Maersk to Invest $500M in Integrated Supply Chain Capabilities in Southeast Asia

Source: www.gulfoilandgas.com 12/4/2023, Location: Asia

A.P. Moller-Maersk (Maersk) announced more than USD$500 million investment to expand its supply chain infrastructure to support Southeast Asia's emergence as a global production hub and a consumption powerhouse. Maersk’s planned three-year investment will target its Logistics & Services arm, but at the same time, substantial amount of investment will also be channeled into its Ocean and Terminals infrastructure. 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.

"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
CEO, A.P. Møller–Maersk

The investment was announced on the sidelines of a recently concluded global executive board meeting in Singapore. It aims to build supply chain resilience, lower the cost of trade, which tends to be 2x-3x higher in certain Asian markets and offer value-added outcomes to its customers.

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, serving both international and domestic markets and demand. By 2026, Maersk expects to add nearly 480,000 sqm capacity spread across Malaysia, Indonesia, Singapore, and the Philippines. With these investments, Maersk will be able to better serve customers with mega distribution centres 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 to simplify our customers’ supply chain domestically and connecting to the world. Furthermore, 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.

On landside connectivity, Maersk will invest in significantly increasing its haulage truck capacity in Southeast Asia with the capability to offer greener solutions depending on its customers' needs. It will also pilot biodiesel-based haulage trucks and introduce EV trucks by 2024.

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.

"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

Maersk has a presence in four markets in its Southeast Asia Area, including Singapore, Malaysia, Indonesia and the Philippines. With over 5000 employees, the company's extensive network of offices, distribution centres, and production facilities strategically positioned across the area enables it to effectively serve its customers and partners.


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