Nationwide Urban Logistics Connectivity

11 Mr Cedric Foo Chee Keng asked the Minister for Trade and Industry (Industry) if he can provide an update on pilot initiatives for logistics distribution within malls, federated locker systems and steps towards nationwide urban logistics connectivity.

The Senior Minister of State for Trade and Industry (Dr Koh Poh Koon) (for the Minister for Trade and Industry (Industry)): To transform the logistics industry, the Government and industry are working together to raise productivity and job quality, as well as reduce traffic congestion in our urban logistics sector. This would free up valuable land and human resources that can be channelled to higher value activities.

We have been piloting new business models to improve our urban logistics. For example, at the business-to-business level, SPRINGSingapore and IMDA are facilitating more loading bay management and in-mall distribution operations that will reduce congestion at and around the loading bay at our shopping malls. SPRINGSingapore and IMDA have also started pilots at Tampines Mall, Bedok Mall, IMM and Westgate. So, instead of multiple truck drivers going to the same mall every morning at peak hour often around the same time as well with small deliveries per vehicle, a single in-mall operator now coordinates and spaces out such delivery schedules of the various trucks, for example, and also when they receive it and how they consolidate these goods on the mall tenants' behalf and then distributes the goods to the tenants at the tenants' convenience. So, there are actually benefits on both sides.

Through these pilots, the average parking time has been reduced from 24 minutes to seven minutes for in-mall distribution users. The delivery vehicles also spent less time queuing at the loading bays in order to enter these loading bays. With these improvements in turnaround time, residents benefit from less traffic congestion immediately outside the malls, while the truck drivers themselves are able to make more deliveries within the same day. It is estimated that almost 50% of the parcel volume going into Tampines and Bedok Malls are now handled through such in-mall distribution operating channels. We plan to roll out in-mall distribution channels to more malls progressively once we get these pilots started well and learn some lessons from there.

In the business-to-consumer space, in tandem with the rapid growth of e-commerce, the Government is rolling out a nationwide, federated parcel locker network to ease the last-mile delivery challenges for small parcels. We are doing this in phases, beginning with a trial at selected HDB estates and parts of our public transport network. With such inter-operable common infrastructure accessible by all merchants, delivery companies can avoid costly return visits to end-consumers when they are unable to deliver the parcels the first time round, especially when the recipient is not at home and, therefore, being able to complete more deliveries per day. Consumers will benefit from the convenience of being able to pick up their parcels, wherever and whenever they like. We will share more information about the trials and the scope for industry collaboration later this year and we look forward to the industry's active participation and innovation in this evolving area.

Lastly, JTC is also exploring the feasibility of implementing District Logistics Networks within our new industrial estates. For example, Jurong Innovation District (JID) may include a central distribution centre where goods are stored and handled and a dedicated road network for the delivery of the goods to the companies within the district. This will improve the efficiency of goods movement to companies located in JID, allow companies to free up storage space within their premises for other uses and relieve traffic congestion from otherwise very uncoordinated logistics flows within the area. The Government is also exploring the feasibility of inter-district logistics networks that would facilitate more efficient freight movement across the whole of Singapore.

Mr Cedric Foo Chee Keng (Pioneer): Mdm Speaker, I thank the Senior Minister of State for the reply. Indeed, I agree that last-mile connectivity and inter-operability are very important and I would like to volunteer Jurong West as the pilot site for the Ministry to implement federated locker network system.

Dr Koh Poh Koon: Mdm Speaker, as more retailers or malls participate in such a scheme, it will make it even better and more viable for Singapore, as an island, logistically, and we welcome more malls to participate in such events. Eventually, once we are able to roll this out, we will engage more mall operators to get them on board.