A.P. Moller-Maersk has earmarked more than US$500 million to expand its supply chain infrastructure in Southeast Asia over the next three years as it anticipates the region’s emergence as a global production hub and consumption powerhouse.

Maersk’s planned investment, which will target its Logistics & Services arm, with ‘substantial’ amount channeled into its Ocean and Terminals infrastructure, will be used to scale its warehousing and distribution capacity by up to 50 percent to augment its ocean, air and land capabilities for both international and domestic demand.

One of the notable investments will be at the Port of Tanjung Pelepas in Malaysia, which the company is positioning to become a key integrated logistics hub with multi-modal connectivity. The logistics integrator will also invest to expand its landside warehouse capacity at Singapore’s Changi Airport and position it as a regional air freight hub.

The company also plans to increase its capacity and infrastructure and introduce greener transport solutions on the land and ocean modes to support the decarbonization effort, with nearly 480,000 square metres of added capacity across Malaysia, Indonesia, Singapore, and the Philippines by 2026.

“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,” said Elaine Low, area managing director, Southeast Asia at A.P. Møller–Maersk

“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.”