e-commerce in Southeast Asia is set to grow over the next few years in Singapore and Indonesia, according to industry estimates, and with this in mind, SATS Ltd and Singapore Post Limited recently signed a memorandum of understanding (MOU) on 4 July to explore a partnership that will potentially see a state-of the-art e-commerce trans-shipment hub in Singapore.

Under the agreement, SATS and SingPost have committed to providing ‘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.

SingPost and SATS conducted first joint trial operations  in February 2023 and saw promising results with the potential to shorten cargo turnaround time by over 60 percent. This could potentially mean deliveries within 1-3 days for items within Asia.

Both companies said the proposed transshipment hub aims to streamline cargo logistics workflows by eliminating the need for transport between both of their facilities, minimising the reliance on traditional cargo vehicles and further optimising warehouse space.

Bob Chi, CEO of Gateway Services, SATS Ltd. said this collaborative effort will not only benefit e-commerce players but also reinforce Singapore’s position as a prominent regional hub for e-commerce logistics.”

Li Yu, CEO of International, SingPost, added “the combined scale of SATS and SingPost will unlock seamless eCommerce flows into, within and out of Asia, building on strategically located hubs in Singapore, and in time to come, Hong Kong and Europe.”