Business Guide · August 5, 2021

Singapore logistics industry

1. Industry Background

Negotiating Complex Supply Chains and Asia

Global supply chains are becoming more complex with rising fuel prices, changing business models, and an increasing demand for sustainable logistics solutions. In addition, multinationals are negotiating the complex Asian landscape as they expand into the region.

Leveraging its strategic location between the East and West, as well as its world-class logistics and supply chain capabilities, Singapore is well positioned to design and deliver sustainable solutions for companies’ global operations.

World’s Top Logistics Hub

A 2010 World Bank report ranked Singapore as the no.2 logistics hub in the world, ahead of Netherlands, Sweden and Asian heavyweights such as Japan, Hong Kong and China.

Singapore offers world-class infrastructure and excellent connectivity, a base of leading industry players and customers, as well as thought leadership/knowledge in logistics/supply chain management.

These propositions provide a strong foundation for Singapore as a vibrant, multimodal hub that develops and delivers sustainable supply chain solutions for the global economy.

Leading Industry Players

Singapore provides access to the world’s best solutions, with 17 of the top 25 third party logistics companies (3PLs) based in Singapore. Most of them have established regional headquarters function in Singapore.

Leveraging Singapore’s world-class infrastructure and excellent global connectivity, Singapore has become the preferred logistics and supply chain management hub for leading players across industries. They include Avaya, Diageo, Hewlett Packard, LVMH, Numonyx and Siemens Medical Instruments.

World-Class Infrastructure, Global Connectivity

Singapore has established world-class specialised infrastructure, which include theAirport Logistics Park of Singapore (ALPS) in the airport’s free-trade zone, the Changi International LogisPark that facilitates regional distribution, and the Banyan LogisPark on Jurong Island that caters to the specific needs of chemicals and oil companies.

In addition, 3PLs have also invested in facilities and capabilities to meet industries’ needs for specialised handling of products such as temperature-sensitive, time-sensitive clinical and diagnostics materials; chemical and petroleum products.

Besides infrastructure and specialised facilities, Singapore also offers excellent global connectivity with its extensive network of logistics linkages. The sea-port is linked to 600 other ports in 123 countries via 200 shipping lines. 25 million TEUs of containers were moved out of Singapore in 2009.

For air-cargo, Singapore’s Changi Airport is ranked amongst Asia’s top five. The airport is served by over 4,500 flights connecting to 200 cities in 60 countries. Singapore is also proximate to world’s major markets, being situated within a seven-hour flight radius to half of the world’s population in Asia Pacific.

Thought Leader in Asia

In response to the increased complexity of global supply chains, global 3PLs and supply chain management companies here are developing innovative logistics and supply chain solutions for their Singapore-based and regional manufacturing and trading customers.

In addition, Asia’s leading logistics think-tank, The Logistics Institute – Asia Pacific, is also based in Singapore. TLI-Asia Pacific has established close links and partnerships with the industry and government to arrive at practical and impactful solutions. A collaboration between the Georgia Institute of Technology and theNational University of Singapore, TLI-Asia Pacific has a good grasp of the evolving industry in both the West and the East. This has enabled the institute to train more than 100 world-class professionals to deal with today’s complex supply chains.

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2. Facts and Figures

  • 17 of the world’s 25 largest third party logistics service providers have established significant operations in Singapore. Most of them have also set up regional headquarters in Singapore. Companies that have established regional distribution centres in Singapore include Avaya, Diageo, Hewlett Packard, LVMH and Roche Diagnostics.
  • Singapore is the world’s busiest port and is the largest transshipment hub. PSA Singapore Terminals are connected by 200 shipping lines to 600 ports in 123 countries, with daily sailings to every major port of call in the world. PSA Singapore Terminals received the “Best Container Terminal (Asia)” for the 21st time at the 2010 Asian Freight & Supply Chain Awards (Cargonews Asia), and “Container Terminal Operator of the Year” at the Lloyd’s List Asia Awards, for the 9th time in 2009.
  • Singapore’s Changi Airport is amongst Asia’s largest cargo airport. It is served by over 4500 flights connecting to 200 cities in 60 countries. In 2010, Singapore Changi Airport received the Best Airport in Asia award for the 24th consecutive time and the inaugural Best Green Service Provider (Airport) at the Annual Asian Freight & Supply Chain Awards (Cargonews Asia).
  • Asia’s leading logistics education and research institute, The Logistics Institute – Asia Pacific, is based in Singapore and has more than 100 alumni. Since 2003,TLI-Asia Pacific has been conferred Asia’s Best Education Course Provider for eight consecutive years at Cargonews Asia’s annual Asian Freight & Supply Chain Awards.