AIRPORT LOGISTICS PARK

Mr Andy Gan Lai Chiang asked the Minister for Transport (a) if he will give an update on the preparation of the Airport Logistics Park of Singapore which will operate as a free trade zone in the near future and (b) whether Changi Airport will be seeking to increase its income through business cooperation with other airports around the world.

Mr Yeo Cheow Tong: The Airport Logistics Park of Singapore, or "ALPS" for short, is being developed by CAAS and JTC within Changi Airport's Free Trade Zone (FTZ). ALPS was launched in November 2000 to allow Third Party Logistics service providers (or 3PLs) to export and distribute goods from local and regional manufacturers to the Asia-Pacific market in a cost-effective and timely manner. By siting their operations at ALPS, 3PLs can customise their operations to achieve rapid turnaround time while enjoying an exemption from various Government procedures for goods that do not leave the FTZ.

CAAS is responsible for the land and infrastructure works for ALPS. These works will be completed by January 2003. One company has started work on its own building which is expected to be completed by end of this year. Another MNC logistics company has also decided to build its facilities in ALPS. EDB is discussing with several others. With the gradual upturn of the global economy, CAAS, EDB and JTC are stepping up their marketing efforts to attract key logistics players to set up operations in ALPS. When fully operational, ALPS will enhance Singapore's position as a leading transport and logistics hub in the Asia-Pacific region.

Mr Gan also asked about CAAS' overseas investments. CAAS is investing in overseas airports as part of a business strategy to diversify its revenue streams. Through its subsidiary, Singapore Changi Airport Enterprise (or "SCAE"), CAAS has a 50% equity stake in Alterra Partners, a London-based airport investment company with Bechtel as the other shareholder. Alterra presently operates airports in London, Costa Rica and Lima. It is actively pursuing airport development and operation projects in Europe, Latin America and Asia including China and India.

SCAE also provides consultancy services to airports in the Asia-Pacific region such as airports in the Philippines, Fiji, India and China. Earlier this month, it signed an MOU with Hangzhou Airport in China to provide consultancy services.