Cosco Shipping International (Singapore) expands its Jurong Island Logistics Hub, doubling warehousing capacity with a $272 million investment.
Cosco Shipping International (Singapore), the Mainboard-listed subsidiary of China Cosco Shipping Corporation, is expanding its Jurong Island Logistics Hub (JILH) to nearly double its warehousing footprint, backed by a $272 million rights issue raised in 2025, as the company deepens its commitment to becoming an integrated logistics and supply chain solutions provider across Southeast Asia.
The expansion comes on the back of strong first-half results. For 1HFY2026 ended June 30, the company reported a 188% year-on-year rise in profit after tax and minority interests (PATMI) to $7.57 million, on revenue of $96.8 million, up 6% year-on-year. The logistics business, delivered mainly through subsidiary Cogent Holdings, contributed 88% of revenue, rising 6% year-on-year to $85.2 million. Ship repair and marine-related services accounted for 10.7% ($10.4 million), while property management contributed 1.3% ($1.27 million).
The company's transformation began in May 2017, when it sold its loss-making shipyard and shipbuilding business to another subsidiary owned by its parent. Ten months later, in March 2018, it completed the acquisition of established logistics provider Cogent Holdings, marking its entry into the logistics sector.
"Through M&A, we could quickly obtain resources such as warehouses, but more importantly, we could quickly acquire an existing operations team," Cosco Shipping International (Singapore) president and executive director Jiang Kai told The Edge Singapore.
The Singapore business now forms part of a vertically integrated supply chain under China Cosco Shipping Corporation, which was established through the 2016 merger of China Ocean Shipping Company (Cosco) and China Shipping Group Company. Under the group's vision, the Singapore subsidiary is positioned as an "important" component of an end-to-end logistics service focused on developing integrated land logistics across the region.
"Our parent's shipping companies handle the sea leg, and Cosco Shipping handles the land leg," Jiang explained, adding that the model is more "sustainable with greater market potential."
Today, the company's logistics operations span warehousing, container depot services, automotive logistics, and transport management. Its property subsidiary operates an office leasing business in Singapore, while its marine engineering subsidiaries carry out ship repair, inspection of life-saving and fire-fighting equipment, supply of ship stores and provisions, and fabrication of steel structures for ships and offshore platforms locally and regionally.
According to Jiang, some 60% to 70% of Cogent's container storage business comes from within the China Cosco group, providing a stable revenue base.
"All business from internal customers is still contracted at market prices, but because we're in the same group, they won't easily go out to the market to choose another provider unless we are unable to serve them due to capacity constraints," he said.
The remainder of the segment comes from external customers including Hapag-Lloyd, Maersk, and CMA CGM. Contracts with third-party customers typically run one year, with clauses that allow the company sufficient time to find new customers should a contract be terminated prematurely.
A key competitive advantage in Singapore is Cogent's proprietary overhead container storage system, an award-winning design that uses overhead bridge cranes to stack up to 15 empty containers high on its rooftop container depot.
"This technology is very suitable for Singapore because land is extremely expensive, and stacking empty containers in the air is an efficient solution," Jiang said.
Beyond expanding storage capacity, the system enables faster turnaround times for hauliers collecting and returning containers. The design has proven innovative enough that other container depots in Singapore have paid Cogent for the right to use it. Cogent itself deploys the system at the Cogent One-Stop Logistics Hub and at JILH.
The company's second competitive strength lies in chemical logistics, an area in which it has accumulated years of experience. Cogent's customers include a large multinational operating a major chemical plant on Jurong Island, as well as local chemical firms, which use its dangerous goods warehousing solutions.
Jurong Island, located southwest of mainland Singapore, serves as a major hub for the energy and chemicals industry, with more than 100 companies operating on the island. JILH currently spans around 61,000 sqm, can handle 100,000 twenty-foot equivalent units (TEUs) annually, and has maintained over 90% warehouse occupancy since becoming operational in April 2021.
The second phase of JILH is scheduled to open around end-2026 or early 2027, adding 63,000 sqm of warehousing space and roughly doubling the facility's total footprint to about 124,000 sqm. Upon completion, JILH will be the largest integrated storage and logistics centre on Jurong Island and in Singapore.
"From our market outlook, we're optimistic about Jurong Island's chemical sector," Jiang said, noting that the company has been actively negotiating contracts with existing and potential customers.
"I can't give specific numbers before contracts are signed, but we are quite optimistic that once the government inspections are completed and we're allowed to start operations at year-end, we'll be able to fill up the new phase two capacity fairly quickly."
The company's confidence rests on sustained demand from chemical businesses on the island. "Although geopolitical events like the Middle East crisis have sometimes caused disruptions in raw material supply or reduced demand, and new technologies are partially substituting traditional chemical raw materials, in the long term, chemicals remain the backbone of industrial manufacturing, with many industrial raw materials coming from chemical companies," Jiang explained.
"This analysis, plus multiple rounds of deep communication with customers that have grown together with us over many years, help us make a decision to expand JILH."
Cosco Shipping International (Singapore) has set a long-term goal of becoming "the most trusted integrated logistics enterprise in Southeast Asia." It currently maintains direct operations in Malaysia and holds stakes in logistics companies in Indonesia and Vietnam.
Between 2020 and 2023, the company acquired five logistics firms in Malaysia through Cogent, followed by restructuring and integration efforts to improve revenue and profitability.
"At the end of 2025, our Malaysia business was still roughly at breakeven, because reorganising and restructuring involve time and cost," Jiang said. "But in the first half of this year, the business has shown a very strong growth momentum in both revenue and profit and I think we will be able to sustain this, because Malaysia has huge opportunities for logistics development."
Jiang pointed to the pace of economic growth in markets such as Vietnam, Indonesia, Malaysia, Thailand, and Cambodia, and their sizable consumer markets relative to Singapore. "As manufacturing in these countries grows, the import of raw materials and exports of finished goods generate huge demand for logistics and shipping," he said. "These are exactly the development opportunities Cosco Shipping wants to capture in these countries."
Singapore, as the trade and financial centre of Southeast Asia, serves as the ideal headquarters for the regional push. Jiang believes the fully operational Tuas Mega Port will further cement the island-state's status as a maritime and trade hub.
"A large proportion of cargo only transits Singapore without being discharged into the domestic logistics system — containers are unloaded, re-consolidated, and re-loaded to ships bound for the rest of the world," he added.
Jiang emphasised the competitive advantage of operating as "one" integrated logistics and supply chain player. Citing the Malaysian business, he said the objective is to build a single logistics enterprise capable of serving diverse customer needs, rather than five separate companies operating under one brand.
"No customer wants to communicate with multiple companies and exchange data and information across them ... they expect one interface, one system, one solution," he said. "Otherwise, we'd be eliminated by the market."
Asked what distinguishes the company from competitors, Jiang cited its ability to adapt to evolving market and customer demands, and to resolve logistical challenges through "efficient and reliable" execution. "By relieving their logistical worries, our customers can focus on growing their own business," he said.
"Cosco Shipping can integrate the maritime transportation resources of its major shareholder, China Cosco, as well as resources within China, and translate these advantages into contracts, revenue, and profit," Jiang added. "We believe that in five to 10 years, our logistics businesses in Singapore, Malaysia, Indonesia, Vietnam, and other parts of Southeast Asia will continue to grow steadily."
