1. INTRODUCTION
There is little doubt that an effective transportation system is the backbone of a sound economic society (Bloomberg, Hanna and Murray, 1998). Comtois (2007) also recognizes that transportation plays a considerable role in the economy with its omnipresence throughout the production chain, at all geographic scales. Singapore Review (2007) stated that Singapore is heavily dependent on exports; therefore freight transportation holds an important role in stimulating the economy of Singapore and making it what it is today. Singapore is located at a favorable geographical position, making it the number one hub for the transshipment of freight to and from all over the world. Singapore also boosts world-class seaport and airport facilities and an extensive network of expressways, allowing efficient and effective transfer of cargo between multiple modes of transport. This paper will discuss the economic role of freight transportation in Singapore’s economy and how Singapore’s advancement into the global economy affects the demand for freight transportation locally.
2. THE ECONOMIC ROLE OF FREIGHT TRANSPORT IN SINGAPORE
World Trade Magazine (December 2007, p. 14) states that countries with good shipping logistics tend to attract export oriented foreign direct investment- seen, along with trade, as a way to access knowledge and technology. In a Web-based survey conducted by a World Bank study in year 2007 with some 900 freight forwarders and express carriers in international logistics businesses in 100 countries, Singapore came out tops out of 150 countries in terms of speed in the clearance export shipments, the competency of custom brokers and corruption-free logistics environment, etc.
From here one could see that the efficiency of freight transportation in Singapore also plays an important part in attracting foreign organizations to establish bases of operations here for the distribution of goods and services regionally as well as internationally. One such organization is Broadcom, a company that specializes in producing electronic products. Broadcom’s managing director, Rick Hodgman, made the following comment in World Trade Magazine in 2005, "We use Singapore as our shipping hub. The airport, customs, and logistics aspect is very important to us because the material we manufacture throughout Asia comes through Singapore. Broadcom needs a very good logistics base and Singapore has the best of any countries in Asia." Another major corporation that chose Singapore to set up one of its regional offices was Toyota Motor Asia Pacific Pte. Ltd. Its Vice President of Corporate Affairs Division, Mr Kenichi Yamaguchi, who also
Globalization refers to an ongoing process of economies and social integration of economies around the world (Thangavelu, 2010). The key drivers of globalization are trade and the movement of the capital and people. Thangavelu(2010) mentioned that Singapore has effectively used the drivers of globalization to develop its economy and integrate to the global marketplace since it independence. Singapore was able to achieve strong and continuous economic growth by opening up the immigrants to increase the domestic population, attracting foreign direct investment and adopting an export-driven economic strategy.
Our Logistics unit is driving for synergistic growth, developing and securing its links to Container Shipping
Founded in 1907 as a messenger company, United Parcel Service has grown into a world renowned provider of specialized transportation and logistics services. This multi-billion corporation enables and manages the flow of goods, information, and funds to over 200 countries and territories around the globe (UPS.com, 2013). Air, freight, oceanic is just a few of the modes that UPS uses to move the flow of goods around the globe. The company structure of UPS entails operations in three segments: U.S. Domestic Package operations, International Package operations, and Supply Chain & Freight operations. It’s just about an everyday occurrence to see an brown UPS truck on the road as we go about our everyday lives, the U.S. Domestic Package operations are comprised of delivery of documents, packages, and letters around the United States. The International Package operation delivers specifically outside the United States. Providing deliveries to the world’s major business hubs up to three times a day, UPS can deliver packages to at the best time possible for their customers. UPS has teamed up with the U.S. Commercial Service, an agency of the U.S. Department of Commerce, to help customers get started exporting or increase their sales to new global markets (UPS.com, 2013). Partnering within a supply chain can prove to be very important in the success of the overall supply chain. Communication within a supply chain that flows freely between partners reduces in-efficiencies such as excess inventory (bullwhip effect), and lost profits. The Supply Chain & Freight operation within UPS entails forwarding and contract logistics operations and UPS Freight. As a freight forwarder they organize shipments from various sources to their final p...
Singapore has a tremendous amount to offer our company if the decision is made to locate there. Here are some more reasons that further underscores why venture of all sizes consider Singapore the perfect location to setup their company or business (Get to Know Singapore, 2016): Singapore is ranked the third wealthiest nation in the world by Forbes magazine and has been ranked as the third most globalized economy among 60 of the world’s largest economies according to Ernst and Young Globalization Index. Corporate tax rates are about 8.5 percent up to 300,000 dollars’ profits and a flat 17 percent above that and there are no dividend or capital gains taxes in Singapore. In addition to highly competitive tax rates, there is no estate/death/inheritance tax in Singapore. Its business history is relatively short at about 50 years, and despite such a short history, Singapore has grown to be the number one country in the world for foreign investors. Its government has policies in place that shows appreciation of foreign investors and is seeking even more diversification to maintain is
In the past two decades, transportation cost of cargo has decreased that has aided in improving productivity and economic growth. Nonetheless, the operations of the market forces and the rising cost of fuel as well as environmental concerns impact on the cost of transporting goods from one place to another. Subsequently, the high cost of moving goods will be felt throughout the economy affecting enter...
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Internet commerce; which is in a huge need for shipping and UPS offers the ability to track all packages around the world.
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A freight forwarding services established a strong relationships with carriers, from trucking companies and air freighters to ocean liners and rail freighters. Services are very necessary to move goods from source to destination in order to negotiate the best possible price to move shippers goods along economical route by choosing the one of the best balances speed, cost and reliability. The main service of freight forwarder is to handle considerable logistics of shipping goods from one point to another, it will be a formidable burden for their client.
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For the freight, I separate into a domestic shipping and international shipping. A domestic freight shipment, the rail transportation will take place or have a higher market share than air transport because the rail network will be congested, easier to access especially in the centre of the country furthermore costs is much more lower compared with a large capacity of its. But for international freight shipment, 90 percentage of air cargo belongs to air transport, it can beat against rail transport because of the geography to clarify, mountain or river that hard to build a railway and connect to neighbor countries likes Myanmar (Burma), and the time savings of air transport is on demand mostly for just-in-time businesses. Anyway, it also depend on the type of its product, a product which is fragile, perishable and high-value is more suitable for air transport but rail transport will compete for agricultural products which is perishable by a cold storage rail that a cost reduction and it usually ships an industrial product. Not only competing with rail transport but also contend with Singapore Changi Airport, the top busiest AEC's busiest airports by cargo traffic. Next the passenger, I also divide into two parts, first in a centre of Thailand and less than 300 kilometres from Bangkok, second is the remote area where is more than 300 kilometres far from the capital. In a short distance (less than 300 kilometres from Bangkok) and the centre part of a country where the rail transport is the better choice to be in services because railway network is very dispersed than any parts, many stations, lower fare and time saving in operation likes transit or boarding period, moreover the government promotes a rail transport to be a centre of tourism in a region. In the
With the new era of supply and demand of the 21st century, the challenges faced with the movement of freight in the United States continue to grow on a daily basis. The freight industry, both the private and government sectors, are continuously faced with the obstacles of the current transportation infrastructure. Whether these challenges are continuing to maintain and expand the transportation systems in the United States via government bills such as MAP-21 and SAFETEA-LU, or constantly studying and predicting what the nation’s transportation infrastructure will have to conform and adapt to be able to handle current and future freight logistics, freight corridors, major congestion issues, and safety and environmental concerns. In this paper these topics will be discussed in depth along with the approach to keeping the freight moving and the economy strong.
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