DPM Gan Kim Yong at the Maersk's World Gateway II Opening Ceremony

Mr Vincent Clerc, Chief Executive Officer of Maersk
Distinguished Guests,
Ladies and Gentlemen,

Good morning. 

It was in 2016 that then Deputy Prime Minister Tharman Shanmugaratnam, officiated the opening of Maersk’s first Regional Distribution Centre in Singapore — the World Gateway I. 

Today, I am delighted to join you to celebrate the official opening of World Gateway II, Maersk’s second Regional Distribution Centre in Singapore.

Completed in just two years, this facility adds 1.1 million square feet of logistics capacity, doubling Maersk’s footprint here to more than 2 million square feet.

My sincere congratulations to Maersk on this significant milestone. This new facility represents more than the expansion of a logistics centre. It reflects a deepening partnership between Singapore and one of the world’s leading maritime and logistics companies, a partnership that reinforces Singapore’s role as a global hub for the movement of goods.

Singapore as a Hub of Goods Flows

Over the decades, we have invested heavily in the infrastructure and institutions that allow goods to move seamlessly through Singapore.

Today, the Port of Singapore is the world’s busiest transshipment hub, connecting over 600 ports globally, and handling around one-fifth of global container transshipment flows. 

Changi Airport, on the other hand, is one of Asia’s largest air cargo hubs.

Most of the top 25 global logistics players operate in Singapore, many with their regional or global headquarters here.

Together, they form a strong ecosystem that has allowed Singapore to become a strategic logistic and supply chain hub, serving businesses across Asia.

A Century-Long Partnership with Maersk

Maersk has been an important part of that journey.

Since the first Maersk vessel called at the Port of Singapore in 1929, Maersk has steadily expanded its presence here.

Today, Singapore is Maersk’s second largest base worldwide outside Copenhagen, with more than 1,500 employees in Singapore and over 140 vessels under the Singapore Registry of Ships.

Maersk has a long-standing partnership with the Maritime and Port Authority of Singapore in areas such as digitalisation and decarbonisation of the maritime sector.

Maersk has also transformed itself in recent years into an integrated logistics company, providing end-to-end supply chain solutions across sea, land and air.

Singapore is a natural platform that fits in with this strategy, given our connectivity, infrastructure and logistics ecosystem.

When World Gateway I opened in 2016, it was one of the largest automated and customs-bonded warehouses in Asia, supporting high-tech logistics operations and regional distribution.

Today, with the opening of World Gateway II, Maersk is taking the next step.

Together, these two facilities create a powerful logistics platform for the region.

They allow high-value cargo — including pharmaceuticals, beverages, apparel and lifestyle products — to arrive in Singapore and be distributed efficiently across Asia and via sea, air or land.

This reinforces Singapore’s role as an intermodal logistics hub.

It also strengthens Singapore’s position as a regional platform for e-commerce fulfilment and supply chain management.

A More Uncertain Global Environment

But the global environment is changing.

Trade flows are increasingly shaped by geopolitical tensions, economic fragmentation and supply chain disruptions.

As a result, companies today are diversifying production, redesigning supply chains, and looking for ways to build greater resilience into their operations.

More recent conflicts — including the ongoing war in the Middle East — have affected key shipping routes and created uncertainty across global supply networks.

These developments are affecting trade flows to re-route and reorganise.

For a trading nation like Singapore, this highlights how we cannot take our position as a global hub for granted. We must continually refresh and strengthen our role as a hub for global goods flows.

Singapore must ensure that we have the capacity and capabilities to support evolving trade flows.

Investing in Hub Capacity

Singapore therefore will continue to invest in our infrastructure and capacity.

We are building Tuas Port, which will be the world’s largest fully automated port when completed in the 2040s, with the capacity to handle 65 million TEUs annually.

The development of Changi’s Terminal 5 and expanded cargo facilities will further strengthen Singapore’s role as a global air cargo hub.

But infrastructure alone is not enough – to remain competitive, we must also strengthen the logistics and supply chain ecosystem.

This includes advanced warehousing, regional distribution centres, and supply chain management capabilities that allow companies to handle their high value goods and more complex supply chains.

Investments like World Gateway II are therefore important.

They expand Singapore’s logistics capacity while strengthening our capabilities in automation, digital logistics and advanced fulfilment.

Technology and Innovation in Logistics

World Gateway II also demonstrates how technology is transforming logistics.

The facility features the Multi Shuttle System, one of the largest automated loose-piece handling systems in the region.

Together with Autonomous Case-handling Robots and Autonomous Mobile Robots, these systems help maximise the utilisation of warehouse space, improve inventory accuracy, and increase output.

This is the future of logistics.

Automation and digital technologies will enable supply chains to become faster, more reliable and more resilient.

These technologies also create new opportunities for higher value jobs.

I am glad to note that World Gateway II will create over 500 high-quality jobs in Singapore, spanning roles in operations, engineering, and supply chain management and analytics.

Sustainability in Supply Chains

Another important dimension is sustainability.

Global supply chains are under increasing pressure to reduce their carbon footprint, as companies, governments and customers place greater emphasis on greener trade and logistics.

World Gateway II incorporates sustainability features such as solar panels installed above the container parking lots, supporting greener energy use for the facility.

The logistics sector plays a critical role in the global transition towards lower-carbon supply chains.

Improvements in energy efficiency, electrification of operations, and the use of digital technologies to optimise routing can significantly lower emissions across supply networks.

Singapore will continue to work closely with partners like Maersk to advance green maritime and logistics solutions.

By combining sustainability with efficiency and innovation, we can ensure that global trade becomes cleaner and more sustainable for the future, while it continues to grow and expand.

Strengthening the Nexus Between Logistics, Ports and Air Cargo

To further reinforce our hub position, Singapore will also strengthen the nexus between our ports, airports and logistics ecosystem.

Such intermodal connectivity will become increasingly important as companies redesign supply chains to be more nimble and resilient.

Facilities like World Gateway I and II play an important role in strengthening this ecosystem, by connecting Singapore’s ports and airports with regional supply chains and consumer markets across Asia.

Conclusion

For decades, Singapore has grown by serving as a trusted hub for the movement of goods across the world. This has supported our economy, created good jobs, and connected Singapore to global markets.

But in today’s more uncertain global environment, we must continue to refresh and strengthen this role. This means investing in infrastructure, strengthening our logistics ecosystem, embracing technology and deepening partnerships with industry leaders.

Maersk has been a trusted partner in Singapore’s journey for nearly a century.

The opening of the World Gateway II reflects Maersk’s confidence in Singapore as a strategic hub for global supply chains.

I want to take this opportunity to thank Maersk for your continued partnership with Singapore.

Congratulations once again on the opening of World Gateway II.

Thank you.