Australia’s Toll Group has unveiled its blueprint for Toll City, a 100,000-square-metre logistics hub in Tuas, Singapore. The SGD 228 million (USD 166 million) five-level, ramp-up facility will house state-of-the art automation systems that will reduce manpower requirements by as much as 40%.

Guest-of-Honour, Minister of State for Trade and Industry, Teo Ser Luck, joined Toll Global Logistics CEO Chris Pearce and Chargé d’Affaires, Australian High Commission Adrian Lochrin at a groundbreaking ceremony on July 27.

Pearce said the development is a key part of Toll’s strategy to strengthen its presence in the Asia-Pacific region and to continue providing best-in-class supply chain solutions across different market sectors.

“The size and scope of this investment is a testament to Toll’s intent to achieve supply chain excellence in Asi- Pacific for its customers,” Pearce said. Toll City will redefine warehousing solution options for its customers through leading-edge technology and innovation, he said.

Some of the high-tech options being reviewed for the Toll City development include high-speed unit picking, voice picking and intelligent conveyor systems. The integrated transport and warehouse systems are complemented by energy-efficient initiatives, including rainwater harvesting and energy monitoring.

Singapore Economic Development Board Assistant Managing Director Kelvin Wong, who also attended the ceremony, said the investment marks another significant milestone in Toll’s presence in Singapore.

“The success of Singapore as a world-leading logistics hub stems from the close collaborations with key industry players, such as Toll Group,” Wong said. “Toll City demonstrates Singapore’s position as a strategic base for regional supply chain operations, as well as Toll Group’s commitment to set new benchmarks for Singapore’s logistics industry by creating solutions that drive productivity growth.”

Pearce said that the completion of Toll City in mid-2017 will enhance Singapore’s position as a regional logistics hub and provide Toll’s customers access to greater flexibility and scalability in their supply chains.

Toll City’s proximity to road links to Malaysia and the growing Jurong region makes the facility an excellent land-sea interface for its customers. It also coincides with the planned 2020 completion of the Tuas Port, which will consolidate all of Singapore’s container operations in one terminal and handle up to 65 million TEUs per year when fully operational.

Toll Group is a division of Japan Post, which operates one of the largest domestic mail operations in the world with approximately 195,000 full-time employees across a network of more than 24,000 post offices throughout Japan. The company is the region’s leading provider of logistics services, employing approximately 40,000 people across some 1,200 locations in more than 50 countries.

Toll Group employs about 1,000 people across seven facilities in Singapore alone, not counting Toll City.  The Tuas facility is its largest investment so far since being acquired by Japan Post in May. Prior to the Toll City logistics facility, the Toll Group’s biggest investment in Singapore was a SGD 300 million (USD 219 million) offshore petroleum supply base in Loyang that opened in May 2013. It is also considering building more of such hubs in Singapore and upgrading its logistics facilities across the island.