Singapore has been Ranked Asia’s largest logistics hub for the last 10 years by the World Bank. It offers world-class connectivity to the region as well as beyond the horizon. The unprecedented growth of regional cross-border trade as well as high consumption strengthens Singapore’s secure, highly efficient logistics and supply chain management companies.
Today, Singapore is linked to over 600 ports scattered all over the world. The achievement of Singapore wasn’t there from the start. Back in 1965, Singapore was a low-income country with limited natural resources. Furthermore, they lacked infrastructure, investment, and job opportunities. The reason behind the singapore logistics hub is the result of the combination of forward-looking public policy and private sector engagement. There are numerous factors behind the current position of Singapore. Let’s take a look at those.
In comparison with other logistics hubs, Singapore’s market is quite small. The development of the vast number of high-frequency connections to hundreds of destinations around the world did not happen on its own, it was the outcome of the proactive expansion policy.
To increase the number of air connections, the Civil Aviation Authority of Singapore concluded the Air service agreement (ASA) with 130 states and countries as part of the effort of increasing high-frequency connections. Likewise, the port also worked with different shipping lines to build an enormous network of high-frequency connections. This encouraged the companies across the world to operate their logistics from Singapore. Eventually making Singapore logistics hub.
High-frequency connections allow goods to reach their destination faster from Singapore than they would through direct shipment.
Innovative infrastructure and processes
Unlike other countries, Singapore is a country that always thinks ahead. Due to this factor, it has been able to be the global logistics hub. Furthermore, Singapore’s logistics sector has built innovative infrastructure and processes and it still has opted for several initiatives built for the future to become Worlds biggest logistics chain.
Encouraging Participation of Private Sectors
The government of Singapore has included the private sector in its numerous policy decisions. In the past, ports and airports have been corporatized to ensure that private sectors remain responsive to the needs of the industry. Since corporatization, cargo volumes in the ports have increased significantly. Attracting more and more private sector to operate from the ground of Singapore.
These three factors have created an integrated ecosystem in Singapore where logistics are enabled to thrive. Due to its forward-thinking vision and determination, Singapore logistics hub has been able to be Asia’s largest logistics hub.