Cementing its position as a pivotal hub in the Asia-Pacific (APAC) airfreight market, with strong growth indicators and strategic investments, Singapore’s Changi Airport saw a 15 percent year-on-year increase.
“Several key factors have driven this growth. One major contributor has been the surge in cross-border e-commerce, with increased volumes flowing into Singapore and via Singapore through the region,” Jaisey Yip, Changi Airport Group’s Vice President Cargo Business Division, stated.
“Additionally, feedback from the freight forwarder community highlights a rise in intermodal transshipments, particularly sea-air and air-sea flows, due to the ongoing ocean freight disruptions. Lastly, Singapore’s high-tech export sectors, such as capital equipment and advanced technology products, have shown a strong recovery in recent months.
In tandem with this growth, Changi Airport has unveiled its newly refurbished air logistic facility Changi Nexus One, designed to enhance transshipment capabilities and attract strategic logistics partners. This infrastructure advancement was further bolstered by the recent opening of a dedicated airside facility by Chinese express integrator SF Express, meaning Changi now hosts four major express integrators.
“Regionally, there has been a strong recovery in air cargo. Peer airports across the region have also reported significant year-on-year growth this year. For us at Changi, the key sectors driving this growth include not only e-commerce but also transshipment flows and imports into Singapore,” Yip explained.
“The Singapore 2030 economic blueprint outlines efforts to boost exports by 25 percent in value by 2030. At the same time, the country aims to strengthen high value-added manufacturing, such as biopharmaceuticals, semiconductors, and aerospace, at around 20 percent of its overall GDP,” Yip explained.
“These sectors produce high-value, time-sensitive, and temperature-critical goods, which are primarily transported via air freight due to their urgency and value. This places significant pressure on our air cargo sector to ensure speed and reliability. To support this, we maintain a balanced mix of freighter and passenger networks to enhance our manufacturing and export capabilities.”
Regional diversification
Over the past 12 to 24 months, global companies have increasingly pursued risk and supply chain diversification strategies. Many are adopting a “China plus one” or nearshoring approach. Southeast Asia, particularly in countries like Singapore, Malaysia, and Vietnam, saw a surge in foreign direct investment (FDI).
“Singapore has notably benefited from this shift. In the last two years alone, the country has attracted significant boosts in the biopharmaceutical sector, with five vaccine plants announcing investments. Additionally, semiconductor manufacturing sector has seen expansion, with global companies increasing their presence in Singapore and in neighbouring Malaysia,” Yip explained.
“Singapore excels in front-end semiconductor manufacturing, while Malaysia focuses on back-end manufacturing, creating complementary strengths between the two countries. Vietnam, too, has emerged as a key beneficiary of this global supply chain diversification trend.”
Sustainability
The biggest contributor to aviation emissions remains flight emissions. However, passengers and cargo do spend significant time on the ground, and this also contributes to emissions from airport and ground handling activities. Earlier this year, the Singapore government introduced the Singapore Sustainability Air Hub Blueprint, which outlines critical pathways for three key areas: airlines, airports, and air traffic control.
For airports, the largest emissions come from Scope 2, which involves the electricity used to power operations such as baggage handling systems and air conditioning. To address this, Changi has focused on two main priorities: transitioning to renewable energy and improving energy efficiency.
“In terms of renewable energy, we have started installing solar panels across all our passenger and cargo terminals. This project, set to be completed in 2025, will make Changi Airport the largest solar panel network in Singapore,” Yip explained.
“However, even with this installation, solar energy alone will not meet all our electricity needs. Therefore, we are also focused on improving energy efficiency across our buildings.
“For example, during the retrofitting of our older buildings, such as Changi Nexus One, we took the opportunity to incorporate green energy management practices.
“Sustainable construction materials are being used, and we are also installing solar panels on this new building. We are proud to share that the Building and Construction Authority has awarded Changi Nexus One the first Green Mark Platinum Positive Energy certification for a building at the airport.”
