WAREHOUSE SPACE : LOCATION DECISIONS AND USER REQUIREMENTS

Abstract

Singapore's role as a warehousing and distribution centre is actively promoted by the Singapore Government. A lot of companies are impressed by the vibrant economy where a positive business environment exists. Warehousing space, available at competitive rates, serves as another attraction. Futhermore, Singapore's sea and air services are world acclaimed, linking the Republic to all corners of the world.

The promotional efforts of the Port of Singapore Authority (PSA), Trade and Development Board (TDB), Economic and Development Board (EDB) and various large warehouse operators in luring more multinationals to establish their distribution centres here must be supplemented with the acquisition of new equipment and the investment in expensive infrastructure. This push by the various representatives has augmented the emergence of a new generation of warehouses known as distribution parks or distriparks, being state-of-the- art developments to meet the changing business environment.

The aim of this study is to investigate some of these requirements, to see how they have changed with the shift towards higher technology industries. It was found that most warehouse users rank on-site vehicular access planning in top priority, placing emphasis on the adequate provision of carparking space and dTrect loading facilities. The factors affecting location decisions are also looked at, to present a more complete picture of the type of warehouse modern day users demand. The investigation revealed that location decisions are influenced mainly by the need to minimise costs; minimising transport costs as well as rentals or purchase price, so that profits can be maximised.

With an increasing number of private developments being planned, the findings of this study can perhaps provide some direction to propel Singapore further as a true global hub for cargo distribution.