The operation and growth of Tuas Port have signalled a wave of activity in the logistics sector, underscoring Singapore's role as an important Asian and global trading hub. Many service providers are developing or upgrading their industrial assets in the West to meet the increasing demand for efficient logistics and warehousing services surrounding the port area.

Situated strategically along some of the world's busiest shipping lanes and in close proximity to the growing Asian consumer markets, Singapore has established itself as an important Asian and global trading hub. The city-state's vibrant economic landscape, bolstered by political stability, a transparent regulatory system, efficient infrastructure and extensive global connectivity makes it an attractive destination for companies seeking to establish their distribution hubs.

One of the key factors that solidifies Singapore's position as a global trading hub is Tuas Port - projected to be the world’s single largest fully automated terminal upon its completion. Its favourable location, advanced features, and high automation enable seamless cargo movement, providing the efficiency that companies require to manage their global supply chains.

Connecting to over 600 ports worldwide and hosting 200 shipping lines, Singapore's maritime network is extensive. Annually, more than 130,000 vessels dock at Singapore's ports, further testifying to the city's strategic importance in global maritime commerce.

According to a report from Jones Lang LaSalle (JLL), the approval of the Tuas Port development in October 2012 sparked significant growth in the West. Logistics and warehousing spaces expanded by 74%, reaching a total size of 81.8 million square feet.

Several key developments include the construction of a large modern warehouse by Toll Group and a 2.7 million sq ft integrated logistics centre built by LOGOS, housing major tenants such as German logistics company DB Schenker and France's Schneider Electric testimonies to Singapore's allure as a global distribution hub.

Adding momentum to this trend, global shipping giant Maersk and Danish logistics firm DSV also announced plans to build new logistics facilities in the West. These new developments, designed to increase floor areas by 1.1 million and 700,000 square feet, respectively, will further enhance Singapore's status as a crucial node in the global supply chain.

Meanwhile, rental prices per square foot for logistics warehouses in the Western Planning Region have risen too. Since the COVID-19 outbreak in 2019, costs escalated from less than $1.50 to between $1.70 and $1.90 in this year’s second quarter.

All these factors suggest a strong and growing demand, driven mainly by a persistent shortage of such spaces, despite the recent development.

Looking into the future, the JLL report estimates that the annual supply of logistics warehouses in the Tuas area will average about 200,000 square feet from this year until 2026. This figure falls well short of the ten-year average annual demand, which is 600,000 square feet. In the West, the average annual supply of 2.3 million square feet is also below the ten-year average annual demand of 2.9 million square feet.

With the rising demand, PLG is dedicated to not only increasing our warehouse spaces but also advancing our capabilities. Our goal is to create well-situated, increased efficiency distribution hubs that take advantage of our close proximity to the port. This strategic positioning puts us at the heart of the supply chain, allowing us to bridge Asia and the global markets. We are committed to improving our services to meet your needs, support your growth and facilitate stronger global connections.