Shared Automation and the Future of Warehousing
At a LogiSYM conference a few years ago, I recalled a business owner once asked a practical question: would it make sense for him to invest in installing warehouse automation in premises he leased? Would the expected period of occupancy justify the investment in equipment and supporting infrastructure?
The question highlighted how operating conditions can shape an automation decision. Potential productivity gains need to be weighed against upfront costs, deployment time, and the payback period. Expected occupancy also matters, particularly for fixed systems that would be costly to relocate.
A Different Way to Access Warehouse Automation
I attended the OMEGA 1 Singapore groundbreaking on September 24, 2026, where Ally Logistic Property (ALP) Co-founder and CEO Charlie Chang outlined a model that offers another way to approach these investment decisions. OMEGA brings together logistics real estate, shared automation, software, and maintenance services.
In a conventional warehouse lease, businesses typically rent space and arrange the equipment and systems needed for their operations. This may include racking, handling equipment, automation, and warehouse management software.
ALP describes OMEGA as logistics “infrastructure as a service”. Customers lease dedicated operating areas and access shared automated pallet capacity through a pay-as-you-use model. This allows businesses to use automation without each funding and integrating a separate system. Target users include 3PL operators and businesses in retail, e-commerce, FMCG, and technology.
For tenants, automation becomes part of the warehouse offering. Businesses can compare the cost of accessing shared capacity with purchasing and installing their own system. This may be relevant where volumes change over time or where the expected lease period makes a standalone investment difficult to justify.
ALP Co-founder and CEO Charlie Chang explains how OMEGA combines dedicated customer areas with shared automation and storage at the OMEGA 1 Singapore groundbreaking.
Designing the Warehouse for Automation
The approach also influences how the facility is planned. When automation is added to an existing warehouse, equipment and workflows must accommodate the building’s layout and structure. This can constrain storage arrangements and the movement of goods.
Charlie explained that OMEGA starts with how goods need to be stored and moved, then plans the building, automation, and software around those requirements. Designing them together gives more scope to align storage density with handling capacity and avoid bottlenecks across the operation.
Tenants can access a facility designed for automated operations, with development, integration of the shared systems, and maintenance handled by the provider. They still manage their own operations, but do not have to develop the underlying infrastructure themselves.
A Development to Watch in Southeast Asia
In land-constrained Singapore, combining dense automated storage with shared access is a proposition worth watching. It could help businesses make better use of space while reducing the upfront capital commitment and the risk of owning equipment that may no longer suit their requirements.
OMEGA 1 Singapore will include an automated storage and retrieval system (AS/RS) with more than 65,000 pallet positions. ALP’s ALPOS platform will connect tenants’ warehouse management systems with the automation, supported by on-site maintenance. Completion is targeted for the second half of 2028.
The project builds on ALP’s deployment in Taiwan and its expansion into Southeast Asia. OMEGA 2 Yangmei in Taiwan was completed in 2024 with 80,000 automated pallet positions. In Malaysia, OMEGA 1 Bukit Raja began operations in October 2024, while the first phase of OMEGA 1 Bang Na in Thailand was scheduled to begin operations on October 1, 2026. These projects show the pace at which ALP is extending the model across markets.
In a parallel development in Singapore, a robotics supplier said at CeMAT Southeast Asia 2026 that it was developing a smart warehouse in Tuas and seeking collaboration with local companies. Its commercial model was not specified, but the project shows that robotics suppliers are also exploring warehouse development.
Whether shared automated infrastructure becomes widely adopted will take time to assess. Its appeal will depend on pricing, service performance, and how well it accommodates different users’ operating needs.
Smart Warehouse Automation for Future-Ready Logistics
Alongside these developments, businesses continue to invest directly in their distribution operations. In September 2026, Schneider Electric announced a S$25 million investment to upgrade its Hub Asia Distribution Centre in Tuas and develop its workforce. The programme includes goods-to-person automation, an upgraded warehouse management system, and adaptable racking. The first automation phase had recently gone live, with further upgrades targeted for completion by 2027. The investment includes S$19 million for hiring and reskilling through 2030.
These developments reflect different approaches to adopting warehouse automation. Businesses may invest in systems tailored to their own facilities or access capabilities through shared infrastructure. In either case, the investment needs to support productivity while allowing operations to adapt to changing supply chain requirements.
The business owner’s question remains relevant, but the available options are broadening. Automation is becoming an important part of preparing logistics operations for the future. The decision involves both which capabilities businesses need and how best to fund and access them as their requirements evolve.
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