Singapore Post (SingPost) has announced a $30 million investment to grow its regional eCommerce Logistics Hub facility and its processing capacity.
The investment will see the installation of new sorting equipment which can process up to 300,000 small parcels per day, up from the current 100,000. SingPost says that the compact and modular design of the new machine will free up more floor space to enable future enhancements.
The group says that this is the first significant renovation of its eComm LogHub since it was launched in 2016. The hub, which cost $182 million and spans 553,000 sq ft houses operations across three floors.
SingPost says that 70% of eCommerce shipments that come through are small parcel deliveries that are currently being operated at maximum sortation capacity.
The company has also proposed to further consolidate mail with parcel operations under one roof to “achieve greater efficiency”. The Postal and eCommerce parcel sortation is currently managed at two separate locations — in Paya Lebar, and Tampines.
SingPost says that the timeline for this consolidation requires “careful review”. It intends to plan for this in line with its divestment plans for non-core assets, including its property portfolio.
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The company has been planning to divest its Australian business, Freight Management Holdings (FMH), to private equity firm Pacific Equity Partners since last December, weeks before the news of firing of top executives over the mishandling of whistle-blower reports.
SingPost said on Dec 29, 2024 that it will seek shareholders’ nod for the proposed divestment of FHM at an EGM that is meant to be held in February.
Shares in SingPost closed 1.5 cents higher or 2.727% up at 56.5 cents on March 13.
