The Singapore government has worked to create an investment climate and provide incentives for private sector participation in the logistics industry. This has resulted in the presence of 20 of the world’s top logistics companies managing global and regional operations. This in turn has helped to boost work efficiency and productivity. In the coming years, Singapore is set to grow its logistics hub status in three ways: attracting more foreign direct investment, developing and leveraging its existing logistics capabilities, and enhancing its logistics hub proposition.
The city-state has extensive free-trade agreements and is well connected to major markets. The Singapore port is expected to process 65 million standard shipping containers per year, making it the world’s largest integrated logistics hub. It is also expected to integrate data analytics, smart sensors, and automated guided vehicles to better track shipping anomalies.
The new Singapore logistics hub will serve a range of industries in the region, including pharmaceutical and high-tech manufacturing. It will also feature 46,000 square meters of warehousing space and advanced chilled storage technology. It will also have postponement and redressing facilities for pharmaceuticals. The hub will provide logistics services for customers across Asia, including India.
Singapore also boasts an airport, which is currently planning to double its capacity. The airport has specialized infrastructure, such as regional express facilities and cold-chain centers for perishable products. In addition, the airport’s staff undergo regular training in order to deal with various cargo types. It also boasts the first IATA CEIV Pharma certification for its cold-chain center. This makes Singapore a global leader in pharma logistics.
The Poh Tiong Choon Logistics Hub is located at 48 Pandan Road in the coastal western part of Singapore. It is owned by ESR REIT. The company recently acquired a nearby warehouse for S$225 million in a joint venture with Poh Tiong Choon Logistics. The company expects to complete the sale in the fourth quarter. The net proceeds from the sale will be used to enhance the logistics hub’s growth trajectory
Singapore is well-connected by land, sea, and air, with 200 shipping lines linking the country to 600 ports in 123 countries. Its proximity to most markets in the world makes it a highly efficient logistics hub. Almost half of the population of the Asia-Pacific region lives within a seven-hour flight of the city-state.
Singapore has become a logistics hub for many companies, including Cummins Inc. The company will consolidate operations at the Pandan Logistics Centre in Singapore from three distribution centers located across the region. It expects 20% productivity growth and operation cost savings. The company has also upgraded the facility’s security and environmental standards. The facility will feature three-tier mezzanine storage, fire sprinklers, and in-rack motion sensors to protect equipment and employees.
In addition to being an important logistical hub, Singapore logistic hub also features two ports serving maritime trade. The Tanjung Langsat Port (TLP) was originally designed to complement the PTP and Johor Port and has evolved into one of the leading specialty terminals in Southeast Asia. It specializes in handling hazardous chemicals and petroleum-related cargo. It also has two specialized dry cargo berths that provide access to international maritime routes.