Changi Airport expands cargo capacity with new tech and facilities

In 2024, Changi Airport Group handled nearly 2 million tonnes of air cargo, reflecting a 15% year-on-year increase from 2023. This growth solidified its position as Southeast Asia’s busiest air cargo hub and the 9th largest globally by international airfreight volume. The surge was largely driven by the rebound in Singapore’s electronic exports and re-exports, alongside a significant rise in cross-border e-commerce shipments. Additionally, disruptions in maritime transport led to a modal shift from ocean to air freight, further boosting volumes, according to an official release from Changi Airport.

Enhancing connectivity and handling capabilities
Changi Airport is expanding its network connectivity to adapt to changing trade dynamics and global supply chain shifts. The airport’s network covers over 160 cities, with more than 20 airlines operating freighter services to nearly 45 cities worldwide.

Over the past year, major global express integrators have expanded their network and facilities at Changi. These developments have enhanced Changi’s connectivity and capacity, supporting its growth as a major regional cargo hub. In February 2024, FedEx opened its regional headquarters in Singapore and expanded its network from Changi to Ho Chi Minh City. In mid-2024, DHL Express completed upgrades to its South Asia Hub to accommodate anticipated growth in express cargo volumes.

As part of these upgrades, scanning capacity increased by nearly 30% with the deployment of new X-ray machines, while sorting capacity improved by almost 40% through enhancements to the existing material handling system. In October 2024, SF Express launched its Singapore Airside Logistics Centre in partnership with SATS, reducing on-airport processing times and improving overall handling efficiency in Singapore, mentions the official release.

To support the continued growth of the cargo hub ahead of the Changi East Industrial Zone’s completion in the mid-2030s, Changi is investing in new capacity and capabilities. In October 2024, the airport opened Changi Nexus One, an 8,000 sqm warehouse with direct airside access, enhancing its logistics warehouse capacity.

The new tenants of Changi Nexus One will introduce advanced air logistics handling capabilities, incorporating automation and smart technology to enhance Changi’s air cargo management. The investment in Changi Nexus One reflects Changi’s long-term commitment to providing world-class facilities for air logistics players, further strengthening its position as a leading regional air cargo transshipment hub.

Changi Nexus One is also Changi Airport’s first Building and Construction Authority (BCA)-certified Green Mark Platinum Positive Energy Building, the highest level of sustainability certification under the BCA Green Mark Scheme. This milestone brings Changi closer to its sustainability goals. Additionally, the airport has begun installing a large-scale solar photovoltaic system across the rooftops of its terminal buildings, including the Cargo Agent Buildings in the Changi Airfreight Centre.

Once fully installed, the system is expected to generate enough green energy to power over 10,000 four-room public housing flats in Singapore annually, reducing carbon emissions by approximately 19,000 tonnes per year. This initiative is part of Changi’s broader sustainability efforts, supporting its targets of a 20% reduction in Scope 1 and 2 emissions by 2030 and achieving Net Zero by 2050, the release added.

Community building through collaborative data-sharing
Changi has long prioritised building a collaborative air cargo community, exemplified by the launch of the Changi Air Cargo Community System (ACCS) in 2020. As part of this initiative, the Truck Dock Slot Booking (TDSB) system was introduced to address landside congestion at cargo terminals. In August 2024, Changi’s ground handlers implemented TDSB for cargo lodgement at export terminals. Currently, approximately 340 users have been onboarded, with early results showing that 90% of export cargo is cleared through TDSB, reducing driver waiting times by up to 30%. Later this year, Changi plans to extend TDSB to import cargo collection at handlers’ terminals, marking a significant step toward streamlining processes and enhancing efficiency, reliability, and transparency in air cargo operations, says the release.

Shaping the future of Changi air cargo hub

Changi is preparing for long-term growth with the Changi East Development, which includes Terminal 5 and the Changi East Industrial Zone (CEIZ). Construction is set to begin in the first half of 2025, with completion targeted for the mid-2030s.

Designed with a focus on land intensification, operational excellence, sustainability, and process innovation, CEIZ will enhance support for airfreight, air express, and maintenance, repair, and operation (MRO) activities. It will feature a remodeled Changi Airfreight Centre and be supported by the Airport Logistics Park of Singapore (ALPS) and the newly announced ALPS 2, which was introduced by the Singapore government in November 2024 to expand existing capacity, the release added.

Upon completion, Changi’s annual cargo handling capacity will increase from 3 million tonnes to 5.4 million tonnes, reinforcing its position as a leading air cargo hub.

In 2025, the air cargo industry faces challenges from global trade tensions, economic uncertainties, supply chain disruptions, and climate change. However, growth in special cargo segments and rising semiconductor demand driven by generative AI and data centres offer opportunities.

Changi remains committed to enhancing connectivity, efficiency, and resilience, working closely with industry partners to strengthen its position as a leading global air cargo hub.