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Air Cargo
Set your sights further
changiairport.com
contents 04 / Singapore: Your Business at The Heart of Asia 06 / Engines of Growth 12 / A World Class Logistics Hub 22 / Your Gateway to the Region 24 / Set Your Sights Further with Singapore Changi Airport 26 / The Sky’s the Limit 28 / Changi Airfreight Centre 29 / Airport Logistics Park of Singapore 30 / Map of Changi Airfreight Centre (CAC) and Airport Logistics Park of Singapore (ALPS) 32 / Standards 33 / Security 34 / Conveying Success 36 / Take Off with Singapore Changi Airport
Singapore: Ranked Top on the Ease of Doing Business
World Bank’s Annual Doing Business Report for 4 years from 2006-2008
Your Business at The Heart of Asia
Most Competitive Place for Business
At the heart of Singapore’s thriving business ecosystem Guarantee Agreements, as well as its comprehensive air, sea KPMG’s Competitive Alternatives Study 2006
is a unique blend of competitive strengths that makes this and IT infrastructures, provides for the seamless flow of goods
country the location of choice for global enterprises. This and services to markets around the world.
distinctive combination of core competencies, coupled with
Singapore’s physical and metaphorical location between Singapore’s safe, pro-business environment, supported by a
Ranked Top for Quality of Air Transport Infrastructure
Western sophistication and Eastern growth potential, confers a well-respected government with transparent and consistent World Economic Forum’s Global Competitiveness Index 2007-2008
host of benefits to the businesses that invest and reside here. policies, has made it a compelling location for businesses. Home
A cosmopolitan society, Singapore is an ideal platform for the to a concentration of international enterprises, Singapore has a
meeting of global talents, ideas, funds and businesses. vibrant enterprise ecosystem that fuels interaction and growth.
Today, over 7,000 multinational companies have established
Singapore’s extensive network of Free Trade Agreements, their headquarters in Singapore, using it as a base for expansion
Avoidance of Double Taxation Agreements and Investment into the Asia Pacific.
04 / Picture courtesy of Singapore Tourism Board / 05
Engines of Growth
GROSS DOMESTIC PRODUCT
AT 2008 MARKET PRICES (in millions)
Manufacturing contributes about 25% to Singapore’s GDP. By 2018, Singapore aims to raise manufacturing
output to S$300 billion, from S$238 billion in 2007, by strengthening its capabilities in key industries such as
S$300,000 electronics, chemicals, biomedical sciences, aerospace engineering and telecommunications, while venturing
into new areas of growth, such as nanotechnology, environment and water technology.
S$250,000 By attracting a steady pipeline of investment, Singapore is on track to achieve this target. Fixed asset
investment (FAI) in manufacturing reached an all-time high in 2007, as more companies are attracted by the
+ 12.1%
value proposition it offers. Nearly 400 projects were garnered totalling S$16.1 billion, including ExxonMobil’s
+ 8.8%
S$200,000 second world-scale petrochemical project in Singapore, Neste Oil’s next-generation biodiesel manufacturing
+ 8.1%
plant and Novartis’ biotechnology plant.
S$150,000
S$100,000
GROSS DOMESTIC PRODUCT BY INDUSTRY IN 2007
Manufacturing 24% Business Services 13%
S$50,000
Construction 4% Transport & Storage 9%
Wholesale & 16% Information & 4%
Retail Trade Communications
2004 2005 2006 2007 Financial Services 12% Others 18%
06 / / 07
Electronics and Telecommunications
Electronics is the bedrock of Singapore’s manufacturing sector, accounting for about 30% of the nation’s
manufacturing output and employing over 90,000 workers. It is home to 14 wafer silicon fabrication
plants, including the world’s top three wafer foundries, and is a key player in computer peripherals, data
storage, infocommunication products and contract manufacturing.
The profile of the industry may have changed over the years as it shifts towards higher value added
products and services, but the industry has remained a key contributor to the manufacturing sector. Aerospace
Newcomers like Soitec and Phillips Lumileds have joined major players like Seagate, Sony, Hewlett-
Packard, STMicroelectronics and Matsushita to enhance Singapore’s vibrant electronics eco-system. With over 100 companies, Singapore has the largest maintenance, repair and overhaul
(MRO) cluster in Asia Pacific with over 100 companies offering comprehensive total
Singapore’s aim is to be a world-class electronics hub, creating manufacturing solutions and producing solution capabilities. Among them are the top three aero-engine makers: Rolls-Royce,
high value-added components for the global market. Pratt & Whitney and GE Aviation Services; and the world’s largest third party MRO service © ST Aerospace © ST Aerospace
provider, ST Aerospace.
