Minister Lim Hng Kiang at Vopak Terminals Singapore 30th Anniversary celebration

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ADDRESS BY MR LIM HNG KIANG MINISTER FOR TRADE AND INDUSTRY AT VOPAK TERMINALS SINGAPORE’s 30TH ANNIVERSARY CELEBRATION, FRIDAY 28 JUNE 2013, 2000HRS, FULLERTON HOTEL

His Excellency Mr. Johannes Jansing, Ambassador of the Netherlands to Singapore,

Mr. Eelco Hoekstra, Chairman of the Executive Board and CEO, Royal Vopak,

Distinguished guests,

Ladies and gentlemen,

Good evening. I am delighted to join you here this evening for the celebration of Vopak Terminals Singapore’s 30th Anniversary. Indeed, this evening’s celebration marks a significant milestone of Vopak’s partnership with Singapore and also serves as a testament to Singapore’s attractiveness as an investment destination for companies in the energy and chemicals sector.

Singapore’s thriving energy and chemicals sector supported by a strong logistics sector

2             With Asia continuing as a key engine of growth globally, the demand for oil and oil products in this region will continue to rise. In Singapore, the energy and chemicals sector is the largest contributor to our manufacturing output at about S$102 billion in 2012, accounting for 34 per cent[1] of total manufacturing output. In addition, international oil trading in Singapore is worth around S$280 billion.[2]

3             Singapore is well-positioned to ride on this growth. Our prime geographic location, coupled with excellent connectivity and a pro-business environment, makes us an ideal base for companies seeking to expand their footprint in the growth region of Asia. 

4             One of Singapore’s key strengths as an investment location is our robust logistics industry, which is recognised as the world’s number 1 logistics hub by the World Bank.[3] Our strong logistics ecosystem provides the key foundation for the success of Singapore’s leadership in manufacturing, including energy and chemicals. Terminal operators like Vopak are crucial players in our logistics ecosystem.  They provide a comprehensive suite of essential services to companies thereby supporting the plug-and-play model of Jurong Island. On top of regional distribution, Vopak’s specialised value-added services, as well as operational excellence, have enabled many energy and chemicals companies to focus on their core manufacturing activities.  

Building a future-ready tomorrow

5             However, we must not rest on our laurels. It is important that Jurong Island continues to innovate to remain a leading and competitive petrochemical and trading hub. Amidst growing global competition, it is vital for Singapore to provide responsive and resilient infrastructure to support the growth of the energy and chemicals sector.  At the same time, we need to be cognisant of our limited resources as a city state and work at optimising the use of our scarce resources. To that end, the Government has embarked on Jurong Island 2.0, where we endeavour to work closely with our industry partners such as Vopak to enhance the island’s competitiveness and sustainability.  

The Vopak-Singapore Partnership

6             Vopak’s ties with Singapore have come a long way. More than 30 years ago, Vopak, then known as Van Ommeren, identified Singapore as the location for its first Asia terminal. It recognised Singapore’s potential as a hub for petroleum refining and trading, due to its prime geographic location along major shipping routes and a free, sheltered and deep sea port. This led to the building of Singapore’s first third-party oil storage facility in Pulau Sebarok in 1983.

7             From its first terminal on Sebarok, Vopak has since expanded to include three other terminals at Penjuru, Sakra and Banyan. Recently, Vopak completed a 100,000 cubic meters expansion for chemical products in the Banyan terminal, and I understand that Vopak is also currently in midst of expanding the terminal at Penjuru. Collectively, Vopak’s three million cubic meters of capacity represents the largest independent storage capacity in Singapore and is the company’s largest footprint in a single location in Asia. In addition, Vopak has chosen Singapore as the location for its Asia Pacific headquarters.

8             Vopak’s ties with Singapore in the last 30 years, however, extend beyond business partnerships. Over the years, we have had notable individuals from Vopak assuming the position of Singapore’s Honorary Consul-General in Rotterdam, the Netherlands. They include the two former Chairmen of the Executive Board as well as the incumbent Chairman, Mr. Eelco Hoekstra. Their contributions have further deepened the friendship between our two nations and I would like to take this opportunity to convey my appreciation to these individuals.  

Conclusion

9             While we commemorate Vopak Terminals Singapore’s 30th Anniversary today, Vopak, as a global company, will be celebrating its 400th anniversary in 2016. This is no mean feat, and is symbolic of Vopak’s continuing legacy and leadership in the industry.

10          Once again, my heartiest congratulations to Vopak Terminals Singapore on its 30 years of excellence, and I look forward to your continued support and commitment.  Thank you.

[1]

Statistics from EDB 

[2]

Yearbook of Statistics 2012 indicates that total oil trade in 2011 is S$286.7 billion.

[3]

World Bank Logistics Performance Index 2012