Speech by MOS Teo Ser Luck at the Unveiling of DHL South Asia Hub at the Sands Expo Convention Centre, Melati Junior Ballroom

Mr Herbert Vongpusanachai, Senior Vice President & Managing Director of DHL Express (Singapore) Pte Ltd,

Mr Yam Kum Weng, Executive Vice President, Air Hub & Development, Changi Airport Group

Distinguished guests,

Ladies and gentlemen,

A very good morning to all of you.

Introduction

I am delighted to join you today for the unveiling of the DHL South Asia Hub. This new facility will be the first fully automated express parcel sorting and processing system in Singapore and South Asia. I am glad that DHL has chosen to partner Changi Airport Group to site this new facility in Singapore.

DHL’s decision to locate its South Asia Hub here will boost Singapore’s attractiveness as a logistics hub

Our strategic location places Singapore at the heart of DHL’s network in South and Southeast Asia. DHL’s existing facility in Singapore not only consolidates and distributes shipments to these regions; it also serves as a vital springboard to other regions such as Europe and Oceania. DHL has therefore continually pursued operational excellence and productivity enhancements in its Singapore operations. Through automation and productivity improvements, DHL has been able to offer a higher level of service quality with the same amount of resources. This has helped them achieve 25 percent growth in topline revenue in Singapore since 2008.

This investment marks yet another significant milestone in the partnership between DHL and Singapore. As Mr Herbert Vongpusanachai mentioned, DHL will be investing a total of $140 million in its new South Asia hub, the largest amount by the company in Asia since 2012.  The new facility will not only allow DHL to expand its network in and beyond Asia, it will also reinforce Singapore’s position as a key hub within DHL’s network.

Once the new South Asia Hub is completed, the facility will be able to handle 628 tonnes of cargo a day, close to triple the capacity of DHL’s current facility. DHL’s investment will further strengthen Singapore’s position as the premier regional logistics hub.

Our strength in facilitating close collaborations between industry partners has helped us maintain our position as the top logistics hub in Asia

Despite strong regional competition and growing investments in logistics in recent years, Singapore continues to be a key regional logistics and trading hub. We were ranked as the top logistics hub in Asia by the World Bank just last year.

This strength stems from fostering close collaborations between industry players to build a robust and competitive ecosystem. DHL’s South Asia Hub is a good illustration of how these ingredients come together to create a winning recipe – Singapore’s business-friendly customs procedures, Changi Airport Group’s high-performing ground services and DHL’s world-class shipment handling capabilities combining to create a highly-efficient solution for express cargo needs.

Singapore will continue to develop Next Generation Logistics and cement our position as the logistics hub for the region

On our part, the Government will continue to support the growth of the logistics sector in Singapore. The $3 billion Changi Airport Development Fund announced in Budget 2015 and the development of Tuas Seaport are some examples of our investments to prepare Singapore to seize growth opportunities in the next generation of logistics, as trading volumes rise with the continued economic development in the region.

We also work closely with the industry to develop core and deep talent to serve their future needs. For example, EDB supported DHL in the launch of the DHL Supply Chain Solutions Graduate Programme in 2012, an ongoing programme that cultivates future leaders for the Supply Chain industry. Through close collaboration and consultations with the industry, enhancements will also be made to our Pre-Employment Training (PET) and Continuing Education and Training (CET) programmes to equip our core workforce with skills required for the future growth of the industry.

The Government will also continue to support the growth of the logistics industry through encouraging technology adoption, and helping companies set up best-in-class facilities. An example is the DHL-Texas Instruments’ fully automated chip distribution facility using Autostore, which will allow productivity increases of up to 40% and allow up to four times more storage capacity in the same land area. Other upcoming projects, such as the fully-automated parcel sorting facility in SingPost’s E-Commerce Hub, and DHL’s multi-user automation concept at its Advanced Regional Centre, will likewise allow industry players to unlock higher productivity and support their continued growth.

I encourage our local businesses to look towards role models such as DHL, as inspirations for how to seize opportunities through innovation and technology in overcoming land and labour challenges.  I also call upon our industry leaders, such as DHL, to tap onto the strengths and expertise in our local businesses to co-innovate cutting-edge logistics solutions. 

Conclusion

As an industry leader in Singapore’s Logistics sector, DHL plays an important role in setting the pace of development for the sector. This new investment is an important one, both in terms of expanded capacity for the industry, as well as showing how companies can apply technology to overcome manpower constraints.  In closing, let me once again congratulate DHL and Changi Airport Group on the unveiling of your new South Asia Hub. I look forward to the completion of this new facility. Thank you.