SATS, SingPost sign MoU for e-commerce hub in Singapore
Trial in February 2023 saw promising results with potential to shorten cargo turnaround time by over 60%
SATS and Singapore Post (SingPost) signed a memorandum of understanding (MoU) to explore a strategic partnership for establishing an e-commerce transshipment hub in Singapore.
SATS and SingPost have committed to providing equal share of resources to engage operational and commercial consultants for business case formulation, explore synergies and facilitate trial runs to capture essential data for a feasibility study, says an official release from SingPost. "The study will assess the operational viability and potential synergies for both entities, enabling the parties to leverage their respective strengths and resources effectively."
The first joint operations trial, which took place in February 2023, saw promising results with the potential to shorten cargo turnaround time by over 60 percent. "This would allow for delivery periods between 1-3 days for items within Asia. The proposed transshipment hub aims to streamline cargo logistics workflows by eliminating the need for transport between SATS and SingPost facilities, minimising the reliance on traditional cargo vehicles and further optimising warehouse space. By combining their expertise and capabilities, the companies aim to create a seamless and efficient hub that will redefine the ecommerce industry in Singapore and the region."
Bob Chi, CEO, Gateway Services, SATS says: "This partnership marks a significant milestone for both companies, representing an innovative approach that combines our strengths and expertise. Together, we aim to drive operational excellence, achieve cost reductions, and elevate the overall customer and partner experience. Moreover, this collaborative effort will not only benefit ecommerce players but also reinforce Singapore's position as a prominent regional hub for ecommerce logistics."
Li Yu, CEO, International, SingPost adds: “At SingPost, we constantly look at forging deeper industry partnerships to expand our eCommerce supply chains across Asia Pacific. The combined scale of SATS and SingPost will unlock seamless e-commerce flows into, within and out of Asia, building on strategically located hubs in Singapore, and in time to come, Hong Kong and Europe. We are poised to shorten delivery times and advance our logistics solutions, providing enhanced customer experience across the region.”
The Southeast Asian market is expected to triple with a compound growth rate of 22 percent. It is estimated that the market will reach approximately $230 billion in gross merchandise volume, according to projections by McKinsey, the release added.