Notice was served to PSA Corp to acquire a 14,724 sq m site at its terminal yesterday.
The move is to facilitate the building of Circle Line Stage 6 - a 4km extension that will make a complete circle of the line, when it is done in 2025.
PSA will have to give up the plot by end-2015, the Land Transport Authority (LTA) said.
The Straits Times understands that the site is currently part of a logistics park occupied by PSA's tenants; and that one of possibly four stations along the MRT extension will be built there.
A PSA Corp spokesman said the impact of yesterday's acquisition on business will be "minimal".
But it is expected to enter into talks with the authorities on compensation terms next month.
Stage 6 will connect HarbourFront station to Marina Bay station. This will offer commuters easier access to either side of the now-incomplete Circle Line.
That means shorter commutes between key areas in the Central Business District, Marina Bay, and the HarbourFront area.
Today, Circle Line commuters have to transfer at Dhoby Ghaut or Outram Park if they want to go from west to east or vice versa.
Beyond 2030, Circle Line Stage 6 will also serve the new Southern Waterfront City - a dense, mixed development district.
Meanwhile, the port occupied by PSA Corp will progressively move to new facilities in Tuas when its current lease expires in 2027.
The site to be acquired includes a one-storey port facility and part of a private road within the terminal.
An LTA spokesman said: "As with all other infrastructural projects, all efforts will be made to minimise land acquisition.
"As LTA is in the process of conducting the architectural and engineering studies, we will have to complete these studies before we can decide if any further acquisitions are required."
These studies will have to be completed before the alignment of Stage 6 is finalised.
Source: Straits Times, 7 Nov 2013