Singapore terminal operator PSA International has been restructured into two core businesses of ports and cargo solutions, the company has said.
The state-owned group said the move was in line with its long-term strategy and that its new mid-mile logistics would be its “unique service differentiator”.
“In recent years, we have been transforming our business and broadening our capabilities to better serve global supply chain stakeholders,” said PSA International chairman Peter Voser.
“Even as we continue building on our core business of ports, we have invested in growing our ability to offer logistics and supply chain solutions beyond the port.
“These important milestones, amongst others, have extended our capabilities to serve cargo owners as a supply chain orchestrator and brings us closer to the goal of enabling more resilient and sustainable trade,” he added.
News of the restructuring came as PSA International announced a 13% growth in full-year net profit to SGD 1.56bn ($1.1bn), despite container volumes handled contracting to 90.9m teu.
PSA Singapore contributed container volumes of 37m teu and terminals outside Singapore delivered a total throughput of 53.9m teu.
PSA International attributed the improvement in its annual profit to growth in other income and contribution from acquisitions.
PSA International described 2022 a “very significant year” as it inaugurated the mega Tuas port in Singapore and fully acquired global logistics solutions provider BDP International.
In February 2023, PSA Singapore celebrated the first 1m teu to be handled at Tuas Port, which was achieved just six months after the official opening ceremony in September last year.
“Even as Covid-19 transitioned to endemic for most major economies and people learned to live under a new normal, businesses and communities continued to face macroeconomic uncertainties arising from geopolitical challenges such as ongoing trade sanctions, the war in Ukraine; record inflation, rising fuel and energy costs, supply chain disruptions and growing climate-related pressures,” said Voser.
“The world experienced another challenging year in 2022,” said PSA Group chief executive Tan Chong Meng.
“The PSA Group kept an even keel as we navigated the instability and turbulence caused by international conflicts, trade flow disruptions, economic upheavals and slowing demand growth around the world.
“At the same time, we recognise the key role that culture plays in the successful transformation of organisations and we will be investing in further efforts to foster a more inclusive, diverse and collaborative environment — one that values innovation, people development and continuous learning to build our talent capabilities to meet the challenges ahead,” he added.
PSA International was recently reported to be looking to offload its 20% stake in the ports business of Hong Kong’s CK Hutchison Holdings, a stake it bought in 2006 for $4.4bn.
PSA International operates more than 60 deepsea, rail and inland terminals across 42 countries, according to its website.
