Singapore’s main postal service is spending 182 million Singapore dollars ($145 million) on a new e-commerce logistics center in a bet that online retailing in Southeast Asia is set to boom.
The three-story, 553,000 square foot facility will be capable of handling 100,000 packages daily and should begin operations in the second half of 2016, Singapore Post, known as SingPost, said Tuesday in a statement. The center will be the first of its kind in Southeast Asia, and will serve not just Singapore, but help customers deliver parcels throughout the region, according to SingPost.
“As we expand our local market presence in Asian countries with local warehousing and local delivery, we need an efficient regional hub,” SingPost’s Chief Executive, Wolfgang Baier, said in the statement.
SingPost has in recent years sought to expand its e-commerce offerings to offset declining revenues in its traditional postal business.