Singapore Post enhances e-commerce development capacity

In a press release yesterday, March 13, 2025, Singapore Post (SingPost) announced a S$30 million investment in the regional eComm LogHub facility, to expand and enhance its e-commerce processing and development capabilities.

Bc Singapore Minh Hoa

Regional e-commerce logistics hub (eComm LogHub)

The investment will see the installation of new sorting equipment at the eComm Loghub that can process up to 300,000 small parcels per day, a threefold increase from the current capacity of 100,000 parcels. The compact and modular design of the new machinery also frees up significant floor space, allowing for future upgrades.

“The investment in capacity building not only improves operational efficiency but also opens up avenues for traffic growth,” said Simon Israel, Chairman of the Board of SingPost. “Singapore’s e-commerce logistics market is fragmented. By leveraging our infrastructure, SingPost can act as a logistics industry consolidator, expanding our closed-loop network by partnering with others or offering services to others interested in the same space. I am optimistic about the growth potential of our business as this can lead to more integrated and sustainable logistics solutions for the development of the postal and logistics industry in Singapore.”

This is also the first major revamp of SingPost’s eComm LogHub. Launched in 2016, the S$182 million, 553,000 sq ft facility has operations spread over three floors. The larger parcel processing area occupies the entire ground floor, with a sorting capacity of about 100,000 parcels per day. Together with the new small parcel sorting equipment installed on the third floor, the eComm LogHub will have an e-commerce processing capacity of about 400,000 parcels per day. The facility also has a warehouse on the second floor with 150 concurrent storage bays and an office building.

“About 70% of e-commerce shipments through SingPost are small parcels that can fit into letterboxes. In Singapore, letterbox delivery is a convenient, safe and environmentally friendly delivery option that reduces carbon emissions,” said Neo Su Yin, Group CEO of SingPost. “With the rapid growth of e-commerce, we are currently operating at maximum sorting capacity. The new sorting equipment will increase SingPost’s throughput by up to 300% while using less floor space, giving us room for further expansion at the eComm LogHub in the future.”

Future consolidation of mail and parcel handling: Consolidation of mail and parcel handling at the eComm LogHub will centralise operations and will lead to greater efficiency. Currently, SingPost’s postal and e-commerce parcel sorting and delivery operations are managed at two separate locations. The SingPost Parcel Processing Centre (SPC) in Paya Lebar handles the sorting of mail and small parcels. Larger e-commerce parcels are sorted and processed at the eComm LogHub in Tampines. However, the timing of this consolidation should be carefully considered.

“The consolidation of the operations and processing of all services at the eComm LogHub is fit for purpose but will take more time, require significant planning and additional investment, which SingPost will consider in line with its divestment plans for non-core assets, including our real estate portfolio,” Israel said.

More subleasing opportunities for SingPost: The centralization of e-commerce parcel sorting and sorting at the eComm LogHub is expected to free up about 83,000 square feet of leased warehouse space at the SingPost sorting centre in Paya Lebar by mid-2026, potentially opening up more subleasing opportunities. At the same time, the consolidation of mail and parcel sorting operations at the eComm LogHub is also likely to free up more space for subleasing.

Building a sustainable business model for postal operations with the Government: SingPost is working with the Government on a business model that will ensure the long-term financial sustainability of postal services including its postal network. “For our part, SingPost is focusing on optimising and digitising our services to improve cost efficiency, fulfil our universal postal obligations and stay relevant in the digital environment,” said Neo. “Together with our investments in e-commerce logistics and the consolidation of our operations to improve efficiency, we believe these measures will enable SingPost to focus on driving growth by leveraging opportunities in the e-commerce logistics market.”

Source: https://vnpost.vn/buu-chinh-the-gioi/buu-chinh-singapore-nang-cao-nang-luc-phat-trien-thuong-mai-dien-tu