A NEW logistics hub, spanning over 18.6 hectares, will support operations at Singapore’s upcoming Tuas Port with new capabilities such as automated storage and the ability to handle sensitive goods.
Developed by PSA International, the new PSA Supply Chain Hub@Tuas is located inside the Tuas Port free trade zone (FTZ) and will be ready by the second quarter of 2027.
In June, developer Soilbuild Construction Group said it clinched the S$647.5 million contract to build the hub.
At the ground-breaking ceremony for the facility on Friday (Oct 18), Prime Minister Lawrence Wong said that the hub will further improve Tuas Port’s competitiveness by enhancing its ability to handle cargo shipments, not just containers.
Singapore ’s port currently moves many containers from ship to ship, but businesses may not always have full containers of cargo, he noted.
This is where consolidation, deconsolidation and distribution – combining smaller shipments into containers, and separating them – come into play. This is currently handled by Keppel Distripark, which is set to close by 2027.
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PSA’s Supply Chain Hub will replace Keppel Distripark, and expand the capacity for these services. This will allow Singapore to attract more trade flows, including from those seeking cargo management services, said Wong.
The hub will also offer expanded capabilities, including the handling and storage of dangerous and sensitive goods, and an automated storage and cargo retrieval system. It will use a real-time data and information platform to improve productivity.
The ability to process higher-value cargo will help Singapore’s maritime competitiveness, said Wong.
Currently, businesses which want to process higher-value cargo – such as pharmaceuticals or sensitive chemicals – need to truck their cargoes in and out of the port, which incurs duties and adds to costs.
As a result, businesses may decide not to use Singapore altogether, said Wong. But the new hub integrates these services in one place and within Tuas Port’s FTZ, allowing businesses to access these faster and seamlessly.
The city-state is the largest transshipment hub in the world, reaching a record of 39 million twenty-foot equivalent units (TEU) of container throughput last year.
“This year, we hope to cross 40 million TEU,” said Wong.
Tuas Port will expand Singapore’s capacity and help to attract major shipping alliances.
Currently, 10 out of 66 planned berths are operational at the port. When fully completed in 2040, it will be the world’s largest fully-automated port, capable of handling 65 million TEU per year.
Wong cautioned that Singapore needs to keep its competitive edge, especially with other ports – including those in Shanghai, Ningbo-Zhoushan and Rotterdam – improving their infrastructure.
“Our hope is that more businesses will find Tuas Port a convenient, efficient and high-quality one-stop shop, not only for their physical goods, but also as a control tower to manage their inventory and global supply chain flows,” he said.