Port operator PSA International and SATS signed Thursday a memorandum of understanding to provide cargo owners and logistics service providers sea-air connectivity in a move to boost Singapore’s status as a multi-modal transport hub, the companies said in a filing to SGX.
Multi-modal transport usually involves cargo moving under a single contract with at least two modes of transportation.
“When SATS became the world’s first ground handler to provide multi-modal meat transshipment services between New Zealand and the EU, we demonstrated that multi-modal connectivity can attract higher trade flows,” Alex Hungate, president and CEO of SATS, said in the statement.
“Today, we hope our cross-industry initiatives with PSA will now enable the whole industry to market efficient multi-modal solutions globally, through Singapore,” he added.
PSA’s CEO Tan Chong Meng added that shippers increasingly want multi-modal services for their cargo.
“This partnership with SATS will enhance Singapore’s ability to offer unique air-sea multi-modal connectivity to fulfill these demands,” Tan said in the statement.
The two companies said the tie-up will also help create new business models and supply chain innovations, while the freight industry should see improved multi-modal linkages and transit systems, which will improve transport costs and speed delivery.
PSA and SATS’ collaboration will focus on the perishables, electronics and e-commerce segments, the filing said, adding it will also aim to enhance track-and-trace abilities and data transparency as well as ease-of-shipment between different free-trade zones.
The two companies will also integrate their systems, with SATS’ COSYS+, which is a cargo terminal handling and management system, to be linked with PSA’s CALISTA, a global supply chain platform, the statement said.
“Through digitally connecting CALISTA and COSYS+, we will be able to offer multimodal users greater visibility of their cargo and better protection of cargo integrity, with optimized transit times and costs,” PSA’s Tan said.
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