Singapore – Singapore Post has recently announced its plans to invest S$30m in its regional e-commerce logistics hub (e-comm LogHub) facility. This strategic move is aimed at expanding the e-commerce processing capacity for sustained growth.
With the investment, new sorting equipment will be installed at the e-comm Loghub, increasing the company’s parcel processing capacity from 100,000 to 300,000 per day. Its compact and modular design further maximises floor space for potential improvements.
Since opening in 2016, the company’s LoogHub is undergoing its first significant renovation. The S$182m, 553,000 square feet facility consists of three floors, with the ground floor dedicated to large parcel processing at a capacity of 100,000 parcels daily.
The installation of new small-parcel sorting equipment on the third floor will also increase overall processing capacity to 400,000 parcels per day. The hub features a second-floor warehouse, 150 loading bays, and an office block.
Through the hub, SingPost plans to centralise its mail and parcel operations, streamlining processes for improved efficiency.
At present, postal and e-commerce parcel sorting take place at separate locations. As such, mail and small parcels are sorted at SingPost Centre (SPC) in Paya Lebar, while larger eCommerce parcels are handled at the e-comm LogHub in Tampines.
Interestingly, the timeline for this integration is still under careful review.
By mid-2026, concentrating eCommerce parcel sortation at the eComm LogHub will vacate some 83,000 square feet of lettable industrial space at the SPC in Paya Lebar, potentially opening up more leasing opportunities, subject to necessary regulatory approvals.
When mail operations are consolidated to the e-comm Loghub, it will potentially further free up more lettable space.
Simon Israel, Chairman of the Board at SingPost, said, “The investment in capacity building not only enhances operational efficiency but unlocks a pathway for growth. Singapore’s e-commerce logistics market is fragmented. By leveraging our infrastructure, SingPost could play the role of an industry consolidator, opening our historically closed networks to partnerships or undertaking services for other parties in the industry.”
“I am optimistic about the growth potential of our business, as this could result in more integrated and sustainable logistics solutions for the industry,” he added.
Neo Su Yin, group chief operating officer at SingPost, also said, “Some 70% of e-commerce shipments that come through SingPost are small parcel deliveries that can fit into a letterbox. In Singapore, letterbox deliveries are the most convenient, secure and carbon-friendly delivery option available.”
“With the robust growth of eCommerce, we are presently operating at maximum sortation capacity. The new sortation equipment will increase our throughput by 300%, while utilising less floor space, giving us room to expand further within the same premises at our eComm LogHub in the future,” Su Yin added.
“The incorporation of all these elements to purpose-fit e-comm LogHub would take more time, significant planning and further investment, which SingPost will consider in line with divestment plans for non-core assets, including our property portfolio,” Israel further said.
SingPost is working with the government on a business model that would ensure long-term financial sustainability of postal services, including the Post Office Network.
