The DP World global integrated logistics leader is expanding into ASEAN markets and tapping Southeast Asia as an exciting new growth area, bringing it in line with Chinese efforts to bypass Western trade barriers in order to reduce costs and gain access to the expanding ASEAN consumer markets.
"This dramatic uptick is driven by a mix of manufacturing, electric vehicles, technology, mining, and infrastructure development, including digital and renewable energy projects," Glen Hilton said, CEO and MD of DP World Asia Pacific. "ASEAN has emerged as a critical link between the two economies, and Southeast Asia plays a pivotal role as a manufacturing and logistics hub."
On the other hand, the boom in China-the ASEAN investment surged to US$7.5 billion in 2020 and reached an all-time high of US$17.6 billion over the period from January to March 2023. This consisted of manufacturing, EV, technology, mining, and renewable energy. Over the next 10 years, Hilton estimated China-ASEAN to reach US$616 billion.
DP World has initiated actions in the area of extending its logistics network across the region, which include acquiring Savan Logistics of Laos and partnerships with Sabah Ports in Malaysia and the Indonesian Investment Authority and Pelindo to manage Belawan's New Container Terminal.
These are the final steps taken towards the establishment of a fully developed logistics network across the region. It is quite incredible how much one can go through without regulation and investment problem.
DP World is charting a course through the different market conditions in ASEAN via local partnerships. Hilton stressed that there should be an integrated multimodal—road, rail, sea, and air—infrastructure to support the burgeoning trade flows.
With Jebel Ali Port in the UAE as its legacy, DP World is gearing itself up for a big logistics role in one of the fastest trade corridors in the world.