3. Logistics and industrial infrastructure

This section covers the following topics: ports and waterways, railways, roads, airports, telecommunications and connectivity, industrial and logistics parks.

Summary

• 3.1. Ports and waterways
• 3.2. Railways
• 3.3. Roads
• 3.4. Airports
• 3.5. Telecommunications and connectivity
• 3.6. Industrial and logistics parks

Singapore is a city that needs continuous renewal and public spending on construction activities reflects the government's commitment to supporting urban and infrastructural development and renewal. For the year 2024, it is estimated that the contracts awarded by the Building and Construction Authority - BCA will have a value of between 32 and 38 billion dollars, of which the Public Sector should contribute 55% of the requirement, while the remaining part should be provided by the Private Sector through the Public Private Partnership ¹.

For the period 2025 – 2028, the forecast requirement for construction contracts has been estimated at an annual figure of between 31 and 38 billion dollars, to which the Public Sector will contribute an amount of between 19 and 23 billion annually, of which 70% will be allocated to construction projects and 30% to civil engineering projects.

3.1. Ports and waterways

Singapore's development and economy are intimately linked to its port, which is the very reason why the British colony was founded in 1819. Throughout the 19th century and until the Japanese invasion in 1942, the free port of Singapore was a crossroads for maritime trade between Europe and Asia and between China and the insular Southeast Asia, a point for the refueling and maintenance of steamships. In 1832, Singapore became the administrative capital of British Malaya ( British Malaya ), roads and railways were developed to transport raw materials, such as crude oil, rubber and tin from the Malay Peninsula to the port of Singapore, where they were processed into basic products, which were shipped to Britain and other international markets ².

At the end of the Second World War, the port of Singapore was rebuilt, because it had been heavily bombed and degraded during the Japanese occupation. With independence, Singapore lost its role as a hub between the maritime routes and the hinterland of the Malay peninsula, its port became the hub of the program of industrialization and modernization and expansion of logistics infrastructure, the Port of Singapore Authority – PSA was established and at the end of the 60s the first container terminal in Southeast Asia was built.

In 1996, PSA was transformed into a management company, PSA Corporation Limited, while regulatory functions were transferred to the newly formed Maritime and Port Authority of Singapore. Today, the port operations are managed by two entities, PSA International and Jurong Port, which jointly operate six container terminals and bulk terminals.

Since its inception, the Port of Singapore has expanded by creating new docks and terminals, incorporating different areas of the main island and other islands, over time some areas have been converted into urban area and, as the city grew, urbanization and port activities began to compete for available space. In 2012, together with a further push for the modernization of the port, which led to the adoption of unmanned cranes and container handling automation systems, it was decided to move and group the container terminals into a single port, the Tuas Mega Port, leading to the closure of the PSA city terminal in 2027 and the Pasir Panjang Terminal in 2040.

In September 2022, Prime Minister Lee Hsien Loong inaugurated the first phase of Tuas Mega Port, which is planned for three further phases of development, cementing its position as the world's largest fully automated port ³, with an estimated investment of USD 14-15 billion ⁴.

Once completed, Tuas Mega Port will have the capacity to handle 65 million TEUs per year, with 66 berths over a length of 26 kilometers.

Tuas Mega Port will occupy a total area of 1,337 hectares, largely the result of reclamation and landfill, carried out by positioning on the seabed 222 concrete caissons, 28 metres high and weighing 15,000 tonnes ⁵.

The project aims to reduce the environmental impact of port activities, the consolidation into a single port will result in reduced emissions from transhipment operations, other green efforts include the reuse of construction materials for Phases 1 and 2, with over 50% of the fill materials used being dredged material and excavated earth from other construction projects, specific environmental quality targets have been established to be met during the remediation works to protect marine life and a coral relocation programme has been implemented, successfully achieving an 80% survival rate.

A state-of-the-art technological infrastructure is expected, with many processes digitized, and artificial intelligence and machine learning are expected to be used to coordinate vessel traffic management and customs clearance. Instead of driverless trucks, the new port is expected to deploy automated cranes and a fleet of driverless automated guided vehicles. All 5G-enabled vehicles will be supported by a private 5G network, active throughout the port. With this automation, operations can be carried out in complete darkness, to the point that Tuas Port has eliminated the need for lighting masts altogether. Additionally, AI-powered drones are also expected to be used for port surveillance, in an effort to reduce manual costs.

