The marine electronic highway in the Straits of Malacca and Singapore—an assessment of costs and key benefits

The Straits of Malacca and Singapore are an important trade route linking the Indian Ocean to the South China Sea and Pacific Ocean. They are also rich in resources and support a range of activities that benefit the economies of the littoral states (Indonesia, Malaysia and Singapore). This important shipping route is a very congested waterway and the authorities are keen to improve navigation facilities to promote ship safety and reduce the risk of groundings, collisions and accidents. This will also help to protect the marine environment from the effects of pollution and hence reduce its damaging impact on activities related to the Straits, e.g. fisheries and tourism. The Marine Electronic Highway (MEH) is an attempt to bring together maritime safety technologies and environmental management systems. The paper examines the costs of providing such a highway and considers some of the benefits which could accrue from its implementation. The analysis, conducted in the form of a cost-benefit study, clearly shows the economic viability of the scheme.