A.P. Møller-Maersk, a global leader in logistics and container shipping, has announced a substantial investment exceeding USD$500 million to fortify its integrated supply chain capabilities in Southeast Asia. The investment is aligned with Maersk’s global strategy as an integrator, aiming to bolster its presence across warehousing, distribution, air, inland logistics, ocean, and terminals. The move is strategically timed to support Southeast Asia’s growing prominence as a global production and consumption hub, according to a Maersk official press release.
Vincent Clerc, CEO of A.P. Møller-Maersk, emphasized the significance of the investment, stating, “Our commitment to being the global logistics integrator addresses the changing needs of our customers, now and in the future, while remaining steadfast to our decarbonization agenda.”
The investment, announced during a global executive board meeting in Singapore, spans a three-year period and focuses primarily on Maersk’s Logistics & Services arm. However, a substantial portion of the funds will also be directed towards enhancing the Ocean and Terminals infrastructure. The initiative is anticipated to create job opportunities for local talents and introduce automation efficiencies, further expanding the company’s network footprint in the region.
Southeast Asia, recognized as the fastest-growing area in the Asia Pacific, is witnessing a surge in growth fueled by a digitally savvy population, e-commerce expansion, governmental initiatives for global manufacturing diversification, the rise of regional brands, and increased inter-regional trade. Maersk’s investment is poised to capitalize on these factors by enhancing supply chain resilience, reducing trade costs, and delivering value-added outcomes for customers.
Maersk’s ambitious plans include scaling warehousing and distribution capacity by up to 50% across the region. By 2026, the company aims to add nearly 480,000 square meters of warehouse space in Malaysia, Indonesia, Singapore, and the Philippines. Notable investments include the Port of Tanjung Pelepas in Malaysia, set to become a key integrated logistics hub with multi-modal connectivity.
In the pursuit of sustainability, Maersk plans to build green fuel infrastructure, pilot biodiesel fuel, and introduce electric trucks by mid-2024. These initiatives align with the company’s commitment to providing eco-friendly solutions and addressing its customers’ sustainability goals.
The investment extends to landside connectivity, with plans to significantly increase haulage truck capacity in Southeast Asia. The company aims to offer greener solutions, piloting biodiesel-based haulage trucks and introducing electric trucks 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 exploring opportunities for green fuel infrastructure in collaboration with regional authorities.
With a presence in four Southeast Asian markets – Singapore, Malaysia, Indonesia, and the Philippines – Maersk, boasting over 5000 employees, strategically positions itself to effectively serve customers and partners with a comprehensive end-to-end supply chain and logistics solution. The investment underscores Maersk’s commitment to delivering greater visibility, control, and sustainable options to its customers in the dynamic Southeast Asian market.
Sources: Maersk
