German logistics company DB Schenker on Monday (Aug 14) broke ground on RedLion2, a facility representing an investment of more than 100 million euros (S$148.1 million) that will increase the company’s total logistics footprint in Singapore to nearly four million square feet (sq ft).

This investment is set to surpass the 101 million euro investment in its RedLion facility inaugurated in 2020, which was then its largest investment globally, said DB Schenker.

The new facility at Tampines LogisPark is expected to be completed by the first half of 2025. It is part of the company’s plan to hire over 600 employees in the next seven years, in areas such as process automation, data analytics and digital transformation.

The new warehouse, together with an existing facility that it will be connected to via a skybridge, will create a “mega logistics campus” spanning 1.2 million sq ft.

RedLion2 is designed to house automated solutions such as intelligent conveyor systems, automated storage and retrieval systems, and automated guided vehicles. It aims to provide solutions for the semiconductor, electronics and healthcare industries, to support Singapore’s global manufacturing hub ambitions.

Singapore’s business-friendly environment, stable political system, strong rule of law, extensive network of free trade agreements and well-trained workforce have made it home to many logistics companies and their distribution centres, noted Acting Minister for Transport Chee Hong Tat, as he highlighted opportunities for the Republic amid escalating geopolitical tensions and a post-pandemic future.

“With increasing demand from a rising middle class and need for companies to de-risk and diversify, manufacturing capacities are rapidly expanding in Southeast Asia,” he said.

“The demand for logistics services to handle raw materials and finished goods in the region will likely correspondingly experience strong growth as well. This is an opportunity for us.”

As global logistics players build infrastructure here, Singapore is investing significantly to increase its infrastructure capacity, Chee added, reiterating the development of Tuas Port and Changi Airport’s Terminal 5.

These infrastructure expansion efforts are complemented by collaborations with companies such as DB Schenker to streamline business costs and processes, in turn benefitting the logistics and connectivity ecosystem and the industries it supports, he said.

RedLion2 is certified by several green building certification programmes. It includes a “sandbox” area for test-bedding new ideas, to “help expedite feasibility trials in a live operating ecosystem”. The company also plans to partner local small and medium-sized enterprises to uplift the logistics industry.

DB Schenker’s chief executive officer for Asia-Pacific Niklas Wilmking said that the facility is a “vital, sustainable and strategic hub” for its customers and its global network.

“We invest with clear intent to not only build resilience and scalability for our customers’ supply chains, but also to drive digitalisation, sustainability and network agility with groundbreaking and cutting-edge initiatives for the industry.”

Catherine Soo, cluster CEO for Singapore and Malaysia, noted close collaborations with customers and government agencies such as the Economic Development Board and JTC in developing the facility.

“We have had to do things differently in designing and optimising the space and workflow, which led to a first-ever skybridge interconnecting our two facilities at Tampines LogisPark instead of conventional ramps at RedLion2,” she said.

“Also, with the combined deployment of solar panels across our facilities here, we have the largest solar-powered logistics facility in Singapore, generating more energy than consumed on-site. And it is amidst this vibrant environment that we feel is most suitable to foster more sustainable innovation, by providing the space and culture to sandbox new ideas for the industry.”

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