STORAGE BOTTLENECK INTENSIFIES
For prefabrication firm Jin Cheng, output has more than doubled since pre-COVID-19 levels. It is struggling, not because of productivity issues, but due to rising demand.
Mr Peng Guangzheng, the firm’s executive director, said project schedules often change because of various delays.
When delays cause multiple projects to overlap for longer than expected, production demand can exceed the firm’s available space, he added. “This is happening in the market. (It’s) very common.”
These delays can snowball, as components that need to be stored for longer periods eat into production space, further slowing projects.
To address the space crunch, the firm plans to expand into the new facility at Jurong Port when it is completed in 2027.
“The good thing is that the port has quite a large surface area to operate with and if ever they need some surge storage capacity, we’re always ready to provide,” said Jurong Port CEO Terence Seow.
“It’s not something that they need to set up by themselves and it can be all done on a pay-per-use basis, which will be much more affordable and much more competitive for those located here.”
Mr Seow said proximity to raw materials needed for precast components will also help.
A ready-mixed concrete hub at Jurong Port has been operational for more than a year.
“Whatever they need will be nearby. So storage really becomes much less of an issue if they are located here,” said Mr Seow.