SingPost is expanding its e-commerce processing capacity at its Regional eCommerce Logistics Hub (eComm LogHub) with a S$30m (US$22.5m) investment in new sorting equipment.
The upgrade will enable to hub to handle up to 300,000 small parcels a day, up from 100,000, and the compact and modular design of the new machinery will free up floor space for future enhancements.
“The investment in capacity building not only enhances operational efficiency but unlocks a pathway for growth,” said Simon Israel, chairman of the board, SingPost. “Singapore’s e-commerce logistics market is fragmented. By leveraging our infrastructure, SingPost could play the role of an industry consolidator, opening our historically closed networks to partnerships or undertaking services for other parties in the industry. I am optimistic about the growth potential of our business as this could result in more integrated and sustainable logistics solutions for the industry.”
The S$30m investment is the first significant upgrade to the S$182m (US$136m) eComm LogHub, which opened in 2016. The 51,375m2 facility spans three floors, with the larger parcel processing on the ground floor handling 100,000 parcels a day. The new equipment for small parcel handling will be installed on the third floor and will take total parcel handling capacity to 400,000 parcels a day.
“Some 70% of e-commerce shipments that come through SingPost are small parcel deliveries that can fit into a letterbox,” commented Neo Su Yin, group chief operating officer, SingPost. “In Singapore, letterbox deliveries are the most convenient, secure and carbon-friendly delivery option available. With the robust growth of e-commerce, we are presently operating at maximum sortation capacity. The new sortation equipment will increase our throughput by 300%, while utilizing less floor space, giving us room to expand further within the same premises at our eComm LogHub in future.”