SOUTH ASIAN SHIPPING AND ITS LINKS WITH SINGAPORE

Abstract

The migration of the people of South Asian origins and the diffusion of Indian culture to Southeast Asia since the first century A.D., making them an integral part of the cultural and demographic landscape of Southeast Asia, would not have been possible without ocean transport. Today, the promotion of maritime trade underscores the significance of South Asia's maritime activities in Southeast Asia. Under the colonial rule, the shipping sector of India, Pakistan, Bangladesh and Sri Lanka was undermined. It was only after their independence were they able to revive national shipping. This was achieved through active government promotion in building national fleets, giving financial assistance to shipping companies and imposing cargo reservations. This led to a decrease in reliance on foreign carriers, resulting in the direct involvement of their national fleets in international trade. This is reflected in the mainhaul and short-sea shipping trade between Singapore and South Asia where all the national fleets are participants. Singaporean operators are active in the short-sea trade, however, they are small and they run old conventional vessels and semi-containers. Therefore, there is a need to upgrade the existing level of services in order to compete effectively with foreign operators. Although Singaporean shipowners have been running a viable service under Singapore's 'open seas' policy, they can provide a better and more competitive service if they adopt better management techniques and cooperate with other shipowners. On the other hand, the governments of the respective South Asian maritime countries need to withdraw from active intervention in shipping so that their shipping companies can be viable ventures without state support which has become indispensable.