Singapore, as one of the leading transport hubs in Asia, is making further investments in its infrastructure, processes, and workforce to solidify its position as a reputable regional transshipment center. With forecasts indicating that more shippers will choose Singapore as their transshipment and intermodal hub, these investments are aimed at meeting growing demand and reinforcing Singapore's leadership in global logistics.
Facilitating Transshipment Times
Officials from Singapore's Ministry of Transport and the Economic Development Board have announced efforts to expedite transshipment times between air and sea through Singapore by 2025. The goal is to reduce waiting times for air and sea transshipments by half and, on the other hand, to encourage major logistics providers to expand their business activities in the region.
In this regard, a prototype application is being developed that allows shippers and logistics service providers to have various functionalities to streamline and enhance intermodal logistics efficiency in Singapore. These functionalities include real-time flight or vessel data and status, booking flights or trips, early alerts about delays, and visibility of cargo status.
Increasing Port Capacity
Singapore's ports are expected to handle larger volumes of cargo in 2025 due to new alliances formed in the transport industry. Transport alliances allow shipping lines to share their vessels on specific trade routes, reducing costs. Under the Gemini Cooperation Alliance, which will be operational from February, shipping lines Maersk and Hapag-Lloyd will allocate around 340 vessels with a total capacity of 3.7 million TEU to a new network that includes Singapore.
According to Maersk's General Manager in Southeast Asia, this network consists of 29 loops that provide direct coverage between key ports, and Maersk plans to have around 40 vessel calls per week in Singapore. He also noted the increasing demand from Maersk's customers for supply chain solutions and emphasized that this trend will continue into 2025.
These investments come at a time when demand for air freight is rising, and Maersk is expanding its facilities at Changi Airport and constructing a new distribution center in Jurong West. This center, covering 1.1 million square feet, is set to be operational by 2025.
