Orchard Rd businesses aim for better delivery system to ease congestion

SINGAPORE — Businesses along Orchard Road were not keen on a car-free shopping belt but they acknowledged that traffic congestion could be a factor in the street’s declining popularity. And possible solutions being looked into include an urban logistics management system that could reduce heavy traffic caused by delivery trucks queueing outside the malls.

The location for a proposed “off-site consolidation centre” (OCC) and its operating model has yet to be finalised. It could involve individual malls or clusters of malls connecting with the OCC and distribution service operators, industry sources told TODAY. This will improve freight flow within Orchard Road by ensuring that delivery timings do not clash, thereby reducing the number of trucks waiting at the malls.

Discussions between the Orchard Road Business Association (Orba), various mall operators and retailers are in progress.

However, some retailers are worried that the new distribution model would lead to higher costs, while others said their delivery vehicles largely operate during low traffic hours and rarely caused congestion.

“The concept of a distribution hub may look good on paper, but no retailer will want to pay more for it, given that business is already down. Also, it will not be easy to undo the existing distribution system,” said Mr Jimmy Kek, owner of electronics goods retailer Jim Col Enterprises in Lucky Plaza.

The model, along the lines of Japanese company Yamato Transport’s Urban Logistics, aims to boost delivery and logistics processing through centralised in-mall distribution, dock scheduling and queue-management solutions.

It reduces waiting and queuing time for deliveries by about two-thirds, and can potentially cut delivery manpower by some 40 per cent. The model has been extended to 12 malls in the western part of Singapore this year, after being piloted at two malls in the east since last June.

A committee comprising various stakeholders from the Orchard Road precinct and the Government has been formed to identify opportunities for further infrastructure developments within the shopping belt to boost connectivity.

“We are still working with the Orba, Orchard Road stakeholders and relevant Government agencies to study ways to revitalise Orchard Road … We are also in discussions with the precinct and industry stakeholders on how they can strengthen their own offerings, or contribute to the street programming or activations within the precinct,” said Ms Serene Tan, director of lifestyle precincts development at the Singapore Tourism Board.

Some businesses have suggested re-opening the surface crossing at Paterson Road to revitalise the area, besides regular lifestyle events along Orchard Road to lure shoppers.

“The re-opening of the surface crossing at Paterson Road may help. I have seen tourists and even locals get lost while taking the underground way. This will be easy and good for shoppers as well,” Mr Kek said.

Mr Prem Khiatani, who owns a tailor shop at Far East Plaza, said the reopening of the Paterson Road crossing may make it easy for shoppers to enter malls across the roads, but added that turning Orchard Road into a pedestrian plaza would offer little help.

“Today, even more shops in this mall are empty, compared with last year. It is very simple. People are not coming here as they can shop online, get things much cheaper. They will continue to do so.

“How will pedestrianising make people buy more? They can come here for activities, but if they don’t shop, what is the point?” asked Mr Khiatani, who has been running his business in the area for 29 years.

Mr David Chan, who owns a shoe shop, also pointed to the impact of online shopping on his business.

“As it is, we are losing out to e-commerce. People will then all the more want to avoid buying from us or will expect their shopping to be delivered. No point doing things to increase people traffic if they don’t buy,” he said.