SPEECH BY MR LEE YI SHYAN, MINISTER OF STATE FOR TRADE AND INDUSTRY AT THE OPENING OF NIPPON EXPRESS SINGAPORE’S NEW FACILITY IN THE AIRPORTLOGISTICSPARK OF SINGAPORE ON 23 FEBRUARY 2007 AT 1000HRS
Mr Jiro Nakamura,
Regional Managing Director, Nippon Express
Mr Takao Miyamoto,
Managing Director, Nippon Express Singapore
Distinguished Guests,
Ladies and Gentlemen,
Thank you for inviting me to witness the official opening of Nippon Express Singapore’s new facility in the Airport Logistics Park of Singapore, or ALPS. This marks a further deepening of the partnership between Nippon Express and Singapore.
Strong Growth in Singapore’s Logistics Industry
As manufacturing operations grow in Asia, the logistics outsourcing market in the region is expected to reach $US80 billion by 2012, averaging double digit growth in the next 4 years. In Singapore, we see a similar growth trend.
The logistics sector has always been a key part of Singapore’s economy. It is critical to us both as an industry and as an enabler.As an industry, it accounts for over 8% of our GDP and employs over 100,000 workers. Our efficient logistics industry also boosts the competitiveness of our manufacturers and traders by reducing the cost of moving goods around.
Today, more than half of the world’s top 25 Third-Party Logistics companies (3PLs) have set up significant operations in Singapore. We also have the leading chemical logistics players in Singapore such as Vopak, Katoen Natie and Oiltanking.
Singapore Aims to be a Highly Efficient Node & Control Centre for Companies’ Global Supply Chains
With globalisation, supply chains have become ever more complex and extended. Logistics players are now competing on end-to-end supply chain solutions. To help logistics companies stay competitive, Singapore will continue to strive to be a highly efficient node and control centre for global supply chains.
To this end, we have created ALPS as an unique value proposition for logistics companies to locate their supply chain operations. Strategically located within the airport free trade zone, ALPS enables quick turnaround of value-added logistics and regional distribution activities. Companies operating in ALPS enjoy the excellent connectivity and superior handling efficiency of the ChangiAirport. I am pleased to note that since its launch back in November 2000, ALPS today is almost fully occupied by major global logistics players.
Another competitive edge for our logistics companies is in the area of supply chain visibility. Through the use IT, companies are able to track and trace their shipments with ease. To create opportunities for supply chain optimization by enhancing supply chain visibility, the Singapore Government will launch TradeXchange® in October 2007. TradeXchange® is a neutral and secured IT platform which will facilitate seamless access to TradeNet®, the various Port Systems such as Portnet, CCN, Jurong Port (JP) Online and Marinet[1], and other end-user and value-added-services systems that are connected to this common platform. With TradeXchange®, businesses can expect to save more than $75 million over 10 years just from reduced trade permit cost.
Conclusion
In closing, I would like to offer my heartiest congratulations to the management and staff of Nippon Express Singapore for the opening of your new facility. I am confident that Nippon Express will now be even more ready to offer your clients best of breed, and optimized supply chain solutions within Asia and even globally.
I wish the team every success and may this year of the “golden pig” bring good fortune and prosperity to your company.
Thank you.
[1]TradeNet is used for
application of import/export permits, Portnet and JP Online are
used for sea logistics, Cargo Community Network is used for air
logistics, and Marinet is used for dangerous goods
declarations.