Singapore Targets 2,000 Logistics Jobs in Air and Sea Hub Expansion
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Singapore is upgrading its infrastructure and logistics networks to cut air-sea intermodal transit times to under 24 hours, positioning itself to capture shifting trade flows across Southeast Asia. The expansion is expected to generate 2,000 logistics jobs in 2025 as the country deepens its role as a regional cargo gateway.
The push comes alongside record freight volumes. Port operator PSA handled over 40 million twenty-foot equivalent units (TEUs) in 2024, eclipsing 38.8 million TEUs in 2023, while cargo movements at Changi Airport reached 1.82 million tonnes through November 2024.
To support this traffic, the Ministry of Transport (MOT) and the Economic Development Board (EDB) are introducing measures to speed up transshipments and incentivize global freight operators to grow their local footprint.
Cutting Dwell Times Across Air and Sea
Transport authorities are building a prototype digital platform to automate real-time tracking, flight and vessel bookings, and delay alerts for cargo operators. Today, transferring cargo between sea vessels and aircraft in Singapore can exceed five days because smaller logistics intermediaries rely on manual processes.
Transport Minister Chee Hong Tat set a target to halve that dwell time, pushing for connecting departures within 24 hours of arrival. Economic Development Board vice president Dave Goh said the sector could generate S$6.9 billion in annual value to the economy, equivalent to a 2 per cent boost, once the Logistics Job Transformation Map rolls out in 2025.
Shipping realignments will test terminal capacity early in the year. The Gemini Cooperation between Maersk and Hapag-Lloyd starts operations in February, deploying 340 vessels with a total capacity of 3.7 million TEUs across networks that include roughly 40 weekly calls in Singapore.
“Singapore Airlines carried higher freight tonnage in 2024 by increasing freighter utilization and tapping expanded bellyhold space across its passenger fleet.”
Shipping Alliances and Ocean Pressures
Retail supply chains face persistent ocean disruptions as container lines continue detouring around Africa to bypass Red Sea hostilities. Threat of strikes at United States East Coast and Gulf Coast ports over terminal automation adds further volatility to sailing schedules, raising the risk of unplanned container bunching at transshipment nodes.
Air cargo networks face parallel pressure. Shippers running high-value retail goods and seasonal inventory turn to airfreight when maritime schedules collapse, even at elevated spot rates. Singapore Airlines carried higher freight tonnage in 2024 by increasing freighter utilization and tapping expanded bellyhold space across its passenger fleet.
Cross-Border E-Commerce Reconfigures Air Terminals
Cross-border shopping platforms are driving much of the airside volume. Chinese e-commerce operators such as PDD Holdings’ Temu and Shein have largely bypassed regional third-party consolidation warehouses in favor of direct-to-consumer parcel consignments flown straight to destination hubs.
Changi Airport Group is actively restructuring space allocations across the Changi Airfreight Centre and Airport Logistics Park Singapore, which are operating near full capacity. The airport operator is working alongside SIA Cargo and ground handler SATS to establish dedicated sorting and processing setups for direct e-commerce shipments, matching the specialized handling networks already in place for pharmaceuticals.
Industrial Footprint Expands to 2040
Private logistics providers are scaling their physical space to match the state-backed infrastructure push. Maersk expanded its Changi airport warehousing in 2024 and is constructing a 1.1 million square foot regional distribution centre in Jurong West, scheduled to open in 2025.
Cargo owners such as Henkel, 3M, Schneider Electric and Asahi already base regional supply coordination out of Singapore, while integrators DHL Express, FedEx, UPS and SF Express operate dedicated hubs on site. Long-term cargo capacity will hinge on two primary developments: the mid-2030s Changi Air Cargo Hub expansion, which lifts airport handling from 3 million to 5.4 million tonnes annually, and Tuas Port, which currently operates 10 berths and targets 65 million TEUs across 66 berths by 2040.
PSA Supply Chain Hub @ Tuas is scheduled to begin operations in 2027.
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