Schneider Electric spends S$25 million to automate Tuas logistics hub, reskill workers

Schneider Electric is investing S$25 million to improve the automation and digital capabilities of its Hub Asia logistics distribution centre in Tuas, Singapore. The project, which extends to 2030, will introduce automation, robotics, and agentic artificial intelligence to the facility. Scheduled for completion by 2027, the upgrade will primarily focus on a goods-to-person system, where inventory is automatically delivered to picking stations instead of workers retrieving the goods.

The first phase, launched in June, already increased productivity by 10 percent through the use of autonomous robots, vehicles, and a conveyor system for the storage and retrieval of loose items. The second phase will further expand automation, incorporating full-carton picking and adaptable racking systems. The S$25 million investment, supported by the Singapore Economic Development Board, will also be used to develop a team of 26 workers to operate and manage the new automated systems.

These workers will receive additional training in advanced systems monitoring, data analysis, and warehouse planning. Although automation is expected to handle around 40 percent of outbound goods and boost productivity by up to 20 percent, Schneider will still require human workers to monitor automated operations and step in when problems arise.