SingPost unveils S$30 million sortation machines that will boost its parcels processing capacity

[SINGAPORE] Singapore Post (SingPost) has unveiled its S$30 million automated parcel sortation facility – a touted competitive advantage – at its regional e-commerce logistics hub in Tampines.

Comprising two new automated machines – a 3D sorter and an intelligent flexi sorter – the facility was launched by Josephine Teo, minister for digital development and information of Singapore, on Tuesday (Jun 9).

The investment is part of SingPost’s strategic priorities that it unveiled in mid-May to strengthen core fundamentals, build scalable capabilities and capture opportunities.

The new systems will boost its capacity to process small and medium-sized parcels from 100,000 to 300,000 parcels per day.

Combined with its existing capacity for large parcels, total daily throughput capacity at the regional e-commerce logistics hub is 400,000 parcels.

This brings all SingPost sorting facilities under one roof at the Tampines site as previously smaller items were handled at SingPost Centre in Paya Lebar, while larger packages were processed at the regional e-commerce logistics hub.

Consequently, a single, streamlined parcel flow across its delivery network improves efficiency and lowers operational cost for the national postal service and logistics player.

Mark Chong, CEO of SingPost, said: “This centralised, automated hub for parcels unlocks an improved operating model enabling us to move towards a highly flexible network that scales with market demand. These measures serve as levers to cut our cost-to-serve by more than 10 per cent.”

Minister Teo said in her speech that the government recognises the role SingPost plays and that it will continue working closely with the group to ensure postal services are accessible and financially sustainable in the long term.

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The postal and logistics player, meanwhile, will give residents more convenience as its SingPost@MyBlock service will be rolled out islandwide by September following successful trials.

Instead of visiting a post office or street posting box, residents will be able to drop off letters and small packets directly at the designated letterbox nest of their Housing & Development Board or residential block.

SingPost shares were up $0.01 or 3.2 per cent at $0.32 as at the Tuesday noon break.