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Asias

5 Premiere Biopharmaceutical
Logistics Hubs

eBook Series of Biologistics World Asia 2017


Preface
The launch of new, temperature sensitive biomedicines, increasing regulations and
growing cost- pressures are putting more complex demands on the biopharma
industrys high-stakes logistics environment. This growth can be witnessed in part
due to the combined increase in adoption of cold-chain products in both developed
and developing markets and the continued development of new drugs. The current
outlook is for continued expansion through 2019, at an average growth rate of about
6% per annum, with Asia representing a fast expanding region.
For this reason and more, over the last several years, the biopharmaceutical industry
worldwide has intensified its focus on logistics and supply chain management (SCM)
and has collaborated with governments globally to develop world class logistics
hubs especially within the fast emerging regions in Asia. However, this is not without
setbacks as the industry has been faced with multi-faceted challenges. Mainly
because as the biopharma industry evolves, there are many concerns regarding the
security, robustness and transportation starting from temperature control to
protection against abrupt movement while handling biomedicines and medical
devices. Thus, this has resulted in the creation of unique integrated hubs globally,
created with the sole purpose of facilitating the growth of this dynamic industry.
To provide an overview of this phenomenon, we have selected 5 countries as
representatives of the diverse emerging hubs in the biopharmaceutical logistics
industry and included key facts relating to these 5 countries.

The ranking is in no particular order and listed alphabetically


The content of this e-Book only represents the opinion of IMAPAC
All information has been retrieved from official online resources

Singapore 3

Hong Kong 4

Busan, South Korea 5

Kuala Lumpar & Johor Bahru, Malaysia 6

Shanghai, China 7

Notable Mentions 8
Singapore

Introduction
Ranked as the No. 1 Logistics Hub in Asia in the 2014 Logistics Performance Index by the World
Bank, Singapore has further retained its position as Asean's logistic hub according to the
Logistics Performance Index report 2016 for the 10th consecutive year. In fact, Singapores
deputy prime minister and coordinating minister for economic and social policies Tharman
Shanmugaratnam believes that logistics is the lifeblood of the nations economy and the
government has createdTradeNetandTradeXchangefor the logistics industry to collaborate
to form a supply chain.
Singapores strong socio-economic support system, prime location at the intersection of major
Southeast Asian countries and at the heart of major shipping lanes has made Singapore a de
facto logistics hub for global trade.

Pivotal updates include


Tolls blueprint for a $228m logistics hub in Singapore to be completed in mid-2017
Kuehne + Nagel officiated the opening of its Singapore Logistics Hub facility in 2016
JTC Corp has started building a 'next-gen' logistics hub to be completed in 2019
Ferring Pharmaceuticals has opened its Asia Pacific headquarters in Singapore
Logistics giant DHL opened its 90,000 sqm Advanced Regional Center (ARC) at Tampines
LogisPark as well as a new S$140 million round-the-clock automated facility in in Changi Airfreight
Centre at Singapore Changi Airport, the DHL South Asia Hub. It is outfitted with the industry's
first fully automated express parcel sorting and processing system in South Asia

Key Infrastructures present include


Coolport@Changi has multi-tiered temperature zones ranging from -28C to 19C. Located within
a Free Trade Zone, it elevates Singapores status as a pharmaceutical air freight hub. It is
recognized as Asias first and largest dedicated on-airport facility for temperature-controlled and
time-critical cargo.
Tuas Logistics Hub functions as the countrys transshipments hub with plans for expansion of its
capacity to 65 million TEUs of annual capacity by 2027. It is also recognized as a Biomedical
Cluster.
The Airport Logistics Park of Singapore(ALPS)in the airports free-trade zone, theChangi
International LogisParkwhich facilitates regional distribution. Changi is also recognized as a
medical device hub.
Hong Kong

Introduction
Hong Kong is the 11th largest trading entity in the world. Located at the heart of Asia where
half the worlds population is within a five hour flight, Hong Kong is also recognized as Chinas
Gateway providing access to the worlds second largest economy and fasting growing
consumer market. This is especially true for companies that are new to the Chinese market as
getting through mainland customs remains a challenge for foreign companies as they are not
familiar with the procedures.
Amidst Hong Kongs four economic pillars, Trade and Logistics is the largest - accounting for
24.1 % of GDP and 24% of employment. Notably, Hong Kongs sustainable competitive
advantage as a leading global logistics hub is said to revolve around three pivotal
competencies best in class international transshipment hub, centre of excellence for logistics
skills and leadership in e-logistics. Complementing its leadership role as a global logistics hub,
Hong Kong is also one of Asias leading international business centres with 3,580 regional
office and headquarters.

