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Air CargoSet your sights further

contents04 / Singapore: Your Business at The Heart of Asia

06 / Engines of Growth

12 / A World Class Logistics Hub

22 / Your Gateway to the Region

24 / Set Your Sights Further with Singapore Changi Airport

26 / The Sky’s the Limit

28 / Changi Airfreight Centre

29 / Airport Logistics Park of Singapore

30 / Map of Changi Airfreight Centre (CAC) and Airport Logistics Park of Singapore (ALPS)

32 / Standards

33 / Security

34 / Conveying Success

36 / Take Off with Singapore Changi Airport

At the heart of Singapore’s thriving business ecosystem

is a unique blend of competitive strengths that makes this

country the location of choice for global enterprises. This

distinctive combination of core competencies, coupled with

Singapore’s physical and metaphorical location between

Western sophistication and Eastern growth potential, confers a

host of benefits to the businesses that invest and reside here.

A cosmopolitan society, Singapore is an ideal platform for the

meeting of global talents, ideas, funds and businesses.

Singapore’s extensive network of Free Trade Agreements,

Avoidance of Double Taxation Agreements and Investment

Guarantee Agreements, as well as its comprehensive air, sea

and IT infrastructures, provides for the seamless flow of goods

and services to markets around the world.

Singapore’s safe, pro-business environment, supported by a

well-respected government with transparent and consistent

policies, has made it a compelling location for businesses. Home

to a concentration of international enterprises, Singapore has a

vibrant enterprise ecosystem that fuels interaction and growth.

Today, over 7,000 multinational companies have established

their headquarters in Singapore, using it as a base for expansion

into the Asia Pacific.

Singapore: Your Business at The Heart of Asia

Most Competitive Place for BusinessKPMG’s Competitive Alternatives Study 2006

Ranked Top for Quality of Air Transport InfrastructureWorld Economic Forum’s Global Competitiveness Index 2007-2008

Ranked Top on the Ease of Doing BusinessWorld Bank’s Annual Doing Business Report for 4 years from 2006-2008

Picture courtesy of Singapore Tourism Board04 / / 05

GROSS DOMESTIC PRODUCT BY INDUSTRY IN 2007

Manufacturing 24%

Construction 4%

Wholesale & 16%Retail Trade

Financial Services 12%

Business Services 13%

Transport & Storage 9%

Information & 4%Communications

Others 18%

Engines of Growth

S$300,000

S$250,000

S$200,000

S$150,000

S$100,000

S$50,000

2004 2005 2006 2007

GROSS DOMESTIC PRODUCT AT 2008 MARKET PRICES (in millions)

+ 8.1%+ 8.8%

+ 12.1%

Manufacturing contributes about 25% to Singapore’s GDP. By 2018, Singapore aims to raise manufacturing

output to S$300 billion, from S$238 billion in 2007, by strengthening its capabilities in key industries such as

electronics, chemicals, biomedical sciences, aerospace engineering and telecommunications, while venturing

into new areas of growth, such as nanotechnology, environment and water technology.

By attracting a steady pipeline of investment, Singapore is on track to achieve this target. Fixed asset

investment (FAI) in manufacturing reached an all-time high in 2007, as more companies are attracted by the

value proposition it offers. Nearly 400 projects were garnered totalling S$16.1 billion, including ExxonMobil’s

second world-scale petrochemical project in Singapore, Neste Oil’s next-generation biodiesel manufacturing

plant and Novartis’ biotechnology plant.

06 / / 07

Electronics and Telecommunications

Electronics is the bedrock of Singapore’s manufacturing sector, accounting for about 30% of the nation’s

manufacturing output and employing over 90,000 workers. It is home to 14 wafer silicon fabrication

plants, including the world’s top three wafer foundries, and is a key player in computer peripherals, data

storage, infocommunication products and contract manufacturing.

The profile of the industry may have changed over the years as it shifts towards higher value added

products and services, but the industry has remained a key contributor to the manufacturing sector.

Newcomers like Soitec and Phillips Lumileds have joined major players like Seagate, Sony, Hewlett-

Packard, STMicroelectronics and Matsushita to enhance Singapore’s vibrant electronics eco-system.

Singapore’s aim is to be a world-class electronics hub, creating manufacturing solutions and producing

high value-added components for the global market.

