Singapore never expected that China would deliver such a blow to it at Yangpu Port in Hainan. Yangpu Port can now accommodate 200,000-ton vessels, and 300,000-ton oil tankers can dock simultaneously, with all the necessary equipment for loading and unloading, achieving efficiency that is no worse than Singapore.

This deep-water port located at the northwest corner of Hainan Island was once an inconspicuous fishing village dock, but it has now become China's shipping hub facing ASEAN.

In 2022, Yangpu Port's container throughput exceeded 1.5 million TEUs, a year-on-year increase of 30%, ranking among the top in global major ports.

What makes Singapore even more uneasy is that Yangpu Port has opened more than 40 international routes directly connecting to Southeast Asia, the Middle East, Europe, and other regions, directly diverting goods that originally transited through Singapore.

China's investment in Yangpu Port is significant, with over hundreds of billions spent just on infrastructure. The port area features China's first 200,000-ton ore terminal, equipped with four unloading machines capable of unloading 12,000 tons of ore per hour.

The oil terminal is even more impressive, with a 300,000-ton berth capable of simultaneously accommodating two supertankers, with an annual throughput capacity of 30 million tons. These hardware facilities have outperformed Singapore's Jurong Port, which Singapore prides itself on.

The rise of Yangpu Port is not accidental; it is backed by China's Free Trade Port policy. After the release of the "Overall Plan for the Construction of Hainan Free Trade Port" in 2020, Yangpu Economic Development Zone became a key pilot area.

Here, a regulatory model of "loosening on the first line, controlling on the second line" is implemented, allowing for a freedom of goods entry and exit comparable to Hong Kong. Even more aggressive, China has opened a substantial tax incentive package for Yangpu Port, with corporate income tax and personal income tax both reduced to 15%, which is 5 percentage points lower than Singapore.

The re-export trade advantage that Singapore relies on is being rapidly eroded by Yangpu Port. Previously, goods from Southeast Asia heading to Europe mostly had to transit through Singapore Port, but now they can go directly through Yangpu Port.

Shipping from Ho Chi Minh City, Vietnam, to Rotterdam, Netherlands, can save 3 days of sailing time and reduce shipping costs by 15% by going through Yangpu Port instead of Singapore. Shipping giants like Maersk and CMA CGM have already shifted some of their routes to Yangpu, leading to a noticeable slowdown in Singapore Port's container throughput growth.

Yangpu Port's trump card is not just its hardware but also a comprehensive upgrade in software services. It has established China's first international shipping service industrial park, attracting over 200 shipping companies to settle in.

One-stop services for ship registration, shipping finance, maritime law, etc., mean that shipowners no longer have to travel to Singapore for business. Even more impressively, Yangpu Port has introduced the "China Yangpu Port" ship registration policy, where vessels flying this flag can enjoy tax incentives for international navigation. This policy has already attracted over 50 large vessels to register.

What Singapore fears the most is happening—China is turning Yangpu Port into an alternative Asian shipping center to replace Singapore. In 2023, trade between China and ASEAN exceeded 6.4 trillion yuan, with a significant portion transiting through Yangpu Port.

Nickel ores from Indonesia, palm oil from Malaysia, and rubber from Thailand are now prioritized for export through Yangpu Port. Even state-owned enterprises like COSCO have moved their Southeast Asia regional headquarters from Singapore to Yangpu.

Yangpu Port's latecomer advantage is becoming increasingly evident. Singapore Port is limited by land area, with limited expansion space, while Yangpu Port has a planned area of 114 square kilometers and can continue to reclaim land.

The port area directly connects to the ring island high-speed rail and highways, allowing for rapid distribution of goods to inland China after arrival. This "port + hinterland" combination is something Singapore simply cannot compete with.

China is also laying deeper plans at Yangpu Port. Here, the first international ship registration center in China is under construction, which may become the world's third-largest ship registration port in the future.

The supporting bonded fuel supply business has already started, with prices 10% cheaper than in Singapore, attracting many international vessels to refuel. Singapore's proud shipping service ecosystem is being comprehensively replicated by Yangpu Port.

What makes Singapore even more anxious is that Yangpu Port is impacting its status as a trading center for bulk commodities. Yangpu has introduced China's first internationalized futures variety—No. 20 rubber, with trading volumes already surpassing those of the Singapore Exchange. The bonded delivery business for bulk commodities such as crude oil and iron ore is also progressing rapidly, and it may become a new pricing center in Asia in the future.

Singapore's troubles are far from over. After the RCEP agreement between China and ASEAN took effect, 90% of goods in the region achieved zero tariffs, and Yangpu Port, as a bridgehead for China-ASEAN cooperation under the RCEP framework, has become even more advantageous. Companies from Indonesia, Vietnam, and other countries are setting up offices in Yangpu to directly connect with the Chinese market. The value of Singapore as a traditional trade transit station is rapidly diminishing.

The speed of Yangpu Port's rise has exceeded everyone's expectations. In just three years, it has upgraded from a regional port to an international shipping hub. The newly opened "Yangpu-South Pacific-West Coast of the United States" route in 2023 directly connects South Pacific island nations with the Chinese and American markets, completely bypassing Singapore. This route layout has directly undermined Singapore's interests.

The Singapore government has clearly realized the crisis and has begun to implement countermeasures. They are accelerating the expansion of Tuas Port, planning to reach a throughput capacity of 65 million TEUs by 2040. However, Yangpu Port's expansion is even faster; after the completion of the second phase project, its annual throughput capacity will reach 5 million TEUs, with a third phase planned to aim for 10 million TEUs. In this port competition, Singapore is gradually losing its initiative.

China's investment in Yangpu Port is still increasing. The smart port construction launched in 2023 will achieve fully automated operations, with efficiency 20% higher than that of Singapore Port. The accompanying digital economy industrial park is attracting shipping technology companies to settle in. Singapore's proud port technology advantage is also being rapidly caught up by Yangpu Port.

The rise of Yangpu Port is not simply a case of port competition; it is a key move in China's reshaping of the Asian trade landscape. It is becoming a super hub connecting China with ASEAN, the Middle East, and Africa, and Singapore's position as a traditional shipping center is facing unprecedented challenges. This war without gunpowder is quietly tipping the balance.