Commonwealth Capital’s new cold-chain logistics facility to create 130 jobs

A NEW S$200 million cold-chain food logistics facility in Singapore is expected to create up to 130 jobs, while strengthening the country’s food security and supply-chain capabilities.

The facility will be operated by Commonwealth Kokubu Logistics (CKL), a cold-chain logistics joint venture formed in 2018 by local investment company Commonwealth Capital and Japan’s food-and-beverage (F&B) cold-chain specialist Kokubu Group.

Set for completion in 2025, the facility will have a total floor area of 500,000 square feet, with cold storage capacity of up to 80 million kg of food.

At the groundbreaking ceremony for the facility on Tuesday (Mar 28), Minister of State for Trade and Industry Low Yen Ling, the guest of honour, said that the facility will enhance Singapore’s standing as a trade and logistics hub.

She noted that the cold-chain perishables market is a key spoke of the logistics sector, with Singapore expecting to double this market in a decade. “Increasing demand from Asia for imported perishables and food security concerns will drive the need for cold storage to extend the shelf life of food products,” she pointed out.

The facility will increase Singapore’s frozen warehouse capacity by more than 80,000 pallet positions, and make CKL one of the largest cold-chain logistics players here, she added.

The facility will offer cross-docking services, in which goods are unloaded from inbound delivery vehicles and then loaded onto outbound vehicles, with minimal storage in the warehouse. This makes deliveries more efficient.

Andrew Kwan, group managing director of Commonwealth Capital, said that achieving greater economies of scale in Singapore will support the group’s internationalisation ambition.

“Our mid-term plans are to progress beyond Singapore and to establish similar facilities across all the major cities in South-east Asia,” he said. This way, the group will be able to offer its cold-chain logistics services through a network of its own facilities across the region, to support its customers, he added.

SEE ALSO

Singapore to ‘strengthen crisis management muscles’ post-Covid: DPM Wong

Singapore to strengthen food distribution facilities, infrastructure for future crises

Pocky seeks larger bite of snack market with new Indonesia factory

Sitting on a two ha plot of land at 8 Jalan Besut, the facility will be connected to Commonwealth Capital’s existing food manufacturing and logistics site at 7 Buroh Lane.

It will have multi-temperature storage ranging from 30 to minus 30 deg C. An automatic storage and retrieval system and automated guided vehicles will reduce the manpower needed in the cold chambers.

Skilled staff will be required to operate these automated systems, thus creating opportunities for both existing and new workers, said Daniel Tan, CKL’s executive director. CKL will also pilot the sustainable practice of “reverse logistics”. For example, used packaging materials or cooking oil will be collected from F&B customers for reuse or recycling along delivery routes, thus minimising additional mileage and carbon emissions.