News / Singapore Alliance For Action aims for smoother transhipment

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The Singapore government is to form an alliance with forwarder DB Schenker, port operator PSA International and Singapore Airlines Cargo, and others, in a bid to halve transit time for cargo transhipped by sea or air in the city state.

It can take as long as five days for cargo to transit Singapore, the world’s busiest container transhipment port.

Announcing the Alliance For Action, Singapore’s transport minister, Chee Hong Tat, said on Tuesday that the partners would co-develop solutions to overcome bottlenecks.

Mr Chee said: “Currently, the time for an air-sea intermodal transhipment may exceed five days. There are two main reasons for this; first, logistics providers face uncertainty in arrival and departure times and, to be prudent, they factor-in buffer periods between arrival and departure of goods.

“Second, for smaller logistics providers, especially our small and medium enterprises, booking flights and preparation of permits is still largely manual, and last-minute changes in vessel or flight schedules, especially in the current environment, add to the duration.”

The alliance will also develop a digital platform to provide real-time data on shipping schedules and flights to better help logistics providers to make appropriate bookings, he added.

Mr Chee said the target was to at least halve the dwell time for cargo, and to aim to allow goods to depart Singapore on a connecting flight or vessel within 24 hours of its arrival.

He said: “This will reduce time and costs for logistics providers and their customers and, importantly, it will allow Singapore to differentiate itself from the competition as a trusted and efficient multimodal logistics hub.”

Other alliance members include Singapore Airport Terminal Services and Singapore Aircargo Agents Association.

Mr Chee explained: “There are many entities involved because there are many moving parts in this operation. That is why we have to bring them together and work closely. This is one of the strengths of Singapore, the ability to work beyond government, with our ministry, and with our unions, to deliver results and get things done.”