Singapore company registration specialist, Rikvin, says infrastructure projects will enhance connectivity and strengthen the city state's competitiveness and ensure local companies can deliver quality goods to the world.
At the re-branding launch of the Singapore Aircargo Agents Association (SAAA) recently, Singapore Transport Minister Josephine Teo said measures to boost air cargo capacity are underway, according to the Shipping Gazette.
The measures include the development of Changi East airbase for air freight and air express operators, as well as the fifth airport terminal, set to be ready by mid 2020s. These projects are expected to strengthen the city state's competitiveness in the long run and ability to meet future demand for air freight, Mrs Teo added.
She added that in the longer term there will be more engagement between Singapore's government agencies and the air freight industry to ensure the growth of the air cargo sector and bolster Singapore's reputation as an air cargo hub.
Rikvin observes that this reaffirmation comes against the background of a global weakening of the air freight business. The International Air Transport Association (IATA) recently said that Asia Pacific's air freight demand has remained flat (-0.2 per cent) year-on-year in August 2013. Nevertheless this represents an improvement from the year to date performance (1.9 per cent decline).
Head of operations at Rikvin, Satish Bakhda, said: "Our air connectivity has been cited by many of our clients as the reason for choosing to do business in the region from Singapore. In spite of challenges in the airfreight business, the infrastructural projects taken are in anticipation of future growth. This will mean that Singapore companies will be well-equipped to deliver quality goods to neighbouring and international economic partners when demand picks up. We see this as an all-round positive move."