The rise of ecommerce over the past decade has proven to be both a blessing and a challenge. On the one hand, it offers unparalleled convenience, allowing us to search for, purchase, and receive products with just a mouse click or tap on our phones. This eliminates the need to set aside time to physically visit stores, making shopping faster and more efficient for busy consumers.
However, ecommerce also presents its own set of challenges, particularly in the logistics required to sustain it — from managing inventory and packaging to coordinating shipping and ensuring timely delivery.
One of the most significant hurdles in this process is last-mile delivery, which refers to the final step of transporting products from a distribution hub directly to the customer’s doorstep. This stage is often the most time-consuming and expensive part of the supply chain, as it involves navigating traffic, finding efficient routes, and dealing with the complexities of delivering to high-density urban environments or remote locations.
Last-mile delivery poses unique challenges in a city like Singapore, where many residents live in high-rise HDB flats. To address this, one potential solution is the use of “walkers” — individuals who deliver parcels on foot, directly to the doorsteps of HDB units. By utilising walkers for short-distance deliveries within residential estates, ecommerce companies could streamline the delivery process while reducing costs and minimising efficiency.
Delivery personnel also require a centralised location to collect the goods they need to deliver to customers’ homes. Without proper facilities, this process can often occur in less-than-ideal or illegal locations, causing inconvenience to residents and even posing some safety concerns to delivery personnel. HDB has introduced the Courier Hub Scheme (CHS) to address this issue.
What Is The Courier Hub Scheme (CHS)?
The Courier Hub Scheme (CHS) provide designated parking lots at HDB Multi-Storey Car Parks (MCSPs) where delivery personnel can safely sort and handle parcels.
This setup enables parcel walkers to complete more parcel deliveries and reduces the number of delivery vehicles within a neighbourhood, improving efficiency and lowering the overall carbon footprint.
Personnel can carry out activities such as loading, unloading, sorting, and dispatching parcels within the designated areas for the CHS. This should only be done by the applicant’s employer or employees at the selected MSCPs. Overnight storage of parcels and other equipment or items is not allowed.
By providing a legitimate, organised and safe space for these activities, the scheme improves the efficiency of last-mile delivery and ensures that public spaces are not misused for unauthorised delivery operations. This initiative helps streamline the logistics process, benefiting delivery workers and residents while maintaining the orderliness of HDB neighbourhoods.
All vehicles using HDB car parks, including vehicles used for courier hub activities, must adhere to HDB’s prevailing height and weight restrictions for the car park. The vehicle’s maximum unladen/ laden weight must not exceed 2,000kg.
How To Apply For A CHS Location?
From now till 4 October 2024, 5:30pm, eligible applicants can submit their application for the CHS. Do note the eligibility criteria as stated by HDB.
- A sole proprietor/ owner of a company incorporated in Singapore, registered with the Accounting and Corporate Regulatory Authority (ACRA); and
- A Singapore Citizen or Permanent Resident who is at least 18 years old.
As part of your application:
- You may select your preferred location from the list of MCSPs or submit multiple applications if more than 1 location is required.
- You are required to apply for a minimum of 4 lots and can apply up to a maximum of 12 lots per site per application. No changes can be made once applications have been submitted.
- You will be informed of the actual lot assigned on site upon successful application.
- Depending on the availability of lots at each MSCP, more than one company may be assigned to the same car park.
- If the number of applications exceeds the number of available lots, sites will be assigned on a first-come, first-served basis, according to the date and time each application is received.
Successful applicants will sign a Temporary Occupation License (TOL). This will allow them to use the carpark under the CHS for 1 year upon application approval. The designated spaces will be available for courier hub activities from 9:00 am to 6:00 pm daily during the period of TOL validity.
How Much Does It Cost To Get A CHS Location?
CHS will cost $70 per lot per month. As a minimum of 4 lots is required for each application, this means the CHS will cost at least $280 per month per location (for 4 lots). If you need more space, you can apply for more lots and will pay more.
According to HDB, successful applicants will pay a 1-year TOL fee of $70 per lot per month (inclusive of GST) and a 3-month security deposit (excluding GST), based on the number of lots taken up upon application.
Parking charges will continue to apply for vehicles using the car park for courier hub activities.
You can check out the list of available MSCPs under the CHS on the HDB website.
Cover image by Moo Kar Ming, DollarsAndSense
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