SingPost invests S$30 million to boost processing capacity in Regional eCommerce Logistics Hub

Singapore Post Limited (SingPost) today announced a S$30 million investment in its Regional eCommerce Logistics Hub (eComm LogHub) facility, to expand eCommerce processing capacity as a pathway for future growth.

This investment will go towards the installation of new sorting equipment that can process up to 300,000 small parcels per day at the eComm Loghub, up from the present 100,000. The compact and modular design of the new machinery also frees up significantly more floor space, enabling 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 eCommerce 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."

This also represents the first significant renovation of SingPost's eComm LogHub. Launched in 2016, the S$182 million, 553,000 square feet facility houses a number of operations spanned over three floors. The larger parcel processing occupies all of the ground floor with a sortation capacity of approximately 100,000 parcels a day. Together with the new sorting equipment for small parcels to be housed on the third floor, the eComm LogHub will have eCommerce processing of some 400,000 parcels a day. The facility also features a warehouse on the second floor, 150 simultaneous loading bays as well as an office block.

"Some 70% of eCommerce shipments that come through SingPost are small parcel deliveries that can fit into a letterbox. In Singapore, letterbox deliveries are the most convenient, secure and carbon-friendly delivery option available," said Neo Su Yin, Group Chief Operating Officer, SingPost. "With the robust growth of eCommerce, we are presently operating at maximum sortation capacity. The new sortation equipment will increase our throughput by 300%, while utilising less floor space, giving us room to expand further within the same premises at our eComm LogHub in future."