Singapore Chemical Logistics Market Size & Share Analysis - Growth Trends And Forecast (2025 - 2030)

Singapore Chemical Logistics Market Trends and Insights

Expanding Petrochemical Production on Jurong Island

Evonik’s SGD 1.5 billion (USD 1.1 billion) capacity expansion, completed in 2024, cements Jurong Island as the world’s largest methionine producer with more than 40% global share^{[1]Sue-Ann Tan, “Speciality Chemicals Giant Evonik Expands Facility on Jurong Island,” The Straits Times, straitstimes.com}. Large-scale investments are shifting the product mix toward higher-value specialty and bio-based chemicals that require stringent handling, tank-farm connectivity, and multimodal dispatch. The integrated pipeline grid reduces truck movements but increases demand for on-island intermediate storage and just-in-time shuttle services. Cosco Shipping’s plan to double its Jurong Island Logistics Hub to 200,000 TEU by 2026 illustrates the direct relationship between manufacturing scale-up and logistics infrastructure. These developments enlarge the Singapore chemical logistics market by creating premium, specialized flows that few regional hubs can match.

Government Investment in Tuas Mega-Port Infrastructure

Singapore’s USD 20 billion Tuas Mega-Port is deploying over 200 automated guided vehicles, remote crane operations, and real-time orchestration platforms that slash berth times and improve hazardous-cargo segregation. The adjoining PSA Supply Chain Hub @ Tuas, a SGD 647.5 million (USD 476.6 million) facility with automated storage and retrieval systems, offers value-added consolidation tailored to chemical cargo. Automation lowers per-container handling cost even as Singapore’s labor rates rise, sustaining the Singapore chemical logistics market’s cost competitiveness relative to regional peers. As more petrochemical and pharmaceutical producers direct exports through Tuas, end-to-end visibility and risk control improve, reinforcing shipper confidence in Singapore.

Rising Demand for Temperature-Controlled & Specialty Chemical Storage

GDP-compliant cold rooms, 2-8°C chambers, and 15-25°C ambient zones are now standard at new multi-tenant facilities such as DHL’s EUR 10 million (USD 10.4 million) Jurong Pier pharma hub. Rental premiums for cold storage units exceed standard chemical warehouses by a double-digit margin due to continuous monitoring, backup power, and validated processes. Automated storage and retrieval systems reduce worker exposure to sub-zero environments while cutting energy consumption, addressing both cost and sustainability mandates. As biologics and advanced materials proliferate, cold-chain reliability becomes a decisive differentiator within the Singapore chemical logistics market.

Digitalisation of Supply Chains

The Maritime and Port Authority’s digitalPORT@SG platform consolidates 16 forms into one electronic clearance, saving 100,000 man-hours every year^{[2]Maritime and Port Authority of Singapore, “Port of the Future,” mpa.gov.sg}. PSA’s CALISTA, integrated with the NEO operating platform, provides real-time traceability across 100 routes and automates dangerous-goods documentation. IoT sensors monitor temperature, vibration, and location, feeding blockchain-secured ledgers that regulators and shippers alike can audit instantly. These capabilities increase compliance confidence and lower administrative overhead, enhancing the overall value proposition of the Singapore chemical logistics market.

High Operating Costs (Land, Labor, Utilities)

SI Group closed its Jurong Island alkylphenol facility in 2025, citing elevated costs, underscoring the squeeze on service providers that depend on throughput volume to amortize fixed expenses. Warehouse supply trails demand by roughly 600,000 sq ft annually, pushing rents higher than regional averages. Wage inflation compounds the challenge; semiconductor engineering roles were added to Singapore’s shortage occupation list in late 2024^{[3]Goh Ruoxue, “SI Group Closure,” The Business Times, businesstimes.com}. The Refundable Investment Credit and green-logistics grants soften the impact, yet smaller operators still struggle to maintain margins within the Singapore chemical logistics market.

Scarcity of Industrial Land for New Hazmat Warehouses

The Industrial Government Land Sales program released only 14.07 ha for logistics in H1 2025, and forecast single-user factory supply drops to 2.2 million sq ft post-2027. Mandatory solar-panel installation and strict building-height limits add cost and complexity for hazardous-material projects. Consequently, many operators retrofit aging stock rather than develop greenfield sites, driving consolidation as firms with existing footprints gain pricing power. Land scarcity thus curbs short-term capacity expansion in the Singapore chemical logistics market.

