1. Executive Summary
The economic development in Asia, and in particularly in the south eastern Asian region, has gained increasing attention globally. As Lee, Teo, & Lim (2000, pp.86) said, maritime trade is becoming an increasingly important part of Southeast Asia's economic development. Countries in the region like Malaysia, Indonesia and Hong Kong are making efforts to improve their port services and to challenge Singapore's position as a dominant shipping hub. Although the logistics infrastructure currently available in Asia is not as advanced when compared to those found in the US and Western counterparts, it can be generally agreed that the potential for logistics development is great. In addition, since there is expected to be significant growth in the Asian market in the long run, the improvement of the logistics sector in Asia will be critical.
As stated, a World Bank study by Wilson and others (2002) shows that the APEC (Asia Pacific Economic Cooperation) countries differ substantially in the quality of their logistics and trade facilitation across a broad range of measures, including ports infrastructure, customs clearance, regulatory administration, and e-business use. They find that these differences are significantly related to differences in trade performance, and conclude that substantial growth in trade within their block could be accomplished by bringing lagging countries up to median performance levels. (Carruthers, Bajpai & Hummels, 2002)
Singapore Economies grown rich partly because of its past investments in superior logistics that have greatly facilitated trade. (Carruthers, Bajpai & Hummels, 2002) According to World Shipping Council (2013), Singapore is ranked the world 2nd largest ports by volume, behind Shanghai. As Vier (2013) indicated, about 82% of its traffic in transshipments, Singapore is the biggest hub ports in the world due to is ideal geographical location along the straits of Malacca, serving the needs of...