The port sector in Southeast Asia (SEA) has witnessed notable growth in terms of initiatives targeted towards increasing capacity and commencement of new projects. Likewise, the aviation sector has also witnessed similar trends, and significantly recovered after the pandemic. Further, initiatives for the greening of operations and increasing efficiency through the implementation of smart and digital technologies paved the way for the progress of the port sector and the aviation sector in the past year.
Ports and shipping
New pacts and expansions
Several initiatives were taken in SEA countries in the ports and shipping sector, targeted towards the opening of new ports, enhancing existing capacity and planning for future expansions. For instance, the port of Singapore achieved a significant milestone in 2023, having reportedly crossed a gross tonnage of 3 billion for ship arrivals. There has been an expansion in port capacity in Indonesia in the past year. In June 2023, an agreement was signed under which DP World will increase the capacity of the Belawan New Container Terminal to 1.4 million twenty-foot equivalent units (TEUs) in the long term, more than doubling the existing capacity (600,000 TEUs). Further, DP World and the Maspion Group began the construction of a new container terminal in East Java with a groundbreaking ceremony in October 2023. This terminal will have a capacity of up to 3 million TEUs. Likewise, in Cambodia, the capacity of the listed Sihanoukville Autonomous Port (PAS) is being expanded through the construction of a deep-water port.
Similarly, several initiatives are under way in Vietnam to trigger growth in the sector. A plan for investing around $1.7 billion for building more inland container depots (ICDs) by 2030 was approved. As per the “2021-2030 ICD Development Plan with 2050 Targets”, more ICDs will meet the increased import and export demands, reduce logistics cost, etc. Further, an MoU was also signed between the AD Ports Group and the Vietnam Maritime Administration in December 2023 for the development and management of dry ports, ICDs, digital solutions, etc. In Malaysia, Lumut port will be developed into a maritime hub. A partnership was formed between the Port of Antwerp-Burges International (PoABI) and Perbadanan Kemajuan Negeri Perak (PKNP) for the development of this port.
There have also been positive advancements in terms of the opening up of new routes. Sittwe port in Myanmar, that was built with assistance from India, commenced receiving container ships in May 2023. With the transit of cargo ships between Kolkata and Rakhine, it will help unlock the large economic potential of the Bay of Bengal peninsula, and act as a bridge between the South Asian and SEA regions.
Green initiatives in focus
Ports also adopted initiatives aiming to decarbonise processes, and enhance the efficiency of operations through digital solutions. The Malaysia Port of Tanjung Pelepas (PTP) was selected to join the Partnership for Infrastructure (P4I) initiative, which is a decarbonisation scheme between Malaysia and Australia.
Singapore also has targets for green and digital shipping corridors. An MoU for the establishment of a green and digital shipping corridor between Singapore and the San Pedro Bay port complex was signed by Singapore, Los Angeles and Long Beach ports. Further, an MoU was also signed between Singapore and Japan in December 2023 for a green and digital shipping corridor, aiming towards decarbonisation, digitalisation, and the growth of the maritime industry. Moreover, Thailand’s Laem Chabang deep-sea port will be transformed by PTT Plc, the state-owned oil and gas company, making it an example for green ports across the country.
Airports
Capacity expansions
Like the port sector, there has also been an expansion of airports across SEA countries over the past year. The demand for air travel has shot up, leading to the need for increased capacities at airports. For instance, Cambodia witnessed the inauguration of the Siem Reap Angkor International Airport on November 16, 2023. The airport will have a passenger handling capacity of 7 million, and a cargo capacity of 10,000 tonnes, and will cater to around 65,800 flights by 2024. Construction is also under way for another airport in Cambodia, the Techo International Airport. It will accommodate around 13 million passengers in the first phase and 30 million passengers in the subsequent phases. It also aims to be one of the greenest airports in the world. Various other airports are also undergoing construction in SEA. The groundbreaking ceremony for a new airport at the new capital of Indonesia, Nusantara, took place in November 2023. The Long Thanh International Airport, a new airport being constructed in Vietnam, is expected to cater to 100 million passengers annually.
Further, the Tan Son Nhat International Airport in Ho Chi Minh City, Vietnam, is being expanded by constructing a new terminal. The international terminal at Noi Bai Airport in Hanoi will also be expanded in 2024, with a vision to increase the capacity from 10 million to 15 million passengers per year. Likewise, Suvarnabhumi Airport, Thailand, had the soft launch of SAT-1, a midfield satellite building, that would increase the passenger handling capacity from 45 million to 60 million per year.
Smart and sustainable initiatives
With changing situations, airports are moving towards the adoption of digital solutions to enhance efficiency, improve passenger experience, and provide a better experience for airport stakeholders. The adoption of smart and digital solutions has led to streamlined processes and reduced labour requirements.
Airports of Thailand (AOT) is in the process of transforming Suvarnabhumi Airport to become the first green airport in the country. Solar panels have already been installed on the main terminal’s roof, and are to be installed in other areas such as near runways, ponds, etc. Other adoptions include an automated car parking fee collector, an automated biometric identification system, etc. Similarly, in the Philippines, the San Miguel Corporation (SMC) in December 2023 announced that solar power would be used for the construction of the New Manila International Airport (NMIA), making it carbon-neutral infrastructure. Solar panels are currently under construction. At Singapore’s Changi Airport, trials were conducted on the use of autonomous vehicles for baggage movement and inspection of aircraft using high definition video streaming, as part of the 5G trial. There has been increasing adoption of sustainable aviation fuels over the past year, which is likely to lead to a reduction in carbon emissions. The Cebu Pacific in October 2023 became the first Philippine carrier to have used sustainable aviation fuel for a commercial flight. Additionally, Indonesia witnessed the first commercial flight to use palm oil-blended jet fuel operated by Garuda Indonesia in October 2023.
Outlook
The trends in the past year indicate steady recovery from the pandemic years for both the sectors. The maritime industry is poised for growth with the increase in the number of ports and new routes. The aviation sector also is likely to experience significant growth in the coming years, with a significant jump in passenger traffic. This adds to the need for the increased adoption of smart technology and a focus on green initiatives to enhance overall operations and focus on sustainable development.