Pivotal updates include


Scheduled opening of the Hong Kong-Zhuhai-Macau Bridge in 2016
linking the Hong Kong Special Administrative Region (HKSAR), Zhuhai City
of Guangdong Province (Guangdongs manufacturing base) and Macao
Special Administrative Region 1
Under a new agreement in the Mainland-Hong Kong Closer Economic
Partnership Arrangement, which will be implemented from June 2016,
provision of ground services for air transport in the form of wholly-owned
operations, excluding security-related projects, will be allowed.
Under the Supply Chain Modernisation Project implemented by the Hong Kong Hospital
Authority(HA), Hong Kongs hospital networks has shifted to a cloud-basedsupply chain allowing
for pharmaceutical products to be tracked & traced along its supply chain, all the way from its
external vendors to within the HA pharmacy store.
Container Terminal 10 project in the Port of Hong Kong - Planning is underway for a potential
Container Terminal 10 (CT10), with possible sites narrowed down to either southwest Tsing Yi or
northwestLantau, to the west of the airport.
Under the framework of the Master Plan 2030 Study, the Airport Authority is now evaluating the
feasibility of building a third runway which is being called for by businesses large and small,
throughout both the industrial and the logistics sectors.

Key Infrastructures present include


Hong Kong International Airport (HKIA) has been ranked as the busiest airport for international
air cargo since 1996 and it is recognized as the most active worldwide air cargo operation today.
Port of Hong Kong recognized as one of thebusiest portsin the world, in the three categories
of shipping movements, cargo handled and passengers carried.
Advancements in e-logistics with the widespread adoption of e-freight initiatives throughout the
international air and ocean cargo sectors is increasing efficiencies.Within the cross border
trucking sector, introduction of electronic submission of road cargo information enablesseamless
customs clearance at the land boundary control points. GPS communications technology is now
also widespreadin the fleet management of trucking companies, with the On-Board Trucker
Information System (OBTIS).
Busan, South Korea

Introduction
Located between Japan and China, South Korea possesses freight channels through Incheon
airport and ships through Busan port. In a report, prepared by CBRE Group, Inc. South Koreas
port at Busan has been named as one of the 20 markets that is poised to become a global
logistics hub.
It is situated in proximity of the Incheon International Airport, Gimpo International Airport, Port
of Incheon, Port of Pyeongtaek and several major freeways, thus providing it with excellent
connectivity. In terms of intra-connectivity, short-distance transportation, such as the
Busan-Gimhae Light Rail Transit line, has been completed and a new bus terminal opened
recently. The Busan-Gimhae Light Rail Transit line, opened in 2011, connects Busan and Gimhae
International Airport. Thus, playing a key role in regional transportation.

Pivotal updates include


Busan is aiming to build its global presence as a world-class port and
logistics hub in Northeastern Asia by opening 45 berths in Busan New Port
by 2020.
When the North Pole Routea shortcut that connects Europe with Asiais
completed in 2030, the distance from Busan to Europe and from Busan to
North America will be reduced by 40% and 30%, respectively.
Busan is the key starting point of the future Silk Road Express (SRX), a railway that will connect
Busan with Europe through China and Russia. This will enable Busan to grow from a logistics city
in Northeastern Asia to a global hub of world logistics.
A world-class high-tech industry and logistics complex is scheduled to be opened in 2020 on a 33
land in the Gangseo region. This will be an international integrated logistics, high-tech industry,
R&D complex and more. It will contain a local industrial complex, eco delta city and water-friendly
zone, special R&D zone, aviation cluster, and general industrial zone.
Construction of a new airport on Gadeokdo Island as the 2nd national gateway, which can be
operated all day around and is scheduled to be opened in 2020

Key Infrastructures present include


Port of Busan which is the biggest transshipment port in Northeast Asia. It has established an
excellent feeder network connecting ports in China, Japan, and Russia, and introduced
transshipment incentives to attract larger volumes of cargo.
Gimhae, in Gyeongsangnam-do (South Gyeongsang Province), is a transportation hub for East
Asia. It is linked by three expressways, harbors and an international airport - Gimhae International
Airport, the Busan Harbor, the Masan Harbor, the Busan New Port and the Gyeongbu Railway that
connects Seoul and Busan. It is a strategic location that connects outward to the Asia and Pacific
regions.
The Gimhae Techno Valley, which covers 5.94 square kilometers, will be completed in the latter
half of this year. The complex is adjacent to the Namhae Expressway and is considered to be one
of the best locations for an industrial complex, in terms of logistics.
Kuala Lumpar & Johor
Bahru, Malaysia
Introduction
The Malaysian Government has accorded priority status to transport, logistics and supply chain
management as a strategy to improve the countrys overall trade competitiveness. In the Ninth
Malaysian Plan and the Third Industrial Master Plan (IMP3), the logistics sector has been
identified as one of the strategic sectors for Malaysia to attain global competitiveness. This has
been reinforced by the establishment of the Malaysian Logistics Council (MLC) is a step in the
right direction towards realizing this objective.

