In 1924, Cape St James was chosen by A. H. Preece, the chief consulting engineer in-charge, as the location for the new power station as it had, firstly, a proximity to the sea for free and unlimited access to seawater for the power plant's water circulation and cooling systems; secondly, a proximity to sea-borne coal delivered by ships and/or barges; thirdly, a proximity to the Federated Malay States Railway (FMSR) train station at Tanjong Pagar for rail-borne coal and building materials required for the construction of the power station; lastly, a large area of five acres.