Pacific International Lines (PIL) is important to Singapore as the state does not have its own national liner fleet.

In fact, it is the Lion City’s only liner company, making it a likely candidate for state funding.

Local observers say the Covid-19 pandemic has demonstrated that Singapore needs to have its own fleet so that, in a times of crisis, it can recall the vessels and deploy them as required.

“During national crisis, it will be difficult for Singapore to request a foreign-owned liner company to stop all [of] its activities and transport cargoes for the country,” one Singapore-based shipping player said.

According to a Chinese news report, PIL's 11,800-teu Kota Puri (built 2019) transported 192 tonnes of vegetables loaded into 105 refrigerated containers and 2,500 tonnes of goods from Xiamen in China to Singapore last month.

Singapore used to have its own liner carrier, Neptune Orient Lines (NOL), in which Temasek Holdings was the major stakeholder. However, NOL was sold to French liner giant CMA CGM four years ago as it was incurring losses.

Some industry observers believe PIL executive chairman and managing director Teo Siong Seng’s strong connection with the Singapore government will enable him to get assistance from Temasek Holdings — the country’s sovereign wealth fund.

Teo was a former Nominated Member of Parliament in Singapore and is a prominent businessman in the country.

Teo is known as the voice of the business community and he functions as a bridge between that community and the government.

A containership player said PIL is a strong liner player on the Middle East, Africa and South East Asia trade.

“CMA CGM and AP Moller-Maersk were keen to acquire PIL a few years ago but their offers were rejected,” the containership player said.

PIL was founded in 1967 by YC Chang, the father of Teo. It is the world’s 10th-largest liner company, according to Alphaliner, and controls more than 100 vessels, of which 66 are owned and 45 are chartered.