2021 was undoubtedly a challenging year in many aspects as economies and communities continued to battle with the repercussions of the COVID-19. In the second half of last year, pandemic-induced increase in demand for goods threw a wrench into global supply chains while companies grappled with retaining their workforce.

Despite the odds, PSA proved its mettle and delivered a record performance for the year, thanks to the tenacity and resilience of our team and the strong relationships with our customers, partners and stakeholders. We registered a record throughput of 91.5 million Twenty-foot Equivalent Units (TEUs) in 2021, an increase of 5.6% over 2020. Overall group revenue and net profit were S$4.7 billion and S$1.4 billion respectively.

Our commitment to service excellence and sustainable operations has been recognised worldwide. PSA International was voted “Best Global Container Terminal Operator” for the 14th time at the 2021 Asian Freight, Logistics & Supply Chain Awards (AFLAS), and PSA Singapore was named “Best Container Terminal – Asia (over 4 million TEUs)” for the 31st time.

Globally, our other terminals continued to receive positive commendations as well. Over in India, PSA Mumbai was named “Upcoming Terminal of the Year” at the annual India Maritime Awards, while PSA Ameya was awarded “Best Container Freight Station (CFS) Operator (Pan India)”.

Mersin International Port (MIP) in Turkey also won the “Port Operator of The Year Award” for the 11th eleventh consecutive year at the 2021 Turkey Atlas Logistics Awards. DCT Gdańsk received a "Port of the future" award at the World of Freight (WOF) Expo 2021.

PSA remains committed to investing in and operating world-class terminal facilities. The first two berths at PSA Singapore’s Tuas mega port project started operations at the end of 2021 – a significant milestone reaffirming Singapore’s status as a global hub port with world-class technologies. We also continue to expand our operations and facilities in Poland, Turkey and Saudi Arabia.

PSA has been actively collaborating with its customers and partners to offer logistics and supply chain solutions beyond the port. To that end, we have continued to purposefully build up our digital and cargo solutions capabilities to benefit cargo owners and customers across the supply chain, while also championing cross-industry partnerships to spur collective action towards sustainability.

PSA’s acquisition of BDP International – a leading provider of global integrated supply chain, transportation and logistics solutions – will see the Group benefitting from BDP’s global expertise in end-to-end supply chain services. For shippers and importers who are confronted with a volatile market and increasingly complex global logistics requirements, this will create opportunities for customised and sustainable solutions that will help them optimise the international supply chain process.

In our desire to contribute to a healthier and greener world, PSA has made sustainability one of its top priorities. We have continued our efforts to build positive climate change momentum through various supply chain sustainability initiatives and investments, and detailed many of them in the PSA Group’s inaugural Sustainability Report launched in 2021.

As an industry leader, we are in a position to innovate, influence and effect change towards a more circular economy and accelerate the shift towards sustainable logistics. PSA joined the Coalition for the Energy of the Future, a cross-industry, international alliance with the ambition to accelerate the development of energies and technologies to sustain new green mobility models and address sustainability challenges in transport and logistics. PSA also signed a statement of support for the Call to Action for Shipping Decarbonisation, developed by a multi-stakeholder task force convened by the Global Maritime Forum’s Getting to Zero Coalition. The 150 signatories represent the entire international maritime ecosystem, and together commit to taking concrete and critical steps to deliver commercially viable zero emission vessels with the necessary supporting infrastructure and fuel production by 2030.

Doing our part to accelerate the transition to a net zero global economy will require the collective effort from our people. To underscore our commitment to sustainability and long-term value creation, a series of talks – the PSA Leaders’ Sustainability Series – was launched to equip PSA leaders to shape business strategy with sustainability in mind. Our business units around the world also stepped up and took green steps during the Group’s annual GoGreen month, by organising various activities such as tree planting, litter picking, recycling drives, and talks to drive awareness about sustainability.

As a Group, PSA also stepped forward to sponsor US$100,000 for two global community initiatives by Temasek Foundation. These involve the restoration of mangroves under the M40 cities network, and a pilot program on circular economy intervention, focusing on waste management to accelerate the blue and green economy in cities.

In line with our commitment towards sustainable port development, PSA has also put in place new requirements across our major terminal construction projects – moving away from the use of carbon intensive traditional Portland cement – in the construction of our buildings, to using more sustainable alternative binders instead.

Mindful of our corporate responsibilities, PSA continues to strive to create a positive impact in the communities that we operate in. Despite restrictions surrounding group physical volunteering activities, our PSA Singapore colleagues organised an online fulfilment of the wish lists submitted by our adopted charity partners. Staff banded together to raise funds for and deliver hundreds of Christmas gifts to beneficiaries from the Children's Cancer Foundation (Singapore), HCA Hospice Care, Lions Befrienders, The Haven (The Salvation Army Singapore), among others.

Staff across our Europe, Mediterranean and Americas business units also participated in a “Moving for Charity” event, clocking in runs, swims and bicycle rides to raise funds for local charity initiatives. In addition, Mersin International Port (MIP) in Turkey donated to disaster relief efforts following a spate of wildfires in the region in the middle of the year. Similarly, staff at Ashcroft Terminal in Canada also swiftly supported evacuees of wildfires in the province of British Columbia last summer.

At this juncture, I would like to express my deepest appreciation to the Staff, Unions and Management of PSA around the world. Their steadfast commitment, partnership and willingness to adapt have enabled the stellar strides we have made as a Group in 2021.

I am also very grateful to the PSA International Board of Directors for their valuable insights and expert guidance. Their collective wisdom has been critical in helping PSA navigate the complex disruptions in the new normal.

As we march on in the year ahead, it is clear that social and geopolitical challenges will abound, with resurgent waves of the COVID-19 virus, ongoing economic sanctions and fallout from the war in Ukraine. These will impact global trade growth and potentially further disorder supply chains.

In steering through unchartered territory, we must remain resilient, agile and tenacious for the journey ahead. I have confidence that at PSA, we will continue to stay alongside each other and the industry. We are committed to nurturing our workforce and talent, sharpening our competitive edge and creating long term value for all our stakeholders.

In closing, I would like to wish our customers, partners, stakeholders and our PSA Staff, Unions and Management a safe, healthy and peaceful year ahead.

Peter Voser Group Chairman