Singapore's leading ground handling services provider SATS Ltd. (SATS) and Singapore Post Limited (SingPost) have signed a commercial agreement for SATS to provide airmail consignment handling services to SingPost to tap the region’s burgeoning e-commerce market.
The new automated facility, to be called SATS eCommerce AirHub, will improve efficiency and space utilisation, as well as enhance the consignment handling capabilities for both SATS and
SingPost.
To be located at SATS Airfreight Terminal 1 within the Changi Airfreight Centre, this 6,000- square-metre facility is expected to be operational by December 2016. 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.
Major productivity improvement expected
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. This will enhance operational efficiency, including shorter cycle and connection times, and
increase productivity. When fully operational, SATS eCommerce AirHub is expected to achieve a productivity gain of more than 30%.
Dr Wolfgang Baier, Group Chief Executive Officer of SingPost said, "This collaboration allows both SingPost and SATS to capitalise on our respective strengths while achieving greater efficiency
and productivity in our operations. Working with other Singapore brands to jointly expand outside of Singapore, coupled with our continuous push to further improve our customer satisfaction and
service, will all contribute towards SingPost's transformation to be the leading eCommerce logistics player in Asia Pacific."
Nol van Fenema
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