Complete Property Market Updates of Singapore

July 1, 2008

JTC exploring waterfront shared facility

Filed under: General,Regulators — Propertymarketupdates @ 3:47 am

Move to optimise use driven by scarce industrial waterfront land for marine, oil & gas sectors

With the shortage of industrial waterfront land keenly felt in Singapore, JTC Corporation is exploring the creation of a shared waterfront facility at Tuas View for firms in the marine and oil and gas sectors.

To optimise the use of waterfront land, JTC is ‘looking into ways to masterplan a waterfront facility that can be shared by these users’, a JTC spokesperson told BT.

Inspiration came from the common jetty facility which the leisure marine industry in Brisbane, Australia, uses. JTC is in the preliminary stages of a feasibility study to adapt the concept for industrial uses.

To create more usable industrial waterfront land, JTC is also exploring the feasibility of increasing the depth of waters around Tuas View.

‘JTC is aware that there is a high demand for waterfront land by SMEs for the loading and unloading of goods, and by the marine and offshore engineering companies for their manufacturing operations,’ the spokesperson said.

Many companies located on waterfront land at Tuas today have their own waterfront facilities for the building of ships, oil equipment and other activities. With the growth of the marine and oil and gas industries, demand for waterfront land looks set to outstrip supply.

‘Since last year, we have received a number of enquiries from marine-related companies looking to lease or purchase industrial facilities with waterfront space in the Gul Basin and Benoi Basin areas for their expansion needs,’ said Bernard Goh, director of industrial services at CB Richard Ellis. ‘But there is a shortage of such supply in the market.’

A marketing executive with a marine company at Tuas also told BT that ‘we would like to expand, but there is not enough waterfront land to do so’.

In fact, Knight Frank’s head of industrial business space Lim Kien Kim reckoned that ‘with the impending redevelopment of Loyang Offshore Supply Base, Tuas seems to be the only location to meet immediate needs – it has the land infrastructure and a ’sheltered’ bay with good water depth’.

Loyang Offshore Supply Base houses close to 200 oil and gas services-related companies. One firm told BT that it is in final discussions to purchase waterfront land overseas, partly because of the lack of suitable sites in Singapore.

Data on the size of waterfront land at Tuas was unavailable from JTC. For land in the Tuas region, JTC charges a land rent of $10.01 to $16.93 per square metre (psm) per annum, or an upfront premium of $164 to $345 psm on a 30-year lease. Waterfront sites in Jurong command an additional waterfrontage fee of $594 to $891 per metre run per annum.

‘JTC would be on the right track to meeting industry demand,’ said Mr Goh of the plans to increase waterfront land. ‘However, more in-depth study may be needed for the shared waterfront facility’ to accommodate the different needs and time schedules of various businesses, he added.

Source : Business Times – 2 June 2008


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