Singapore’s telecommunications industry is well-integrated. A wide array of companies call

Singapore home, from infocommunication product developers and network equipment providers to

telecommunications operators, data centres and application developers. These companies include

Avaya, Alcatel-Lucent, Cisco, Harris Stratex and Tata. They are engaged in a full suite of activities ranging

from headquarters operations, R&D, industrial design, supply chain management and manufacturing,

to test-bedding and application development.

Aerospace

With over 100 companies, Singapore has the largest maintenance, repair and overhaul

(MRO) cluster in Asia Pacific with over 100 companies offering comprehensive total

solution capabilities. Among them are the top three aero-engine makers: Rolls-Royce,

Pratt & Whitney and GE Aviation Services; and the world’s largest third party MRO service

provider, ST Aerospace.

Singapore is also home to leading aerospace manufacturers and suppliers of engines,

engine casings, engine gears, valves, seat actuators, electrical power systems and

galley equipment. It is Rolls-Royce’s choice for its first manufacturing plant in Asia to

manufacture engines for large commercial aircraft.

© ST Aerospace © ST Aerospace

08 / / 09

Biomedical Sciences

The biomedical sciences industry is one of the fastest growth sectors in Singapore. Since the year

2000 when Singapore began its focused effort to develop the industry, manufacturing output for the

sector has quadrupled from S$6.3 billion to S$24 billion, at a compounded annual growth rate of 21%.

The sector now accounts for 10% of Singapore’s manufacturing output.

Singapore is now host to 11 leading global pharmaceutical and biotechnology companies, including

Abbott, Alcon, Genentech, GlaxoSmithKline, Lonza, Merck Sharp & Dohme, Novartis, Pfizer, Sanofi-

Aventis, Schering-Plough and Wyeth, which have set up over 25 commercial-scale manufacturing

facilities here. Companies are riding on Singapore’s capabilities to expand beyond manufacturing into

process development to support and strengthen their production base.

In addition, Singapore has established its position as one of Asia’s leading locations for global

pharmaceutical companies and top contract research organisations to carry out regional clinical

coordination and early phase trials.

Energy and Chemicals

The energy and chemicals industry is the biggest manufacturing cluster in Singapore. Since

the 1960s, the industry has attracted many high value investments. Today, the country is one

of the top three centres for export refining and one of the top ten petrochemical hubs in the

world, generating $81.7 billion of manufacturing output in 2007.

As Asia continues to be a strong region of growth, Singapore’s pole position as a leading

energy and chemicals hub has attracted key industry players to set up here. Significant

developments include two upcoming crackers from ExxonMobil and Shell which will allow

Singapore to build a critical mass of feedstock options to develop new chemical chains and

move the industry up the value chain from commodities to high value specialty chemicals

and polymers.

10 / / 11

The unique blend of strengths that make Singapore a key global supply chain and logistics hub stems from a robust infrastructure

comprising the world’s busiest container transshipment port, one of the world’s busiest and best connected airports in Asia, state-

of-the-art information technology, financial expertise and a professional talent pool. It is no wonder that DHL, TNT and UPS have

based their Regional Headquarters in Singapore to support their diverse business needs of their customers in Asia, while leading

multinationals such as Hewlett-Packard, IBM and Lenovo have also set up supply chain towers here.

There are some 3,000 logisitics and supply chain management companies offering value-added solutions to multinationals, including

sourcing, order management and optimised network distribution. Amongst them are 21 of the top 25 third party logistics providers

(3PLs), many with dedicated teams to provide tailor made solutions for Asia and beyond.

The global logistics industry has honoured Singapore for its logistics excellence. In the first comprehensive study on logistics by the

World Bank, global freight forwarders and express carriers ranked Singapore as the top logistics hub among 150 countries in the

Logistics Performance Index.

Singapore is also host to Regional Distribution Centres (RDCs) in a broad range of sectors, ranging from infocomms and fast moving

consumer goods to electronics, chemicals and the life sciences.

A World Class Logistics Hub

“As a key trading, financial and logistics hub for the region with a conducive business environment backed by stable infrastructure and a talented workforce, Singapore is an ideal location for TNT’s regional operations. Singapore’s strategic location and healthy trade links were also key factors in our decision as it allows TNT to tap into the growing express freight volumes from Singapore to Europe, China and within Southeast Asia. We are also heartened by the continued support from the Singapore government which has facilitated our business plans for Southeast Asia, such as our recent 100 million euro investment in this region which includes the thrice-weekly flights of our Boeing 747-400ER Freighter into Singapore to meet growing demand for express freight services in the region.”

