SATS Ltd. has unveiled its new eCommerce “AirHub” at Changi Airport, Singapore. The US$21 million facility, backed by the Civil Aviation Authority of Singapore (CAAS), increases Changi’s e-commerce mail sorting capability, in response to growing online retail volumes.
The new 6,000-square-meter facility features technology that SATS says increases processing capacity by more than threefold, while lowering turnaround time for international e-commerce mail.
A fully automated mail sortation system increases mailbag processing to more than 1,800 an hour – up from 500. Processing time will also be reduced by 50 percent.
“E-commerce is expected to continue on its growth trajectory in the region and beyond, with continued strong consumer demand,” said Alex Hungate, president and CEO of SATS. “The SATS eCommerce AirHub enhances the competitiveness of the whole airfreight industry in Singapore by offering greater speed and transparency, as well as higher capacity to handle future growth.”
Traceability will also be improved at the SATS eCommerce AirHub, allowing customers to track and trace their mail via a data interface. That means that companies can check a connection status by confirming arrival and departure times, reducing labor costs.
Woo Keng Leong, CEO of postal services for SingPost, said that, “the improved efficiency and tracking from our collaboration with SATS will enhance SingPost’s international mail operations amid Singapore’s growing importance as an eCommerce logistics hub.”
At current rates, e-commerce is becoming a critical part of air cargo’s bottom line. Hungate pointed out that the expansion was “modular,” which, he said, would allow SATS to “increase throughput even further, with only incremental investment.”
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