3.2. Railways

Singapore's main rail transport network is the Mass Rapid Transport – MRT which is a standard gauge system (1,435 meters) that acts as the backbone of the entire logistics system, connecting the most distant points of the city-state with 6 lines and 140 stations in over 230 kilometers of development ⁶.

The first train on the MRT network was inaugurated in 1987 and allowed a process of decentralization of the city, freeing up lots especially in the central areas (Central Business District ) and creating decentralized residential villages ⁷.

The Light Rail Transit – LRT is an automated transit system that manages local transportation in three different residential areas, connecting them to the MRT system, for a total of 40 stations and 28 kilometers of development.

The Land Transport Authority – LTA is the body that supervises the construction and renovation of infrastructure, through the planning and issuing of contracts in Public-Private Partnership, selecting partners and suppliers. The selection mechanism of partners and suppliers is based on two tools, the Standard Consultancy Agreement – SCA and the Quality Fee Method – QMF, which allow the creation of shortlists of suppliers and partners based on merit and quality scores.

Since 2012, LTA has undertaken a process of renewing, upgrading and extending its rail transport network, with the aim of expanding the Mass Rapid Transit network by 2030. Transport within 360 kilometers, in order to obtain a capillary system in which all the housing units of the city-state are at most 10 minutes walking distance from the nearest station ⁸.

In 2020, the estimated budget for achieving the 2030 target was 87.5 billion Singapore dollars (approximately USD 66 billion or EUR 60 billion) ⁹.

MRT Projects:

• The NSEWL (North-South East-West) line renovation is scheduled for completion in 2026, after 14 years of work and an estimated total cost of $2.5 billion. Phase 2 of the project, which began in 2022, includes rebuilding the tracks, replacing the power supply system, installing a fiber optic network for monitoring, and adding 106 trains from Canada's Bombardier.

• The CCL6 ( Circle Line 6) ring is nearing completion, with the construction of 3 new stations and the addition of 23 trains.

• The Jurong Region Line (JRL) will be Singapore's seventh MRT line, 24 km long and with 24 stations, and will be built in three phases, with completion scheduled for 2028. Contracts for the construction of this Line were awarded between 2019 and 2020 to China Railway 11 Bureau, Hyundai, Siemens and ST Engineering , worth USD 1.52 billion.

• The Cross Island Line (CRL) will be the eighth MRT line, entirely underground, extending for 50 kilometres to connect around 100,000 homes to the rail network, and will be built in three phases with completion expected in 2032.

• Thomson-East Coast Line (TEL) will merge Thomson Line (TSL) and Eastern Region Line (ERL), for a total of 43 kilometers with 31 stations and 7 interchange stations on other lines; announced in 2014, it is being built in five phases with completion scheduled for 2024, the fourth phase is being opened to the public on June 23, 2024.

LRT Projects:

• The Bukit Panjang LRT was the first LRT to enter into operation in 1999, and has been undergoing a complete renovation since 2018, with completion scheduled for 2026.

Other projects:

• the Johor Bahru -Singapore Rapid Transit System Link (RTS) will be a 4-kilometer standard gauge link between Singapore and Johor Bahru in Malaysia, between the two sides of the Strait of Johor , with completion scheduled for 2026. Jointly developed by LTA and Malaysia Mass Rapid Transit Corporation, will be granted a 30-year concession to RTS Operations, a JV between Prasarana Malaysia and SMRT Corporation of Singapore, will be able to carry 10,000 passengers per hour in both directions. The contracts awarded for the construction amount to 1.15 billion.

The international rail link between Singapore and Malaysia, on a one-metre gauge, has been progressively dismantled. It originally reached Tanjong Pagar station in the historic centre of Singapore, but in 2011 the line was shortened to Woodlands , in the northern part of Singapore, near Johor Causeway , the viaduct that connects Singapore to Johor Bahru in Malaysia. A replacement shuttle service was established between Woodlands and Johor in 2015 Bahru , which will be replaced by Johor Bahru -Singapore Rapid Transit System Link, when it will come into operation.

The Singapore Rail Test Centre (SRTC) is a test facility under construction, scheduled for completion in 2025, featuring a three-kilometre line that will serve, among other things, as a test facility for bringing the MRT system up to speeds of 100 kilometres per hour ¹⁰.

3.3. Roads

Singapore's road network extends over 9,500 kilometers, covering 12% of the city-state's total area.

