Group Chairman’s Message
Peter Robert Voser
2022 was a year marked by unpredictability. While learning to live with COVID-19, businesses and communities were faced with macroeconomic uncertainties arising from geopolitical challenges, including ongoing trade sanctions and the war in Ukraine; record inflation, rising fuel and energy costs, as well as supply chain disruptions and growing climate-related pressures.
Amidst these challenges, PSA stayed focused on our strategic priorities to meet the needs of our customers, partners and stakeholders. PSA registered a throughput of 90.9 million Twenty-foot Equivalent Units (TEUs) globally in 2022, a decrease of 0.7% over 2021. Overall group revenue and net profit were SGD8.0 billion and SGD1.6 billion respectively.
It was a landmark year for PSA as we inaugurated Phase 1 of Tuas Port on 1 September 2022, which marked a momentous milestone in Singapore’s maritime history and reinforced PSA Singapore’s role as a global hub port. Tuas Port is envisioned to be the focal point of an extensive and well-connected supply chain and logistics ecosystem when fully completed in the 2040s. In late February 2023, we also commemorated its first millionth TEU of containers handled.
Just as significantly, we have been working to transform our business and increase our relevance to global supply chain stakeholders. Even as we continue building on our core business of ports, we have concurrently invested in growing our ability to offer logistics and supply chain solutions beyond the port. In 2022, we fully acquired global logistics solutions provider BDP International (rebranded to PSA BDP), which has extended PSA’s capabilities to serve cargo owners as a supply chain orchestrator. This also brings us closer to our shared vision of realising an Internet of Logistics for the industry, to enable more resilient and sustainable trade.
SUSTAINING A CULTURE OF EXCELLENCE
Our unwavering commitment to service excellence continued to gain industry recognition. PSA Singapore was named ‘Best Container Terminal – Asia (over 4 million TEUs)’ for the 32nd time at the 2022 Asian Freight, Logistics & Supply Chain Awards (AFLAS) and ‘Container Terminal Operator of the Year’ for the 14th time at the Supply Chain Asia Awards 2022.
For the fourth time at the Asian Freight, Logistics and Supply Chain Awards, PSA Antwerp won ‘Best Container Terminal – Europe’; and Mersin International Port in Türkiye received the ‘Port Operator of the Year’ award for the 12th time at the Atlas Logistics Awards. Baltic Hub (formerly DCT Gdańsk) in Poland bagged the prestigious ‘Transport, Spedition and Logistics’ Award for the second year running in the ‘Logistics Infrastructure Development’ category. PSA Chennai was voted ‘Container Terminal Operator of the Year’ for the fifth consecutive year at the 13th Southeast Cargo and Logistics Awards 2022; while PSA Ameya was named ‘Best Container Freight Station (CFS) Operator of the Year – Pan India’ for the sixth consecutive time at the India Maritime Awards 2022.
In Singapore, Group CEO Mr Tan Chong Meng was conferred the Meritorious Service Medal at the National Awards (COVID-19) for his leadership in two key national taskforces which steered Singapore through the pandemic. The occasion was made doubly meaningful as our Board member Mr Pang Kin Keong also received the Meritorious Service Medal for his contribution to Singapore’s fight against COVID-19 in his capacity as Permanent Secretary for Home Affairs and Chairman of the Homefront Crisis Executive Group.
2022 was a memorable year for me personally, as I was extremely honoured to receive an Honorary Citizen Award for contributions rendered to Singapore – the highest form of national recognition for a non-Singaporean.
IGNITING INNOVATION
During the year, we continued to actively develop PSA’s digital and cargo management capabilities as well as spearhead cross-industry collaborations. Amongst these was the research collaboration agreement between PSA Singapore and the Agency for Science, Technology and Research’s Institute of High Performance Computing to co-develop a smart fleet management solution for automated guided vehicles (AGVs) to move containers safely and efficiently at Tuas Port.
We also collaborated with key stakeholders to develop more than 50 Application Programming Interfaces (APIs) for the local logistics and haulier industry, to connect their in-house systems with Portnet®, PSA’s nation-wide B2B port community solution, towards enabling real-time information-sharing for greater operational efficiencies.
