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
Most companies chose to move their plants to locations overseas to India and China. Douglas Irwin claims, “international trade in services is in its infancy” (Hart). In other countries th...
Traversed by the rivers Rhine, Maas and Scheldt as they meander towards the North Sea, the Netherlands is a hub of transport and distribution: a natural gateway to Europe and centre for multinational enterprise. Its advantages include an advanced infrastructure both for transport and telecommunications. Many Asian and North American imports to Europe are transhipped at Rotterdam or Amsterdam, the country’s two transport centres.
More and more people are using computers and the Internet. Dual income families have increased spending; therefore more people are ordering products over the internet at a high rate. The Internet offers customers a one stop source for global shipping. Due to this, there has been an increase in using information technology and the Internet for businesses. This has created an increase in trade and investment along with global shipping logistics and supply chain solutions. With the increase in globalization, companies have had to adapt to the diverse work force and the culture of the countries in which they are conducting business. The parcel service industry is controlled by strict regulations and federal law. For example, September 11 brought stricter laws and regulations in the parcel service industry. Operations must maintain federal approval to operate in the United States.
Many business owners and entrepreneurs are doubtful about the global opportunities available to their business. In other words, business owners don’t give consideration to the world markets, instead they tend think locally in terms of gaining customers. This doubt however is unfounded. The international trade commission reported that 70% of the world’s purchasing power and 95% of the world’s consumers are located outside of the United States, which means that there is a massive market that is currently untapped by 99% of business in America. In addition to doubt, there is the uncertainty about exporting to other countries, this uncertainty may stem from lack of knowledge about foreign trade and the international laws. A business owner may be uncertain about how, when, where, and to whom it is legal to ship their products. Although, this uncertainty is understandable it is not required for businesses that are conducting business legally within the United States, business owners should remain mindful of this so that they can push their uncertainties aside. The last factor that deters businesses from international trade is Fear. Fear that there will be unforeseen and uncontrollable issues with transporting goods such as: theft, loss, damages, diversions, and/or regulatory penalties that may be imposed on the business. Although, there is a
Internet commerce; which is in a huge need for shipping and UPS offers the ability to track all packages around the world.
We feel that the joint venture is still too premature to have a change in leadership and management. Controls Asia-Pacific at this stage should avoid experimenting with the management, especially when the current operations at the factory are beginning to show signs of progress and improvement. As a long term strategy, we recommend James to be made Head of Operations of Controls Asia Pacific in Singapore because he is the best suited person who not only understands the culture and vision of the parent company in the US, but also can transcend that ideology to the Controls Asia-Pacific HQ and the joint venture.
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...
Singapore acts as a role of an entrepôt for Southeast Asia due to their strategic location, port infrastructure and highly skilled workforce. Singapore also purchases raw materials from other country and then refine the product into a better product to re-export. The reason for Singapore to do this is because of the lack of human and natural resources.
Vassallo, J., Fagan, F., 2005. “Nature or Nurture: Why Do Roads Carry Greater Freight Share in the United States then in Europe” John F Kennedy School of Government ; Harvard University : Massachusetts
It was found that the closer the ports are to the hinterland, the less their port-city equilibrium is realized, given the concentration of flows and the indirect dependence on inland markets. Wang and Olivier (2007) also studied the relationship of different global supply chains (GSCs) with port development. Six requirements have been mentioned by them which are the type of cargo, volume, flexibility in using alternative ports or terminals, environment considerations, vertical integration including port facilities, and horizontal clustering in
Outbound logistics: They are made up of centralized logistic centers to promote efficiency, global network, reduced emission of CO2 by 22% to ensure ecological sustainability and lastly to improve customer service.
The FedEx delivery company, the world's most important courier service, provides a good example of how intermodal transport operates. The FedEx network is built around a single hub airport located on each continent. The American hub is located in Memphis, Tennessee, the Near East one is located in Dubai, and Subic Bay, Philippines acts as the Asian hub and, Roissy, France represent the European hub. These redistribution points act as bridges between international relations. Beside its strategic hub airports web, FedEx is present in more than 325 airports in 212 countries around the world.
Transportation is vital to a nation's economy. Reducing the costs of transporting natural resources to production sites and moving finished goods to markets is one of the key factors in economic competition. The transportation industry is the largest industry in the world. It includes the manufacture and distribution of vehicles, the production and distribution of fuel, and the provision of transportation services. In the 1990s, approximately 11 percent of the U.S. gross domestic product and an estimated 10 percent of all jobs in the United States were related to the transportation industry.
Looking back on the history of Singapore its hard not to sit back and rivet at all the progression and improvement that have made Singapore a more relaxing and astonishing haven and must-see destination. Starting chronologically, from the Sanskrit words “simha” (lion) and “pura” (city) Singapore or Singapura, the “lion City” shows the rich history and the beginning of a new era that Singapore went through, and describes the city-state and the city life of people whom live or visit Singapore. We then move into how the city-state flourished as a trading post for a lot of sea vessels, which include Chinese junks, Portuguese battleships, and Indian vessels. The nineteenth century was an important time for Singapore because it was when modern Singapore was founded. On January 29, 1819 Sir Thomas Raffles (the...
Singapore has only a small number of natural resources, so it relies on its human capital as an advantage which is well-known globally and also known to be a skilled work force. Another advantage that Singapore has is its prime location in where the tiny island is located. This have given the people an edge of being a busy port, placing itself as the leader of the trading hub and logistics