Segment Analysis

By Service: Transportation Dominance Amid Warehousing Acceleration

Transportation accounted for 65% of the Singapore chemical logistics market size in 2024, anchored by high container throughput and continuous barge and tanker shuttle runs between Jurong Island terminals. Automated guided vehicles and predictive berth scheduling at Tuas lower operating cost per move, allowing carriers to sustain service levels even with tight vessel windows. Road haulage remains primary for inland moves; rail use is negligible, while air handles niche ADR-class cargos.

Warehousing, distribution & inventory management services, though smaller, are forecast to log a 3.60% CAGR to 2030 as shippers seek single-site inventory and value-added packaging. Sankyu Singapore’s 38,380 m² automated hub exemplifies next-generation facilities combining hazmat segregation, temperature zoning, and robotics. Integrated service contracts covering inbound clearance, storage, and on-demand delivery are becoming the norm, expanding the addressable share of the Singapore chemical logistics market. Consultancy and compliance services form the smallest slice but command premium unit margins due to specialized licensing requirements.

Note: Segment shares of all individual segments available upon report purchase

By End-User Industry: Oil & Gas Leadership with Pharmaceutical Momentum

Oil & gas retained 24% of Singapore chemical logistics market share in 2024, leveraging the city-state’s role as the world’s third-largest oil trading center and its 1.5 million bpd refining complex. Bulk liquid handling dominates, supported by tank-farm cross-pumping and dedicated berths.

Pharmaceutical logistics grows fastest at a 4.10% CAGR to 2030, driven by life-science manufacturing incentives and GDP-compliant infrastructure like DHL’s new hub. Cold-chain protocols, validated packaging, and traceability requirements boost revenue per tonne, tilting the Singapore chemical logistics industry toward higher-value services. Specialty chemicals also gain share as Jurong Island pivots toward sustainable and higher-margin products, reinforcing the market’s complexity and regulatory intensity.

By Hazard Class: Hazardous Chemicals Drive Growth and Complexity

Hazardous cargos represented 71% of the Singapore chemical logistics market size in 2024 and are expanding at a 4.60% CAGR (2025-2030) on the back of more intricate upstream and specialty chemical flows. Stringent route restrictions, licensed drivers, and mandatory vehicle inspections restrict supply, supporting stable pricing for qualified carriers.

Non-hazardous chemicals, at 29%, face stiffer regional competition and lower service differentiation. Regulatory overlap among the National Environment Agency, Singapore Civil Defence Force, and Maritime and Port Authority adds compliance cost that only experienced players can absorb, concentrating value capture within the hazardous segment of the Singapore chemical logistics market.

By Temperature Control: Ambient Majority with Cold-Chain Acceleration

Non-temperature-controlled cargo held a 69% share in 2024, reflecting the continued dominance of petrochemical and commodity flows that do not require controlled environments. Standard warehouses and ISO tanks suffice, keeping operating costs in check.

Conversely, temperature-controlled logistics is projected to grow at a 4.20% CAGR (2025-2030), catalyzed by biologics and advanced materials needing 2-8°C or minus-20°C stability. Continuous monitoring, backup power, and GDP certification raise entry barriers yet yield rental premiums. New projects like DSV Pearl’s LEED Gold facility with multi-zone climate control illustrate future investment direction. Cold-chain sophistication bolsters the long-run value of the Singapore chemical logistics market.

Geography Analysis

Jurong Island anchors chemical manufacturing with over 100 global companies across 3,000 ha and integrated pipeline networks that minimize road haulage and expedite bulk liquids transfer. This concentration creates dense intra-island logistics activity, encouraging investment in specialized barges and on-island shuttle fleets.

Tuas in the western region is the epicenter of maritime throughput; Tuas Port handled 41.12 million TEU in 2024, second only to Shanghai, and its automation edge enhances berth utilization while preserving hazardous-goods segregation. The area, however, faces a 600,000 sq ft annual warehouse shortfall, pressuring rents and nudging operators toward multi-story facilities.