New terminal's delay worries cruise operators

They fear postponement may cause Singapore to lose out to competitors in the region
Lim Wei Chean, Straits Times 28 Mar 09;

CRUISE operators have expressed concern over the one-year delay in the construction of the new International Cruise Terminal at Marina South.

They say that pushing the project back means the industry will - literally - miss the boat in a tourism sector that remains afloat despite the economic turmoil.

Singapore announced in March last year that it was building a new cruise facility capable of berthing the world's largest ocean liners.

It was to be ready by next year to give it a two-year lead over rival ports such as Hong Kong, which is also constructing new berths.

But the Singapore Tourism Board (STB) revealed at an international shipping conference in Miami, Florida, last week that the completion date has been pushed back to 2011.

Luxury cruise liner Silversea's regional director for Asia, Mr Melvyn Yap, said such delays in major investment projects are 'only to be expected' in the current economic climate.

But he also noted that although the Republic is an important base in the region, 'the facilities are falling behind those that we encounter in the region'.

A Star Cruises spokesman said the competition to be Asia's nerve centre for cruising is powering up with the massive Shanghai Post International Cruise Terminal already up since last August.

He added: 'The delay in the opening may present more challenges for Singapore to be ahead of the game.'

However, STB cruise director Chew Tiong Heng told The Straits Times the board is still 'committed' to building the new terminal.

He said the delay was to allow for 'more detailed consultation and study to take place' because of the complexity of the project involving reclamation and marine engineering works.

No time-line was given for the construction of the project. The design for the terminal was awarded in May last year and Mr Chew said the next step is to 'commence the construction of the cruise terminal'.

Even without the new terminal, the Singapore Cruise Centre at HarbourFront is working hard to get more cruise ships to anchor here more often.

Among the ships making their maiden calls in Singapore was the Costa Classica, which arrived yesterday.

Singapore Cruise Centre's president Cheong Teow Cheng said that the number of passengers going through the terminal from January to March is up 10 per cent year-on-year.

Royal Caribbean and Star Cruises said their all-inclusive deals have found favour with customers in the belt-tightening times. And Royal Caribbean is still meeting sales targets despite the economic downturn, its spokesman said.

Looking ahead, cruise operators said 'softer prices' can be expected to pull in the numbers.

The Singapore Cruise Centre expects the number of ships calling this year to be the same as last year's, which was more than 900, said Mr Cheong.

Last year, some 921,000 passengers came through the terminal. Half of them were foreigners.

Although STB has yet to call for tenders to find an operator for the new terminal, Mr Cheong said his team with 18 years of experience in operating here is best suited for the job.

The HarbourFront centre will begin getting a facelift next month with additional check-in and admission gates installed to make sure it can compete successfully when the new terminal opens.

The work is scheduled to be completed by October next year.