Speech by SMS Koh Poh Koon at Vopak’s 35th Anniversary

SPEECH BY DR. KOH POH KOON, SENIOR MINISTER OF STATE FOR TRADE AND INDUSTRY AT VOPAK’S 35TH ANNIVERSARY ON 25 SEPTEMBER 2018, 7.45 PM, AT MANDARIN ORIENTAL

Mr. Eelco Hoekstra, Chairman of the Executive Board and CEO of Royal Vopak

Distinguished guests,

Ladies and gentlemen,

Introduction

1.            It gives me great pleasure to join you this evening at this significant event. Let me first congratulate Vopak Terminals Singapore on your 35th Anniversary. Vopak was one of the pioneer terminal in Asia and built the first third-party oil storage facility in Singapore in 1983. Vopak’s ties with Singapore have come a long way since then. To date, Vopak has invested more than S$1.8 billion and employs over 350 people in Singapore. This celebration marks a significant milestone in Vopak’s long-standing partnership with Singapore and its role as a key player in Singapore’s Energy & Chemicals industry (E&C).

We continue to strengthen competitiveness and robustness of our energy and chemicals sector through the Energy & Chemicals Industry Transformation Map

2.            The Energy & Chemicals (E&C) industry is an integral part of Singapore’s economy, accounting for a quarter of our manufacturing output and employing approximately 28,400 people. Driven by Asia’s rapid urbanisation and economic growth, demand for energy and chemical products has surged. Singapore’s prime geographical location and well integrated chemicals value chain has positioned us well to capture the rich opportunities of the region and beyond. 

3.            With rapid advancements in technology, ambitious climate policies and geopolitical shifts, the E&C industry must transform itself. The Energy & Chemicals Industry Transformation Map (ITM), which was launched in October last year, outlines our innovation-focused approach to ensure long-term competitiveness and sustainable growth of the industry.

4.            To this end, I am glad that Vopak has chosen Singapore to spearhead four of its eight global digital lighthouse projects. I understand the Singapore team will lead the development of new innovations through a combination of Internet of Things, robotics and analytics in the area of marine handling, asset inspection & maintenance, predictive maintenance and truck handling. With the successful implementation of the projects, Vopak Singapore can potentially reduce safety incidents, improve service through better traceability and planning, and lower costs by improving terminal productivity by at least 30%. We will work closely with Vopak to develop Singapore terminals into the world’s leading terminals.

Singapore will partner Vopak to drive continuous upskilling efforts in the Energy & Chemicals sector

5.            Besides technology adoption, we also recognize the importance of investing in our people. Having a strong workforce that is nimble, adaptable, and digitally confident is critical to the growth of the sector. I am pleased to learn that Vopak shares the same vision.

6.            Let me highlight the example of Ravin, who started his career with Vopak as an Operations Technician in 2005.  Over the years, the company has supported Ravin in upgrading himself through trainings and study trips to overseas terminals such as in Caojing and Tianjin Lingang. Today, the operations manager has ditched pen and paper to spearhead digital initiatives such as the use of mobile devices to record data. Instead of patrolling on foot to conduct inspections, he now crunches real time information that is channelled to him on screen through fault monitoring sensors.

7.            We are highly encouraged by inpiduals such as Ravin who have embraced changes. I believe Vopak’s initiative to equip its employees with the mindset and necessary digital skills to cope with technological changes will not only boost its productivity and service quality but also improve employees’ relevance and value to the industry.

Partnerships between companies like Vopak and our local SMEs will strengthen our enterprise ecosystem

8.      Vopak’s investments have not only strengthened its own business but also provided opportunities for our local SMEs, specifically in the area of cleaning, inspection and maintenance of tanks, pipelines and jetties. The local SMEs also help Vopak navigate the domestic and regional markets, as well as offer promising and innovative solutions. I am pleased to see some of our local companies such as CYC International, Sea and Land Technologies and Asia Waterjet Equipment are exhibiting their solutions here today. We hope to see more of such partnerships between companies, which will strengthen our enterprise ecosystem.

Conclusion

9.            In closing, I would like to take this opportunity to convey my appreciation to Vopak for contributing to the vibrancy of the E&C industry and providing opportunities for our people and local enterprises. Once again, congratulations to Vopak Terminals Singapore on its 35 years of excellence and we look forward to many more years of fruitful partnership.