SATS Ltd will invest over S$250 million (US$193 million) for its Singapore Hub (SG Hub) to upgrade ground operations and cargo handling infrastructure at Changi Airport.

The investment includes over S$150 million (US$115 million) to be spent over the next five years for the renewal and expansion of SG Hub’s ground support equipment fleet and S$100 million (US$77 million) to enhance cargo operations over the next two years.

Singapore-headquartered SATS provides the main air cargo, ground handling and in-flight catering services at the Changi Airport. It is one of the world’s largest providers of air cargo handling services and Asia’s leading airline caterer.

SATS’ announcement comes after Singapore Prime Minister Lawrence Wong led groundbreaking ceremonies for Changi Terminal 5 on May 14. Mega Terminal 5 will allow Changi Airport to significantly increase its handling capacity, optimize operations and leverage new opportunities as travel demand continues to increase in the decades ahead, Changi Airport authorities said.

In a statement, SATS said its initiatives will enhance operational reliability and safety, optimize turnaround times, and support growing cargo volumes at Changi Airport through to the mid-2030s when the new Terminal 5 and Changi East Industrial Zone are projected to begin operations.

“The multi-million dollar investments by SATS Singapore Hub mark an important milestone in our ongoing efforts to future-proof Singapore’s aviation ground handling and cargo operations. While the opening of Changi Airport Terminal 5 is about 10 years away, SATS is already undertaking extensive preparations to handle future operational demands by modernizing our equipment and infrastructure alongside efforts to raise and sustain a future-ready and resilient workforce,” said Henry Low, CEO of SATS Singapore Hub.

SATS established SG Hub on October 1, 2024 as a dedicated business division to support airport operations at Singapore’s Air Hub, which groups Changi Airport, Seletar Airport and the aviation industries at these gateways.

The division strengthens SATS’ position as Changi Airport’s leading solutions provider, powered by a future-ready workforce and systems that drive the global competitiveness of Singapore’s Air Hub.

SG Hub provides ground handling services such as passenger handling, baggage services, aircraft handling, security services and cargo handling services needed for safe, efficient and timely airport operations.

In tandem with investments to enhance infrastructure and fleet assets, SG Hub is nurturing a future-ready and resilient workforce that is trained, organized and equipped to support traffic growth at Singapore’s airports.

SG Hub’s focus on its people comes amid increasing competition in Singapore and internationally for talent in the aviation sector. Efforts on this front include job redesign to enhance meaningful and rewarding career pathways, upskilling initiatives, attracting new talent into its 7,800-strong workforce and leveraging technology like autonomous vehicles and artificial intelligence to boost productivity, said the Singapore-based company.

“As a Singapore-headquartered multinational company, Changi Airport remains the cornerstone of our business strategy and a flagship hub for our global network. These upgrades and enhancements will enable us to support our airline customers more effectively and ensure that Singapore continues to excel as a world-leading air hub,” said Low.