SINGAPORE - Keppel Logistics Pte Ltd (Keppel Logistics) has leased a two-hectare site for 30 years from JTC Corporation to develop an air logistics hub in the eastern part of Singapore.
The new four-storey ramp up warehouse will add another approximately 350,000 square feet to Keppel Logistics' warehouse capacity in Singapore when completed in early 2015.
The facility, in Tampines Logistics Park, will increase Keppel Logistics' operating warehouse capacity in Singapore by 20 per cent to beyond 2 million square feet.
Mr Pang Hee Hon, CEO of Keppel T&T said, "Keppel is known for its strong capabilities and track record in providing warehousing and third-party logistics services. Our new air logistics hub, augmented by its proximity to Seletar Aerospace Park and Changi Airport, will position us to better serve industries with time-critical logistics requirements for regional distribution and express deliveries."
Mr Pang added, "Significant numbers of aerospace, biomedical and precision engineering companies have established their regional headquarters and distribution centres in Singapore, leveraging the island's strategic location to serve the region. This air logistics hub will enable Keppel to meet the anticipated demand for critical-component logistics, arising from the increased presence and activities of these companies."
The air logistics hub will feature automated storage, tracking and handling systems, as well as incorporate environmentally-friendly building features for enhanced efficiency, productivity and sustainability.
The abovementioned transaction is not expected to have material impact on the net tangible assets or earnings per share of Keppel T&T for the current financial year.