Could you introduce SG Integrated to our international audience?

GL: SG Integrated is a specialized value-added logistics provider with expertise in dangerous and hazardous goods (DG). Incorporated in 2016, SG Integrated started humbly with a small space and six prime movers vehicles with 30 trailers, but our fleet has expanded to 24 prime movers, two box trucks, 200 over trailers combined with larger storage and drumming capabilities.

Could you elaborate on the expertise that SG Integrated brings into the market?

JMS: 80% of our fleet is licensed to transport DGs, so our primary service is tailored to chemicals, specialty chemicals and petroleum products in bulk liquids like fuels and lubricants. Along with an in-house emergency response team with expertise in produce spillage recovery, we also offer flexi-bag and general freight services. Given the nature of the products we handle, SG Integrated places huge importance and is very active on the safety and compliance aspects of the business, which is why our customers across the value chain – from tank operators to chemical producers and freight forwarders – continue to put their trust in us.

What are some of the most recent milestones at SG Integrated?

GL: Our 2021 sales were 20% higher compared to FY20, which is a fair indication of the company’s robustness and ability to grow despite the challenges that the pandemic brought upon us. SG Integrated is looking to expand its operational capacity by acquiring an additional site to serve as a container transit. Land is tightly regulated in Singapore, but we have begun the bidding process. The acquisition of the site will double our existing operational space, better equipping us to convey products in higher volumes and to navigate continuous disruptions like shipping delays or storage pressures driven by volatile market demand and supply shifts.

Could you tell us more about the logistics market for dangerous goods in Singapore?

JMS: The logistics sector is vast in Singapore, employing about 10% of our working population. That said, the DG market is very niche: The complexity of operations and the tight regulatory framework create very high entry barriers in this sector. Regulatory bodies award specific licenses (license to transport, license to import, or license to store) to each operator, applying quotas on how much product can be stored in a particular area in order to mitigate risks in case of explosions, spillages and environmental impact from miscible reactions. Due to these aspects, competitors who we regard as peers follow a more globalized logic, and actors within this space often collaborate and offer complementary services.

How is the greater focus on sustainability playing into your future strategy?

GL: Our clients are increasingly more concerned with sustainability, some even setting up dedicated departments to audit third-party service providers. SG Integrated is listening to the market, and this year we began gathering more data to better position ourselves for the future. The bulk of our emissions lies in the fuels we use for our prime movers. We identified an opportunity to cut down 20% on our emissions by aggressively upgrading our vehicles from Euro5 to Euro6, and we were thrilled to discover that this change led to a 50% GHG reduction, more than double of what we anticipated. The young age of our vehicles and the good state of their engines were the contributors to this great improvement. The long-term goal is to gradually convert diesel powered engines to electric vehicles (EVs) to further reduce our carbon footprint.

What are your main objectives for the upcoming years?

JMS: One of our key goals is to make the switch to EVs. Currently, our hands are tied because the necessary EV infrastructure for heavy vehicles, including charging grids, is not yet available in Singapore. In parallel, we are looking at battery swapping technologies and accessing if this innovation could be replicated to the heavy vehicles industry. The issue with the commercial use and current technologies of EVs is that businesses like ours require our vehicles to run all day, and long idle charging periods are uneconomic. SG Integrated is also evaluating expansion opportunities in Malaysia, where we could tap onto the palm oil, LNG and petroleum industry.