Senior Minister of State Dr Koh Poh Koon oral reply to PQ on pilot initiatives for logistics distribution within malls

Question :

Mr Cedric Foo Chee Keng:  To ask the Minister for Trade and Industry (Industry) if he can provide an update on pilot initiatives for logistics distribution within malls, federated locker systems and steps towards nationwide urban logistics connectivity.

Oral reply (to be attributed to Senior Minister of State for Trade & Industry Dr Koh Poh Koon):

1. To transform the logistics industry, the Government and industry are working together to raise productivity and job quality, as well as reduce traffic congestion in our urban logistics sector.  This would free up valuable land and human resources that can be channelled to higher value activities.

2. We have been piloting new business models to improve our urban logistics.  For example, at the business-to-business level, SPRING and IMDA are facilitating more loading bay management and in-mall distribution operations that reduce congestion at and around the loading bay at malls.  SPRING and IMDA have started pilots at Tampines Mall, Bedok Mall, IMM and Westgate. Instead of multiple truck drivers going to the same mall, every morning at peak hour, often around the same time as well, with many small deliveries per vehicle, a single in-mall operator now coordinates and spaces out the schedules of the various deliveries, receives and consolidates the goods on the mall tenants’ behalf, and then distributes the goods to the tenants at the tenants’ convenience. 

3. Through these pilots, the average parking time has been reduced from 24 minutes to 7 minutes for in-mall distribution users.  The delivery vehicles also spent less time queuing at the loading bay in order to enter these loading bays.  With these improvements in turnaround time, residents benefit from less traffic congestion immediately outside the malls, while the truck drivers are able to make more deliveries within the same day.  It is estimated that almost 50% of the parcel volume going into Tampines and Bedok Malls are now handled through such in-mall distribution channels.  We plan to roll out in-mall distribution channels to more malls progressively.

4. In the business-to-consumer space, in tandem with the rapid growth of e-Commerce, the Government is rolling out a nationwide, federated parcel locker network to ease the last mile delivery challenges for small parcels.  We are doing this in phases, beginning with a trial at selected HDB estates and parts of our public transport network.  With such inter-operable common infrastructure accessible by all merchants, delivery companies can avoid costly return visits to end-consumers when they are unable to deliver the parcels the first time round, especially when the recipients are not at home, and therefore able to complete more deliveries each day.  Consumers will benefit from the convenience of being able to pick up their parcels wherever and whenever they like.  We will share more information about the trials and scope for industry collaboration later this year.  We look forward to the industry’s active participation and innovation in this evolving area.

5. Lastly, JTC is also exploring the feasibility of implementing District Logistics Networks within our new industrial estates.  For example, Jurong Innovation District (JID) may include a central distribution centre where goods are stored and handled, and a dedicated road network for the delivery of the goods to companies within the district.  This will improve the efficiency of goods movement to companies located in JID, allow companies to free up storage space within their premises for other uses, and relieve traffic congestion from otherwise uncoordinated logistics flows within the area.  The Government is also exploring the feasibility of inter-district logistics networks that would facilitate more efficient freight movement across the whole of Singapore.