Maersk to pour half a billion dollars into Southeast Asia infrastructure

Danish shipping giant A.P. Møller–Maersk has revealed its plans to invest more than $500 million to expand its supply chain infrastructure in Southeast Asia.

As disclosed, Maersk’s planned three-year investment will target its logistics and services arm, but at the same time, a substantial amount of investment will also be channeled into its ocean and terminals infrastructure.

Furthermore, Maersk will invest in scaling its warehousing and distribution footprint by up to 50% across the area to augment its ocean, air and land capabilities.

By 2026, the company expects to add nearly 480,000 square meters of capacity spread across Malaysia, Indonesia, Singapore, and the Philippines. With these investments, Maersk wants to improve its mega distribution centers that are strategically located, sustainable and equipped with advanced automation to drive increased efficiencies.

One of the notable investments will be at the Port of Tanjung Pelepas, located in Malaysia, where it is poised to become a key integrated logistics hub with multi-modal connectivity.

The investment is expected to create job opportunities for local talents on top of automation efficiencies and scale the company’s existing network footprint in the region.

Moreover, Maersk is also investing in increasing its landside warehouse capacity at Singapore’s Changi Airport, with the aim of solidifying its position as Maersk’s regional air freight hub.

“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-fulfilment services and their preference for eco-friendly supply chain solutions depending on their sustainability goals,” Elaine Low, Area Managing Director, Southeast Asia at A.P. Møller–Maersk, said.

On the ocean and terminal front, Maersk continues to invest in expanding its infrastructure across the region through APM Terminals, to support enhanced ocean network design and bring additional transshipment to the region.

Additionally, the company is working closely with authorities in the region to explore opportunities in building green fuel infrastructure to support its future green vessel fleet.

To secure the fuel supply for its eco-friendly vessels, Maersk has been investing green fuel suppliers. Recently, the company entered into the first large-scale green methanol offtake agreement for the global shipping industry with Chinese clean energy company Goldwind.

Meanwhile, the Danish shipping giant also signed an agreement with energy major Equinor thus securing the supply of green methanol. The fuel will be used to supply its  landmark, methanol-enabled feeder vessel during its voyages.