Page 80 - Demo

Equally important is the reservation of buffer space for relevant industries along the same value chain. A tightly knitted industrial community can create synergy opportunities and further boost the trading and logistics activities that take place in the logistics nodes. For instance, there should be spaces that allow for flexible uses such as for conference and exhibition facilities, and commercial buildings for e-commerce and trading firms.4. Strategic clusteringThe logistics node should provide a level playing field for companies of different sizes to cultivate healthy competition and the sustainable growth of the industry. There should be a mix of ready-built facilities for SMEs to rent and land sales for established players to lease and build their own facilities. The lease terms should be set at reasonable lengths so as to give business operators certainty while maintaining flexibility for the land use in future. During the lease or tenancy period, there should be milestone dates of assessment of whether the tenants have met the performance conditions (such as land utilisation, value added to GDP, number of jobs created, application of latest business practice and technology, etc.) set out in the lease or tenancy agreement and whether their lease or tenancy should be renewed.To speed up the consolidation and redevelopment of existing brownfields, current brownfield operators may enjoy higher priority in moving into the logistics nodes. There are many benefits to be derived from operating on these nodes including better location, connectivity, and infrastructure support. Therefore, spaces should be allocated first to tenants who can demonstrate their contribution to local economy and employment. Tenants with strong willingness to invest in technological upgrades should also be prioritised.Current market rents are driven to a high level due to the persistent shortage of warehousing space. Hence, when the logistics node is rolled out, the management authority may consider setting rentals and lease premiums below the prevailing market level and affordable to the SMEs. However, as mentioned earlier, tenants benefiting from rental concessions should actively upgrade their business operation with the help from the statutory body, so that they can achieve the performance conditions set in the tenancy agreement, and have their tenancy renewed with market-level rentals and premiums.1. Allocation arrangement2. Admission criteria3. Pricing mechanism78