SATS, SingPost in airmail handling tie-up

Aug. 17, 2015
The companies will set up an automated facility at SATS Airfreight Terminal 1 to bring their airmail consignment operations under one roof.

SINGAPORE --Air freight handler SATS has agreed to provide airmail consignment handling services to Singapore Post (SingPost), the companies announced on Monday (Aug 17).

The tie-up involves the setting up of a new 6,000-square-metre automated facility at SATS Airfreight Terminal 1 within the Changi Airfreight Centre. It will be called SATS eCommerce AirHub and it is expected to be operational by December 2016.

SingPost will outsource its airport consignment operations located at Changi Airmail Transit Centre 2 (ATC2) to SATS and be the facility's anchor customer, when its lease at ATC2 expires in end-2016.

This collaboration will result in the integration of both SATS’ and SingPost’s airmail consignment operations. The integration will enable single scanning and sorting, and remove the need to tow mail and parcel bags between facilities. This will enhance operational efficiency, including shorter cycle and connection times, and increase productivity.

When fully operational, SATS eCommerce AirHub is expected to achieve a productivity gain of more than 30 per cent, the two companies said in a joint statement.

SATS, which also has an in-flight catering business, provides a range of airport services including airfreight handling, passenger services, ramp handling, baggage handling, aviation security services, and aircraft interior and exterior cleaning.