Automation and efficiency are at the heart of Tuas-based Toll City, the $228 million logistics hub that was officially launched yesterday.

Located near road links to Malaysia and the growing Jurong region, it is expected to improve Toll's Asia-Pacific network and traffic.

The more than 100,000 sq m hub boasts innovations that are expected to increase efficiency. For example, its dedicated healthcare logistics hub includes unmanned aerial vehicles and automated guided vehicles replacing forklifts to rack and transport goods at the warehouse.

Once their lanes are mapped and programmed, the vehicles can operate overnight, thus cutting the demand for manpower.

The healthcare hub also provides its clients with smart cabinets, which store high-value medical tools, keep real-time data of stock levels, and automatically request replenishment when stocks reach their reorder point. These orders are sent to the hub's vertical lift module storage system, which uses light pointers to guide workers to the demanded items.

These systems, along with others, increase the hub's space efficiency by 40 per cent and manpower efficiency by 30 per cent.

"All of the automation overtime will help Singapore with the grey tsunami. The types of technology that we utilise in this facility remove that need for more labour, make sure things are happening quicker, smarter and in smaller spaces," said Mr Chris Pearce, president of Toll Global Logistics.

Trade and Industry Minister Chan Chun Sing said during the launch: "The need for efficient, timely urban logistics must not be underestimated as we progress into the future.

"This is why in Singapore, we are going to testbed new concepts in our urban logistics solutions for ourselves and we want to build this into a key competitive branch."