Singapore Post today announced plans to invest S$182 million (€112 million) in a new e-commercelogistics hub in Singapore with capacity for up to 100,000 parcels a day as it continues its
regional growth strategy.The facility will cater for the group’s fast-growing e-commerce logistics business and alsoposition Singapore as the leading e-commerce hub in south-east Asia, according to SingPost.
The 51,375 sqm SingPost eCommerce Logistics Hub, described as the first of its kind in theregion, will be built on a 3.25 hectare plot of land leased for 30 years at the Tampines LogisPark,which is very close to Singapore International Airport. Construction is expected to be completed byend-January 2016 and it should be fully operational in the second half of 2016.
The three-floor building will incorporate a parcel sorting centre with a fully-automatedsorting system for up to 100,000 parcels a day on the ground floor, two warehousing floors and 150simultaneous loading bays. The development will also comprise an adjoining 8-storey office block tohouse SingPost’s local and regional logistics operations, Quantium Solutions, Singapore Parcel andLock Store.
The estimated development cost for the SingPost eCommerce Logistics Hub is S$182 million andincludes lease of the land, construction costs and cost of equipment. SingPost said it will fundthe development internally from its cash holdings.
Wolfgang Baier, Group CEO of SingPost, said: “Given its strategic location and pro-businessenvironment, Singapore is an ideal location for the development of our premierregional eCommerce Logistics Hub. I expect our new facility will, inturn, further boost Singapore’s aspiration to be the region’s e-commerce hub.
“This hub is also an integral part of SingPost Group’s strategy as we expand our ecommercelogistics business and capitalise on the fast-growing e-commerce market here in Singapore and theregion. With this critical infrastructure in place, it will radically transform our full range ofe-commerce logistics capabilities, across warehousing, fulfilment, sorting and delivery. It willalso enable SingPost to offer very cost-efficient fully integrated e-fulfilment solutions to ourcustomers in a scalable manner.”
According to SingPost, the Asia Pacific e-commerce market is going through exponentialgrowth, with B2C sales expected to hit US$708 billion in 2016 or a 41 per cent increase from 2014’sUS$502 billion, driven mainly by the rise of the middle income group as well as mobile and internetpenetration. In tandem, the ecommerce logistics market in Asia Pacific is estimated to grow to morethan US$175.24 billion by 2016.
Baier added: “As part of our growth strategy, we have been strengthening our logisticsnetwork in the region and also investing in ecommerce logistics infrastructure, technology andcapabilities. As we expand our local market presence in Asian countries with local warehousing andlocal delivery, we need an efficient regional hub. There is no better place for such a hub than inSingapore. To enable Asia businesses as well as US or European businesses to connect to customersin emerging Asia, we have been developing a strong end-to-end integrated value chain encompassingfour critical components namely freight, customs & regulations management, warehousing &fulfilment, ecommerce web solutions and last mile delivery & returns. This integrated Hub whichwill bring together the ecommerce logistics capabilities and offerings of Quantium Solutions,Singapore Parcels, Lock Store and SP eCommerce, will serve to further strengthen our valueproposition to fully address the needs of our local and regional customers.”
Sascha Hower, Group Chief Operating Officer of SingPost, explained: “The hub, estimated tobe the size of 4.5 football fields, will cater to the growing ecommerce market in Asia and isdesigned to achieve maximum efficiency and productivity, with full integration of the automatedparcel sorting system on the ground floor and two warehousing floors above, as well as a parkingfacility on the rooftop for 270 vehicles. We are investing in a state-of-the-art system that willbe able to handle up to 100,000 parcels per day. With the scale of the Hub, we expect more peopleto be working in the new facility and in the adjacent office building to ensure speed-to-marketresponses to address customers’ needs.”
Lee Eng Keat, Director of Logistics, Singapore Economic Development Board, commented: “We continuously endeavour to strengthen Singapore’s position as a strategic location to access thegrowth opportunities in Asia. The establishment of SingPost’s regional e-fulfillment hub will helppre-position Singapore as the leading regional hub for brands and retailers looking to usee-commerce to access the growing markets in the region. Moreover, SingPost’s investments inautomatic parcel sorting systems and warehousing solutions are in line with our efforts to enhanceproductivity.”
Other logistics companies at the 24-hectare Tampines LogisPark, owned by JTC Corporation,include DHL Supply Chain, which is investing €23 million into a large €90 million logisticsfacility due to open next year, Kerry Logistics and Ceva Logistics.
