Singapore Sets Sights on Building World's Largest Automated Port at Tuas

By Jessica Huang

Cover Image Attribute: An Artist Impression of Tuas Mega Port / Source: Facebook page of Brigadier-General Lee Hsien Loong (Ret'd) PPA(E) SPMJ DK

Singapore is undertaking a significant initiative to enhance its status as a global leader in maritime operations by developing the western Tuas Mega Port into the world's largest fully automated port by the 2040s. This cutting-edge project, driven by PSA Singapore and supported by advanced technology partnerships, aims to consolidate the city-state’s existing ports into a single, AI-powered mega-hub capable of surpassing the current global leader, Shanghai, in capacity. With a projected annual handling capacity of 65 million twenty-foot equivalent units (TEUs), the Tuas Port is poised to redefine the future of global trade and logistics.

A Vision for the Future

Singapore has long been a linchpin in international shipping, historically ranking as the world’s busiest port from 2005 to 2010 before being overtaken by Shanghai. Today, its port terminals handle a record-breaking 40 million TEUs annually, with expectations to cross its design capacity of 43.9 million TEUs in the next 1 or 2 years. However, with no hinterland to support domestic production or consumption, Singapore’s success relies entirely on its ability to serve as a transshipment hub—moving goods efficiently between Asia, Europe, and the Americas. The Tuas Port project represents a strategic leap to maintain this competitive edge in an era of escalating global trade demands and technological disruption.
The Tuas Mega Port, already partially operational since its first phase opened in September 2022, is a $20 billion endeavor spanning 1,337 hectares—roughly the size of 3,300 football fields. When fully completed, it will feature 66 berths along a 26-kilometer stretch, doubling Singapore’s current container handling capacity. Unlike traditional ports, Tuas will rely heavily on automation, artificial intelligence, and 5G connectivity to streamline operations, reduce human involvement, and enhance efficiency. During a recent tour of the facility, observers noted an eerie absence of workers, with autonomous vehicles and AI-driven cranes dominating the landscape—a glimpse into what PSA Singapore calls the “port of the future.”

Automation at the Core

At the heart of Tuas Port’s transformation is its embrace of automation. The facility already boasts the world’s largest fleet of over 200 Automated Guided Vehicles (AGVs), which transport containers around the clock. These driverless machines, orchestrated by an event-driven architecture platform, ensure seamless coordination between loading, unloading, and storage processes. PSA Singapore has partnered with tech giants like Singtel and Ericsson to deploy advanced 5G connectivity solutions, enabling real-time communication and data transfer with unprecedented speed and security.
This technological backbone is critical for PSA’s vision. “5G’s high speeds and low latency improve real-time communication, enabling highly efficient port operations,” said Ng Tian Chong, CEO of Singtel Singapore, in a statement last November. The partnership also includes plans to explore predictive maintenance using drone surveillance and extended reality, aiming to prevent equipment failures and boost operational uptime. By the 2040s, Tuas is expected to handle vessels over 400 meters long, accommodating the world’s largest container ships with ease.
In October 2024, PSA broke ground on the PSA Supply Chain Hub @ Tuas (PSCH), a $647.5 million warehousing facility designed to complement the port. Spanning over 2 million square feet, PSCH will integrate advanced robotics, such as Automated Storage and Retrieval Systems (ASRS), into Singapore’s supply chain ecosystem. Located within the Free Trade Zone, it will serve as a Regional Distribution Center and Container Freight Station, further enhancing Tuas’s role as a global trade gateway.

A Response to Global Challenges

The Tuas project comes at a time when global shipping faces mounting challenges. The Red Sea crisis and subsequent vessel diversions around the Cape of Good Hope have disrupted schedules worldwide, leading to a “vessel bunching” effect in Singapore. In response, Tuas Port added three new berths in 2024, bringing its total to 11 and easing wait times for ships. These adaptations underscore Singapore’s proactive approach to maintaining its status as the world’s largest bunkering port, where refueling demand has surged alongside rising port calls.
Yet, the project is not without its hurdles. Singapore’s lack of a hinterland means it must compete fiercely with regional rivals like Malaysia’s Port Klang, which plans to double its capacity to 27 million TEUs over the coming decades. Additionally, the $20 billion price tag—while substantial—pales in comparison to the broader $2 trillion reckoning facing global ports as they adapt to automation, green energy, and geopolitical rivalries. Singapore’s investment, however, reflects a calculated bet on technology as the key to staying ahead.

Economic and Environmental Impacts

The economic implications of Tuas Port are profound. By doubling its capacity, Singapore aims to attract more trade and solidify its role as Southeast Asia’s logistics hub. Prime Minister Lawrence Wong, speaking at the PSCH groundbreaking ceremony in October 2024, emphasized that the hub would replace the aging Keppel Distripark, expanding capacity and ensuring Tuas can handle the largest container vessels for decades to come. “This will be Singapore’s gateway to the world,” he said, highlighting the synergy between the port and its logistics network.
Environmentally, Tuas is also a testbed for sustainability. PSA has explored hydrogen refueling stations and other green technologies to reduce the port’s carbon footprint, aligning with Singapore’s broader climate goals. While automation reduces human labor, it also creates new opportunities—currently, 500 workers oversee Tuas’s operations, with roles shifting toward tech-driven maintenance and oversight rather than manual labor.

Global Attention and Regional Rivalry

The Tuas project has garnered international interest. In September 2024, Saudi Arabia’s Minister of Industry and Mineral Resources, Bandar Ibrahim Alkhorayef, visited the port to explore technology transfer opportunities, signaling its potential as a model for other nations. Meanwhile, posts on X reflect a mix of awe and anticipation, with users noting Tuas’s potential to outstrip Shanghai and reshape global shipping dynamics.
Yet, some analysts question whether Singapore can maintain its lead. Shanghai’s proximity to China’s massive manufacturing base gives it an inherent advantage, while emerging ports in India and the Middle East vie for dominance. Singapore’s response—doubling down on automation and efficiency—may well determine its fate in this high-stakes race.

Looking Ahead

As Tuas Port progresses toward its 2040 completion, it stands as a testament to Singapore’s knack for punching above its weight. A tiny island with no natural resources, it has leveraged innovation and strategic vision to remain a global trade titan. The port’s full realization will depend on navigating technological, economic, and geopolitical challenges, but if successful, Tuas could cement Singapore’s place at the forefront of the maritime world for generations.
For now, the world watches as cranes hum and AGVs glide silently across Tuas’s vast expanse—a futuristic vision steadily taking shape on Singapore’s western shore.

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