In order to contain the use of space and optimize the speed and quantity of people flows, Singapore aims to convert as much as possible the transfer of people to rail systems and, secondarily, to public transport by bus, both through the planning of public logistics infrastructures and through the limitation of the number of vehicles that can be registered, with a limit that takes into account the fleet in circulation, and through Electronic Road Pricing (ERP), which imposes tolls for the use of roads during peak hours.

According to the “Land Transport Master Plan 2040” ¹¹, Singapore aims to reorganise its road network by aiming, on the one hand, to speed up peak traffic, through the creation of long-distance corridors and the implementation of the ITS network, an intelligent system that analyses traffic in real time and redirects traffic towards less congested roads and, on the other hand, to improve public transport and convert the use of a portion of roads to active mobility traffic, including cycle lanes and pedestrian lanes, connecting them to new integrated logistics hubs.

Among the major infrastructure projects:

• The North -South Corridor (NSC) is a 21.5-kilometre multimodal transport corridor connecting the Northern Woodlands to the historic city centre of Singapore. Originally conceived as a motorway, the project was reimagined in 2016 to also enhance the active mobility experience ( Walk - Cycle -Ride) and now consists of a multi-level system, with viaducts and tunnels dedicated to cars and surface roads used for wider sidewalks, cycle lanes, bus priority measures, as well as more green and community spaces ¹². The NSC is expected to be completed in phases between 2027 and 2029 at an estimated cost of US$7.47 billion ¹³.

• Improving the traffic flow and connectivity of the Changi airport and industrial area , with two corridors, one to the north ( Changi Northern Corridor ), whose work should be completed between 2028 and 2030, and one to the south ( Chaghi Southern Corridor ), the latter starting in 2024, after a four-year delay due to the Covid-19 pandemic crisis ¹⁴. Both include the construction of viaducts and infrastructure for multimodal transport, including cycle paths, and metro stations.

3.4. Airports

Singapore has two civilian airports and one military airport.

Select Airport , built in 1929 as a military base for the RAF, then handed over to civil aviation in 1968, today has a single runway and a passenger terminal renovated in 2018 and acts as a support airport, to relieve the traffic of the main airport of Singapore, channelling air taxi services and smaller aircraft, as well as serving as a support to the Seletar Aerospace Park ¹⁵, a 320-hectare industrial park with 67,000 square metres of built space dedicated to the aeronautical and aerospace industry, whose development was announced in 2006, with settlements starting from 2010 (with Rolls-Royce, which has created an integrated campus) ¹⁶, now undergoing expansion with a programme that foresees the construction of a further 11,000 square metres of built space by 2027 ¹⁷.

Changi International Airport is the main airport of Singapore and one of the largest airport hubs in Asia, opened in 1955 and continuously expanded. Considered among the best airports in the world, in the Skytrax ranking it has been first for 12 times since 1999 and in 2024 it is ranked second ¹⁸, it is able to accommodate 60 million passengers per year. In October 2019, “The Jewel ” was officially opened , a ten-story building , five of which are underground, which immediately became a particularly iconic building in Singapore, with its elliptical toroid-shaped tensile structure roof, from whose central hole a circular waterfall descends, the fall of which crosses five floors organized in terraces that house gardens with thick vegetation, shops, entertainment services and a significant extension of Terminal 1, which has allowed it to increase its handling capacity by well over 20 million passengers per year and connect it to Terminals 2 and 3. The airport expansion plan, called Changi East ¹⁹, includes the construction of the third runway, Terminal 5, which should be completed and operational by 2030, and a new industrial area, the expected budget is 9.53 billion dollars, of which just over 70% financed directly by the Government of Singapore and the remainder by the airport management company ²⁰. Construction of Terminal 5 has been postponed due to the Covid-19 pandemic crisis, with construction scheduled to begin in 2025, with a budget increase of $1.4 billion ²¹.

In February 2024, the Ministry of Transport launched the “Singapore Sustainable Air Hub Blueprint ”, which sets out the strategy and plan for decarbonisation and environmental sustainability of the aircraft sector; as part of the Blueprint , the Civil Aviation Authority of Singapore – CAAS will work with aviation stakeholders to reduce domestic aviation emissions from airport operations by 20% from 2019 levels (404ktCO2e) by 2030 and achieve carbon neutrality for domestic and international aviation by 2050. Among the various actions envisaged, the goal of producing and supplying sustainable aircraft fuels stands out, for which an additional contribution on air tickets will be imposed, commensurate with the mileage and class of travel (an estimated $2.22 in economy class on the Singapore – Bangkok route; $11.84 in economy class on the Singapore – London route).