Pivotal updates include


Launch of KLIA Aeropolisin in 2016, a mega aviation hub of over 100 sq km,
which pulls together air cargo, logistics, aerospace and aviation services.
The High-Speed Rail (HSR) line linking Singapore and Malaysian capital
Kuala Lumpur (KL) is expected to start operations around 2026. The line
will run for 350km, with 335km in Malaysia and 15km in Singapore, and on
two tracks going in opposite directions. It will comprise eight stops in
total: Singapore, Iskandar Puteri, Batu Pahat, Muar, Ayer Keroh, Seremban,
Putrajaya and KL.
Malaysia largest port, Port Klang in Kuala Lumpar, is expected to be expanded in lieu of a China-Malaysia joint
discussion that was released in June 2016. This will result in the construction of a third terminal that builds
upon the status of the Port Klang Free Trade Zone (PKFZ). This is also the lead up of Malaysias recent launch
of several projects to promote its trade with China, including co-operating on twin industrial parks Qinzhou
Industrial Park in Chinas Guangxi Province and Kuantan Industrial Park on Malaysias east coast as well as
railway projects and ports.
Malaysia largest port, Port Klang in Kuala Lumpar, is expected to be expanded in lieu of a China-Malaysia
joint discussion that was released in June 2016. This will result in the construction of a third terminal that
builds upon the status of the Port Klang Free Trade Zone (PKFZ). This is also the lead up of Malaysias recent
launch of several projects to promote its trade with China, including co-operating on twin industrial parks
Qinzhou Industrial Park in Chinas Guangxi Province and Kuantan Industrial Park on Malaysias east coast as
well as railway projects and ports.
The Iskander Development Project, Johor Bahru, is a main southern development corridor in Johor, Malaysia.
It is scheduled to receive RM400 million (S$153 million) in funding by Singaporean tycoon Peter Lim who
has stepped up plans to transform part of the land he owns in Iskandar into a medical hub.
Scheduled expansion of Port of Tanjung Pelepas (PTP) in 2016 by the Johor Port Authority (JPA) in the
areas of port-handling operations and related activities. This includes the construction of new berths to
handle a surge in cargo-handling volume in the next 10 years.

Key Infrastructures present include


The Southern Industrial and Logistics Clusters or SiLC is Nusajaya's flagship industrial development. Only
15 minutes from Johor Bahru and Singapore, 30 minutes from the Singapore Central Business District
(CBD), and within a 50-minute drive radius of arguably the best transportation and freight infrastructure
and services in the region two international airports and five seaports. SiLC Nusajaya is complete with
fully fibre world-class ICT connectivity.
Johor Port Berhad is a multi-purpose port that caters to practically all types ofcargo. It is the first port in
Malaysia to be located within afree trade zone. Johor Port'swarehousesare exempted fromcustoms
duties. Duty is only payable when the cargo is released from the warehouse area for local consumption.
Currently it has two logisticssubsidiariesas an extension of its own service - JP Logistics Sdn Bhd & Bernas
Logistics Sdn Bhd.
Kuala Lumpur International Airport Is recognized as the 11th busiest airport in the world. It is linked to the
KL Sentral transportation hub in the city centre by the 57 km long Express Rail Link (ERL). There are two
ERL stations at the airport: KLIA station at the Main Terminal Building and klia2 station at Gateway@klia2.
The airport is served by two rail services on the ERL: KLIA Ekspres & KLIA Transit
Shanghai, China

Introduction
The areas along both banks of Huangpu River is scheduled to become one of the core
functional zones for Shanghais development, according to HKTDC Research. This development
will successively drive business and commercial development along the banks of Huangpu
River, namely Lujiazui, Bund Source, Yangpu riverside, North Bund in Hongkou, Luwan riverside
and Xuhui riverside.
Boosting intense intra-connectivity, major highways in Shanghau include the Shanghai
Hongqiao International Airport, Shanghai Pudong International Airport while key ports include
the Port of Shanghai and Yangshan Port. This is reinforced by the presence of the Shanghai
Free Trade Zone (FTZ) which is the amalgamation of 4 zones - Waigaoqiao Free Trade Zone,
Waigaoqiao Free Trade Logistics Park, Yangshan Free Trade Port Area and Pudong Airport
Comprehensive Free Trade Zone and currently houses over 11,000 trade and logistics-related
enterprises.