PSA Marine provided value-added service to its stakeholders with the launch of OHS-Sapphire in November 2022 – the first-of-its-kind digital real-time alert solution to inform shipmasters of vessel supply delivery statuses when their vessels are anchored at PSA Singapore’s terminals.
DRIVING GREATER SUSTAINABILITY
I am particularly proud of the work that has been done to bolster our commitment towards sustainability.
A significant green milestone was achieved in the opening of Singapore’s Tuas Port, one of the world’s most technologically advanced and sustainable ports. PSA International also joined the Maritime and Port Authority of Singapore and Port of Rotterdam Authority as an Action Partner to establish the world’s longest Green and Digital Corridor in support of zero-carbon shipping.
We also deployed Singapore’s first Energy Storage System at Pasir Panjang Terminal, as part of PSA’s SGD 8 million collaboration with the Energy Market Authority to enhance the sustainability and decarbonisation of Singapore’s port operations.
To further power Singapore’s green energy future, PSA inked a Memorandum of Understanding (MOU) with key industry collaborators in Singapore and Japan to explore ways of utilising hydrogen as a viable low-carbon energy source and develop a cost-effective hydrogen supply chain network.
PSA Singapore’s green efforts have also earned it the Business Leadership in Sustainability Award from the Singapore Green Building Council and Building and Construction Authority.
As a Group, we continue in our concerted approach towards the progressive electrification of all terminal equipment. PSA Antwerp, together with MSC PSA European Terminal and Antwerp Terminal Services, have also launched the Green Straddle Carrier Program and in the coming years, will work towards developing straddle carriers powered by alternative energy sources such as hydrogen and biofuel.
In India, PSA Mumbai commissioned a 1-megawatt solar farm which is projected to generate 13% of its annual power requirements and reduce CO2 emissions by over 1,200 tonnes per year; similarly, Pusan Newport International Terminal in South Korea is using solar and renewable energy to power its buildings and reduce carbon emissions.
With education a critical component in inculcating environmental awareness and sustainability, PSA University launched the Group’s first global Wintercamp and organised workshops for employees to learn about supply chain solutions and boost climate-conscious actions. The inaugural week-long PSA Global Learning Carnival promoted self-directed learning to PSA staff using online resources and experiential activities.
Along the same vein of encouraging wider discourse, PSA supported the Singapore Business Federation’s inaugural Singapore Apex Business Summit (SABS) in 2022. Held over a few days, SABS brought together renowned speakers and provided a platform for international participants for networking and dialogue on economic development and business trends in areas including sustainability, digitalisation and collaboration.
On the governance front, a full review of PSA’s Code of Business Ethics and Conduct concluded with key updates to ensure employees continue to uphold the highest standards of ethics and integrity in an ever-changing business landscape.
The PSA Group’s Sustainability Report for 2022 will holistically detail and report our sustainability strategy, material issues, and ESG initiatives when published in mid-2023.
CREATING POSITIVE COMMUNITY IMPACT
PSA continued to give back to community through meaningful social responsibility initiatives. With the easing of COVID-19 measures around the world, our staff resumed physical volunteerism with their beneficiaries. PSA companies and employees also provided financial assistance to the underprivileged or supported social projects to meet the needs of their local communities – such as through sporting events and fundraisers. Other initiatives included art and cultural sponsorships, and local sustainability projects like community clean-ups.
STRONG FOUNDATIONS FOR A SUSTAINABLE FUTURE
I would like to express my heartfelt appreciation to our staff, unions and management globally. Despite numerous challenges, their dedication and commitment in the pursuit of excellence continue to stand PSA in good stead, as one of the world’s leading port operators and a trusted cargo solutions provider. I would also like to extend my thanks to the PSA International Board of Directors for their expert guidance and insights that have steered the Group confidently through complex operating conditions and transformation.
Looking ahead, the headwinds are expected to continue, but I remain confident that the strong foundations we have built up over the decades, coupled with our ability to adapt, innovate and work collaboratively, will ready us for an exciting future ahead as we work alongside towards delivering sustainable value for our customers and stakeholders.
PETER ROBERT VOSER
Group Chairman
