SingPost to boost e-commerce capacity with €20M investment

Singapore Post (SingPost) yesterday announced a €20.6 million investment in its regional e-commerce logistics hub to secure 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 facility, up from the present 100,000.

“The investment in capacity building not only enhances operational efficiency but unlocks a pathway for growth,” said SingPost Board Chairman, Simon Israel.

“Singapore’s e-comerce logistics market is fragmented.” he said.

“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 e-commerce logistics hub.

“Some 70 per cent of e-commerce shipments that come through SingPost are small parcel deliveries that can fit into a letterbox,” said SingPost Group Chief Operating Officer, Neo Su Yin.

“In Singapore, letterbox deliveries are the most convenient, secure and carbon-friendly delivery option available.

“With the robust growth of e-commerce, we are presently operating at maximum sortation capacity. The new sortation equipment will increase our throughput by 300 per cent, while utilising less floor space, giving us room to expand further within the same premises at our eComm LogHub in future.”

SingPost is also working with government on a business model that would ensure long-term financial sustainability of postal services including the post office network.

“On our part, SingPost is focusing on optimising and digitalising our services to enhance cost-effectiveness, fulfilling postal obligations and relevance in a digital environment,” said Yin.

“Together with our investments in eCommerce logistics and consolidating our operations to improve efficiencies, we believe these measures will enable SingPost to focus on establishing pathways to growth by capitalising on opportunities in the e-commerce logistics market.”