Mr Onno Boots

Regional Managing DirectorTNT Southeast Asia

Singapore is ranked Top in World Bank’sLogistics Performance Index 2007

12 / / 13

Electronics and Telecommunications

Qimonda, leading global supplier of Dynamic Random Access Memory (DRAM) products, opened a new global distribution centre in

Singapore in 2007 to complement the company’s three other distribution centres in San Jose, Frankfurt and Tokyo. Operated by DHL Exel

Supply Chain, the 2,333-square metre centre has helped Qimonda to streamline its supply chain management processes, and shorten

delivery time to customers worldwide.

Numonyx, a non-volatile memory company formed out of Intel Corporation and STMicroelectronics, has its global distribution centre in

Singapore. Inaugurated in July 2008, the centre is set to boost the company’s competitive supply chain performance. Operated by its

strategic logistics service provider DHL, the centre will consolidate and channel the products from its back-end manufacturing plants and

suppliers to customers.

Avaya, a US Fortune 500 network and equipment company, has set up a finished goods distribution centre in Singapore which has

generated huge savings for the company. All Avaya products manufactured in China, Thailand and Indonesia are consolidated and shipped

to regional customers and business partners from the centre, housed at DB Schenker’s Megahub located within Changi Airport’s Free

Trade Zone (FTZ). With this new supply chain management strategy, Avaya expects to reduce cost by up to 80% and reduce lead-time for

product delivery for most of the Asia Pacific from two weeks to two days.

14 / / 15

Aerospace

Boeing launched its Integrated Materials Management (IMM) Asia Regional Centre in Singapore

in March 2007 to maintain and manage airlines’ spare parts inventory, providing items to the airline

mechanics as needed. Housed at Schenker Singapore’s Megahub – the largest freight and logistics

hub located at ALPS within the Free Trade Zone – where Boeing maintains a regional distribution

centre, IMM has helped airlines to reduce their inventory holding costs and other supply-chain

management costs.

Brazilian commercial jet manufacturer Embraer opened its US$40 million regional logistics hub in

Singapore in 2007 in its drive to raise its profile in Asia. Operated by Menlo Worldwide under an

integrated turnkey programme incorporating warehousing, logistics, transportation management and

technology services, the hub has enhanced its support services to regional customers.

16 / / 17

Energy & Chemicals

Handling of chemicals is a niche business demanding special capabilities

and facilities. Through cumulative experience over decades, homegrown

CWT is the largest 3PL in Asia for chemical logistics, offering a full suite of

services, including in-plant logistics management, transportation, drumming,

storage and inventory management, and distribution for companies such as

BASF, DuPont and International Specialty Products.

Biomedical

TNT has established the largest life sciences focused regional distribution

centre in Singapore. Located near Singapore Changi Airport, the 6,088-square

metre Life Sciences Express Hub uses the latest in cold chain management

technology to safely transport and store goods ranging from medical devices

and clinical diagnostics to pharmaceuticals and biotechnology. By leveraging

on Singapore’s central location and TNT’s extensive network, customers can

reach distributors, hospitals or clinics in all major cities in Asia within 24 hours.

18 / / 19

Lifestyle

Diageo, the world’s leading premium beverage alcohol company, partnered IDS Group to respond

to the needs of a diverse and growing Asian market. Since the Diageo Asia Pacific Logistics

Hub was inaugurated in 2007, Diageo has cut the average product lead-time – from production

through to point-of-sale – in the region from eight to ten weeks to a mere one to three weeks.

Luxury goods conglomerate LVMH Fragrances & Cosmetics has collaborated with SDV Logistics

Asia Pacific to set up its second Regional Logistic Hub which services the Asia Pacific region, the

United States and Canada. The warehouse is a key element in supporting its brand development

in Asia Pacific, allowing LVMH to customise its product range, from labelling to repacking or kitting

for promotional operations, to suit the needs of its growing Asian client base.

Perishables

Singapore is the ornamental fish capital of the world, exporting

in excess of US$60 million worth of tropical fish annually, and

accounting for about 30% of the global market. The fish are packed

into plastic bags with oxygen, loaded on the first available flight and

zip to 82 countries across the globe. Fast, efficient handling coupled

with high standards of breeding has helped to keep mortality rate

down to acceptable levels of less than 2%.

