Mr S Iswaran at the Opening of DHL Expo Service Centre @ Changi South

SPEECH BY MR S ISWARAN, MINISTER OF STATE FOR TRADE AND INDUSTRY AT THE OPENING OF DHL EXPO SERVICE CENTRE @ CHANGI SOUTH ON FRIDAY, 6 JUL 2007, 11.00AM

Distinguished Guests

Ladies and Gentlemen

Good Morning,

I am pleased to be here with you today to celebrate the opening of DHL’s eXpo Service Centre in Changi South. Singapore’s association with DHL goes back to 1972, when DHL first set up operations here. This latest decision to open your fifth service centre here is yet another milestone in this longstanding relationship.

Logistics is the backbone of the modern economy and an important industry in Singapore, contributing more than 8% of our GDP. Therefore, in Singapore, we have made extensive efforts to develop our logistics infrastructure over the decades. Today, we are proud to have the world’s largest container port, which is connected to more than 120 countries and over 600 ports worldwide. We are also a major transshipment hub for the region, with one of the largest cargo airports, linking us with more than 180 cities globally.

Indeed, our supply chain management infrastructure is among the best in the world. There is an entire web of networks - of production, distribution and delivery - that would help companies to operate more efficiently and effectively.

Developments in the logistics industry

But, in this era of globalization, having a good supply chain system is a necessary but not sufficient condition for businesses. It is also important to have an efficient 24/7 operation, reliable physical and IT infrastructure, and of course excellent connectivity.

For this reason, Singapore has many designated locations dedicated to enhance connectivity and efficiency, such as the Airport Logistics Park of Singapore (ALPS) in the airport free-trade zone, the Banyan LogisPark, and Changi International LogisPark.

Our position as a key node in Asia's supply chain is also supported by the presence of many leading logistics companies that have established their hubs in Singapore. 17 of the world’s top 25 Third Party Logistics Providers have significant operations here.Equipped with sophisticated IT platforms, they orchestrate and coordinate the flow of goods and information in the region and beyond. All these developments have made Singapore the preferred location for regional distribution centers and supply chain management nerve centers.

Beyond the physical infrastructure, we are also committed to developing our human capital to increase the talent pool and skill profile within the logistics industry.Going forward, we will continue to build on our formula of sustaining excellent connectivity, growing vital connections and providing specialised infrastructure to facilitate more sophisticated supply chain solutions to take root in Singapore.

As supply chains become increasingly complex, the Singapore government strives to work closely with our logistics companies to develop competencies in innovative and sophisticated supply chain management (SCM) solutions.We believe this will make Singapore the SCM thought-leader in this region.

DHL’s New Service Centre

DHL is one of our strongest partners in SCM thought-leadership.It is a fine example of the world class logistics service providers whom we want to partner, as part of our effort to be an integrated global logistics gateway to Asia. This new S$9 million state-of-the art eXpo Service Centre @ Changi South will add vibrancy to the logistics sector as well as value to Singapore businesses. With its cargo handling capacity of 400,000 shipments a month, it is six times larger than the average handling capacity of other DHL’s service centres. This will certainly boost DHL’s standing as a leading logistic player in the Asia-Pacific region.

Singapore’s logistics industry will certainly benefit from and grow with DHL’s significant presence, knowledge and expertise. We look forward to DHL’s continued growth in Singapore and I wish you all the best in your operations and a thriving business ahead.It is with great pleasure that I now declare DHL’s latest facility, the eXpo Service Centre @ Changi South,open.