Singapore will build a second airport logistics park from 2030 to increase the capacity of the existing park and boost Changi Airport’s role as a regional air cargo hub.

This comes at a time when manufacturers globally are exploring new locations for production, which will alter the flow of trade and logistics and lead to higher volumes of cargo passing through Singapore.

The new Airport Logistics Park of Singapore will create new capacity to service more logistics companies, encouraging them to set up their regional distribution centres here, said Deputy Prime Minister and Minister for Trade and Industry Gan Kim Yong on 3rd October.

He was speaking at the inaugural Government-organised Singapore Supply Chain Connect 2024, which brought together around 400 supply chain leaders to discuss how Southeast Asia and Singapore are positioned to drive growth in the sector.

An airport logistics park is a dedicated zone near an airport that optimises the flow of air cargo and reduces the costs and transit time for processing goods.

Like the existing airport logistics park, the new one will have free trade zone status, allowing logistics companies to benefit from perks such as high-quality park management as well as cost and tax incentives.

The new logistics park is expected to complement an upcoming industrial zone in Changi East and will be part of the Changi Aviation Park, which includes Changi Airfreight Centre and the existing 26ha logistics park.

The first logistics park, completed in 2003, is now operating at full capacity.

Together, these facilities will expand Changi Airport’s overall cargo handling capacity from 3 million tonnes per year currently to 5.4 million tonnes annually.

The second logistics park will “increase the vibrancy of Changi air cargo hub ecosystem and help to maintain Singapore’s relevance and centrality as a critical node in the global supply chains”, Mr Gan said.

He added that Singapore is now the largest air cargo hub in Southeast Asia, with more than 6,900 weekly flights operated by close to 100 airlines.

The Republic is also keen to attract shippers to establish their supply chain management hubs here.

Mr Gan noted that global companies are increasingly choosing Singapore for this purpose, citing companies like 3M, Schneider Electric, Applied Materials, Asahi, and Zuellig Pharma. “We want to work with companies to further deepen their supply chain activities here in Singapore,” he said.

The Economic Development Board (EDB) is partnering with global shippers to develop new capabilities and build stronger and more sustainable supply chains based in Singapore.

For example, EDB supported 3M in setting up a Singapore “supply chain centre of excellence”, which also serves as a manufacturing hub to meet the specific demands of 3M’s local and regional markets.

The company’s Singapore operations now employ in excess of 1,400 people, with more than 700 in its supply chain centre of excellence.

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