20 / / 21

CANADA

USANETHERLANDS

SOUTH AFRICA

ZIMBABWE MAURITIUS

INDONESIA

AUSTRALIA

NEW ZEALAND

PAPUA NEW GUINEA

RUSSIA

SOUTH KOREA

JAPAN

EGYPT

SEYCHELLES

MALDIVES

SRI LANKAMALAYSIA BRUNEI

DARUSSALAM

VIETNAMCAMBODIA

MYANMARTHAILAND PHILIPPINES

TAIWANHONGKONG

MACAU

CHINA

BANGLADESHINDIA

SAUDIARABIA

UNITEDARAB EMIRATES

NEPAL

NORWAYFINLAND

SWEDENUNITED KINGDOM

IRELAND

DENMARK

POLANDGERMANY

LUXEMBOURGBELGIUM

FRANCE

SWITZERLANDAUSTRIA

CZECH REPUBLIC

ITALYSPAIN GREECE

TURKEYAZERBAIJAN

JORDANKUWAIT

QATARBAHRAIN

PAKISTAN

With its good connectivity and transport infrastructure that is rated one of the best in the world, Singapore is

the gateway to Asia Pacific.

Changi Airport is currently ranked as one of the top five air cargo terminals in Asia and top ten in the world by

Airport Council International (ACI). It is served by some 80 airlines operating over 4,300 weekly scheduled

flights linking Singapore to more than 185 cities in over 55 countries. There are also 17 airlines operating

more than 300 weekly scheduled pure freighter flights linking Singapore to about 60 cities in 30 countries.

This unmatched connectivity, coupled with Singapore Changi Airport’s handling efficiency, has enabled

companies to lower their logistics costs, improve their time to market, and enhance customer service.

Your Gateway to the Region

22 / / 23

Since its opening in 1981, Singapore Changi Airport has established itself as a leading aviation hub. As one of the world’s busiest

airports for air cargo, we handle an estimated 1.9 million tonnes annually. Cargo volume has been growing at almost 5% per annum

on average for the past six years with transhipment volume accounting for about one-third of its throughput.

Renowned internationally for our high level of service quality and efficiency, Changi Airport consistently sets new standards in

operational efficiency and expertise to meet the changing needs of the cargo community.

Set Your Sights Further

with Singapore Changi Airport

CHANGI’S CARGO PERFORMANCE (tonnes)

1,950,000

1,900,000

1,850,000

1,800,000

1,750,000

1,700,000

1,650,000

1,600,000

1,550,000

1,500,000

1,450,0002003 2004 2005 2006 2007

24 / / 25

The Sky’s the Limit

Best Airport for Cargo – ASEANFrost & Sullivan ASEAN Transport & Logistics Awards 2008

Best Airport – AsiaThe Asian Freight and Supply Chain Awards (awarded 22 times since 1987)

At Changi Airport, we endeavour to do our best to help you to grow your business. We

have a dedicated team tasked with studying trends and developments within the aviation

industry to identify possible growth opportunities for airlines.

We strive to develop a collaborative and consultative relationship with you to understand

your business needs.

This close partnership with our business partners is our winning formula, securing for Changi

Airport more than 300 prestigious awards over the years. One of the most recognised is

the International Air Transport Association (IATA)’s Eagle Award which honours airports

for outstanding performance in customer satisfaction, cost efficiency and continuous

improvement.

Singapore is among our major hubs in Asia. It will remain important to our future development in South East Asia.”

Carsten Spohr

CEO Lufthansa Cargo

26 / / 27

Changi Airfreight CentreAirfreight operations at Singapore Changi Airport take place at the Changi Airfreight Centre (CAC), a 24-hour

free trade zone where transshipment cargo can be broken down and reconsolidated with minimal customs

formalities. Within the 47-hectare facility, there are nine airfreight terminals (AFT) with a combined handling

capacity of three million tonnes of cargo per annum, in addition to two dedicated Express and Courier Centres

to accommodate time-definite shipments. Together with 130,000 square metres of office and warehouse

space and 12 freighter parking bays capable of holding the largest freighters, the CAC offers efficient and

hassle-free transfer and clearance of goods.

Airport Logistics Park of SingaporeStrategically located within the free trade zone, The Airport Logisitics Park of Singapore (ALPS) allows 3PLs

to leverage on Singapore Changi Airport’s excellent connectivity and superior handling efficiency for quick

turnaround of value-added logistics and regional distribution activities. Today, the 26-hectare facility is

almost fully occupied by 3PLs providing their customers with fast and efficient value-adding replenishment

and fulfilment activities for the entire region. Changi International Logispark (South) complements ALPS by

providing a dedicated logistics facility in close proximity to Changi Airport just outside the free trade zone.