Singapore’s telecommunications industry is well-integrated. A wide array of companies call
Singapore home, from infocommunication product developers and network equipment providers to Singapore is also home to leading aerospace manufacturers and suppliers of engines,
telecommunications operators, data centres and application developers. These companies include engine casings, engine gears, valves, seat actuators, electrical power systems and
Avaya, Alcatel-Lucent, Cisco, Harris Stratex and Tata. They are engaged in a full suite of activities ranging galley equipment. It is Rolls-Royce’s choice for its first manufacturing plant in Asia to
from headquarters operations, R&D, industrial design, supply chain management and manufacturing, manufacture engines for large commercial aircraft.
to test-bedding and application development.
08 / / 09
Biomedical Sciences
The biomedical sciences industry is one of the fastest growth sectors in Singapore. Since the year
Energy and Chemicals 2000 when Singapore began its focused effort to develop the industry, manufacturing output for the
sector has quadrupled from S$6.3 billion to S$24 billion, at a compounded annual growth rate of 21%.
The energy and chemicals industry is the biggest manufacturing cluster in Singapore. Since The sector now accounts for 10% of Singapore’s manufacturing output.
the 1960s, the industry has attracted many high value investments. Today, the country is one
of the top three centres for export refining and one of the top ten petrochemical hubs in the Singapore is now host to 11 leading global pharmaceutical and biotechnology companies, including
world, generating $81.7 billion of manufacturing output in 2007. Abbott, Alcon, Genentech, GlaxoSmithKline, Lonza, Merck Sharp & Dohme, Novartis, Pfizer, Sanofi-
Aventis, Schering-Plough and Wyeth, which have set up over 25 commercial-scale manufacturing
As Asia continues to be a strong region of growth, Singapore’s pole position as a leading facilities here. Companies are riding on Singapore’s capabilities to expand beyond manufacturing into
energy and chemicals hub has attracted key industry players to set up here. Significant process development to support and strengthen their production base.
developments include two upcoming crackers from ExxonMobil and Shell which will allow
Singapore to build a critical mass of feedstock options to develop new chemical chains and In addition, Singapore has established its position as one of Asia’s leading locations for global
move the industry up the value chain from commodities to high value specialty chemicals pharmaceutical companies and top contract research organisations to carry out regional clinical
and polymers. coordination and early phase trials.
10 / / 11
Singapore is rankedTop in World Bank’s
Logistics Performance Index 2007
A World Class Logistics Hub
The unique blend of strengths that make Singapore a key global supply chain and logistics hub stems from a robust infrastructure
comprising the world’s busiest container transshipment port, one of the world’s busiest and best connected airports in Asia, state-
of-the-art information technology, financial expertise and a professional talent pool. It is no wonder that DHL, TNT and UPS have
“As a key trading, financial and logistics hub for the region with a conducive based their Regional Headquarters in Singapore to support their diverse business needs of their customers in Asia, while leading
business environment backed by stable infrastructure and a talented workforce,
multinationals such as Hewlett-Packard, IBM and Lenovo have also set up supply chain towers here.
Singapore is an ideal location for TNT’s regional operations. Singapore’s strategic
location and healthy trade links were also key factors in our decision as it allows
TNT to tap into the growing express freight volumes from Singapore to Europe, There are some 3,000 logisitics and supply chain management companies offering value-added solutions to multinationals, including
China and within Southeast Asia. We are also heartened by the continued sourcing, order management and optimised network distribution. Amongst them are 21 of the top 25 third party logistics providers
support from the Singapore government which has facilitated our business plans (3PLs), many with dedicated teams to provide tailor made solutions for Asia and beyond.
for Southeast Asia, such as our recent 100 million euro investment in this region
which includes the thrice-weekly flights of our Boeing 747-400ER Freighter into The global logistics industry has honoured Singapore for its logistics excellence. In the first comprehensive study on logistics by the
Singapore to meet growing demand for express freight services in the region.”
World Bank, global freight forwarders and express carriers ranked Singapore as the top logistics hub among 150 countries in the
Logistics Performance Index.
Mr Onno Boots
Regional Managing Director
Singapore is also host to Regional Distribution Centres (RDCs) in a broad range of sectors, ranging from infocomms and fast moving
TNT Southeast Asia
consumer goods to electronics, chemicals and the life sciences.
