The development of Terminal 5 (T5) at Singapore's Changi Airport is progressing with the award of a S$999 million underground tunnel contract to a joint venture between Japan’s Penta-Ocean Construction and Singapore-based Koh Brothers Building & Civil Engineering (KBCE).
The tunnel system will serve as the backbone of essential infrastructure, supporting automated people-mover systems and baggage-handling systems. It will also house dry and wet utilities including electrical, water, and communication systems. The project includes the construction of a ventilation building and provisions for future underground infrastructure. Construction is expected to take more than four years.
Slated to open in the mid-2030s, T5 will be as large as Terminals 1 to 4 combined and is designed to handle 50 million passengers annually, increasing Changi’s total capacity to 140 million passengers per year — a 55% increase over its current 90 million capacity.
T5 is part of the Changi East Development, a 1,080-hectare expansion that also includes a third runway (expected to begin operations in late 2027), cargo facilities, and ground transport infrastructure. With three runways and a second air traffic control tower, Changi Airport will be well-positioned to meet the projected doubling of Asia-Pacific air travel by the 2040s.
For the first time, T5 will also feature an integrated ground transport centre, connecting the Thomson-East Coast Line, Cross Island MRT Line, buses, taxis, and other public transport modes, improving accessibility for passengers and workers.
The expansion of T5 will significantly enhance air connectivity, cargo flow, and regional logistics activity. This presents a major opportunity for industrial hubs near the Singapore-Malaysia border, particularly Senai Airport City, Iskandar Malaysia, and Pasir Gudang, which stand to benefit from increased demand for logistics, manufacturing, and cross-border distribution facilities.
Now is the time for businesses to secure strategic industrial properties in Johor to stay ahead in this fast-developing regional corridor.
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