Container traffic in the Republic rose 12.7 per cent last year to hit a new high of 27.9 million standard boxes, just ahead of the 26.2 million handled by China's biggest port.

Continued growth in global trade shored up the strong performance, which improved from 2006's 6.9 per cent increase.

'The past few years have been bountiful for the maritime industry in Singapore and 2007 was no exception,' said Transport Minister Raymond Lim, adding that the local port was tops as well in terms of bunker, or ship fuel, sales and vessel calls. 'Singapore continues to maintain its leading position,' he said yesterday at a cocktail reception organised by the Singapore Maritime Foundation (SMF).

But industry watchers reckon that Singapore's reign as the world's top container port may end this year as the Shanghai port is growing even faster.

With the world's hottest economy as its hinterland, the Chinese port expanded at a rapid 20.4 per cent, leapfrogging Hong Kong for the No.2 position.

Hong Kong, which until 2005 had held the top spot, has yet to publish its December statistics, but is unlikely to catch up after handling just 21.7 million containers in the first 11 months.

Apart from container cargo, it was a good year for Singapore's maritime sector in general. Overall cargo turnover was up 7.8 per cent to 483.4 million tonnes, total vessel calls rose 11 per cent to 1.46 million tonnes while bunker sales expanded 11.2 per cent to 31.5 million tonnes.

More ships flew the Singapore flag, with the local ship registry increasing 13.8 per cent to 39.6 million gross tons. And 18 more shipping companies set up shop, taking the total number of international carriers operating in the Republic to almost 100.

The expansion theme is expected to continue into the year.

Port operator PSA Singapore Terminals, which handled 27.1 million containers last year, expects strong Asia-Europe trade to bolster growth this year.

'In addition to accelerating developments at Pasir Panjang Terminal, we are also concurrently upgrading our facilities at Brani, Keppel and Tanjong Pagar terminals to better serve our customers' needs now and into the future,' said PSA chief executive for South-east Asia & Singapore terminals Kuah Boon Wee.

Work will continue on the Government's $2 billion port expansion project at Pasir Panjang, scheduled for completion in 2013.

Beyond the hardware, there will be a number of new initiatives launched by the Maritime and Port Authority of Singapore and the industry.

On environmental protection, new harbour craft licences will from April be issued only to bunker tankers complying with nitrogen oxide emission limits set by the International Maritime Organisation, said Mr Lim.

Building the maritime talent pool will continue to be a priority, he added.

Scholarships, TV documentaries and a new speakers' series by industry leaders are some of the new ways the sector hopes to engage potential talent. 'With the current boom in the maritime industry, we need to retain talent and attract new blood,' said SMF chairman Teo Siong Seng.

bryanlee@sph.com.sg