A.P. Moller-Maersk (Maersk) announced a $500 million investment to strengthen its supply chain infrastructure to support Southeast Asia's rise as a global production and consumption powerhouse. Maersk's projected three-year investment will focus on its Logistics & Services division, but significant funds will also be invested in its Ocean and Terminals infrastructure. The investment is expected to generate job opportunities for local individuals while also expanding the company's existing network coverage in the region.
The investment was revealed on the eve of a worldwide executive board meeting in Singapore, which had just finished. It intends to improve supply chain resilience, cut trade costs, which are often 2x-3x higher in particular Asian countries, and provide value-added outcomes to its customers.
Maersk will invest up to 50% more in warehousing and distribution across the region to supplement its ocean, air, and land capabilities, supporting both international and domestic markets and demand. Maersk intends to expand roughly 480,000 sqm capacity in Malaysia, Indonesia, Singapore, and the Philippines by 2026. Maersk will be able to better serve clients with massive distribution centers that are strategically positioned, sustainable, and equipped with modern technology to achieve higher efficiencies as a result of these investments. One major investment will be at the Port of Tanjung Pelepas in Malaysia, which is positioned to become a vital integrated logistics center with multi-modal connectivity to streamline our customers' supply chain both nationally and globally. 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 center.
Maersk 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 customers. It will also test biodiesel-powered transport trucks and introduce electric vehicles (EVs) by 2024.
Maersk continues to invest in developing its infrastructure across the region through APM Terminals to support enhanced maritime network architecture and bring additional transshipment to the region. Furthermore, the company is collaborating closely with regional authorities to investigate prospects for developing green fuel infrastructure to support its future green vessel fleet.
Maersk has a presence in four Southeast Asian markets: Singapore, Malaysia, Indonesia, and the Philippines. With over 5000 workers, the company's large network of offices, distribution centers, and manufacturing facilities strategically located throughout the region allows it to successfully service its clients and partners.
About Maersk
Moller, A.P. Maersk is an integrated logistics firm that works to link and streamline the supply chains of its customers. The company works in over 130 countries and employs over 100,000 people as a global leader in logistics services. Maersk aims to achieve net zero emissions across the board by 2040 with new technology, new vessels, and green fuels.