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The Star
6 days ago
- Business
- The Star
New ‘drive-through' cargo centre at Changi Airport cuts processing time; will be test bed for T5 ops
SINGAPORE: A new air cargo handling centre in Singapore, said to be the first of its kind in the world, features a drive-through concept capable of reducing processing time for air cargo shipments by 20 per cent. It officially opened on Tuesday (Aug 5). The 3,000sq m Bulk Unitisation Programme (BUP) Handling Centre is able to process outgoing air cargo shipments in two hours, instead of 2½ hours. BUP is a packing strategy that consolidates loose cargoes into standardised, ready-to-ship individual units such as pallets or containers to speed up handling processes. It is typically used for consumer and electronic goods such as clothes and household products. Before the launch of the centre, freight forwarders needed to transport loose cargoes to a warehouse for packing into pallets or containers for loading onto an aircraft, in addition to some ready-to-ship individual units. Built by ground-handling services provider Sats, the facility in Changi Airfreight Centre, next to Changi Airport Terminal 1, will also test-bed enhanced air cargo processes and systems for the upcoming Terminal 5 (T5) and the Changi East Industrial Zone. The industrial zone is an airport logistics park that will optimise the flow of air cargoes and reduce the costs and transit time for processing goods to and from T5. As Sats has to work with the space available in the facilities here before the opening of the zone in the mid-2030s, it is important to maximise the use of the space it has by moving ready-to-ship units into a dedicated facility, said Kuah Boon Kiam, senior vice-president for cargo services at Sats. Faster processing time at the new centre comes from the acceleration of the acceptance process, in which freight forwarders hand the goods over to handlers to check the weight and shape of the cargoes to ensure they can fit into the aircraft, as well as to verify documents. With the drive-through concept, this has been halved from 10 to 15 minutes to five to eight minutes. The cargo handling processes at the previous air freight terminals were manual, as workers needed to use forklifts to place the cargoes onto weighing machines before transferring them into the warehouse for packing and acceptance. Each terminal had only one weighing machine, which often led to congestion at the roads near the terminals. The new centre is equipped with six cargo lanes and six weighing stations, where freight forwarders can just drive their tractors and cargo dollies in to deposit their cargoes after getting them processed. Cargoes are weighed while they are still on the dollies. The cargoes will then be towed to the airside. The centre will be manned by a team of 20, and the workers will need to perform new tasks such as verifying documents and checking cargoes to ensure they are ready for loading, instead of executing tasks such as moving cargoes. Sats declined to reveal the construction cost of the new centre. Kuah said freight forwarders can now go through a much more straightforward and simple acceptance process in a 'more spacious' set-up. It is similar to the clearance lanes for cargo trucks at the Tuas and Woodlands land checkpoints, Sats noted. Kuah gave these details during a media tour on the night of July 28, noting that the centre will streamline cargo flow and boost handling efficiency. Sats had previously operated two air freight terminals – one for Singapore Airlines and the other for all other airlines it serves. They have been repurposed since April 7. Hence, Kuah described the new sheltered facility as a 'one-stop shop' for cargo handling for all airlines. It started operations in early April. The handling of cargoes at one of Sats' previous air freight terminals, in which loose cargoes had to be manually loaded onto a weighing scale and then moved into the warehouse for packing. With the new centre, Sats hopes to increase the amount of freight it handles in BUP units from the current 30 to 35 per cent of its total volume to at least 50 per cent over the next one to 1½ years. Kuah noted that the new facility is able to handle 600 units daily, double Sats' previous volume of 300 units in total for both terminals. The new BUP Handling Centre allows freight forwarders to drive through the centre to weigh their ready-to-ship units, check the contours of the cargoes to ensure they fit into the aircraft and verify the documents. Adding that the utilisation rate is now at 50 per cent, Kuah said Sats had designed it this way with a lot of room to grow. 