12 / / 13
Electronics and Telecommunications
Qimonda, leading global supplier of Dynamic Random Access Memory (DRAM) products, opened a new global distribution centre in
Singapore in 2007 to complement the company’s three other distribution centres in San Jose, Frankfurt and Tokyo. Operated by DHL Exel
Supply Chain, the 2,333-square metre centre has helped Qimonda to streamline its supply chain management processes, and shorten
delivery time to customers worldwide.
Numonyx, a non-volatile memory company formed out of Intel Corporation and STMicroelectronics, has its global distribution centre in
Singapore. Inaugurated in July 2008, the centre is set to boost the company’s competitive supply chain performance. Operated by its
strategic logistics service provider DHL, the centre will consolidate and channel the products from its back-end manufacturing plants and
suppliers to customers.
Avaya, a US Fortune 500 network and equipment company, has set up a finished goods distribution centre in Singapore which has
generated huge savings for the company. All Avaya products manufactured in China, Thailand and Indonesia are consolidated and shipped
to regional customers and business partners from the centre, housed at DB Schenker’s Megahub located within Changi Airport’s Free
Trade Zone (FTZ). With this new supply chain management strategy, Avaya expects to reduce cost by up to 80% and reduce lead-time for
product delivery for most of the Asia Pacific from two weeks to two days.
14 / / 15
Aerospace
Boeing launched its Integrated Materials Management (IMM) Asia Regional Centre in Singapore
in March 2007 to maintain and manage airlines’ spare parts inventory, providing items to the airline
mechanics as needed. Housed at Schenker Singapore’s Megahub – the largest freight and logistics
hub located at ALPS within the Free Trade Zone – where Boeing maintains a regional distribution
centre, IMM has helped airlines to reduce their inventory holding costs and other supply-chain
management costs.
Brazilian commercial jet manufacturer Embraer opened its US$40 million regional logistics hub in
Singapore in 2007 in its drive to raise its profile in Asia. Operated by Menlo Worldwide under an
integrated turnkey programme incorporating warehousing, logistics, transportation management and
technology services, the hub has enhanced its support services to regional customers.
16 / / 17Energy & Chemicals
Handling of chemicals is a niche business demanding special capabilities
and facilities. Through cumulative experience over decades, homegrown
CWT is the largest 3PL in Asia for chemical logistics, offering a full suite of
services, including in-plant logistics management, transportation, drumming,
storage and inventory management, and distribution for companies such as
BASF, DuPont and International Specialty Products.
Biomedical
TNT has established the largest life sciences focused regional distribution
centre in Singapore. Located near Singapore Changi Airport, the 6,088-square
metre Life Sciences Express Hub uses the latest in cold chain management
technology to safely transport and store goods ranging from medical devices
and clinical diagnostics to pharmaceuticals and biotechnology. By leveraging
on Singapore’s central location and TNT’s extensive network, customers can
reach distributors, hospitals or clinics in all major cities in Asia within 24 hours.
18 / / 19Lifestyle
Diageo, the world’s leading premium beverage alcohol company, partnered IDS Group to respond
to the needs of a diverse and growing Asian market. Since the Diageo Asia Pacific Logistics
Hub was inaugurated in 2007, Diageo has cut the average product lead-time – from production
through to point-of-sale – in the region from eight to ten weeks to a mere one to three weeks.
Luxury goods conglomerate LVMH Fragrances & Cosmetics has collaborated with SDV Logistics
Asia Pacific to set up its second Regional Logistic Hub which services the Asia Pacific region, the
United States and Canada. The warehouse is a key element in supporting its brand development
in Asia Pacific, allowing LVMH to customise its product range, from labelling to repacking or kitting
for promotional operations, to suit the needs of its growing Asian client base.
Perishables
Singapore is the ornamental fish capital of the world, exporting
in excess of US$60 million worth of tropical fish annually, and
accounting for about 30% of the global market. The fish are packed
into plastic bags with oxygen, loaded on the first available flight and
zip to 82 countries across the globe. Fast, efficient handling coupled
with high standards of breeding has helped to keep mortality rate
down to acceptable levels of less than 2%.