Pivotal updates include


In 2012, Fedex signed with Shanghai Airport Group to build a US$100 million
new express and cargo hub at Shanghai Pudong International Airport
(SPIA), which is slated for completion in early 2017.
DHL opened its North Asia Hub at the SPIA in 2012, the companys biggest
express hub in Asia. The US$175 million facility covers an area of 88,000
sqm, which can process up to 20,000 documents and 20,000 parcels an
hour.
FedEx Express has signed an agreement with the Shanghai Airport (Group) Company Limited (SAA) to
establish a new International Express and Cargo Hub in Shanghai worth over US$100 million. The new facility,
with designated onsite customs clearance, will be located at Shanghais Pudong International Airport and is
slated for completion in early 2017.
The Shanghai International Airport expansion project which is scheduled for completion in 2019, involves
construction of theworld's biggestsatellite terminal concourse, as well as tarmacking of the T1 and T2 linking
taxiway, 16 overnight parking spaces for planes and ten taxiway bridges. The concourse is being built with an
investment of approximately CNY20.6bn ($3bn) and upon completion will increase the airport's capacity to
80 million passengers and 4.26Mt of cargo a year.
In 2015 Marken opened its new logistics operations centreinShanghai, China. Located close to both the
Hongqiao and Pudong airports, the new office within the Zhangjiang high tech district is also in close
proximity to several of Markens existing pharma clients and contains a fleet of temperature controlled
vehicles.

Key Infrastructures present include


Port of Shanghai the worlds busiest container port. Wusongkou, Waigaoqiao and Yangshan are the three
main container port areas of the Port of Shanghai. The port features 16 modernized berths with a total quay
length of 5.6 kilometers and is joined to the mainland by the 32.5 km Donghai Bridge.
Pudong Airport Comprehensive Free Trade Zone, where giants such as China Cargo Airlines, Lufthansa
Cargo, DHL and UPS have all established operations. It contains a new international transit air route linking
Leipzig to Tokyo. It boosts 24-hour processing of overseas cargo (receiving, sorting, and dispatching), in
cooperation of Shanghai Airport Customs and Shanghai International Airport Entry-Exit Inspection &
Quarantine Bureau. Similar to elsewhere in the FTZ, air shipments through Pudong Airport are unimpeded
by customs procedures or import duties.
Waigaoqiao Free Trade Logistics Park, established in 2004, is also the first bonded logistics park in China.
This 1.03-square-kilometer logistics zone extends the function of the 10-square-kilometer Waigaoqiao
Bonded Zone, the country's first of its kind, in terms of cargo transferring, distribution, procurement and
warehousing.
Notable Mentions

1. Ho Chi Minh City, Vietnam - Increased logistics sophistication and manufacturing, recent
developments in trade agreements (Trans-Pacific Partnership) and advanced transportation
links. This is further reinforced by the city's strategic location to China and access to Saigon's
improving port infrastructure which includes SaigonHi-tech Park, a 10 hectare logistics project
that will complete the supply chain around Ho Chi Minh City.
2. Chengdu, China - Chengdu grown in status as the premier manufacturing and logistics hub
in West China. Located upstream of the Yangtze River Economic Belt (which makes up 40% of
China's GDP), over 50 foreign logistic companies have set up operations in this city.
3. Delhi, India - Delhi's increasing importance in the logistics map can be attribute to the
construction of the Delhi-Mumbai Industrial Corridor. It's a $90 million infrastructure project
funded by the government and Japanese firms.
4. Ningbo, China - Ningbo, a major port and industrial hub in east
China's Zhejiang province, lies south of Shanghai on Hangzhou Bay.
Given its geographic advantage, Ningbo is an important traffic hub
and is now connected to adjacent regions with three major bridges.
The city benefits from a multifaceted transportation system based
on coordinated development of sea, land and air channels.
Currently, Ningbo is constructing its own urban transit system,
expected to cover the whole urban area.
5. Bangkok, Thailand - Thailand is one of the keyASEANtransport and logistics hubs. More
than 30 Thai provinces share borders with Myanmar, Laos, Cambodia and Malaysia.
Infrastructure developments include an inter-city rail network Railway Road Network Mass
Transit in Bangkok & Vecinity Water and Air Transport, a capacity enhancement for highway
network to link with key areas in the country and with neighboring countries. This builds upon
the Manufacturing Logistics Development Master Plan (2015-2017) which aims to enhance
Thailands logistic and supply chain management in order to increase the overall
competitiveness of the manufacturing logistics sector
6. Tokyo, Japan Containing a new Sagamihara Logistics Centre in which DHL has built a
US$50m facility, the hub is strategically located in the west of Tokyo which has excellent
transport access to Central and Western Japan through the national road network, and is in
close proximity to airports and docks for international requirements.
Register by 4th Nov
2017 and Save
SGD 400 Biologistics World Asia 2017 will
bring you:
Attendees of international and regional
biopharma, biomedical device, biorepositories
200+ & CROs, government & regulatory bodies,
solution providers, academic & research
institutes
35+ Key Opinion Leaders

