Yusen Logistics breaks ground for warehouse

Yusen Logistics Singapore broke ground for its first future-ready warehouse on Wednesday as part of a $50 million investment to boost its operations.

The logistics company is building the new three-storey ramp-up warehouse on its existing premises in Tuas, which will be ready by the first quarter of 2019.

This warehouse will comprise 20,000 sq m of storage area, with 36 loading bays and an 8,000 sq m rooftop parking area for up to 100 trailers. It will be driven by the use of smart data, such as advanced robotics, radio-frequency identification, vision recognition systems and autonomous technology.

Yusen Logistics has also launched a new $6 million robotic order-picking technology at its Tuas warehouse.

The move will allow the company to raise its operational productivity by optimising storage volume from 2,000 to 3,500 cubic metres, for instance, and increase throughput for receiving, sorting and put-away by 18 times.

It will also help upskill 60 per cent of its manual labour by transforming tasks to digital skills, increasing volumes and the high mix order fulfilment rate by 200 per cent.

"Data-driven operation provides the infrastructure for process customisation," said Mr Francis Kwa, the company's head of contract logistics and information system.

"The capabilities to provide customisable work processes mean Yusen Logistics can tailor specific services for the various industry verticals. This is a unique capability.

"Storage space with tailored quality, reliable and consistent value-added services provide competitive advantages to our customers who use Singapore as a regional distribution centre."

Mr Lee Eng Keat, executive director for logistics at the Singapore Economic Development Board, said: "EDB is excited to support the ambition of companies like Yusen Logistics, to catalyse enterprise-level transformation and improve productivity through innovation and greater adoption of automation.

"This will also translate into new professional roles and career pathways for Singaporeans, as well as the upskilling of rank-and-file jobs, building the necessary talent competencies to further the strengths and capabilities of the industry."

A version of this article appeared in the print edition of The Straits Times on September 22, 2017, with the headline 'Yusen Logistics breaks ground for warehouse'. Print Edition | Subscribe