PSA beats “business unusual” in 2014

“While the throughput figures might have given the perception that 2014 was a typical year, we at our corner serving our customers, knew 2014 was business unusual,” said Mr Chong Meng.

“The industry awoke to harsh new realities: mismatch of mega vessels and ports, more complex alliance arrangements, reduced shipping reliability, port congestion; it was a challenging and uncertain time for the industry,” he added.

Despite uncertainty, PSA’s flagship Singapore Terminals contributed 33.55 million teu with a growth of 4.1% year-on-year, while PSA terminals outside Singapore delivered a total throughput of 31.89 million teu, increasing 7.8% over 2013.

PSA Group revenue was also higher by 2.9% while profit from operations declined 1.1% due to higher operating cash costs and depreciation. Overall net profit for the year was 1.7% lower at S$1.40bn (US$100.6m).

The Group’s balance sheet also remains strong with a gross debt equity ratio of 0.44 times at the close of 2014.

But, Mr Chong Meng says PSA could continue to face operational challenges in 2015 as more mega vessels enter service and the workings of the mega alliances go into full swing.

“But one thing is certain,” he says, “PSA is always ready to work alongside our customers to tackle the challenges with them. We are continuing to put in the infrastructural investments, we have encouraged ever closer working arrangements with customers to resolve operational issues, and we are continually enhancing the skills of our people and igniting their passion to excel.”