SATS cashes in on e-commerce boom with new SingPost freight handling deal

A new automated facility will be launched.

Ground handling services provider SATS has inked a new commercial agreement with SingPost to tap the region’s booming e-commerce market.

Under the agreement, SATS will unveil a 6,000-square metre automated facility to provide airmail consignment handling services to SingPost.

The facility will be located at SATS Airfreight Terminal 1 within the Changi Airfreight Centre. SingPost will be its anchor customer.

SATS will become the first ground handler in the world to own such an airside facility. Under the terms of the agreement, SingPost will outsource its airport consignment operations located at Changi Airmail Transit Centre 2 (ATC2) to SATS when its lease at ATC2 expires in end-2016.

This collaboration will result in the integration of both SATS’ and SingPost’s airmail consignment operations under one roof. 

The integration will enable single scanning and sorting, and remove the need to tow consignments such as mail and parcel bags as well as pallets between facilities. 

When fully operational, SATS eCommerce AirHub is expected to achieve a productivity gain of more than 30%.