Danish shipping giant Maersk has invested $500m to improve Southeast Asia’s supply chain infrastructure to establish the region as a global production hub.

The spending will span over three years and focus on the company’s logistics and services arm whilst bolstering its ocean and terminals infrastructure.

The investment features 480,000 sqm of warehouse capacity to be added by 2026 alongside pilot biodiesel fuel and the introduction of EV trucks by mid-2024.

Vincent Clerc, CEO of A.P. Møller–Maersk emphasised the customer-centric approach with this investment.

Clerc said: “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.

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By GlobalData

According to Maersk, the project aims to lower the cost of trading which tends to be “two or three times higher” across Asian markets.

One significant investment will be made at the Port of Tanjung Pelepas in Malaysia, which is set to be developed into a major integrated logistics centre with multimodal connections.

Alongside this, Maersk will be enhancing its landside warehouse capacity at Singapore’s Changi Airport, to solidify its position as the company’s regional air freight hub.

Through this deal, Maersk will continue to extend its presence across the Southeast Asia region which so far includes Singapore, Malaysia, Indonesia and the Philippines.

According to Maersk’s 2022 annual report, it sees the Asia-Pacific as its key growth region. A statement boosted through its acquisition of LF Logistics in August 2022 taking the company’s logistic business revenue to $14.4bn.