Maersk to invest $500mn for integrated supply chain in Southeast Asia

Maersk announced investments of more than $500 million 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, a substantial amount of investment will also be channelled into its ocean and terminals infrastructure," says an official release.

"Southeast Asia is the fastest growing area in Asia Pacific," says Vincent Clerc, CEO, Maersk. "A digitally savvy population, coupled with an e-commerce boom, government’s efforts to capitalise 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 decarbonisation agenda."

Maersk will invest in scaling its warehousing and distribution footprint by up to 50 percent across the area to augment its ocean, air and land capabilities, serving both international and domestic markets and demand, the release added. "By 2026, Maersk expects to add nearly 480,000 sq.m. 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 connect 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."

Elaine Low, Area Managing Director, Southeast Asia, Maersk says: "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."

Maersk has a presence in four markets in its Southeast Asia area including Singapore, Malaysia, Indonesia and the Philippines with over 5,000 employees, the release added.