'This will be a test bed for what we intend to do for the new Changi East Industrial Zone, because that will be (launched) in the mid-2030s – so a lot of the things that we're doing right now will basically lead up to that.' 'So we will obviously look at how we are doing it now – if it works very well, then we will replicate it for the new facility. If there are certain improvements that need to be done, then we'll have time to do them before we move to the new facility in the mid-2030s,' he added. Speaking to the media at the opening ceremony on Aug 5, Kerry Mok, president and chief executive of Sats, said there is a need for Singapore's air cargo sector to be resilient amid the ongoing tariffs. He said Sats thus needs to improve its existing facilities and drive new cargo handling processes to support the rise in volume, because there will be no new infrastructure for the next 10 years until the Changi East Industrial Zone is ready. Noting that the BUP centre will allow Sats to handle increased cargo volumes using the same infrastructure, Mok said: 'When T5 comes, these are some of the new ideas that can be launched in the design of T5. So we can't wait, we've got to do it now.' He added: 'And to do it now, it means we can then design something better for T5.' On the impact of the new facility on Singapore's position as a transit hub, Kuah said any kind of time savings that Sats can give to the air cargo logistics industry will give the republic a competitive edge. Global air cargo demand will grow by 4 per cent to 6 per cent year on year in 2025, according to freight data analysts. Likewise, South-East Asia's e-commerce market is expected to grow at an average rate of 22 per cent annually from 2025 to 2026. - The Straits Times/ANN
Business Times
05-08-2025
- Business
- Business Times
Sats opens new cargo handling facility at Changi to cut processing time by 20%
[SINGAPORE] Sats on Tuesday (Aug 5) opened a new air-cargo handling facility in Changi Airport, which is expected to cut minimum processing time for shipments by 20 per cent. The facility – which covers 3,000 square metres, or about half the size of a soccer field – can process cargo in as little as two hours, down from the usual 2½ hours, said the company in a statement. Operated round the clock by Sats Cargo at Sats Cargo's Airfreight Terminal, the BUP Handling Centre is named after the industry term 'Bulk Unitisation Programme' shipments, which are ready-to-ship cargo units built by freight forwarders or shippers. These units are delivered to Sats Cargo for direct loading onto aircraft. Each BUP typically combines smaller items – such as e-commerce packages, boxed goods, or loose parcels – into a single secured unit, which enables the cargo unit to be tracked electronically and handled as one item, saving time on loading and unloading and lowering the risk of damage. Kuah Boon Kiam, senior vice-president of cargo services at Sats Singapore Hub (SG Hub), said every minute counts in the air-cargo logistics network. 'The facility will allow faster, safer and more efficient processing and handling of air cargo shipments, by day and by night and in all-weather conditions.' BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up SG Hub is a dedicated division under Sats that supports operations in Singapore's air gateways, including Changi and Seletar airports. Sats said the BUP Handling Centre will be used to test systems and processes for air cargo operations, which could be rolled out in Changi Airport's Terminal 5 and the Changi East Industrial Zone. How it works The new facility has six lanes and six weighing stations to centralise processing in a single location. Freight forwarders no longer need to move between different parts of the terminal, thus cutting waiting times and raising efficiency. Under the previous setup, there were only two weighing stations and no dedicated processing lanes. The facility also brings other operational benefits, in that it frees up capacity at existing airfreight terminals and eases roadway congestion. It also supports the resolution of acceptance issues. These include documentation, weighing, and verifying that BUP dimensions are compatible with aircraft cargo holds. Sats said that once accepted, the cargo units can be towed directly to the airside for uplift, streamlining flow and enhancing handling efficiency.