28 / / 29

CHANGI SOUTH

CHANGI NORTHCHANGI

BUSINESS PARK

SINGAPORE CHANGI AIRPORT

AIRPORT LOGISTICS PARK OF SINGAPORE (ALPS)

Map of Changi Airfreight Centre (CAC) and Airport Logistics Park of Singapore (ALPS)

LOYANG

AIRMAIL TRANSIT CENTRE

CAC CUSTOMS CHECKPOINT

CAB E

CAB DFUEL

FARM

SIA AIRLINE HOUSE

SIAEC HANGARS

ALPS CUSTOMS

CHECKPOINT

DHL SINGAPORE

HUB

TNT SOUTHEAST

ASIA HUB

CAB CMEGAPLEXSWISSPORT

AFTMAINTENANCE BASES

CIAS AFT

SATS AFT

ALPS

SATS AFTSATS AFT

Airfreight Terminals (AFTs)

Cargo Agents Buildings (CABs)

Customs Checkpoint

Free Trade Zone Boundary

LEGEND

Logistics Warehousing (local distribution and exports)

Research & Development / Aerospace Engineering /Knowledge Based Industries

Aviation / Aerospace / General Industry Logistics

Light Manufacturing and Logistics Warehousing

LEGEND

CHANGI SOUTH

CHANGI AIRFREIGHT CENTRE (CAC)

TERMINAL 1

TERMINAL 3

TERMINAL 2

30 / / 31

Changi Airport adopts a multi-layered approach to security and safety which ensures cargo

integrity without impinging on the industry’s need for quick turnaround of time sensitive

shipments as well as value-added logistics.

Our security level is raised by another notch with the implementation of the Regulated Air

Cargo Agents Regime (RCAR) on 1 April 2008. RCAR seeks to enhance cargo security on

passenger flights by ensuring that consignments originate from regulated agents or secured

sources. Consignments from other sources are subject to appropriate security checks to

prevent any illegal, unauthorised tampering and sabotage.

Security

At Singapore Changi Airport, stringent standards are established

for ground handlers to ensure they deliver world-class services

to cargo agents and shippers. These standards are regularly

benchmarked against other international airports to ensure

relevance and competitiveness.

Ground handlers have done Changi Airport proud by exceeding

expectations on all counts. They have achieved a near perfect

score on all of the key performance standards.

Standards

Performance Standards Target Achieved*

Cargo available within 3.5 hours of passenger aircraft arrival 90% > 99%

Cargo available within 5.5 hours of freighter aircraft arrival 90% > 99%

Cargo documents available within 2 hours of passenger aircraft arrival 90% > 99%

Cargo documents available within 4 hours of freighter aircraft arrival 90% > 99%

*Full year figures from 2007

32 / / 33

At Singapore Changi Airport, we believe in developing partnerships with our customers. We take

delight in your success, and endeavour to work with you to achieve it. We have resources that you

can draw on to help you to identify growth opportunities and sharpen your competitiveness.

Through this collaborative and consultative relationship, we can better respond to the evolving

dynamics of the global economy to achieve greater heights with you.

Conveying Success“Singapore Changi Airport is widely recognized as one of the best airports in the world, and serves as an important international hub for both passenger and cargo movements. With its 24-hour Airfreight Centre, high service standards and efficient processes, Singapore Changi Airport has attracted world class distribution and logistics companies to set up operations in Singapore. Singapore Airlines Cargo shares Changi Airport’s commitment in service excellence and operational efficiency, and deeply appreciates the consistently strong support and assistance Changi Airport offers to its airline and logistics partners.”

Mr Goh Choon Phong

PresidentSingapore Airlines Cargo

Celebrating the achievements of airline partners at Changi Airline Awards

34 / / 35

All information is correct at time of print (October 2008). Copyright © Civil Aviation Authority of Singapore 2008. All rights reserved.

At Singapore Changi Airport, we make it our business to ensure that your business grows with

us. As one of the world’s leading airports, we understand the industry intimately and respond

swiftly to emerging trends.

Beyond our excellent connectivity and efficiency, you can count on our commitment and foresight

as we chart the way forward with you, to provide you with customised business solutions that

work. We believe in your potential – that is why we constantly strive to innovate and expand our

capabilities to meet your business needs.

It’s time to set your sights further with Singapore Changi Airport. Because right here at the heart

of Asia, we have your business success in sight.

Take Off with Changi

36 /