New mega Tuas port will free up prime land

The Republic will work towards consolidating all its container port activities at a new facility in Tuas, creating a more efficient operation at a single location while also freeing up prime land for redevelopment.

Announcing the long-term plan, Minister for Transport Lui Tuck Yew pointed out that the port leases for the City Terminals at Tanjong Pagar, Keppel and Pulau Brani expire in 2027 but shipping will continue to be the lifeblood of the economy far into the future. He added that the port at Tuas must be able to handle future generations of container ships that are likely to be even larger and more complex than current vessels.

Consolidation at one location will also remove the need to move containers by truck between the existing five terminals, which will cut costs and reduce road congestion.

Property experts whom TODAY spoke to said prime land currently occupied by those terminals could be very valuable. Said Mr Alan Cheong, Director of Research and Consultancy at Savills: “The highest value use would be residential development and, given the seaview it commands, I think it would revalue the assets all around those areas once you start developing it. I believe that the value landscape there will start changing very quickly,”

However, Mr Nicholas Mak, Executive Director at SLP International Property, sounded a cautionary note.

“Potentially, land at Keppel and Tanjong Pagar could be very valuable due to the proximity to the city area, but for now it is too preliminary to estimate the impact of this announcement until the government announces further details and timelines,” he said.

Source : Today – 2 Oct 2012

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