SPEECH BY THE AMBASSADOR OF SINGAPORE TAN HUNG SENG TO MARK THE LAUNCH OF 'CONNECTING EGYPT' ON 12 OCTOBER 2009

SPEECH BY THE AMBASSADOR OF SINGAPORE TAN HUNG SENG TO MARK THE LAUNCH OF 'CONNECTING EGYPT' ON 12 OCTOBER 2009

Good evening, Ladies and Gentlemen,

I am delighted to be here this evening for the launch of the study entitled "Connecting Egypt: Challenges and Opportunities in Freight Transportation and Logistics. I commend APL for commissioning such a timely study, which is also the first study of this nature in the region. I am confident the study will be read closely by both policy-makers and industry professionals alike.

Transportation and logistics may not sound like sexy subjects in the 21st century. Yet it is a critical ingredient for successful economic development. If I may use a medical analogy, transportation and logistics networks are like the arteries, veins and capillaries that circulate blood in our bodies. In the same way that we watch our diet and exercise in order to avoid cholesterol build-up that will clog the blood vessels in our body, every country must pay special attention to developing an efficient transportation and logistics network that will connect the producers to both the domestic and international markets. For a manufacturer, getting its goods to the customer in a timely and cost-effective manner is as important as making a high quality product. For the farmer in the countryside, getting his fresh produce to the market before they deteriorate is similarly critical.

As many of you know, APL is part of Neptune Orient Lines (NOL) which is one of Singapore's global champions. NOL is proud that it generates the majority of its revenue overseas. NOL also prides itself as a company that is at the top of its own industry sector internationally. The growth of NOL, as a global shipping and logistics company, parallels Singapore's growth as a dynamic business hub in Asia. The transportation and logistics sector has always played an important role in Singapore's economic development. The reason is simple. Singapore's external trade is almost 3.5 times our GDP. Trade is our life blood. When Singapore became independent in 1965, a key strategy was to attract multinational companies to establish their presence in Singapore. But this required more than just providing tax incentives or skilled workers. We realised that Singapore must also offer an excellent and efficient transportation and logistics network. Hence, Singapore paid close attention to developing our sea port and airport to become one of the best in the world. Taking advantage of our strategic location along one of the world's major maritime lanes, Singapore has become a key transportation node in Asia with excellent connectivity to the region and beyond.

Similarly, Egypt is strategically located on the crossroads between Asia, the Middle East and Africa. As the APL study noted, Egypt controls the Suez Canal, which is a passageway that is central to global trade. As many of us who have been to the Suez Canal can testify, watching the ships from different nations and of various shapes and sizes moving through the Canal can be quite a mesmerising experience. Although Suez Canal receipts have dipped this year, we can expect the figures to improve as global trade volume increases with the recovery of the global economy. Hence, the potential is tremendous and the prospects are bright for Egypt to establish itself as a key transportation node for the region. But as Singapore has learnt, this will require long-term investments not only in the physical infrastructure or the hardware but also in the software such as delivering quality service standards. Returning to the medical analogy, a good transportation network is therefore like blood circulating through the body. It requires the heart, the lungs, the arteries and veins all working in tandem to transport blood in the right direction. Every part is important and has a critical role to play.

Let me close by saying that Singapore stands ready to share our experience in the transportation and logistics area which may be relevant with Egypt. Egypt has been a longstanding partner for Singapore in the region. As two key transportation nodes in Asia and the Middle East, I firmly believe that Singapore and Egypt can work together for mutual benefit. We are both well-positioned to benefit from the growing web of linkages between Asia and the Middle East. APL's study and its strong business presence in Egypt clearly underscore its commitment and confidence in Egypt's future and reflect the excellent bilateral ties between our two countries.

I wish you all a very pleasant evening. Thank you.