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A Maersk containership berthed at the Port of Tanjung Pelepas in Malaysia.

A Maersk containership berthed at the Port of Tanjung Pelepas in Malaysia. Stock Photo: Farid Suhaimi / Shutterstock.com

Maersk to Invest Over $500 Million in Southeast Asia’s Supply Chain

Mike Schuler
Total Views: 1224
December 4, 2023

A.P. Moller-Maersk (Maersk) has announced a significant investment of more than $500 million to expand its supply chain infrastructure in Southeast Asia. This investment aims to support the region’s emergence as a global production hub and a consumption powerhouse. Over the next three years, Maersk plans to focus its investment on its Logistics & Services arm, while also allocating a substantial amount to its Ocean and Terminals infrastructure.

The investment is expected to create job opportunities for local talents and enhance automation efficiencies, further strengthening Maersk’s existing network footprint in Southeast Asia.

Vincent Clerc, CEO of A.P. Møller-Maersk acknowledged the rapid growth of the region, driven by a digitally savvy population, a booming e-commerce sector, government initiatives to capitalize on global manufacturing diversification, and the rise of regional brands and inter-regional trade.

“Our investment reflects the commitment to being the global logistics integrator addressing the changing needs of our customers, now and in the future, while remaining steadfast to our decarbonization agenda,” said Clerc.

During a global executive board meeting held in Singapore, Maersk announced its plan to build supply chain resilience, reduce the cost of trade (which tends to be 2x-3x higher in certain Asian markets), and provide value-added outcomes to its customers.

As part of the investment, Maersk will scale its warehousing and distribution footprint by up to 50% across the region. This expansion will augment its ocean, air, and land capabilities, catering to both international and domestic markets and demand. By 2026, Maersk aims to add nearly 480,000 square meters of capacity across Malaysia, Indonesia, Singapore, and the Philippines. Maersk says these distribution centers, strategically located and equipped with advanced automation, will help drive increased efficiencies and sustainability.

One notable investment will be at the Port of Tanjung Pelepas in Malaysia, which is poised to become a key integrated logistics hub with multi-modal connectivity. Maersk will also increase its landside warehouse capacity at Singapore’s Changi Airport, solidifying its position as a regional air freight hub.

In addition, Maersk plans to significantly increase its haulage truck capacity in Southeast Asia, offering greener solutions depending on customer needs. The company will pilot biodiesel-based haulage trucks and introduce electric vehicles (EVs) by 2024.

On the ocean and terminal front, Maersk will expand its infrastructure across the region through APM Terminals, supporting enhanced ocean network design and attract additional transshipment to Southeast Asia. Maersk is also actively collaborating with regional authorities to explore opportunities in building green fuel infrastructure to support its future green vessel fleet.

Elaine Low, Area Managing Director, Southeast Asia at A.P. Møller-Maersk, said that these investments aim to deliver a truly end-to-end supply chain and logistics solution to customers, providing greater visibility and control.

“Customers will have the flexibility to choose different transport models, omnichannel-fulfilment services and their preference for eco-friendly supply chain solutions depending on their sustainability goals,” said Low.

Maersk currently operates in Singapore, Malaysia, Indonesia, and the Philippines, with over 5,000 employees in the region and an extensive network of offices, distribution centers, and production facilities.

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