SATS, SingPost ink MOU for e-commerce transshipment hub exploration

The hub will reduce delivery times, operating costs, and manpower.

A memorandum of understanding (MOU) was signed between airport catering services firm, SATS Ltd and Singapore Post Limited (SingPost) to explore a partnership for a potential e-commerce transshipment hub in Singapore.

The proposal was backed by figures that e-commerce sales may increase in Singapore and Indonesia, which are key players in the region.

With this, SATS and SingPost eyed to collaborate closely and leverage their combined expertise to address the needs of e-commerce players. 

Under the MOU, SATS and SingPost will “provide equal shares of resources to engage operational and commercial consultants for business case formulation, explore synergies and facilitate trial runs to capture essential data for a feasibility study.” 

“The study will assess the operational viability and potential synergies for both entities, enabling the parties to leverage their respective strengths and resources effectively,” read the joint statement.

The first joint operations trial which took place in February 2023, released results with the potential to cut cargo turnaround time by over 60%. This will make delivery periods between 1-3 days for items within Asia. 

The hub will streamline cargo logistics workflows by removing the need for transport between SATS and SingPost facilities, reducing the reliance on traditional cargo vehicles, and further optimising warehouse space.