Why Is Singapore Perfect As A Logistics & Transportation Hub?

In light of the coming flurrying array of a sea of red and white come 9th August, VersaFleet would like to pay homage to Singapore’s critical role in global logistics. There has been active movement in making Singapore the regional office for many global multinational companies. Not only has Singapore become an ideal location for commercial businesses, it has also successfully established itself as a logistics and transportation hub for the region. What makes Singapore perfect as a logistics and transportation hub? Well, here are our reasons why:

1. Exponential E-commerce growth

According to a report by Temasek and Google, come 2025, the e-commerce market in Singapore is forecasted to be worth a whooping US$5.4 billion (S$7.46 billion). The e-commerce market would also surpass the current casino industry which is valued about US$4 billion. Additionally, Singapore’s e-commerce market which was valued at US$1 billion in 2015 is currently the highest proportion of all Southeast Asian countries surveyed

However, big e-commerce companies lament the current state of logistics and some have said that logistics-related challenges are the fundamental hurdle to growth. Mr Roger Egan, co-founder and chief executive officer of local online grocery store RedMart has concluded that “The lines are blurring between logistics and e-commerce. There is a misconception that e-commerce is all about the front end — website design and mobile applications. But those who can control the entire supply chain and logistics will win.” 

This makes solving the logistics puzzle piece crucial to the growth of e-commerce itself. Singapore is highly advanced in the region in terms of technology and innovation. Many logistics start-ups have appeared in the market to help tackle the e-commerce boom and its logistics needs. As such, many e-commerce start-ups have found Singapore to be a good place to start with, before slowly expanding to neighbouring countries like Malaysia, Indonesia, Thailand etc.

2. Global Connectivity

Singapore has always been a strong contender in the global logistics scene and it is in no small part attributed to our vast air and sea connectivity globally. Additionally, not only is Changi Airport the largest cargo airport in Asia but it is also the busiest transshipment point worldwide. Both our sea and air ports are also strategically located to ensure that they are readily accessible so that companies that are based in Singapore are better able to serve both their regional and global customers. To put that in perspective, not only is Singapore linked by 200 shipping lines to 600 ports in 123 countries, with daily sailings to every major port of call worldwide but it is also relatively near to most of the major markets around the world, strategically situated within a seven-hour flight radius to half of the world’s population in Asia Pacific

With its highly strategic location, Singapore is suited to become a hub for regional logistics. It is easier to send and receive goods from Singapore as the central location.

3. Secure and trusted logistics hub in Singapore 

Singapore has had an undisputable excellent track record when it comes to the reliability and efficiency of our air and sea ports. Singapore is a vital logistics hub and has also emerged as one of the Top 5 in The World Bank’s 2014 Logistics Performance Index. Singapore’s reputation as a secure and trusted logistics hub has made herself a regional nerve centre for 20 of the 25 largest logistics companies like FedEx, DHL, Toll Logistics, UPS, Yusen Logistics, Kuehne + Nagel, Sankyu and Schenker.

With Singapore’s initiative to power up its logistics even further, it is highly likely that even more logistics companies will be drawn to set up in Singapore. With many technological advances and much support from various government bodies, not only can Singapore maintain her track record of logistics service excellence, she is also well-poised and more than capable to support the constant growing need for logistics services in the region. 

There you have it! Our 3 main reasons why Singapore is perfect as a logistics and transportation hub. If there are any reasons you feel we missed out on, do feel free to leave your comments below. When it comes to Singapore and her attributes, we are barely scratching the surface here. So as the fireworks ripple across the night light and we sleep tight, let’s all bask in the gratitude of all that she had and continues to offer, at least for one night. 

Happy National Day! #sgpride

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