3.5. Telecommunications and connectivity

Singapore aims to be a world leader in the digitalization of the economy and infrastructure.

According to the Singapore Digital Society Report 2023 ²²released by the Infocomm Media Development Authority – IMDA, Singapore has high levels of connectivity, with 99% of resident households connected to the internet and 98% of households with school-aged children having access to computers. For those who need support with digital connectivity, such as low-income households, IMDA provides subsidised digital access through DigitalAccess @Home , while 97% of residents own a smartphone , with a slightly lower concentration, 89%, in the older population.

Singapore runs a digital assistance and training programme for citizens, through a series of physical centres, the ServiceSG Centres, to help them acquire the digital skills needed to independently manage a range of tasks, including searching for information online, communicating online and interacting with other users online in a civil manner, transacting with the government and other service providers, protecting themselves from risks, and maintaining the software and hardware of their devices .

In June 2023, the Singapore government launched “ Singapore's Digital Connectivity Blueprint ” ²³, which defines the medium and long-term strategies and plans for the digitalisation of the economy and infrastructure ²⁴. The priority objectives of the Blueprint include:

• take action to double the submarine connection cables within the next 10 years;

• seamless 10Gbps end-to-end home connectivity within the next 5 years;

• ensure resilience and security for digital infrastructure;

• implement a roadmap for the development of new “green” Data Centers, to date, the electrical capacity required by Singapore's Data Centers exceeds 1.4 GW, the goal is to reduce energy consumption, increase the consumption of energy from renewable sources and reduce water consumption and the ecological footprint ²⁵;

• Promote greater adoption of the “Singapore Digital Utility Stack ” (Digital Identity, Electronic Invoicing and Payments, Document Attestation, Data Exchange) to expand the benefits of seamless digital transactions

Other objectives include:

• achieve quantum security in Singapore within the next 10 years.

• develop "Green Software".

• Low -Earth Orbit satellite services .

Furthermore, since 2017, the SME Go Digital Programme has been active, to help Small and Medium Enterprises in the digital transition, both by providing assistance and technological solutions, and through grants and loans.

3.6. Industrial parks

Small and Medium Enterprises are the backbone of Singapore's economy and are scattered throughout the city-state, however the Singapore government aims to cluster high value-added technology and manufacturing companies in sector-specific "Business Parks ", whose planning and environmental constraints have been defined by the Urban Redevelopment Authority ²⁶.

Among these, the best known and most developed ones also for attracting foreign direct investments are:

• Airport Logistics Park ²⁷, located in the northern area of Changhi International Airport , is included in the Free Zone;

• Changi Business Park ²⁸, located in the southwest area of Changi International Airport , is home to companies in the high-tech, R&D, data, software and financial sectors. In addition to serving as a base for knowledge-intensive industries, the Park also houses extensive warehousing and storage facilities, giving it a high cargo handling capacity;

• Select Aerospace Park ²⁹, located near the Seletar Airport , The Park is primarily aimed at aerospace businesses, with purpose-built infrastructure for activities such as maintenance, repair and overhaul (MRO) of aircraft and components, manufacturing and assembly of aircraft engines and components, as well as training and research and development facilities for the aircraft industry;

• Singapore Science Park ³⁰, located in the southern part of the main island of Singapore, in the area called the “Singapore Technology Corridor” ³¹, is dedicated to research and development in the fields of biotechnology, chemistry, computer science, electronics, environment and food.

• One-North Business Park ³², located not far from the Singapore Science Park, is home to companies and start-ups from the life sciences, biomedical sciences, high-tech, telecommunications and media sectors (it hosted the Lucasfilm campus until 2023), fostering a collaborative environment for innovators, researchers, venture capitalists , incubators and accelerators;

• International Business Park ³³, strategically located between the Jurong Innovation District and what has been planned as the city-state's future business district , was Singapore's first business park, opened in 1992. Today it caters mainly to multinationals looking to establish their regional headquarters, innovation hubs and advanced manufacturing operations;

• Yours Biomedical Park ³⁴, located on the western side of the main island of Singapore, at the mouth of Tuas Mega Port, is an industrial park dedicated to major pharmaceutical, technology and biotechnology companies such as Pfizer, GlaxoSmithKline and Roche. The park caters to the needs of these companies and is equipped with state-of-the-art research laboratories and operational and manufacturing facilities.

• CleanTech Park ³⁵, located near Nanyang Technological University , is the first Park dedicated to eco-business. It attracts research and development and engineering activities and is designed to encourage collaboration between research institutions, the public and private sectors.