A NEW logistics hub spanning over 18.6 hectares (ha) will support operations at Singapore’s upcoming Tuas Port with new capabilities such as automated storage and the capacity to handle sensitive goods.
Developed by PSA Singapore, the PSA Supply Chain Hub @ Tuas will be located in the Tuas Port free trade zone (FTZ) and be ready by the second quarter of 2027.
In June, builder Soilbuild Construction Group said that it clinched the S$647.5 million contract to build the hub.
At the ground-breaking ceremony for the facility on Friday (Oct 18), Prime Minister Lawrence Wong said that the hub will further improve Tuas Port’s competitiveness by enhancing its ability to handle cargo shipments, not just containers.
Singapore�’s port currently moves many containers from ship to ship, but businesses may not always have full containers of cargo, he noted.
This is where consolidation, deconsolidation and distribution – combining smaller shipments into containers, and separating them – come into play. This is currently handled by Keppel Distripark, which is set to close by 2027.
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PSA’s Supply Chain Hub will replace Keppel Distripark, and expand the capacity for these services. This will enable Singapore to attract more trade flows, including from those seeking cargo-management services, explained PM Wong.
The hub’s expanded capabilities, including the handling and storage of dangerous and sensitive goods and an automated storage and cargo retrieval system, will use a real-time data and information platform to improve productivity.
The ability to process higher-value cargo will boost Singapore’s maritime competitiveness, said PM Wong.
Currently, businesses needing to process higher-value cargo – such as pharmaceuticals or sensitive chemicals – need to truck their cargo out of the port and then back in, which incurs duties and adds to costs.
If this is the case, businesses may decide against using Singapore altogether, noted PM Wong. But the new hub integrates these services in one place, and within Tuas Port’s FTZ, which means businesses can access these services faster and more seamlessly.
The city-state is the largest transshipment hub in the world, reaching a record of 39 million twenty-foot equivalent units (TEUs) of container throughput last year.
“We hope to cross 40 million TEUs this year,” said PM Wong.
Tuas Port will expand Singapore’s capacity and help to attract major shipping alliances.
Currently, 10 out of 66 planned berths are operational there. When completed in 2040, it will be the world’s largest fully-automated port, capable of handling 65 million TEUs a year.
PM Wong cautioned that Singapore needs to keep its competitive edge, especially with other ports – including those in Shanghai, Ningbo-Zhoushan and Rotterdam – improving their infrastructure. “We want businesses to use Tuas Port as a convenient and efficient one-stop shop, not only for their physical goods, but also as a control tower to manage their inventory and global supply chain flows,” he added.