New hub for metals, machinery and timber to help companies cut costs by 20%

SINGAPORE: Small- and medium-sized enterprises (SMEs) in the metal, machinery and timber industries can expect to lower their operating costs by at least 20 per cent through the use of shared services and facilities at a new six-storey development, TimMac@Kranji, when it is completed in 2020.

These services and facilities will be provided by the Singapore Cranes Association (SCA) and Singapore Timber Association (STA) under a collaboration agreement both trade associations inked with JTC Corporation on Wednesday (Jan 31).

For example, STA will offer services such as chemical treatment, sawmilling and warehousing that are required by most timber companies. These are expected to help timber companies reduce their operating costs by at least 30 per cent and achieve land savings of about 6 ha.

Meanwhile, SCA will operate an open yard to support the operations of metal fabricators and machinery owners. These include the assembly of large and bulky metal components.

The open yard will also house a load-testing facility for cranes. Traditionally, metal and machinery companies transport their cranes to another facility to undergo mandatory testing. By sharing the open yard, companies can dedicate the manpower resources and space used for that to other more productive activities. They can also enjoy cost savings of about 20 per cent.

In addition, SCA will set up a rooftop heavy vehicle workshop to provide tenants with services such as maintenance of engines, towing and recovery services. Companies can tap on this to reduce downtime by not having to send their heavy vehicles to another facility for repair works.

Speaking at the signing ceremony, Senior Minister of State for Trade and Industry Dr Koh Poh Koon said trade associations and chambers play an important role as key partners in the country’s industry transformation efforts.

“With their deep knowledge of the industries’ needs and strong networks across the industries, (they) can take the lead to develop common solutions to challenges faced by the industry and drive positive change within the community.”

KEEPING RENTALS “COMPETITIVE” AND TENANCY PERIODS FLEXIBLE 

So far, 22 companies have already signed up for units within the new development, a take-up rate of 70 per cent. Mr Leong Hong Yew, director of the food and lifestyle cluster at JTC, said he expects all the remaining units to be snapped up by 2020.

“We are pricing the development at a very competitive level, we want to help our industrialists, on average, it is about S$15 to S$16 per sq m per month on a gross basis. We will offer a standard three-plus-three-years tenancy but if due to whatever reason, if the industrialist needs a tenancy that is different to suit their business needs, we are always open to discussions, like five-plus-five-years tenancy perhaps.”

Based on the estimated prices cited by Mr Leong, one modular unit will cost about S$19,200 a month to rent.

The modular units start from 1,200 sq m and allow SMEs to take up adjacent units to ramp up their space by nearly four times to up to 4,000 sq m, providing them with the flexibility to configure their operational spaces according to their needs.

These units will also have high ceilings of up to 12m to facilitate the adoption of overhead cranes, as well as heavy floor loading of up to 50 kilonewtons per sq m to accommodate heavy automation machinery.

All in, the new development is aimed at helping companies reduce operating costs and optimise space. It stands on a land area of 5.97ha with an estimated land savings of 20ha. It has a gross floor area of 134,620 sq m.