Singapore has invested US$14.76 million to support improvements in the integrated and shared delivery systems to reduce bottlenecks on the country’s roads.

The pilot programme, sponsored by the Infocomm Development Authority, will see a focus on three shopping malls in the Lion City and last mile delivery from the warehouse to the retail outlets. The aim is to reduce the number of trucks on the road and delivery manpower by between 25 percent and 40 percent. The expectation is that waiting and queuing times for delivery vehicles will be reduced by 60 percent.

A US$11.7 million grant will also be used to co-fund the use of automated guided vehicles in warehouses, a project imitated by the Singapore Logistics Association. The vehicles will be deployed in the ‘feeding’ area of the warehouses to reduce redundancy in storage and retrieval.

In another initiative, the Singapore Transportation Association (STA) is also developing an industry chassis pool, which trucking companies can utilise during peak demand periods. The idea is that trucking companies will optimise their own chassis fleet size to match that of general demand, rather than peak needs. The STA expects to launch the first chassis pool in either 2017 or 2018 and eventually develop multiple pools to meet the needs of truckers across Singapore.

“We have a highly reliable and well regarded logistics sector. But we have to evolve and change, if we are to continue doing well,” Deputy Prime Minister Tharman Shanmugaratnam said in an interview with Singapore’s news website.

“Most fundamentally, technology is transforming logistics chains. It will disrupt many businesses, but also provide huge opportunities for others. Advances in sensors, robotics and cloud computing will allow logistics companies to overcome many current constraints and grow,” he added.