My Topic: External Events That Affected Singapore's Economy




Thursday, April 8, 2010

The Suez Canal (1869)


The Suez Canal


Map of the route taken by the Suez Canal

The Suez Canal (1869)

The need for raw materials and new markets for the goods prompted merchants to seek a shorter route to the East. Prior to the opening of the Suez Canal, ships travelling between Europe and Asia had to sail around the Cape of Good Hope. This journey was often a perilous one, spanning the duration of 120 days. Ships could not sail during certain periods of the year as winds were not always favourable. Ferdinand de Lesseps, a French engineer, drew plans to shorten the sea route around Africa by cutting a long canal to link the Mediterranean Sea with the Red Sea. With the opening of the Suez route, the trade route was shortened significantly.


Even thought the Suez Canal was thousands of kilometres away, Singapore benefited greatly from its opening as people, cargo and mail now took a shorter time to travel from Europe to Singapore. Due to the savings in distance and time, the cost of shipping goods was reduced. Traders now found it faster and cheaper to get their goods from overseas. Secondly, Singapore’s role was enhanced and a great expansion in trade occurred. This was due to the increased volume of ships passing through the area to refuel and collect food supplies, and therefore Singapore maintained its role as a port-of-call and as an important trading centre. Thirdly, there were new developments in port facilities as the Old Harbour in Singapore had become overcrowded. The New Harbour was then built. Due to the deep waters, steamships and sailing ships could sail right up to the harbour. Next, the Singapore Harbour Board was set up to make improvements to the port. This resulted in new buildings such as wharves, docks, storehouses and machine shops to be built; and modern machinery like forklifts, cranes and tractors were used. A railway system was also set up to link the port to other parts of Malaya. This implies that the improvements provided better and faster services in handling goods brought in by ships. Singapore became one of the busiest ports in Asia, and of course, caused a rapid growth in Singapore’s economy.

No comments:

Post a Comment