Speech by Minister Desmond Lee at the official opening of the Jurong Port Integrated Construction Park

Wednesday, 27 November 2024

Mr Wee Siew Kim, Chairman of Jurong Port

Mr Winslaw Tan, President of the Ready-Mixed Concrete Association of Singapore

Distinguished Guests, Ladies & Gentlemen

Introduction

Good morning. I am glad to officially launch the Jurong Port Integrated Construction Park (Jurong Port ICP) today.

This is the first Integrated Construction Park that we are establishing in Singapore. We have moved from open precast yards (OPYs) to Integrated Construction and Prefabrication Hubs (ICPHs), to ICPs now. This marks a significant milestone for the Built Environment sector as we move towards an advanced manufacturing environment. This also advances our ambitions for improved productivity, resilience and sustainability under the Built Environment Industry Transformation Map.

Like many of you, I am looking forward to a tour of the facilities later.

Transforming Our Construction Supply Chain

Our construction supply chain operates through several inter-dependent systems. Currently, we import our construction materials such as sand, granite, cement and steel via Jurong Port and our aggregate terminals. After they arrive, these materials are transported by trucks from the terminals to storage areas. When they are needed for downstream production of construction components, these materials are then transported again to Ready-Mixed Concrete (RMC) batching plants, ICPHs and fit-out facilities, before finally reaching the various project sites. Each year, our aggregate terminals handle up to 33 million tonnes of sand and granite, which requires over 4 million truck-trips across the island to move these materials to storage and production facilities. These trips contribute significantly to business costs and place additional load on our roads.

Today, the Jurong Port ICP is transforming the process by bringing together key construction stakeholders with synergistic businesses. It seamlessly integrates facilities such as an aggregate terminal, storage facilities and new generation RMC batching plants. By 2027, a multi-tenant ICPH which is currently being developed, will be operational, thus completing the entire ICP ecosystem.

Bringing related construction facilities closer together, such as co-locating the import of sand and granite with cement and steel handling, saves time and resources that would have otherwise been spent hauling materials across the island. This also creates leaner and greener supply chains for construction materials.

The Jurong Port ICP has taken a further step to improve efficiency by installing an automated conveyancing system that transports sand and granite directly from the wharf to the storage areas and RMC batching plants, without the need for transport via trucks. This innovative system, the first of its kind in Singapore for material transfers, saves us more than a million truck-trips each year. This is a move in the right direction, towards improved operational efficiency and environmental sustainability.

Co-located facilities at the Jurong Port ICP can also share common resources and services, such as heavy vehicle parking and sludge washing systems. This intensifies land use and increases productivity. These shared facilities free up usable land area for production activities within each RMC firm’s plot, allowing them to use up to 80% of their land for RMC production. This is a vast improvement from the previous 40% utilisation when land plots were developed in silo. With improved productivity, the RMC batching plants at the Jurong Port ICP are now able to produce 45,000m3 of concrete per plant each month. This is an impressive 50% improvement compared to their previous capacity, and will support the projected demand for concrete in the Western region of Singapore.

Bringing related construction facilities closer together also facilitates better coordination and planning amongst the different aspects of the ICP. Firms operating within the ICP will also benefit from longer tenures as compared to traditional yards. This provides our firms with better certainty and confidence to make longer-term investments that will boost productivity and production capacity.

For instance, I want to commend Island Concrete for piloting an initiative to optimise production through an autonomous wheel loader that mechanises the transfer of aggregates in the production line. This demonstrates how we can leverage the adoption of latest technology to reduce our manpower needs and improve operational efficiency.

Skilled Workforce Needed to Support Advancements in Construction

With the use of automation and technology within the ICP, we also require a more skilled workforce to operate, supervise and manage these advanced systems. New jobs will be created within ICPs for specific roles such as technical specialists and supply chain managers.

I strongly encourage professionals in the Built Environment sector to continuously upskill and equip yourselves with the knowledge and capabilities to tap on emerging technology. This proactive approach will put you in good stead to thrive in a constantly evolving sector.

Maintaining Our Momentum in Transforming the Built Environment

The Jurong Port ICP sets a high benchmark for future ICPs, especially as we transit towards a high-tech and sustainable construction ecosystem. The Government remains fully committed to driving productivity and will continue our efforts to strengthen the capabilities of our local construction firms, paving the way for a high-tech and sustainable industry.

Looking ahead, we will continue to develop more ICPs around Singapore, such as at Pulau Punggol Barat. These new ICPs will enable more construction firms to reap the benefits from the ecosystem of advanced technologies, logistical efficiencies and co-located synergistic construction facilities.

Conclusion

Let me conclude by congratulating Jurong Port on the successful launch of the Jurong Port Integrated Construction Park, Singapore’s very first ICP. I look forward to our continued partnership to transform the Built Environment sector to become more sustainable, innovative and globally competitive.