Building a solid base in S'pore

IN 2012, Jardine Shipping Services (JSS) decided to base its commercial headquarters here, while maintaining its operations hub in Hong Kong, to handle matters such as accounting, administration and communication functions on behalf of its principals.

As a shipping agency, it has been operating in the Republic since the early 1970s performing essentially the role of an industry "middle man". This involved coordinating all the husbandry needs of its clients including the supply of bunker fuel, marine spares and other provisions; supervision of the loading and unloading of cargoes; overseeing the changing of ship crews and acting as a liaison with the authorities on all other relevant port matters.

It also provides freight management and liner services.

JSS makes it a point to work closely with its clients to help grow their businesses by conducting due diligence projects, providing updates on local markets, assessing any changes in local legislation and providing advice on improving operational profitability, including the outsourcing of key activities.

Each month, the agency, which has a staff strength of more than 150 which include those with its joint venture partners, handles on behalf of its clients and principals in excess of 400 vessels making their port calls here.

The vessels range from crude, product, gas and chemical tankers and dry bulk carriers to offshore and specialised vessels and even cruise liners.

"As one of the top international shipping agencies, it is a logical move for us to build a strong commercial base here due to Singapore's position as an International Maritime Centre (IMC) where most shipowners, operators, maritime services providers and other representatives have their presence. It offers us opportunities to grow our new and organic businesses," says Lakhbir Singh, JSS's group commercial director and Singapore country manager.

The company was conferred the Maritime Service Provider Award by the Maritime and Port Authority of Singapore (MPA) for exceptional professional performance and contribution to Singapore's maritime industry.

Mr Singh adds that JSS's commercial teams have been aggressively pursuing marketing efforts to promote the Port of Singapore to small and medium-size shipowners and operators who do not have a presence in Singapore for the past two years.

"We recognise that in today's ever competitive market, finding new sources of business is essential for every shipping company. That is why our marketing teams across Asia invest a lot of time and energy in maintaining strong relationships with a wide range of shipowners, ship operators, commodity traders and oil majors.

"Our strategic plan is to reach out to emerging international shipowners and operators to understand their needs and concerns when operating in this region. Singapore will act as the conduit in our pursuit of growth in terms of market share by capitalising on continual efforts towards improving efficiency and productivity," says Mr Singh.

JSS, he says, will leverage on Singapore's role as an "epicentre" for maritime activities, making use of it as a springboard for expertise and knowledge transfer not only to create specialisation by improving the skillsets of its people and assets but to grow beyond the region through both mergers and acquisitions.

That is because technological advances have taken over traditional shipping tasks such as telex issuance and the manual creation of bills, says Mr Singh, who adds: "To ensure we keep up with our clients' constant and ever-changing needs, continual investments and enhancement to existing systems are a must. This involves high capital injection and expertise as well as the need for smooth access to funding which may require engaging expertise beyond the shores of Singapore."

To better serve its clientele, JSS proactively participates in various committees under the Singapore Shipping Association (SSA) in order to keep up to date with port developments and new regulations as well as share its operational know-how with the other maritime operators. It also arranges frequent discussions between its clients and the MPA to impress upon them the modus operandi of the maritime authority that is based on fairness and ethical conduct in protecting the interests of shipowners and operators including areas such as fuel bunkering of which Singapore is a leader and one of the world's largest trading hub.

"We actively encourage the owners and operators to report on issues such as bunker discrepancies so that MPA can intervene and investigate as appropriate and take the necessary actions," says Mr Singh.

"From our point of view, Singapore will continue to be in the forefront as the leading maritime hub for this region and the world. The efforts and initiatives undertaken by MPA and the Singapore government will continue to pay dividends which JSS intends to be a part of in the years to come," he adds.