Straits Times
05-08-2025
- Business
- Straits Times
New cargo handling centre at Changi Airport reduces processing time; test bed for future T5 ops
Sign up now: Get ST's newsletters delivered to your inbox The new 3,000 sq m Bulk Unitisation Programme Handling Centre is able to process incoming air cargo shipments within two hours, instead of 2½ hours. SINGAPORE – A new air cargo handling centre in Singapore, said to be the first of its kind in the world, features a drive-through concept capable of reducing processing time for air cargo shipments by 20 per cent. It officially opened on Aug 5. The new 3,000 sq m Bulk Unitisation Programme (BUP) Handling Centre is able to process incoming air cargo shipments in two hours, instead of 2½ hours. Bulk unitisation programme is a packing strategy that consolidates loose cargo into standardised ready-to-ship individual units such as pallets or containers to speed up handling processes. It is typically used for electronic and consumer goods such as clothes and household products. Before the launch of this centre, freight forwarders needed to transport loose cargo into a warehouse for packing into pallets or containers for loading onto an aircraft, in addition to some ready-to-ship individual units. Built by ground-handling services provider Sats, the centre in Changi Airfreight Centre, next to Changi Airport Terminal 1, will also test-bed enhanced air cargo processes and systems for the upcoming Terminal 5 (T5) and the Changi East Industrial Zone. The Changi East Industrial Zone is an airport logistics park that will optimise the flow of air cargo and reduce the costs and transit time for processing goods to and from the upcoming T5. As Sats has to work with the space available in the facilities here before the opening of the zone in 2036, it is important to maximise the use of the space the firm has by moving ready-to-ship units into a dedicated facility, said Mr Kuah Boon Kiam, senior vice-president for cargo services at Sats Airport Services. Top stories Swipe. Select. Stay informed. Singapore 'She had a whole life ahead of her': Boyfriend mourns Yishun fatal crash victim Singapore 60 lactation pods to be set up in public spaces by Q1 2026 for breastfeeding mothers Singapore Beauty industry consumers hit by 464% rise in prepayment losses in first half of 2025 Singapore 13 taken to hospital after accident involving SBS buses, car in Tampines Life Urinary issues: Enlarged prostate affects half of men in their 50s and up Singapore Elderly man charged after he allegedly molested, performed sex act on 'vulnerable' man The faster processing time at the new centre comes from the acceleration of the acceptance process, in which freight forwarders hand the goods over to handlers to check the weight and contours of the cargo to ensure it can fit into the aircraft, as well as to verify documents. With the drive-through concept, this has been halved from 10 to 15 minutes to around five to eight minutes. The cargo handling processes at the previous air freight terminals were menial as workers needed to use forklifts to place cargo onto weighing machines before transferring it into the warehouse for packing and acceptance. Each terminal had only one weighing machine, which often led to congestion at the roads near the terminals. The new centre comes with six cargo lanes and six weighing stations, so freight forwarders can directly drive through the centre to weigh their cargo and get them checked. ST PHOTO: LIM YAOHUI The new centre is equipped with six cargo lanes and six weighing stations, where freight forwarders can just drive their tractors and cargo dollies in to deposit their cargoes at the centre after processing it. Cargoes are weighed while they are still on the dollies. The cargoes will then be towed to the airside. It will be manned by a team of 20, and the workers will need to perform new tasks such as verifying documents and checking cargo to ensure it is ready for loading, instead of executing tasks such as moving cargo. Sats declined to share the construction costs of the new centre. Likening the layout of the new centre to a 'drive-through', Mr Kuah said freight forwarders can now go through a much more straightforward and simple acceptance process in a 'more spacious' set-up. It is similar to that of the clearance lanes for cargo trucks at the Tuas and Woodlands land checkpoints, noted Sats. Mr Kuah gave these details during a media tour on the night of July 28, noting that the centre will streamline cargo flow and boost handling efficiency. Sats had previously operated two air freight terminals – one for Singapore Airlines and another for all other airlines it serves. They have been repurposed since April 7. As such, Mr Kuah described the new sheltered facility as a 'one-stop shop' for cargo handling for all airlines. It started operations in early April. The handling of cargo at one of Sats' previous air freight terminals, in which loose cargo had to be manually loaded onto a weighing scale and then into the warehouse for packing. ST PHOTO: SHINTARO TAY With this new centre, Sats hopes to increase the amount of freight it handles in bulk unitisation programme units from the current 30 to 35 per cent of its total volume to at least 50 per cent over the next one to 1½ years. Mr Kuah noted that the new facility is able to handle 600 units daily, double Sats' previous volume of 300 units in total for both terminals. Sats' new air cargo facility, the BUP Handling Centre, allows freight forwarders to just drive through the centre to weigh their ready-to-ship units, check the contours of the cargo to ensure they fit into the aircraft and verify the documentation. ST PHOTO: SHINTARO TAY Adding that the utilisation rate is now at 50 per cent, Mr Kuah said Sats had designed it this way with a lot of room to grow. 'This will be a test bed for what we intend to do for the new Changi East Industrial Zone, because that will be (launched) in 2036 – so a lot of the things that we're doing right now will basically lead up to that.' 'So we will obviously look at how we are doing it now – if it works very well, then we will replicate it for the new facility. If there are certain improvements that need to be done, then we'll have time to do it before we move to the new facility in 2036,' he added. Speaking to the media at the opening ceremony on Aug 5, Mr Kerry Mok, president and chief executive officer of Sats, said there is a need for Singapore's air cargo sector to be resilient amid the ongoing tariffs. He said Sats thus needs to improve its existing facilities and drive new cargo handling processes to support the rise in volume, because there will be no new infrastructure for the next 10 years until the Changi East Industrial Zone is ready. Noting that the BUP centre will allow Sats to handle more cargo volumes using the same infrastructure, Mr Mok said: 'when T5 comes, these are some of the new ideas that can be launched in the design of T5 – so we can't wait, we've got to do it now.' 'And to do it now, it means we can then design something better for T5,' he added. On the impact of the new facility on Singapore's position as a transit hub, Mr Kuah said any kind of time savings that Sats can give to the air cargo logistics industry will give Singapore a competitive edge.
