There has been significant progress in the port and aviation sectors in the SEA region. Modernisation and digitalisation to improve operational efficiency, a shift to clean energy to reduce greenhouse gas emissions to ensure sustainability, capacity expansion and connectivity enhancements have been the major areas of focus. Southeast Asia Infrastructure takes a look at some of the key trends and developments in these sectors…
Trends revolving around port sector
Leveraging technologies
Ports across the SEA region are increasingly leveraging advanced technologies such as internet of things (IoT) devices like sensors and wireless technologies to optimise service efficiency and enhance operational capacity. In Indonesia, ports have introduced automatic gates and implemented a cashless payment system. Klong Toey port in Thailand will be modernised into a smart port and a part of the land will be developed for both private and public use. More recently, the Ministry of Transport, Singapore, has approved the new designs for two fast ferries, which are expected to start service by the end of 2025. The vessels will feature advanced technology and increased capacity.
Clean energy transition
A number of sustainable and green innovations have taken place in the port sector across the SEA region. The Port Authority of Thailand is working towards transitioning to electric vehicles and establishing carbon-free zones within port areas. As a major step towards sustainable and efficient container handling, Hutchison Ports Thailand has taken delivery of new electric port cranes at Terminal D, Laem Chabang port. The development of Phase III of Laem Chabang port aims to increase its container handling capacity from 11 million to 18 million twenty-foot equivalent units (TEUs), and integrate eco-friendly measures and strict environmental oversight. Additionally, Laem Chabang port prioritises corporate social responsibility (CSR) initiatives supporting environmental conservation, including protecting local mangroves and coastlines. In April 2024, Eastern Pacific Shipping and Yinson GreenTech signed a letter of intent for the deployment of electric vessels in Singapore. MarinEV launched the Hydromover 2.0 project with sea trials set to start in 2025. With a length of 23 metres, this vessel includes larger deck space that can carry up to 30 metric tonnes of cargo payload, including batteries. In another development, the Philippine Ports Authority (PPA) has partnered with the Department of Energy to enhance offshore wind project development by modernising key port infrastructure. The PPA will initiate detailed engineering designs and repurpose three priority ports – the Port of Currimao in Ilocos Norte, the Port of Batangas and the Port of Jose Panganiban in Camarines Norte.
Strengthening supply chain
Ports require efficient management of storage space and well-coordinated logistics to ensure fast and safe handling of goods. Many port authorities are collaborating with government and domestic/international organisations to strengthen supply chains. Abu Dhabi-based AD Ports Group and Vietnam-based Vingroup have signed a memorandum of understanding (MoU) to enhance maritime infrastructure in Vietnam, focusing on port development, logistics ecosystems and shipyards.
The Port Authority of Thailand has also launched a development project for F port at an investment of THB 114 billion and has been granted a concession period of five years. The project investment is divided into four areas which include marine construction; construction of buildings; port facilities, roads and public utility systems, construction of a railway system and the procurement and installation of machinery and equipment. Further, the project is expected to enhance the efficiency of cargo tracking, customs clearance and logistics management.
Trends revolving around aviation sector
Network expansion
The aviation sector is experiencing rapid growth, propelled by various upgradation and expansion projects and need for enhancing connectivity. The Department of Airports, Thailand, has already expanded the Hua Hin airport’s runway to meet international standards, with inspections under way by the Civil Aviation Authority of Thailand. The next phase of development will focus on enhancing the runway-end safety area, road tunnel and runway strip. Once completed, the airport will accommodate larger aircraft like Boeing 737 and Airbus A320, with international operations projected to begin by April 2026.
The Ministry of Transport, Thailand, has expedited the construction of six new airports, in Mukdahan, Bueng Kan, Satun, Phayao, Kalasin and Phatthalung, to meet rising passenger demand and establish itself as a regional aviation hub. The Mukdahan and Bueng Kan airports are currently at the design and environmental impact assessment stage.
In May 2024, Malaysia Airports Holdings Berhad commenced operations on Phase 1 of the new terminal at Sultan Ismail Petra Airport in Pengkalan Chepa, Kota Baru.
Digital transformation
The adoption of advanced technologies is revolutionising the aviation industry. These include digitalisation and automation, which lead to increased efficiency, reduced operational costs and enhanced passenger experience. The usage of digital platforms for booking and check-in processes have streamlined overall operations. For instance, Thai Airways (airline of Thailand) has modernised the network infrastructure of its headquarters in Thailand by deploying Juniper’s artificial intelligence (AI)-Native Networking Platform to deliver the correct data, the right real-time response and suitable infrastructure for reliable, measurable and secure wired and wireless services. Besides, the Marvis Virtual Network Assistant allows the information technology team of the airline to detect and resolve networking issues through a seamless conversational interface, determining the root cause, providing insights and prescriptive actions.
The Vietnam Posts and Telecommunications Group and Airports Corporation of Vietnam have signed a cooperation agreement to deploy telecommunications infrastructure for digital transformation at airports in Vietnam. The agreement includes plans to enhance mobile coverage, ensuring readiness for 5G connectivity essential for smart airport applications.
Moving towards privatisation
There has been an increase in private participation in the aviation sector to provide new investment funds and improve operations, management and efficiency. The Government of the Philippines has initiated the privatisation process for Davao International Airport through a public-private partnership (PPP). The Department of Transportation has signed a transaction advisory service agreement with the International Finance Corporation to guide this privatisation process. The scope of the agreement includes determining the best strategies for rehabilitating, expanding, operating and maintaining the Davao International Airport and other regional airports. In addition to Davao, the operations of Manila’s Ninoy Aquino International Airport have already been transferred to a consortium led by San Miguel Corporation. Other airports, including Kalibo, Iloilo and Puerto Princesa, are also expected to enter the PPP process in 2025, with several proposals already submitted by local developers. Besides, the privatisation of Malaysia Airports Holdings is nearing completion, with the deal obtaining 86.5 per cent acceptances.
Moving ahead
Going forward, both the port and aviation sectors provide numerous opportunities for investment. The adoption of smart and sustainable initiatives will remain a key priority for both private players and governments. The strategic expansion of ports and airline networks, together with increasing tourism demand, will position the SEA region for sustained growth this
