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Before he spent decades shaping Eng Kong’s commercial strategy, Terry Chan was a newcomer in the shipping industry who didn’t know the difference between a 20-foot (six-meter) container and a 40-foot (12-meter) one. Now, as Group General Manager, Commercial and Marketing, he’s grateful for his journey. Going in as a blank slate became his greatest advantage, pushing him to understand the business from the ground up.
“When I first joined the company back in 1992, I knew nothing about the shipping industry – zero,” he tells The CEO Magazine. “But I’m happy that I started from the very bottom and worked my way up. It gave me a deep understanding of the business at every level.”
At the time, Eng Kong was scaling rapidly, and Chan evolved right alongside it.
“The company was growing fast, and there were many opportunities for me to learn and move around, such as setting up new depot locations within the network company,” he recalls.
“Today, I can confidently say I understand the company at every level, from the ground level to senior management and from our core business to our smallest subsidiaries.”
Across his three decades with Eng Kong, Chan has seen the business successfully navigate through some of the industry’s most destabilizing episodes, including the Asian financial crisis in 1997, the H5N1 flu outbreak in 2005, the global financial crisis in 2008 and, most recently, the COVID-19 pandemic shutdowns, which crippled global supply chains.
But through each challenge, Eng Kong held firm. Chan credits the strength and versatility of the business model.
“We have a very sound and resilient business model,” he says.
“We have a very sound and resilient business model.”
When global demand surges and container movements spike, the company primarily earns from handling and repair revenue. Conversely, when markets soften and containers pile up in yards, storage revenue grows.
“Regardless of the market conditions, we are able to take advantage of these two circumstances,” he says.
According to Chan, diversification is central to Eng Kong’s resilience and long-term success.
“We have a number of subsidiaries that complement our core business,” he explains, pointing to its entities in container trading, refrigerated units, inspections and new-build container inspections.
When one segment dips, another typically rises, creating a balance that allows the company to maintain stability even during volatile market periods.
Each subsidiary not only adds a revenue stream but also strengthens the group’s expertise and service offering, giving Eng Kong the flexibility to respond quickly to shifts in demand. Over the years, this diversified approach has been key to sustaining growth and building resilience across the business.
“Geographic reach is also an important part of our diversification,” he explains.
For example, when China entered lockdown and shipping lines rushed to off-hire containers, demand surged in South-East Asia. Later, as China reopened and leasing activity picked up, growth balanced out across the region.
“We managed our risks not just through geographic diversification but also with a broad portfolio of subsidiaries that strengthen our core business. Above all, our business model is exceptionally resilient,” Chan explains.
That resilience set the stage for what came next. Rather than simply enduring the pandemic, the company used it as a catalyst for change.
“During that time, we spent a lot of time and money on AI and technology as a whole,” Chan says.
These investments have put Eng Kong ahead of the curve. It was the first in Asia–Pacific to operate on an auto-gate system, the first in South-East Asia with an auto-seal dispenser and may soon launch an automated container survey system.
“With these new systems, we’ve reduced yard turnaround times from 15 minutes to seven minutes,” he reveals. “The fastest turnaround recorded was just three minutes.”
“Our business model is exceptionally resilient.”
At the same time, errors dropped, processes were streamlined and customer satisfaction climbed. The innovations drew outside attention, too.
Chan recalls that, although the company had not extended an invitation, the Workplace Safety and Health Council, a statutory body under the Ministry of Manpower, and JTC Corporation, a statutory board under Singapore’s Ministry of Trade and Industry, heard about its work and were highly impressed following their visit to the Eng Kong depot.
As a result, the agencies published a feature showcasing Eng Kong’s transformation.
“It’s something we are very proud of,” he says.
With that recognition behind it, the company remains focused on expansion.
“We continue to expand in all the key ports here in Asia,” Chan explains, highlighting Myanmar, Cambodia, central and northern Vietnam and Indonesia as key markets.
“If there are good opportunities, we will never shy away.”
But what stands out most is the company’s loyalty to its workforce, even as technology reduces the need for manual roles.
“With the new technology, we still retain people,” he says.
Counter staff was reduced from around 16 to roughly seven, yet no-one was let go.
“They had been with the company for such a long time that we decided to redeploy them into other operational roles,” Chan explains.
He notes this is a defining cultural trait.
“Regardless of what crisis, we’re like a family and never lay off people,” he confirms.
That same ethos extends to customers. Chan’s customer philosophy is disarmingly simple.
“Trust and accountability – and always have the best interest for them,” he insists.
During the pandemic, he put that philosophy into practice. Worried an outbreak could shut down a depot and bring a customer’s entire operation to a halt, he proactively offered his clients access to a secondary operational depot for a minimal cost.
“I did internal trucking for them without charging them a single cent,” he says.
“If there are good opportunities, we will never shy away.”
The gesture prevented redundancies, business stoppages and importantly, forged lasting loyalty.
“Even now, these customers are still very appreciative,” he says.
Every client, big or small, benefits from what Chan calls a ‘three-tier’ relationship structure – senior management, head of department and ground operations – ensuring constant communication and continuity across all levels.
Asked what makes a great leader, Chan doesn’t hesitate: “Integrity, trustworthiness, accountability and communication.”
But above all, he emphasizes listening.
“I always listen and encourage open dialogue,” he says, adding that empowerment is central to his style, as is protection.
“If something goes wrong, it’s my responsibility. I won’t let anyone bear the blame unfairly.”
Failure, he believes, is a teacher.
“We aim to improve with every mistake. We learn. We are human,” he adds.
Reflecting on Eng Kong’s 50th anniversary, Chan takes pride in the company’s longevity.
“We have weathered storms, and the company continues to grow,” he says. “It is a testament to our business model and our success.”
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