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SINGAPORE : Swiss logistics firm Panalpina is expanding its footprint in fast-growing Asia.
The company has launched Singapore's first-of-its-kind logistics centre, dedicated to the oil and gas sector.
Panalpina is also optimistic about growth in the offshore industry in Asia, despite flat energy prices and increased regulation expected in the wake of BP's oil spill in the Gulf of Mexico.
A faulty oil rig would require immediate replacement parts for operations to run as seamlessly as possible. This is one role Panalpina can play with at its new 22,000 square metre facility in Singapore.
This facility will be key in delivering parts, machinery and other products to support the upstream oil and gas sector.
"This facility will support the whole Asian network of oil and gas customers, and we do believe we are going to see about 10 per cent growth next year coming out of the services... provided out of Loyang into the various markets in Southeast Asia," said Karl Weyeneth, Chief Operating Office of Panalpina.
The facility is the latest addition to three other global locations for Panalpina's oil and gas business.
The company already has oil and gas logistics centres in Houston, Aberdeen and Dubai.
Supplying to the global oil and gas industry makes up 10-15 per cent of the company's revenues.
And Panalpina remains optimistic on the outlook despite flat energy prices and more rules governing the oil and gas industry.
"You're going to see more regulation in the US... there will be less offshore drilling off the Gulf of Mexico and the US. There's going to be more drilling moving into other areas around the world like West Africa, Brazil and other places in Southeast Asia," said Weyeneth.
For Singapore, the Economic Development Board (EDB) said the new centre is a significant milestone for the country's logistics business.
Currently, the logistics sector contributes 5.5 per cent to Singapore's GDP and is expected to attract up to S$500 million in business spending this year. - CNA /ls
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