PSA International Pte Ltd (PSA) and SATS Ltd (SATS) have signed a memorandum of understanding (MOU) to provide cargo owners and logistics service providers with seamless connectivity for greater supply chain efficiency, and to boost Singapore’s status as a key multimodal transport hub.

Enterprise Singapore facilitated the multimodal transport collaboration as the lead agency driving Singapore’s growth as a global trade and connectivity hub. Combining sea and air connectivity services, the partnership between PSA and SATS strengthens Singapore’s position as a global transshipment hub for air and sea cargo, paving the way for new business models and supply chain innovation. The freight industry, including small and medium-sized enterprises, also stands to benefit from improved multimodal linkages and transit systems for better supply chain efficiency, optimized transport costs, and faster delivery.

PSA and SATS will collaborate on a wide range of cross-industry initiatives, particularly in the perishables, electronics, and e-commerce spaces. From “Yard-to-Port” data linkages and network extensions between both companies, to enhanced track-and-trace capabilities, the partnership will facilitate data transparency and ease of shipment movement within different free-trade zones (FTZs). For example, as the world’s first ground handler to receive European Union (EU) approval as an authorized establishment for the provision of meat transshipment services between New Zealand and the EU, SATS’ services could potentially be extended to new trade routes across both companies’ networks.

The MOU was signed by (front left to right)  Yacoob Piperdi, executive vice president, Gateway Services, SATS, and Ong Kim Pong, regional CEO for Southeast Asia, PSA International, and witnessed by (back left to right)  Satvinder Singh, ACEO, Enterprise Singapore; Alex Hungate, president and CEO SATS; Lam Pin Min, Senior Minister of State for Transport & Health; and Tan Chong Meng, Group CEO, PSA International.

Beyond physical cargo movement, SATS and PSA will also integrate their systems to aid regulatory compliance and build data analytics capabilities. COSYS+, a comprehensive cargo terminal handling & management system operated by SATS, will be linked with CALISTA, the global supply chain platform developed by PSA’s subsidiary GeTS Asia Pte Ltd, to provide real-time updates and greater visibility for shipments transported via multimodal channels.

“When SATS became the world’s first ground handler to provide multimodal meat transshipment services between New Zealand and the EU, we demonstrated that multimodal connectivity can attract higher trade flows. Today, we hope our cross-industry initiatives with PSA will now enable the whole industry to market efficient multimodal solutions globally, through Singapore.” said Alex Hungate, president and chief executive officer, SATS.

Tan Chong Meng, Group CEO, PSA International, said, “Shippers are increasingly seeking innovative multimodal solutions for their cargo to reach their preferred markets competitively. This partnership with SATS will enhance Singapore’s ability to offer unique air-sea multimodal connectivity to fulfil these demands. In addition, through digitally connecting CALISTA and COSYS+, we will be able to offer multimodal users greater visibility of their cargo and better protection of cargo integrity, with optimized transit times and costs.”