CNA
05-08-2025
- Business
- CNA
SATS opens new air cargo hub at Changi Airport as testbed for T5 operations
SINGAPORE: SATS has launched a new air cargo handling facility at Changi Airport, which will serve as a testbed for new systems and processes that may be deployed at the future Terminal 5 and Changi East Industrial Zone. The Bulk Unitisation Programme (BUP) Handling Centre, officially opened on Tuesday (Aug 5), is the world's first facility dedicated to such cargo. BUPs are ready-to-ship cargo packages assembled by freight forwarders or shippers and delivered to SATS to be loaded onto flights. They typically contain multiple items – such as e-commerce packages, boxed items or loose parcels – secured and moved as a single unit. Goods typically moved in BUPs include electronics and consumer goods, said Mr Kuah Boon Kiam, senior vice-president for cargo services at SATS. "BUP as a concept is not accepted by all countries due to differing customs requirements," said Mr Kuah during a media preview. "But in Singapore, we have a custom regulation that allows for this, and because of it, this, as far as we know, is the first facility of this sort." STREAMLINED OPERATIONS The new centre consolidates SATS' cargo operations, previously spread across two sites, into a single location covering about half the size of a football field at SATS Cargo's Airfreight Terminal. Operations moved to the new facility in April, with 20 employees working across three shifts around the clock. Previously, BUPs had to be moved twice by forklift – first to a weighing scale, then to the truck dock for administrative clearance. The new facility integrates the weighing station and processing booth side by side, reducing processing time from between 10 and 15 minutes to between five and eight minutes. The number of weighing scales has also increased from one per site to six in total, reducing the minimum processing time. This means that companies can now send in their packages closer to the flight time, from two-and-a-half hours down to two. "To a freight forwarder, this is quite a big deal, because they always want to send it in as close to the timing as possible, so that they can maximise the build-up in their warehouse and put in more cargo," said Mr Kuah. CREATING CAPACITY Currently, about 35 per cent of cargo handled by SATS comprises BUPs. The firm aims to raise this to at least 50 per cent within 12 to 18 months. SATS now processes over 300 BUP units daily but has capacity for 600, said Mr Kuah. "We don't want to design a facility that is full from the very first day of operation," he added. The decision to build the facility was made in 2022, as air travel recovered post-pandemic. Without it, SATS would be operating at capacity, said Mr Kuah. "The growth in air freight has made our warehouses a little bit congested on certain days, particularly during the peak periods," he said. "We have to create capacity so that we can grow; otherwise, we will not be able to accept new cargo." The BUP Handing Centre will serve as a testbed for future cargo operations at Terminal 5, which is expected to open in the mid-2030s, and Changi East Industrial Zone. "If it works very well, then we will replicate it for the new facility," said Mr Kuah. "If there are certain improvements that need to be done, then we have time to do it before we move to the new facility in 2036." Speaking to reporters at the launch, SATS president and CEO Kerry Mok said the company must prepare for the expected rise in global cargo volumes. "For T5, because it's still in the design stage, we still haven't figured out what is actually the investment required," he said, adding that it is "still some time away". However, with the global cargo volume projected to grow 3 to 4 per cent, Singapore must be ready to handle a similar increase ahead of Terminal 5's opening if it wants to secure a share of that growth, said Mr Mok.
