IMDA to roll out parcel locker network by end-2021

Singapore

A NATIONWIDE network of parcel lockers slated to be fully rolled out by end-2022 will be ready one year ahead of schedule, the Infocomm Media Development Authority (IMDA) announced on Friday.

The acceleration comes as e-commerce purchases and demand for delivery solutions have surged during the Covid-19 pandemic, making clear the need for lockers in residential areas, Minister for Communications and Information S Iswaran shared in a virtual dialogue session with logistics and e-commerce industry players.

"After we emerge from this Covid-19 situation, there's going to be a different centre of gravity, in the balance between online and offline retail," said Mr Iswaran.

"We want to now make sure that the industry and the infrastructure support it and can be a key enabler. On the infrastructure side, that is why we thought there is a need to make a decisive push in this regard, and not wait and do something incremental."

IMDA has incorporated a wholly-owned subsidiary, Pick Network, to deploy, own and operate the locker network. The 1,000 lockers will be located in nodes with high footfall near to residential areas, like MRT stations and community centres, with the goal of having a Pick station within five minutes' walk for every household.

The first batch of 200 stations will be rolled out in Q1 2021.

Pick will be responsible for working with stakeholders to identify suitable sites for the locker stations; ensuring that logistics service providers (LSPs) have fair and open access to the network; and engaging with industry stakeholders like e-commerce platforms, LSPs and consumers to raise awareness and use of the network, which will help to reduce some of the adoption costs.

Pick chief executive officer New Soon Tee said its industry partners have indicated willingness to provide differentiated pricing for doorstep and locker deliveries, since they can reap significant productivity gains from using the locker system.

These gains were seen in the Locker Alliance pilot conducted last year, which installed 70 locker stations in residential areas in Bukit Panjang and Punggol, as well as eight MRT stations. Singapore Post (SingPost) reported that the locker system enabled it to make three to four times more deliveries per hour in Punggol.

Keith Lim, SingPost head of processing, continuous improvement and innovation, added that the benefits go beyond productivity, since the system also enables contactless delivery. "This is the new norm in the interest of public health, and in this light, well-thought-through infrastructure such as parcel lockers will certainly be the way to go to ensure reliable and safe deliveries."

The pilot programme lockers will be absorbed into the nationwide parcel locker network. Existing locker operators like SingPost and blu will be given the option to connect their locker systems, which are located in commercial spaces like shopping malls, to the nationwide network via Pick's platform.

Logistics service provider Ninja Van said consumers will get more convenience and choice with the nationwide network, which will complement its self-developed Ninja Points network that allows consumers to pick up and drop off parcels at any of its 1,000 partners.

Noting that parcel volume increased by up to three times during the circuit breaker period, Ninja Van Singapore country head Ray Chou said: "We believe that the tide has raised the boat, and the baseline for e-commerce adoption will be higher than in the pre-Covid-19 period. It'll be interesting for us to tap on the Nationwide Parcel Locker Network once it has achieved ample parcel volumes and consumer demand."

IMDA published a tender on June 7 for the supply, delivery, installation, support and maintenance of the locker network. The tender will close on July 20.