20 / / 21NORWAY RUSSIA
FINLAND
SWEDEN
CANADA UNITED
KINGDOM DENMARK
IRELAND POLAND
GERMANY CZECH REPUBLIC
NETHERLANDS AUSTRIA
USA BELGIUM SWITZERLAND
LUXEMBOURG
FRANCE ITALY AZERBAIJAN
SPAIN GREECE SOUTH KOREA
TURKEY
JAPAN
JORDAN PAKISTAN
KUWAIT NEPAL CHINA
BAHRAIN INDIA HONGKONG
QATAR BANGLADESH MACAU TAIWAN
EGYPT UNITED
SAUDI MYANMAR
Your Gateway to the Region
CAMBODIA
ARABIA ARAB EMIRATES THAILAND PHILIPPINES
VIETNAM
SRI LANKA
BRUNEI
MALDIVES MALAYSIA
DARUSSALAM
INDONESIA
SEYCHELLES PAPUA
With its good connectivity and transport infrastructure that is rated one of the best in the world, Singapore is NEW GUINEA
the gateway to Asia Pacific.
ZIMBABWE MAURITIUS
Changi Airport is currently ranked as one of the top five air cargo terminals in Asia and top ten in the world by
AUSTRALIA
Airport Council International (ACI). It is served by some 80 airlines operating over 4,300 weekly scheduled SOUTH
flights linking Singapore to more than 185 cities in over 55 countries. There are also 17 airlines operating AFRICA
more than 300 weekly scheduled pure freighter flights linking Singapore to about 60 cities in 30 countries.
NEW ZEALAND
This unmatched connectivity, coupled with Singapore Changi Airport’s handling efficiency, has enabled
companies to lower their logistics costs, improve their time to market, and enhance customer service.
22 / / 23CHANGI’S CARGO PERFORMANCE (tonnes)
1,950,000
1,900,000
1,850,000
Set Your Sights Further 1,800,000
1,750,000
with Singapore Changi Airport 1,700,000
1,650,000
1,600,000
Since its opening in 1981, Singapore Changi Airport has established itself as a leading aviation hub. As one of the world’s busiest 1,550,000
airports for air cargo, we handle an estimated 1.9 million tonnes annually. Cargo volume has been growing at almost 5% per annum
1,500,000
on average for the past six years with transhipment volume accounting for about one-third of its throughput.
1,450,000
2003 2004 2005 2006 2007
Renowned internationally for our high level of service quality and efficiency, Changi Airport consistently sets new standards in
operational efficiency and expertise to meet the changing needs of the cargo community.
24 / / 25The Sky’s the Limit
Singapore is among our major hubs in Asia. It
will remain important to our future development
in South East Asia.”
Carsten Spohr
CEO At Changi Airport, we endeavour to do our best to help you to grow your business. We
Lufthansa Cargo have a dedicated team tasked with studying trends and developments within the aviation
industry to identify possible growth opportunities for airlines.
Best Airport for Cargo – ASEAN
Frost & Sullivan ASEAN Transport & Logistics Awards 2008 We strive to develop a collaborative and consultative relationship with you to understand
your business needs.
Best Airport – Asia This close partnership with our business partners is our winning formula, securing for Changi
Airport more than 300 prestigious awards over the years. One of the most recognised is
The Asian Freight and Supply Chain Awards the International Air Transport Association (IATA)’s Eagle Award which honours airports
(awarded 22 times since 1987) for outstanding performance in customer satisfaction, cost efficiency and continuous
improvement.
26 / / 27Changi Airfreight Centre Airport Logistics Park of Singapore
Airfreight operations at Singapore Changi Airport take place at the Changi Airfreight Centre (CAC), a 24-hour Strategically located within the free trade zone, The Airport Logisitics Park of Singapore (ALPS) allows 3PLs
free trade zone where transshipment cargo can be broken down and reconsolidated with minimal customs to leverage on Singapore Changi Airport’s excellent connectivity and superior handling efficiency for quick
formalities. Within the 47-hectare facility, there are nine airfreight terminals (AFT) with a combined handling turnaround of value-added logistics and regional distribution activities. Today, the 26-hectare facility is
capacity of three million tonnes of cargo per annum, in addition to two dedicated Express and Courier Centres almost fully occupied by 3PLs providing their customers with fast and efficient value-adding replenishment
to accommodate time-definite shipments. Together with 130,000 square metres of office and warehouse and fulfilment activities for the entire region. Changi International Logispark (South) complements ALPS by
space and 12 freighter parking bays capable of holding the largest freighters, the CAC offers efficient and providing a dedicated logistics facility in close proximity to Changi Airport just outside the free trade zone.
hassle-free transfer and clearance of goods.
