C12 - Port Logistics Flashcards
What is a Free Trade Zone?
A free trade zone is a designated geographic area where goods can be imported, stored, processed, and exported without being subject to the usual customs regulations and tariffs that apply in the host country. The purpose of a free trade zone is to promote international trade, attract foreign investment, and create jobs by providing businesses with favorable conditions for importing and exporting goods.
Keppel Distripark is a free trade zone in Singapore
❑ Allow exemption from the Goods and Service Tax (GST)
❑ Services available include cargo consolidation, de-consolidation, storage,
cargo surveying, packing and repacking, co-loading among NVOCCs
Describe what effect will each of the following circumstances bring to the port region.
Establishment of a Free Trade Zone (FTZ)
Increased foreign investment: The FTZ can attract foreign companies to invest in the region by providing them with incentives such as tax exemptions, simplified customs procedures, and streamlined regulations.
Expansion of trade: The FTZ can facilitate the import and export of goods, thereby increasing the volume of trade in the region. The streamlined customs procedures can help to reduce the time and cost of doing business, making the region more attractive to traders.
Job creation: The FTZ can create jobs by attracting new businesses and increasing the demand for labor in the region. The increased trade activity can also create opportunities for service providers such as logistics and transportation companies.
Competition with other ports: The establishment of an FTZ in one port region can create competition with other ports in the region, as businesses may choose to relocate to the FTZ to take advantage of the incentives offered.
What is an inland/dry port?
An inland port, also known as a dry port, is a transportation hub located far from the coast or major waterways that serves as a point of transfer for cargo moving between different modes of transportation, such as ships, trucks, and trains.
Inland ports are typically connected to seaports or airports by rail or road networks and are designed to handle large volumes of cargo, often in containers. They provide a range of services, including warehousing, cargo handling, customs clearance, and distribution.
Inland ports are particularly useful in areas where the seaport or airport lacks sufficient space or infrastructure to handle the volume of cargo, or where congestion and traffic make transportation inefficient. By serving as an intermediary hub, inland ports can help to reduce transportation costs and improve supply chain efficiency.
In addition, inland ports can also serve as economic development tools, as they can attract businesses to the surrounding region by providing access to efficient transportation and logistics networks. They can also create employment opportunities and generate economic activity in the surrounding communities.
Will inland port help singapore?
Singapore is a small land scarce country, it does not have the inland space necessary to accommodate an inland port. Despite offering better hinterland connectivity and reducing air emissions, the Port of Singapore mainly specialises in transhipment, which a seaport is more effective at achieving instead of an inland port due to not having the need to shuttle the cargo back and forth between the inland port. Thus a dry port may not provide as much benefit to the Port of Singapore
Main Advantages of Inland Port/ Dry Port
❑ Move the time-consuming loading and unloading of cargoes inland, away
from the congested seaport to improve port productivity
❑ Speed up the flow of cargo between vessels and land transportation
networks, e.g. a high-capacity rail link system to the inland port
❑ Close proximity to different stakeholders in the supply chain, e.g. shippers
and consignees
❑ Free up land area at the seaport
❑ Reduce air emission
