Southeast Asia’s (SEA) geographical advantage along major international sea routes has historically made it a critical node in the global logistics and supply chain network. The covid-19 pandemic, disruptions in key maritime trade routes, such as the Suez Canal and the Red Sea, and rising geopolitical tensions in East Asia have underscored the vulnerabilities in global shipping networks, prompting many multinational companies to diversify their supply chains, thereby increasing the strategic importance of ports in the SEA region.
Southeast Asia Infrastructure looks at recent initiatives across ports to strengthen the supply chain…
Singapore
Among the SEA region’s most advanced ports, Singapore stands out as a global maritime leader. Singapore recorded container shipping volumes at 20.25 million twenty-foot equivalent units (TEUs) during January-February 2024, registering a 6.4 per cent increase from the corresponding period in 2023. It is investing heavily in Tuas Mega port, which is set to become the world’s largest automated port upon completion by 2040, with an annual capacity of 65 million TEUs. Singapore’s leadership in maritime services from refuelling to transhipment underscores its role as the region’s logistics nerve centre.
Malaysia
Malaysia is capitalising on its strategic location with development of Port Klang and the Port of Tanjung Pelepas (PTP) into major transhipment and container handling facilities. The government is supporting these ports through integrated transport infrastructure connecting them to inland industrial areas and reducing overdependence on congested urban freight corridors. The country is positioning itself as an attractive alternative for supply chain rerouting, particularly for firms seeking to de-risk operations from China.
Indonesia
Enhancing maritime connectivity has become a national priority for Indonesia. Tanjung Priok, the country’s busiest port, is being modernised with automated systems and enhanced storage capacity. In 2024, the port’s throughput increased by over 7 per cent, reflecting growing regional demand.
Indonesia’s port sector also benefits from the country’s substantial exports of palm oil, coal and manufactured goods. New terminals in Kalimantan and Sulawesi are under construction to ease cargo congestion.
Vietnam
Vietnam’s rise as a global manufacturing hub has led to impressive developments in its port infrastructure. The deep-water ports of Cai Mep-Thi Vai near Ho Chi Minh City and Hai Phong in the north are handling increasing volumes of direct exports to the US and Europe, avoiding reliance on regional transhipment hubs. In 2024, container traffic through Cai Mep-Thi Vai increased by 8 per cent, boosted by electronics and textile exports.
Thailand
Thailand is also moving forward with upcoming port projects in the pipeline. For instance, Laem Chabang port, already a key gateway for automotive and electronics exports, is undergoing a $1.7 billion expansion to boost its capacity from 11 million TEUs to 18 million TEUs annually. Another visionary initiative is the Thailand Landbridge project, which proposes a new logistics corridor linking the Gulf of Thailand to the Andaman Sea, providing an alternative to the congested Strait of Malacca and cutting transit times for shipments between the Pacific and Indian Oceans.
The Philippines
The Philippines is making strides in improving its port infrastructure to reduce congestion and logistics bottlenecks. In 2024, port digitalisation efforts by the Philippine Ports Authority resulted in a 15 per cent reduction in vessel turnaround time, improving operational efficiency and boosting trade flows. Key upcoming projects include the expansion of Batangas and Subic ports. There have been investments of over $800 million in Batangas for a new container terminal and a modernised passenger hub. A PhP 39.36 billion plan with multiple terminals under a master plan is being implemented in Subic with support from the Japan International Cooperation Agency.
Cambodia
Cambodia, though still developing its port sector, is looking to reduce dependency on Vietnamese ports for sea access. The Sihanoukville Autonomous Port remains the country’s primary maritime outlet but future prospects lie in the Funan Techo Canal project, which will link Phnom Penh directly to the Gulf of Thailand. Backed by Chinese investment, the $1.7-billion project aims to transform Cambodia into a maritime trade hub and improve freight connectivity for inland provinces. Once completed, the canal could shift regional shipping dynamics significantly by providing Cambodia its own deep-water route.
Myanmar
Myanmar continues to witness progress in its port sector. Yangon port remains critical for trade, while the Kyaukphyu deep-sea port project in Rakhine state, funded under China’s Belt and Road Initiative, is progressing, albeit slowly. This port will link with an economic corridor stretching into China’s Yunnan province, offering Beijing an alternative outlet to the Indian Ocean that bypasses the Strait of Malacca.
Brunei
Brunei is gradually expanding the capabilities of Muara port. Traditionally focused on oil and gas, the government is pushing to diversify the port’s services to handle containerised cargo and bulk goods. Efforts are under way to attract regional shipping lines and logistics providers, with port upgrades aligning with Brunei’s Vision 2035 development agenda.
Laos
Laos, a landlocked country, is enhancing its connectivity with international trade routes through port infrastructure. New dry ports and customs clearance centres are being established along the railway corridor, transforming Laos into a land-linked country with real potential in cross-border logistics and trade facilitation.
Technology and sustainability trends
Across the SEA region, technological innovation is reshaping port operations. Automated container handling, artificial intelligence (AI)-based logistics forecasting, and blockchain-enabled documentation are being adopted to streamline processes and reduce inefficiencies. Singapore’s Tuas port and Malaysia’s PTP are leading the way in port automation through various strategies, including the use of automated equipment, digital connectivity and AI powered logistics, while Vietnam and Thailand are experimenting with smart port systems supported by public-private partnerships.
Singapore has introduced green port initiatives to incentivise lower-emission vessels, reducing the carbon footprint of maritime freight, while Thailand is integrating solar and wind energy into new port infrastructure to support greener cargo handling and inland transport operations. These efforts align with the International Maritime Organization’s targets for decarbonising shipping.
The way ahead
As the region continues to strengthen infrastructure, invest in digitalisation and pursue sustainability, SEA is well on its way to becoming a premier global logistics hub. Its ports are not just gateways to trade, they are catalysts for economic transformation.