15+ Technology Exhibitors

14-16 February 2017, 20+ Hours of networking


Singapore
Delivering Quality On Time 3 Full days of knowledge sharing

Key
WHAT Highlights
IS NEW THIS YEAR? ADVISORY BOARD MEMBERS:
Located at Asias logistics
hub - Singapore Mr. Paolo Rampichini Mr. Srnivasan Mr.Jonghyun Kim Mr. RKRamachandran
Head Supply Raman Director, Supply VP, Operations
ChainAPAC, VP, Head Chain Management
Roche, PrIME Biologics
Site Tour Malaysia Operations Celltrion Singapore
Singapore Biocon Korea
Malaysia
Industry Leaders &
Regulator Moderated
Roundtable Discussions Mr. Ryan Viegas Mr. Erik Agterhuis Dr.Alan Liss Mr. Rajesh Pednekar
VP Supply Chain & Global Warehouse & Founder, Former Head of
Procurement, Distribution Manager GXP farma LLC - Distribution
Regulators & Policy Makers Watson, India Mylan-EPD Consulting, Pfizer
Forum Pharmaceuticals Ltd. Mylan USA India
India Switzerland

International & Asian


perspectives on best
SCM practices & trends in
Emerging Markets DISTINGUISHED PANEL OF SPEAKERS:
Mr. Geoffrey Glauser Mr. Sebastian Chua H.EDr. AminAl Amiri
Track & Trace Workshop Consultant, Head of procurement,
Dr. Pat Chu
Assistant Laboratory Direc tor
Supply Chain Health Promotion undersecretary / Cord Blood Bank
Biorepositories and clinical SME-Biological, Board, of public health Director
US Government Health, Singapore and licensing, (NetCord-FACT),
trials logistics and Human Services / MOH, Singapore Cord
ASPR / BARDA, UAE Blood Bank ,
USA Singapore
Ms.Elisabeth Kaszas Dr. Frank Binder Mr. Robert de Souza Mr. Ian Wilson
Director Supply VP, Global Supply Executive Senior Director
Chain, Singapore Chain Management, Director & Chief Asia Pacific
Operations, Santen, Executive Office, Singapore-Pro ject,
Amgen, Switzerland The Logistics Ferring
Singapore Institute-APAC, Pharmaceuticals,
Singapore Singapore
ORGANIZED AND PRODUCED BY
Ms.Shashikala Menon Prof. Dong-Yup Lee Mr. Oliver Nicolai Mr. Arun Prasath
Assistant Professor Director - Supply Assistant Director,
Director India Singapore Cord
Operations, National Chain APAC
University of Blood Bank ,
Quintiles Markets,
Singapore, Teva Singapore
India
Singapore Pharmaceuticals,
CO-LOCATED WITH: Singapore

Ms. Chloe Wong Mr. Michael Goh Dr. Eng Chon Boon Dr. Philip Masters
Assoc. Director, Director, Global Head, Quality and
Product Handling & Material & Supply NUHS Tissue Compliance,
Cold Chain, Chain Group, Repository and Cryoviva ,
AP SCM CoE, Hospital-based Singapore
PrIME Biologics
MSD Pte Ltd, Cancer Registry,
Singapore Singapore
Singapore

Mr. Friso Kluit Mr. Lok Mun Leng Dr.Arvind Sainathan


Senior Solutions Enabler, Deputy Director, Assistant Professor,
Centre of Innovation Strategic Procurement Division of Information
for Supply Chain (Supplies & Services), Technology and
Management, Singapore Health Operations Management,
Republic Polytechnic Services, Nanyang Technological
Singapore Singapore University ,
Singapore

W: http://www.imapac.com/business_conference/biologistics-world-asia-2017/pricing/ E: roohi.taragi@imapac.com C: +65 3109 0131