28 / / 29Map of Changi Airfreight Centre (CAC) and
Airport Logistics Park of Singapore (ALPS)
LEGEND TNT
SOUTHEAST
ASIA HUB
Logistics Warehousing AIRMAIL
(local distribution and exports) SATS AFT SATS AFT SATS AFT TRANSIT
DHL CENTRE
Research & Development / Aerospace Engineering /
Knowledge Based Industries SINGAPORE
HUB CAC CUSTOMS
Aviation / Aerospace / General Industry Logistics CHECKPOINT
Light Manufacturing and Logistics Warehousing CAB
CHANGI SWISSPORT SIA CAB CAB
MEGAPLEX C
SOUTH MAINTENANCE AFT AIRLINE FUEL D E
LOYANG BASES HOUSE
FARM
CIAS AFT
CHANGI
CHANGI CHANGI NORTH
SOUTH BUSINESS
PARK SIAEC
HANGARS
ALPS
CHANGI AIRFREIGHT
CENTRE (CAC)
TERMINAL 3
SINGAPORE LEGEND
TERMINAL 1
CHANGI AIRPORT
Airfreight Terminals (AFTs)
ALPS Cargo Agents Buildings (CABs)
AIRPORT CUSTOMS
TERMINAL 2 LOGISTICS PARK OF CHECKPOINT Customs Checkpoint
SINGAPORE (ALPS)
Free Trade Zone Boundary
30 / / 31Standards
At Singapore Changi Airport, stringent standards are established
for ground handlers to ensure they deliver world-class services
to cargo agents and shippers. These standards are regularly
benchmarked against other international airports to ensure
relevance and competitiveness.
Ground handlers have done Changi Airport proud by exceeding
expectations on all counts. They have achieved a near perfect
score on all of the key performance standards.
Security
Performance Standards Target Achieved* Changi Airport adopts a multi-layered approach to security and safety which ensures cargo
integrity without impinging on the industry’s need for quick turnaround of time sensitive
Cargo available within 3.5 hours of passenger aircraft arrival 90% > 99%
shipments as well as value-added logistics.
Cargo available within 5.5 hours of freighter aircraft arrival 90% > 99%
Our security level is raised by another notch with the implementation of the Regulated Air
Cargo documents available within 2 hours of passenger aircraft arrival 90% > 99%
Cargo Agents Regime (RCAR) on 1 April 2008. RCAR seeks to enhance cargo security on
Cargo documents available within 4 hours of freighter aircraft arrival 90% > 99% passenger flights by ensuring that consignments originate from regulated agents or secured
sources. Consignments from other sources are subject to appropriate security checks to
*Full year figures from 2007
prevent any illegal, unauthorised tampering and sabotage.
32 / / 33Conveying Success
At Singapore Changi Airport, we believe in developing partnerships with our customers. We take “Singapore Changi Airport is widely recognized as one of the best
delight in your success, and endeavour to work with you to achieve it. We have resources that you airports in the world, and serves as an important international
can draw on to help you to identify growth opportunities and sharpen your competitiveness. hub for both passenger and cargo movements. With its 24-hour
Airfreight Centre, high service standards and efficient processes,
Singapore Changi Airport has attracted world class distribution and
Through this collaborative and consultative relationship, we can better respond to the evolving logistics companies to set up operations in Singapore. Singapore
dynamics of the global economy to achieve greater heights with you. Airlines Cargo shares Changi Airport’s commitment in service
excellence and operational efficiency, and deeply appreciates the
consistently strong support and assistance Changi Airport offers
to its airline and logistics partners.”
Mr Goh Choon Phong
President
Singapore Airlines Cargo
Celebrating the achievements of airline partners at Changi Airline Awards
34 / / 35Take Off with Changi
At Singapore Changi Airport, we make it our business to ensure that your business grows with
us. As one of the world’s leading airports, we understand the industry intimately and respond
swiftly to emerging trends.
Beyond our excellent connectivity and efficiency, you can count on our commitment and foresight
as we chart the way forward with you, to provide you with customised business solutions that
work. We believe in your potential – that is why we constantly strive to innovate and expand our
capabilities to meet your business needs.
It’s time to set your sights further with Singapore Changi Airport. Because right here at the heart
of Asia, we have your business success in sight.
All information is correct at time of print (October 2008). Copyright © Civil Aviation Authority of Singapore 2008. All rights reserved.
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