SINGAPORE: Singapore’s links to Eastern and Western markets and moves by shippers to reconfigure supply chains amid trade and geopolitical risks are prompting foreign investors to pour funds into logistics facilities here.
As Economic Development Board (EDB) vice-president Dave Goh noted: “Singapore’s unrivalled sea and air cargo connectivity and vibrant logistics ecosystem make us an attractive and compelling location for global manufacturers and logistics service providers.”
The point was underlined on May 7 when Dubai-based DP World announced the opening of its first facility in Singapore, a 13,000 sq m bonded warehouse in Mapletree Benoi Logistics Hub.
No investment figures were provided.
DP World’s Asia-Pacific chief executive, Glen Hilton, told The Straits Times: “This warehouse is designed with flexibility in mind. Flexibility is increasingly important as companies adapt to an evolving trade landscape and look for more agile and resilient supply chain solutions.”
Singapore, he added, is a “critical node” in DP World’s regional supply chain network, which spans 17 ports and terminals and 62 logistics branch offices across the Asia-Pacific.
The opening of DP World’s Singapore warehouse also comes after the company moved its regional headquarters here from Sydney and Hong Kong in 2021.
Since then, with tariffs increasingly shaping policy, “we recognise that businesses are facing significant adjustments.
“As supply chains realign, new manufacturing and trading hubs may emerge in response to shifting cost structures and market access considerations,” Hilton said.
“Singapore continues to play an important role in this trade landscape, given its deep connectivity to markets in both the East and the West.”
DP World is not alone in its bullish outlook on Singapore’s logistics sector.
Hong Kong asset manager ESR Group announced on May 8 that it will develop a new multi-storey warehouse and automated container depot in Jurong. This will bring its portfolio in Singapore to over 60 assets.
The 143,000 sq m Sunview Logistics & Container Hub will be one of the largest such facilities in Singapore when completed in 2027, said ESR.
The warehouse will provide customers with convenient access for goods movement via the new Tuas Mega Port and Tuas Checkpoint, ESR said, adding that most of the facility has already been taken up by anchor customers Allied Container Group and Ceva Logistics.
While it declined to reveal the development cost, ESR told The Straits Times that it has brought together a consortium of Japanese investors that will “play a crucial role in funding the development of Sunview Hub, having committed a sizeable investment in the asset and Singapore”.
The consortium comprises real estate companies Tokyu Land and Hulic, construction company Nishimatsu Construction, leasing company Fuyo General Lease, and investment bank Risa Partners.
They will work in collaboration with cross-border investment services provider Tri Investment Management.
“The Japanese investors have shown strong confidence in the growth of the Asia-Pacific region and Singapore’s logistics sector,” ESR said. — The Straits Times/ANN
