NOL: Make private investment easier

NOL: Make private investment easier

Widdows

   Ron Widdows, chief executive officer of Singapore’s Neptune Orient Lines, parent company of container carrier APL, on Friday called for reforms to make it easier for private sector companies to invest in transportation infrastructure.
   Widdows told an international panel of transport ministers that public sector resources are stretched too thin to support global supply chains. The solution, he said, is public policy that encourages private investment in sorely needed infrastructure improvements in railroads, highways and seaports.
   'Global trade is growing again after the economic crisis,' Widdows said, 'and it threatens to stress the outdated freight transport system we have in place. If we don't address this, we'll inhibit trade growth and the global economy.
   'Developed countries don't have the money to do what they would like to, and developing countries are already pouring money into the effort,' Widdows told an audience at the International Transport Forum 2010 in Leipzig, Germany. 'We need to de-bottleneck this, and the most practical approach is to attract private investment.'
   However, the Singapore government is one of the largest transportation investors in the world. The Singapore government-owned investment company Temasek Holdings as of March 31 owned 66 percent of NOL, including APL’s terminals; 100 percent of PSA, one of the world's largest terminal companies; and 55 percent of Singapore Airlines.
   To attract investment, Widdows told government ministers there would be three requirements:
   ' A change in rules that prohibit international ownership of transportation assets such as airlines and marine terminals.
   ' Incentives, such as tax credits, to help investors realize a return on assets.
   ' Consistent international regulation to keep from scaring off private investors.