Singapore logistics sector remains strong

“Investments in Singapore’s logistics sector amounted close to S$500m in 2009,” said Singapore Economic Development Board (EDB) during a media briefing on the review of the logistics industry for 2009.

Total business spending for 2009 was S$481m which created 1,240 skilled jobs including supply chain planners, managers and research engineers. The investments are expected to contribute S$207m in value-added each year. Julian Ho, assistant managing director, EDB added that he expects business spending for 2010 to be in the range of S$400 to S$500m.

In 2009, global logistics and supply chain management companies located strategic functions in Singapore that included regional headquarters, global business units and shared services.

Key developments included Zuellig Pharma’s specialty solutions group’s global headquarter for its new bio-logistics services and TNT new regional air hub that connects the company’s air networks with its Asia road network.

Zuellig Pharma and DHL launched specialised units to develop customised supply chain solutions for the growing biomedical industry in Singapore and Asia. Complementing this, Singapore Airport Terminal Services’ dedicated on-airport CoolPort@Changi facility will address temperature-sensitive cold-chain needs.

In chemical logistics, Horizon Terminals, CWT and Stolt-Nielsen expanded their specialised storage facilities. In addition, Singapore Freeport together with Christie and Helutrans Group are offering customised services to fine art and collectible companies.

Responding to questions from Logistics Insight Asia on what drives the logistics industry, Ho said that the drivers are strong growth of Asia as a production base and market, rising demands for more sophisticated supply chain solutions and the awareness of sustainability to boost productivity.

According to EDB, the transport and storage sector is nine percent of Singapore’s economy.