, Secure, Efficient and Intelligent Port

19     The software behind the hardware is just as important. Various feasibility and benchmarking studies are underway to explore new operating concepts and conceptualisation of next generation port systems, such as the next generation Vessel Traffic Management System (VTMS), the Maritime Sense-Making System, the Just-In-Time Planning and Coordination (JIT) System, and the Maritime Single Window, all serving different functions but with the common objectives to enhance the safety, security, efficiency and experiences of customers and employees through intelligent systems. I will leave the technical details to my colleagues and next year’s conferences in Singapore.

Developing a Sustainable & Community-Oriented Port

20     No port can grow to this scale (i.e projected 65M TEU) sustainably without considerations to the environment and the community. All container-handling equipment such as quay cranes, yard cranes and AGVs will be driven by electricity and batteries instead of diesel fuel. Under the Next Generation Port master plan, a Tuas Maritime Hub, which comprises the Terminal, AGS and UGS developments and Terminal Gateway, has much potential to tap onto renewable energy sources like solar energy. To raise the level of sustainability, energy management solutions for harvesting solar energy, management of demand and supply of electric power, waste heat recovery and centralised common cooling facilities will be studied for incorporation into the master plan. 

21     The Next Generation Port’s CO2 footprint will be managed by controlling air emissions from ships, harbourcraft and container-handling equipment. On the sustainability front, policy tools such Maritime Singapore Green Initiative (MSGI) has been enhanced to encourage faster adoption of cleaner fuels such as LNG for ships calling in our port. New regulations will be enacted for harbourcraft to be low-emission compliant.

Next Generation Bunkering

22     Another exciting development is the Next Generation Bunkering in Singapore. Singapore is the world’s top bunkering port. Annual bunker sales volume has grown from 16.9 million tonnes in 1996 to a record high of 45.2 million tonnes in 2015. 

Mass-Flow Metering

23     We are revolutionising bunkering operations through mandating the use of Mass Flow Meters (MFM) to improve efficiency of bunkering operations. From 1 Jan 2017, marine fuel oil deliveries can only be conducted using bunker tankers that are installed with MPA-approved MFM. Moving ahead, MPA has put in an additional S$0.5 million to extend the installation of mass flow meter on bunker tankers delivering distillates. This will also pave the way for the implementation of electronic bunker delivery notes (eBDN) to enhance the efficiency and transparency of bunkering operations in Singapore.

LNG Bunkering

24     To further cement Singapore’s position as a world leader in providing access to clean marine fuels such as LNG for the future, we have launched our pilot LNG bunkering project with the issuance of the first two bunkering supply licenses to Keppel-Shell and Pavilion Gas as well as working with other leading port authorities to build a network of ports around the world in making LNG available as a bunker fuel. Last week, eight ports and maritime administrations comprising of Norway, Antwerp, Jacksonville, Japan, Korea, Rotterdam, Zeebrugge and Singapore signed a MOU at the opening ceremony of the 19th Singapore International Bunkering Conference and Exhibition (SIBCON) to further efforts on facilitating the uptake of LNG as a marine fuel. MPA has also co-funded up to $8 million for three companies to build LNG-fuelled tug boats and bunker tankers, namely Keppel Smit Towage, Harley Marine Asia and Maju Marine. 

Next Generation Skills

25 I will move on to Next Generation Skills. 

Sectoral Tripartite Committee (STC)

26     In recognition of the importance that manpower resource plays in driving the growth of Maritime Singapore, MPA sees the need to develop an industry manpower plan. A Sectoral Tripartite Committee (STC) for Sea Transport comprising representatives from relevant government agencies, seafaring unions and industry was set up. Under the STC, there are two taskforces which assist to drive its work. One of the taskforces focuses on seafaring manpower issues while the other looks at shore-based jobs.

27     Given the diverse nature of maritime, 3 maritime manpower resource panels (MMRP) were established under the shore-based taskforce to help obtain inputs and feedback from different key sectors. The MMRP therefore serves to ensure that the views of the industry are considered when the industry manpower plan is being formulated. 

SkillsFuture Earn and Learn Programme (ELP)

28     The work of the STC supports an initiative in Singapore called SkillsFuture. This is national effort to promote a skills-based training approach to equip Singaporeans with life-long skills. 

29     One example is the SkillsFuture Earn and Learn Programme or ELP for short. The ELPs for the maritime sector are jointly developed by MPA, SkillsFuture Singapore (SSG), Singapore Polytechnic and participating maritime companies. The ELPs aim to give fresh graduates from local polytechnics a head-start in their maritime careers, to deepen their skills through facilitated training, in-house structured programmes and mentorship. So through the ELP platform, fresh polytechnic graduates will not only have work opportunities but also an extensive study on the maritime sector. The first ELPs were launched in Jun 2016, focusing on 3 job types, namely Port Operations Officer, Deck officer and Marine Engineer Officer. 

Next Generation R&D
30     I will now touch on the next generation R&D. 

Emerging Technologies

31     The Internet of Things (IoT), data analytics, additive manufacturing or 3D printing, autonomous systems, artificial intelligence and other emerging technologies will inevitably challenge the fundamental models which maritime business operates and we are mindful of technology disruption. 

32     Other disruptive technologies such as Fintech, Blockchain and e-commerce platforms in the areas of maritime finance, insurance, legal services and logistics will also be of interest, particularly where it can spur the development of new maritime products or delivery of more innovative maritime services. What if the likes of Uber and AirBnB gain momentum in the maritime sector and what are the implications for the industry? You might be interested to know that both the Port of Rotterdam and Singapore are collaborating on port hackathons to better understand how data analytics, mobile platforms and e-logistics could impact on their respective ports. In fact, teams from Singapore recently participated in the Port of Rotterdam’s Global Port Hackathon and vice versa when we next organise ours.

Next Generation R&D

33     The emergence of new technologies poses both opportunities and challenges for Singapore's development as an International Maritime Centre. New technologies are disrupting traditional business models and creating new value chains. However, these also present new growth areas to enhance long-term competitiveness and value proposition.

34     We will leverage on MPA’s MINT Fund to develop projects involving new technologies in these areas for the maritime industry. Funding from the Singapore Maritime Institute (SMI) will be used to develop the R&D capabilities and talents in new technologies within the institutes of higher learning and the research institutes. We have set aside S$200 million for both MINT and SMI Funding, and a new R&D Roadmap will be developed for the Singapore maritime cluster.

Way Ahead – Potential Areas of Collaboration

35     Let me conclude by highlighting that the possibilities for collaboration are limited only by our imagination. I have outlined the key areas of priority for Singapore, and I have no doubt that many of these areas are what Norway is also actively thinking about, as summed up in this slide, be it Future Port, Future Shipping, Innovative Maritime Services or cutting-edge R&D. 

36     As leading maritime nations, both Norway and Singapore can work together on many new areas to promote safer, more efficient and sustainable shipping. We know that the status quo of today is no longer tenable. New regulations, both at the national and international level, will drive shipping towards a more efficient and sustainable pathway. Technology will be a great enabler as it will be a great leveller, and to the extent we can harness technology as a force multiplier to enhance the efficiency and effectiveness of our maritime cluster, we should do so.

37     The MOUs signed today will only deepen a longstanding relationship. 

VIDEO: “Next Generation Port in The Making”

38     Let me end by showing you a short video clip of the recent caisson laying of our Next Generation Port.  Thank You!

END OF PRESENTATION