Maersk invests over $500M into SEA’s supply chain expansion

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Maersk invests over $500M into SEA’s supply chain expansion
Left to right: Elaine Low, Area Managing Director, Maersk Southeast Asia; Ditlev Blicher, President of Maersk Asia Pacific; and Vincent Clerc, CEO of A.P. Moller-Maersk. Photo from Maersk.
  • Maersk is investing $500 million in Southeast Asia’s supply chain to boost the region’s global production and consumption status
  • The three-year investment mainly targets Maersk’s Logistics & Services arm, with extra funds going towards improving ocean and terminal infrastructure
  • Maersk plans to increase warehousing and distribution capabilities by 50%, adding 480,000 square meters across Malaysia, Indonesia, Singapore, and the Philippines
  • Key investments include making Malaysia’s Port of Tanjung Pelepas a major logistics hub, expanding warehouse capacity at Singapore’s Changi Airport, and exploring eco-friendly trucking in Southeast Asia

Maersk is putting more than $500 million into Southeast Asia’s supply chain to help the region become a key player in global production and consumption. The three-year plan focuses on strengthening Maersk’s services, including logistics and terminals.

“Southeast Asia is the fastest growing area in Asia Pacific. A digitally savvy population, coupled with an e-commerce boom, Government’s efforts to capitalize on global manufacturing diversification, growing regional brands, and rising inter-regional trade is spurring sustained growth in this area. 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,” Vincent Clerc, Maersk’s CEO, said in a statement.

The announcement came during a recent global executive board meeting in Singapore, highlighting Maersk’s goal to make supply chains more robust, lower trade costs, and bring better services to customers.

In certain Asian markets, the cost of trade tends to be 2x-3x higher, providing value-added outcomes to its customers, Maersk said.

Maersk plans to boost warehouse and distribution capabilities by 50% in Southeast Asia, adding about 480,000 square meters across Malaysia, Indonesia, Singapore, and the Philippines by 2026. The move aims to make the company’s distribution centers more efficient and sustainable, with advanced automation.

Key investments include making Malaysia’s Port of Tanjung Pelepas a crucial logistics hub and expanding warehouse capacity at Singapore’s Changi Airport to strengthen its role as a regional air freight hub.

Maersk is also looking to improve trucking in Southeast Asia, exploring green options. Plans include using biodiesel trucks and introducing electric trucks by 2024.

On the ocean and terminal front, Maersk continues investing in APM Terminals to expand infrastructure in Southeast Asia. This supports better ocean network design and increased transshipment in the region. Maersk is also working with local authorities to explore green fuel infrastructure to support its future green vessel fleet.

READ: Maersk signs green methanol deal, largest of its kind for shipping

Elaine Low, Maersk’s area managing director for Southeast Asia, emphasizes the customer-focused approach, saying, “Our investments in Southeast Asia aim to deliver a truly end-to-end supply chain and logistics solution to our customers, offering them greater visibility and control. Customers will have the flexibility to choose different transport models, omnichannel-fulfillment services and their preference for eco-friendly supply chain solutions depending on their sustainability goals.”