Maersk splashes $500 million in supply chain capabilities

Maersk to invest over $500 million in supply chain capabilities

A.P. Moller-Maersk (Maersk) has announced a $500 million investment to strengthen its supply chain infrastructure in support of Southeast Asia’s rise as a global production and consumption powerhouse.

Maersk’s planned three-year investment will reportedly target its Logistics & Services arm, with a substantial amount of investment also channelled into its Ocean and Terminals infrastructure.

This investment intends to improve supply chain resilience, cut trade costs, which are often 2x-3x higher in particular Asian countries, and provide value-added results to its clients.

Vincent Clerc, CEO, Maersk, said: “Southeast Asia is the fastest growing area in Asia Pacific. 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.”

READ: Maersk introduces new Southeast Asia – Australia services

Maersk said it will invest up to 50 per cent more in warehousing and distribution across the region to supplement its ocean, air, and land capabilities, supporting both international and domestic markets and demand.

By 2026, the company expects to add nearly 480,000 square-metre capacity spread across Malaysia, Indonesia, Singapore, and the Philippines.

One of Maersk’s most significant investments will be in the Port of Tanjung Pelepas in Malaysia, where it is positioned to become a vital integrated logistics centre with multi-modal connectivity to simplify our clients’ supply chain both locally and globally.

READ: Maersk, Nissan Motor open new distribution facility in China

Furthermore, Maersk is boosting its landside warehousing capacity at Singapore’s Changi Airport in order to cement its position as Maersk’s regional air freight centre.

The Danish giant will spend considerably in growing its haulage truck capacity in Southeast Asia, with the flexibility to offer greener solutions based on the demands of its clients. It will also test biodiesel-powered transport trucks and launch electric vehicles (EVs) by 2024.

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

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

Elaine Low, Area Managing Director, Southeast Asia at A.P. Moller–Maersk, stated: “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.”

In November, Maersk welcomed the Maersk Karachi container vessel at the South Asia Pakistan Terminals (SAPT) for the first time on the recently updated FI3 ocean service.

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