His Excellency Mr Andreas Michaelis
German Ambassador to Singapore

Mr Frank Messer
President & CEO, DaimlerChrysler South East Asia

Mr Guenter Egle
Senior Vice-President, DaimlerChrysler

Mr David Brady
Vice-President of Caterpillar Logistics Services, AP

Distinguished guests

Ladies and gentlemen

The opening of the DaimlerChrysler Regional Logistics Centre here today marks another milestone in the close partnership between DaimlerChrysler and Singapore.

DaimlerChrysler is one of the most well-known icons in the world of engineering and automobile industry. The company’s founders, Karl Benz and Gottlieb Daimler, were pioneers in automobile engineering in the late 19^th century, at a time when Singapore was establishing itself as a thriving port. Since then, DaimlerChrysler and Singapore have both come a long way. This Regional Logistics Centre very fittingly brings together DaimlerChrysler’s distinguished record of engineering excellence and Singapore’s renowned position as an entrepot and logistics hub.

As a safe and efficient port of call, Singapore has served global trade well. DaimlerChrysler’s Regional Logistics Centre is a firm endorsement of Singapore’s position as a leading global logistics hub and Supply Chain Management (SCM) nerve centre.

We are fully aware that global automotive leaders like DaimlerChrysler are today seeking to streamline and consolidate their logistics and supply chain management operations to improve their time-to-market and overall cost-efficiency. Our challenge here in Singapore is to provide five levels of connectivity to meet their needs. These are: air and sea transport, cyber links, free trade agreements, information flow and people networks. So far, we have been able to deliver. We now host regional logistics centres for four out of the top six automotive original equipment manufacturers in the world. We are determined and committed to keep upgrading our capabilities to better serve the needs of global leaders and players.

DaimlerChrysler’s Regional Logistics Centre is unique for several reasons. First, with a total warehousing space of 400,000 square feet, it is the largest single-client warehouse facility in Singapore, managing over S$100 million worth of inventory at any one time. Furthermore, this centre also marks DaimlerChrysler’s largest warehousing and distribution facility in Asia Pacific, serving more than 20 countries. Established in partnership with Caterpillar Logistics, this brand new S$43 million facility has also brought about good employment opportunities for 170 employees. We are really happy that DaimlerChrysler has chosen Singapore as the location for this strategic and important facility. We thank you for your confidence in Singapore, and we assure you that we will do our best to meet up, or even exceed your expectation in us.

To create more economic space for companies serving the global markets from Singapore, we have strengthened our economic partnership through the signing of Free Trade Agreements with several of our key trading partners including US, Japan and Australia. We are also in discussions with several others. Besides, tariff reductions introduced this year under the ASEAN Free Trade Area agreement, or AFTA, will also bring new opportunities for the automotive industry. Bearing in mind that ASEAN is one of the fastest growing markets for vehicles, companies can configure their activities to draw maximum benefit from AFTA and gain market share in ASEAN. Singapore and Thailand are also working together to explore opportunities for mutual collaboration in the area of sourcing and manufacturing of automotive parts.

Singapore is also expanding its role as a technology gateway and innovation hub. With global automotive players putting more emphasis on the development of low-emission vehicles, the development and testbedding of alternative energy vehicles and other environmentally friendly solutions has become more important. With our infrastructure, capabilities and connectivity, we are encouraging companies to carry out development and innovation activities in Singapore.

I am therefore excited to learn that DaimlerChrysler is bringing a fleet of seven fuel cell vehicles to Singapore for testbedding next year. This testbedding of fuel cell vehicles is very much in line with our Environmental Test-bedding Initiative launched just two months ago. It is also in line with the multi-agency efforts of National Environment Agency, Land Transport Authority and Economic Development Board to encourage the introduction of environmentally friendly vehicles. With BP setting up the hydrogen refuelling stations, Singapore will be amongst the first countries in the world to have the infrastructure for these state-of-the-art zero emission vehicles. We welcome this pioneering effort by DaimlerChrysler. It will help realise our vision of becoming a regional hub for environmental technology, innovation and solutions.

We truly value our strong partnership with DaimlerChrysler. Singapore already serves as your South Asia headquarters. Today, with the establishment of this Regional Logistics Centre, you have shown your confidence in Singapore. I thank you for this endorsement of Singapore.

I congratulate the management and staff of DaimlerChrysler on the opening of this Regional Logistics Centre. I wish you great success in your exciting endeavour. Thank you.

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