Sats to invest over $250m to upgrade operations, cargo handling infrastructure at Changi Airport

SINGAPORE – Singapore-listed ground handler and in-flight caterer Sats will be investing over $250 million to upgrade its ground operations and cargo handling infrastructure at Changi Airport.

The investment includes over $150 million to be spent over the next five years to renew and expand its Singapore Hub’s (SG Hub) ground support equipment fleet, it announced in a filing on the Singapore Exchange on May 15.

This fleet refers to specialised commercial vehicles used to support airport operations. The project will involve refurbishing 500 of these commercial vehicles and equipment, which is about 40 per cent of SG Hub’s current ground support equipment motorised fleet. The investment will also help Sats expand to support growing business volumes.

Sats will spend $100 million to enhance cargo operations over the next two years.

It will also leverage technology like autonomous vehicles and artificial intelligence to boost productivity.

Sats Singapore Hub chief executive Henry Low said that the investments mark an important milestone in the company’s ongoing efforts to prepare its aviation ground handling and cargo operations for the future.

He said: “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 modernising our equipment and infrastructure alongside efforts to raise and sustain a future-ready and resilient workforce.”

SG Hub was established on Oct 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 hub provides ground handling services such as passenger handling, baggage services, aircraft handling, security services and cargo handling services that are critical for safe, efficient and timely airport operations.

Sats’ strategic initiatives will enhance operational reliability and safety, optimise 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 start operations, Sats said in its bourse filing.

“These investments demonstrate Sats’ commitment to the Changi ecosystem as well as the importance of the Singapore air hub to our business globally,” it said.

Besides equipment and infrastructure improvements, Sats added that SG Hub is also nurturing a workforce 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,” Sats said.

Measures to focus on training people include redesigning jobs to enhance meaningful and rewarding career pathways, upskilling initiatives, and attracting new talent into its 7,800-strong workforce, Sats added.

Sats’ shares closed at $2.97 on May 15, up 0.34 per cent from its previous close of $2.96.

• Sue-Ann Tan is a business correspondent at The Straits Times covering capital markets and sustainable finance.

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