Seletar aerospace hub making good progress

Source : Straits Times – 4 Jun 2009

FRESH details have emerged on the development of Seletar Aerospace Park, where construction work is largely on track despite the economic downturn.

Roads and other infrastructure projects for the first phase will be completed soon. These works include a new substation that will supply power to the entire aerospace park and airport.

Work has also started on lengthening the runway, expanding the airport and building a new air traffic control tower.

Then, by the year end, work will start on a new commercial complex for aerospace industry players.

In a progress update, JTC Corp’s chief executive Ow Foong Pheng yesterday unveiled new details on the park.

Plans are under way for a second factory-like facility – for companies needing space for heavier manufacturing and aircraft maintenance, repair and overhaul work.

Talks are being held with industry players on the development of a shared hangar facility, she added.

Speaking at the ground-breaking for a new fuel depot, Mrs Ow said: ‘Companies will be able to tap on this shared hangar as and when they need it. This will enable them to save on the need to invest in fixed infrastructure and enjoy operational cost savings in the long run.’

The target is to launch a site for this purpose early next year. JTC’s director for the aerospace cluster Tang Wai Yee told reporters it is hoped the private sector will take up the project.

The facility will be useful for smaller firms clustered in the area which may not be able to afford their own hangar.

JTC is spearheading the transformation of the airport area into a 300ha aerospace hub – set to be completed by 2018.

As part of the plans, ST-Airport Services will build a new fuel depot on a 1.07ha site to serve the new park.

When completed by August, the $6 million facility will be able to store about 300,000 litres of jet fuel, more than double the previous capacity. This can be expanded to 500,000 litres if necessary.

ST-Airport Services, majority-owned by Toll Asia – a unit of ST Logistics – has been supplying fuel there since 1996.

President and chief executive of Toll Asia Wayne Hunt said ST-Airport is keen to be part of the development. ‘This new fuel facility will allow us to do that, and is testament to our commitment to the aviation industry in Singapore.’

The downturn has meant companies such as engine-makers Rolls-Royce and Pratt & Whitney have delayed plans to build new facilities at Seletar.

But the long-term prospects for Singapore’s aerospace industry remain strong, industry players said. Last year, total industry output exceeded $7 billion, compared to $6.9 billion in 2007.