PSA Brani Terminal and behind it, PSA Keppel Terminal, set against the skyline of Singapore's central business district.

Despite strong growth for PSA Group sharply dropping after the first half of 2008, Singapore has maintained its position as the world's busiest container port for the fourth consecutive year.

PSA Group handled 63.2 million TEUs for the financial year ended December 2008, 7.3% more than the previous year. Its flagship terminal in Singapore handled 29.0 million TEUs, growing 7% year-on-year while its terminals outside Singapore recorded a throughput of 34.2 million TEUs, 7.7% higher than 2007.

While group revenues increased 5.8% from SGD4.151 billion (USD2.734 billion) to SGD4.392 billion (USD2.892 billion), net profit dropped 46.2% from SGD1.94 billion (USD1.277 billion) to SGD1.043 billion (USD683.6 million) due to lower yields, higher operating costs, impairment provisions and lower divestment gains.

Strong growth up to July 2008 was quickly eroded by a collapse in demand on major trade lanes in the last quarter of the year.

Fock Siew Wah, PSA International group chairman, says 2008 "was shaping up to be another record-breaking year for the PSA Group, with the first seven months bringing strong volume surge and record volumes handled.

"Unexpectedly, the group experienced a sharp and abrupt business decline in the later part of 2008 as the global financial crisis rapidly deteriorated into a major global slump and recession."

Fock adds that the strong first half of 2008 cushioned the negative effects of the later months, enabling the Group to have "reasonably credible" financial results for 2008. He says PSA will work with management, staff and unions to cut costs and increase productivity to combat the difficulties ahead.

PSA International group CEO Eddie Teh agrees, saying 2008 was a year with a "Dr Jekyll and Mr Hyde personality".

"Most of the group's terminals across the globe handled record volumes in the first few months of the year but by year end, the financial crisis had reached epic proportions with most economies in recession.

"I see an extremely tough and increasingly challenging year in 2009, with more and more economies falling prey to the collapse of the financial systems, and global trade almost grinding to a halt.

"All eyes are on the rescue and stimulus efforts of governments around the world to prevent further shrinkage to their economies, and to mitigate the severity of the global recession, the success of which will determine the extent of the contraction of global trade flows, and its long-term impact on our industry," Teh believes.

PSA's flagship Singapore operations accounted for 50% of its total turnover for FY2008 compared to the previous year's 51%. Its European terminals contributed revenues totaling SGD1.4 billion (USD921.5 million) or 32% of group turnover. PSA's China terminals contributed 4% of total turnover while newly-acquired terminals in the Americas contributed 3%.

Profits from port operations were SGD1.4 billion (USD921.5 million), 22% less than the previous year. Singapore port operations continue to be the major contributor, posting over 50% of profits from port operations.

PSA International is one of the largest port operators in the world. The company operates 28 port projects in 16 countries across Asia, Europe and the Americas with a global capacity of 111 million TEUs over 66km of quay length. It has been voted "Best Global Container Terminal Operator" at the Asian Freight & Supply Chain awards for three consecutive years since 2005.