Dual-listed COSCO Shipping International has announced the launch of major expansion plans for phase 2 of the cogent Jurong Island logistics hub (JILH). The hub is set to be developed through the group’s wholly-owned subsidiary, Cogent Holdings Pte. Ltd.
The group says the expansion will “enhance” the hub’s operational capacity, “further strengthening the group’s position in the logistics sector, as well as aligning with Singapore's green and low-carbon transformation goals”.
According to a Sept 23 release, Jurong Island has been a hub for Singapore’s petrochemical and chemical industries and has since hosted several large-scale oil refineries and complexes.
JILH was developed by Cogent to meet the specialising logistics needs of petrochemical and chemical industries.
The group adds: “Strategically located near the Jurong Island Terminal (JIT), the hub reduces the carbon footprint of logistics operations by providing a more sustainable alternative to traditional land transportation.”
The group’s expansion plans for phase 2 comes on the back of the success of its completion of phase 1 for JILH, which was completed in 2021. Phase 1 of JILH covers 3.5 hectares of land with approximately 87,500 square metres of corresponding built-up area.
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JILH Phase 1 features several facilities, which include specialised storage, drumming services, an ISO-Tank cleaning facility and an empty container depot.
However, the group says the first phase of the JILH reached full utilisation within three months of occupancy, maintaining a 90% inventory level.
Due to the rising demand for more logistics capacity on Jurong Island, the group is currently in discussion with the Economic Development Board (EDB) and JTC for a Phase 2 Expansion.
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Phase 2 of the JILH comprises 2.5 hectares of land with approximately 62,500 square metres of corresponding built-up area, which will nearly double the hub’s capacity.
Additionally, the expansion is set to focus on integrating advanced technologies and optimising operational synergy and efficiency.
According to the group, key features of phase 2 include a facility extension which is expected to extend the existing structure, utilising shared infrastructure like a ground-to-roof ramp and enhancing design efficiency to maximise warehouse space.
Phase 2 is also set to feature a double-volume warehouse and automation, and an enhanced container depot.
The group says these enhancements will “enable the group to better serve existing and new customers across various industries, including petrochemical, chemical, and manufacturing sectors”.
The group also adds that the expansion aligns with COSCO Shipping’s strategic goals, which include enhanced operational capacity to meet growing demand for logistics services on Jurong Island, and enabling the group to establish its leadership in sustainability.
To this, the group says the launch of phase 2 “will enhance the group’s service offerings and solidify its role as a major player in Singapore's logistics industry, contributing to the country's green transformation and shaping the future of logistics on Jurong Island and beyond.”
Shares in COSCO Shipping closed 0.3 cents lower, or down 2.29%, at 12.8 cents on Sept 23.
