The local logistics leader is keen to capture a slice of the growing global logistics market.

In a strategic move to tap into a booming global logistics market, Singapore's leading third party logistics (3PLs) player CWT Limited has invested more than S$80 million (US$57.7 million) in two highly integrated logistics hubs.

Backed by the latest technology, CWT Logistics Hubs 1 and 2 come fully equipped with enhanced storage facilities and features for specialised handling of chemicals and hazardous goods. With nearly one million sq ft of warehouse space and port terminals in close proximity, these hubs are geared to provide extended and more comprehensive support to customers' regional and global operations.

The two hubs embody the company's objective of capturing a sizeable share of the S$346.6 billion (US$250 billion) global 3PL market. In Asia, investment in transportation infrastructure, which includes ports, logistics and container terminals, is developing rapidly, with industry estimates noting exponential growth in Northeast Asia, according to the United Nations' Economic and Social Commission for Asia and the Pacific report.

Says Loi Pok Yen, Group CEO, CWT Limited, "Asia is an emerging powerhouse to reckon with. With Singapore's status as a vital global hub and the increasing importance of this industry to our economy, there will be ample opportunities for local companies like us to expand."

Singapore on fast track

As a key player, Singapore's prominence in the logistics industry has not gone unnoticed. The country was ranked as the No. 1 logistics hub in a World Bank shipping survey last year, and lays host to 21 of the world's top 25 3PLs.

Since 2005, CWT has pumped in over S$300 million (US$216.4 million) to develop its local and overseas logistics infrastructure, of which some S$240 million (US$173.1 million) is invested in Singapore.

The logistics and supply chain management industry contributes significantly to the city-state's economy. In 2007, it accounted for 9.4 per cent of Singapore's GDP. As it stands, Singapore's robust and competitive 3PL industry offering high value, integrated supply chain services places it in a prime position within the global market.

"The Singapore government is committed to the future of the logistics and supply chain industry. We want this industry to be best-in-class and stay ahead of the curve. This will allow us to capture the huge growth opportunities in Asia-Pacific," says Lim Hng Kiang, Minister for Trade and Industry.

Showing commitment to the industry, and to stay best-in-class, the country has adopted a threepronged specialised approach. The first is to deepen its integrated and specialised logistics capabilities to service manufacturers' growing outsourcing needs and develop next generation supply solutions; second, to focus on specialised infrastructure that extends beyond ports and specialised logistics parks to TradeXchange™ a neutral and secure trade platform that accelerates the way infomation is exchanged across the supply chain; and third, to groom world-class 3PLs who leverage Singapore as their home base to develop nd expand new businesses overseas.

"On the global stage, Singapore is often recognised as a leading logistics hub because of its world-class port infrastructure and highly efficient customs. However, we must not and cannot rest on our laurels," says Lim. "Supply chains and trade patterns are always changing and Singapore must respond."

Outlook for the future

The inauguration of CWT Logistics Hubs 1 and 2 marks another milestone in the company's 38-year history. The company was first set up in 1970 to provide warehousing and container trucking services to support impending containerisation of the Port of Singapore.

In 1993, CWT was listed on the Singapore Stock Exchange. Today, as one of Asia's leading 3PLs, CWT offers integrated logistics solutions to some of the world's best known brands in the chemical, commodities, automotive, marine, oil & gas and industrial sectors. The CWT Group has a global presence in Asia, Europe, as well as Russia and the Middle East. Its global freight forwarding network and advanced systems connect customers to 120 ports and 1,200 destinations around the world.

In Singapore and the region, the company manages more than four million sq ft of warehouse space, with an additional three million sq ft due by mid 2009. Certainly in the last three years, the company has seen considerable growth in both its regional and global business. In 2007, CWT Limited posted a profitable growth, with revenues hitting S$535 million (US$385.8 million), crossing the half billion mark, and a 31 per cent rise in net profit to S$37.14 million (US$26.8 million).

Combine its achievements with the upward trend of the logistics industry, the future for CWT is promising, despite stiff competition from major global industry players. Says Loi, "CWT is aggressively pushing forth, with plans well underway to enhance existing capabilities and infrastructures to keep ahead of global market needs."