CHAPTER I

INTRODUCTION

1.1. Background

The Port of Singapore is, and has been for more than two centuries, one of the most
important ports in Asia and, ultimately, of the world. Many factors concurred and are still at
the basis of the Singapore leadership. Under each sharp market changes such as the arrival
containers, the oil crisis, and the establishment of hub and spoke model, the Port of Singapore
could have been obsolete in a short period of time given the dynamics of its market position,
as well as enter a new cycle of high growth.

Singapore marine development is largely driven by the Port of Singapore Authority

(PSA), one of its main stakeholder, fostering continuously its development as a Port City. In
fact, PSA Corporation from Singapore has had an extensive corporate experience and expertise
in port operations, development, construction, and management through the many years of
sustained growth and development in the Singapore Port, and through PSA International, the
global container terminal operator taking advantage of the global container trade growth.

The review will show how clever and far-sighted planning, such as equipment
innovation, port expansion, and information technology, have all contributed to distinguish the
port of Singapore to always be ahead, ready for new market challenges, showing great
flexibility in its capacity to manage increasing volumes and substantial changes in the market
demand.

We believe that Resource-Based View (RBV) helps explain and interpret the
contribution of technology to the Port of Singapore. This view of competitive advantage is
based on the unique resources that a firm possesses. To the extent that a competitor cannot
create or substitute for these resources, they provide an advantage to the firm that owns them.

Meanwhile, the neighbor port of PSA, the busiest and most advanced Indonesian
seaport the Port of Tanjung Priok, has a bad reputation for having slow and ineffective dwelling
time. The Port lag behind its competitor. Currently, the Port dwelling time is about 3,36 days.
At least, the dwelling time should sufficiently close or equal to the neighbor country Port, such
as Port of Singapore (PSA), to increase its competitiveness.
 Based on the previous explanation, it is interesting to know: (1) what kind of resources
that PSA has, (2) why the resources when they arent bundled or combined havent become the
core competencies of the PSA, (3) why the resources when they are bundled or combined have
become the core competencies of the PSA, (4) What kind of core competencies created from
these bundled of resources, (5) what should Tanjung Priok be competitively enhanced in order
to obtain the dwelling time as PSA has achieved.