Maersk announces $500 mn investment to boost Southeast Asia's SC infra
WAREHOUSING & LOGISTICS

Maersk announces $500 mn investment to boost Southeast Asia's SC infra

Maersk, also known as A P Moller-Maersk, has unveiled plans for a substantial investment exceeding $500 million to fortify its supply chain infrastructure, with a particular focus on facilitating Southeast Asia's ascent as a global production centre and a significant consumer market. Over the course of three years, Maersk's investment initiative will primarily target its Logistics & Services division, while concurrently directing a substantial portion toward bolstering its Ocean and Terminals infrastructure. This strategic investment is anticipated to generate employment opportunities for local talents, enhance automation efficiencies, and expand the company's existing network footprint in the region.

The announcement was made during a recent global executive board meeting held in Singapore. The objective of this investment initiative is to cultivate supply chain resilience, reduce trade costs, which can be 2x-3x higher in specific Asian markets, and deliver value-added outcomes to its clientele.

Maersk's investment will concentrate on scaling its warehousing and distribution capabilities by up to 50% across the region, augmenting its capabilities in ocean, air, and land transport to cater to both international and domestic markets. By 2026, Maersk envisions adding nearly 480,000 sqm of capacity spread across Malaysia, Indonesia, Singapore, and the Philippines. These strategic investments will enable Maersk to serve its customers more effectively through strategically located mega distribution centers that are sustainable and equipped with advanced automation to optimise operational efficiencies. Notable among these investments is the development at the Port of Tanjung Pelepas in Malaysia, poised to become a pivotal integrated logistics hub with multi-modal connectivity, simplifying domestic supply chains and global connections. Additionally, Maersk is committed to expanding landside warehouse capacity at Singapore's Changi Airport, reinforcing its position as a key regional air freight hub.

In terms of landside connectivity, Maersk plans to significantly increase its haulage truck capacity in Southeast Asia, offering eco-friendly solutions based on customer preferences. The company will pilot biodiesel-based haulage trucks and introduce electric vehicle trucks by 2024.

On the ocean and terminal front, Maersk will continue its investments to expand infrastructure across the region through APM Terminals. This expansion aims to support optimised ocean network design and introduce additional transhipment capabilities to the region. Furthermore, Maersk is collaborating with regional authorities to explore opportunities for building green fuel infrastructure, aligning with its commitment to support a future fleet of environmentally friendly vessels.

Maersk, also known as A P Moller-Maersk, has unveiled plans for a substantial investment exceeding $500 million to fortify its supply chain infrastructure, with a particular focus on facilitating Southeast Asia's ascent as a global production centre and a significant consumer market. Over the course of three years, Maersk's investment initiative will primarily target its Logistics & Services division, while concurrently directing a substantial portion toward bolstering its Ocean and Terminals infrastructure. This strategic investment is anticipated to generate employment opportunities for local talents, enhance automation efficiencies, and expand the company's existing network footprint in the region. The announcement was made during a recent global executive board meeting held in Singapore. The objective of this investment initiative is to cultivate supply chain resilience, reduce trade costs, which can be 2x-3x higher in specific Asian markets, and deliver value-added outcomes to its clientele. Maersk's investment will concentrate on scaling its warehousing and distribution capabilities by up to 50% across the region, augmenting its capabilities in ocean, air, and land transport to cater to both international and domestic markets. By 2026, Maersk envisions adding nearly 480,000 sqm of capacity spread across Malaysia, Indonesia, Singapore, and the Philippines. These strategic investments will enable Maersk to serve its customers more effectively through strategically located mega distribution centers that are sustainable and equipped with advanced automation to optimise operational efficiencies. Notable among these investments is the development at the Port of Tanjung Pelepas in Malaysia, poised to become a pivotal integrated logistics hub with multi-modal connectivity, simplifying domestic supply chains and global connections. Additionally, Maersk is committed to expanding landside warehouse capacity at Singapore's Changi Airport, reinforcing its position as a key regional air freight hub. In terms of landside connectivity, Maersk plans to significantly increase its haulage truck capacity in Southeast Asia, offering eco-friendly solutions based on customer preferences. The company will pilot biodiesel-based haulage trucks and introduce electric vehicle trucks by 2024. On the ocean and terminal front, Maersk will continue its investments to expand infrastructure across the region through APM Terminals. This expansion aims to support optimised ocean network design and introduce additional transhipment capabilities to the region. Furthermore, Maersk is collaborating with regional authorities to explore opportunities for building green fuel infrastructure, aligning with its commitment to support a future fleet of environmentally friendly vessels.

Next Story
Equipment

Plant & Equipment Secures Funding to Expand Auction Business

Plant & Equipment (P&E), a global heavy equipment marketplace, has secured asset-backed financing to accelerate the growth of P&E Auctions, its auction business serving buyers and sellers across the Middle East, Africa and other international markets.The investment will be used to acquire physically inspected construction equipment, lifting machinery and commercial vehicles, enabling the company to provide minimum guarantees on assets sold through its auction platform.Launched in December 2023, P&E Auctions has expanded rapidly following the success of the company's online mark..

Next Story
Equipment

Michelin Opens Two New Retail Service Centres in North India

Michelin India has expanded its retail network in North India with the launch of two new Michelin Tyres & Services (MTS) stores in Amritsar and Panchkula. Opened in partnership with National Auto and Universal Tyres, respectively, the new outlets aim to strengthen the company's presence in one of India's fastest-growing automotive markets.Located on Loharka Road in Amritsar and in the Industrial Area of Panchkula, each 5,000-sq-ft facility offers Michelin's range of passenger car and two-wheeler tyres, including the Primacy, Pilot Sport, Latitude Sport and LTX Trail series. The centres als..

Next Story
Infrastructure Urban

IHC and Adani to Invest US$11.5 bn in Odisha Aluminium Project

Abu Dhabi's International Holding Company (IHC) will invest US$11.5 bn in an integrated aluminium project in the eastern Indian state of Odisha in a joint venture with the Adani Group, a state official said. The official said the announcement represented the country's largest foreign investment in mining and metallurgy. Officials said the venture would span both mining and metallurgical activities across several facilities in the state. The project has been described as integrated, encompassing upstream bauxite extraction and downstream smelting and metallurgy, and is intended to develop a com..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement