Logistics (shipping and ports).
Established with moderate development potential
Overview.
Shipping and port logistics underpin regional trade, mobility, and employment across ASEAN, reflecting Southeast Asia’s geography and its dependence on maritime routes for economic integration. The sector plays a central role in enabling regional connectivity but faces mounting pressures from pollution, congestion, climate vulnerability, operational safety issues, and the substantial financing and capacity requirements associated with modernising infrastructure and strengthening maritime resilience.
Across the region, ASEAN member states display highly uneven levels of maritime connectivity, with significant gaps in port capacity, liner shipping integration, and the ability to meet rising demand for efficient, secure, and sustainable logistics systems. Regional strategies under the Master Plan on ASEAN Connectivity (MPAC) 2025 and the ASEAN Transport Strategic Plan (ASTP) 2016–2025 highlight the need for coordinated development, including improved maritime safety, harmonised standards, emergency response cooperation, and measures to manage ballast water, oil spills, and shared sea lanes. Yet disparities in national capacity, financing constraints, and competing commercial priorities continue to limit progress toward inclusive and region‑wide logistics transformation.
Within this wider sustainability and governance landscape, shipping and port logistics intersect with offshore energy, cruise tourism, capture fisheries, coastal communities, and regional trade systems because vessel routes, port expansion, dredging activities, and coastal infrastructure directly influence marine ecosystems, local economies, and community access to coastal spaces. These cross‑sector dynamics shape environmental quality, service efficiencies, and social outcomes, while supporting circular‑economy and climate‑transition priorities through cleaner fuels, vessel efficiency upgrades, improved waste and water management systems, and the retrofitting of existing maritime infrastructure to deliver more sustainable, low‑carbon, and resilient maritime connectivity across ASEAN.
Explore how Logistics are positioned for each of the
Blue Economy Capitals.
Financial Capital.
Financial Capital.
The financing framework for shipping, ports, and connectivity within the ASEAN region is fundamentally supported by the ASEAN Infrastructure Fund (AIF). This regionally owned initiative, which is administered by ADB, has successfully mobilised over USD 9 billion. The region currently has no dedicated blue finance mechanism for marine logistics. The ASEAN Catalytic Green Finance Facility blends project‑preparation technical assistance with concessional capital to de‑risk sovereign port and maritime decarbonisation investments (ADB, n.d.; ASEAN Infrastructure Fund, n.d.). It provides Access to AIF funding and more than USD 1.9 billion in co-financing loans to cover initial capital expenditures, and the Green Climate Fund’s USD 300 million Green Recovery Program (Funding Proposal 156) to crowd in private capital (ASEAN Infrastructure Fund, n.d.; Green Climate Fund, 2021). Multilateral development bank cooperation was strengthened by the Asian Infrastructure Investment Bank (AIIB), ADB and ASEAN Infrastructure Fund (AIF) letter of intent (April 2025) to co‑finance high‑impact ASEAN connectivity (Asian Infrastructure Investment Bank, 2025; Ministry of Finance Malaysia, 2025). ASEAN’s Connectivity Strategic Plan (2026–2035) and MPAC 2025 provide the policy spine for mobilising resources through “Connecting the Connectivities Initiative” and a rolling pipeline of sustainable logistics projects (ASEAN, 2017; 2023; 2025).
In addition, sustainability linked bond (SLB) offers a viable financing mechanism to fund marine logistics development in the region. For example, Precious Shipping Public Company Limited (PSL) has made a significant advancement in the ASEAN shipping sector by issuing Thailand’s first SLB. This dual-tranche private placement amounts to THB 1.36 billion (approximately USD 40.48 million) and is backed by a guarantee from the Credit Guarantee and Investment Facility (CGIF), which is a trust fund managed by the Asian Development Bank (CGIF, 2024; The Asset, 2024). Split evenly into five‑ and ten‑year maturities, the SLB lengthens PSL’s debt profile and diversifies funding sources, and was issued under the ASEAN+3 Multi‑Currency Bond Issuance Framework (AMBIF) (CGIF, 2024; ThaiBMA, 2024). PSL commits to reduce carbon dioxide emissions per transport work by at least 38.54% by 2034 (CGIF, 2024; Lloyd’s Register, 2024). The sustainability‑linked finance framework aligns with the ASEAN SLB Standards and ICMA’s SLB Principles, supported by ADB and verified via a second‑party opinion from Lloyd’s Register; UOB (Thai) served as the lead underwriter (Lloyd’s Register, 2024; CGIF, 2024). Overall, the transaction marks an important milestone for sustainable finance in the region and advances decarbonisation efforts in the shipping industry (DLA Piper, 2024).
At the project level, countries leverage Public–Private Partnership (PPP) models alongside blended finance to develop landlord ports, Build-Operate-Transfer (BOT) terminals, smart port technologies, and green retrofits. These efforts are guided by ASEAN and ERIA frameworks, ESCAP port PPP primers, and informed by regional examples like ADB’s Colombo Port PPP and Indonesia’s studies on availability payments (ERIA, 2014; Bisbey, 2019; Development Asia, 2017; Pradana et al., 2024). Bankability is further supported by grant funded capacity building, for example Expertise France’s €0.5M Sustainable Ship Waste Management for ASEAN and the ASEAN–German Sustainable Port Development program with PEMSEA that established a Regional Training Network for SHE/PSHEM standards (Expertise France, 2023; PEMSEA, 2016). Financing readiness is embedded in the ASEAN Guidelines on Smart Ports which include a Financial & Investment dimension to structure bankable digitalisation plans; and MDBs were explicitly brought into IMO–ESCAP’s Bangkok workshop to unlock green maritime financing pathways for ports, fuels and data systems (ASEAN, 2023; IMO, 2025).
Physical Capital.
Physical Capital.
ASEAN’s maritime infrastructure is centred along the Malacca–Singapore Straits and the South China Sea, with major ports such as Singapore, Port Klang and Tanjung Pelepas in Malaysia, Laem Chabang in Thailand, and Ho Chi Minh City in Viet Nam serving as critical hubs for transshipment and export flows that drive the region’s economy. Recent ASEAN-UN ESCAP snapshots list Singapore at ~37.49 million TEUs, with other ASEAN gateways also in the global top tier, while a wider network of 47 ASEAN “network ports” and river/inland gateways feed domestic and sub‑regional supply chains (ASEAN, 2023).
The liner shipping connectivity level varies widely across member states (UNCTAD, 2025). UNCTAD’s Liner Shipping Connectivity Index (LSCI), which gauges a country’s integration into global container networks, shows Singapore and Malaysia as ASEAN’s best connected economies, with Viet Nam’s connectivity rising sharply; Thailand, Indonesia, and the Philippines form the next tier, while Brunei Darussalam, Cambodia, and Myanmar are among the least connected (Pallis, Notteboom, & Rodrigue, 2024; UNCTAD, 2025). These disparities complicate equitable development and will demand significant investment and adjustments to trade flows (Tippichai, 2025; Ramli & Waskitho, 2023).
Port‑level capacity also shapes outcomes (UNCTAD, 2024). UNCTAD’s Port Liner Shipping Connectivity Index (PLSCI) highlights clusters among leading Southeast Asian ports. Singapore continues to rank as a top global hub, while Port Klang, Tanjung Pelepas, Laem Chabang, Ho Chi Minh City, and Haiphong perform strongly in regional comparisons (UNCTAD, 2025; Port Economics, Management and Policy, 2024). Competition among similarly ranked ports is inevitable, and purely commercial decisions can undermine inclusive, region-wide Blue Economy goals. This makes coordinated and sustainable port development essential (ASEAN, 2023). The ASTP 2016–2025 envisions a “single shipping market,” strategic economic corridors, and integrated maritime safety and security (ASEAN, 2015, 2023). Key measures include pan‑ASEAN search‑and‑rescue cooperation, a regional oil‑spill response plan, and actions to curb the transfer of harmful aquatic organisms via ships’ ballast water (ASEAN, 2014; 2023; IMO, 2018).
Across Southeast Asia, marine‑logistics infrastructure is evolving along distinct national paths: Brunei Darussalam anchors on the deep‑water Muara Port backed by minor terminals (Invest Brunei, 2024). Cambodia’s Sihanoukville remains the primary gateway, with container throughput rising over the last decade (Port Auttonome de Sihanoukville [PAS}, 2024). Indonesia is enlarging its Tol Laut routes and fleet to narrow inter‑island logistics disparities (Coordinating Ministry for Maritime Affairs and Investment, 2024; Ministry of Transport Indonesia, 2024).
Land‑locked Lao PDR faces high costs and a low Logistics Performance Index score (2.4 or rank 119th in 2023), underscoring the case for multimodal investment needs (World Bank, 2023). Malaysia maintains strong liner connectivity with Port Klang and Tanjung Pelepas among the region’s busiest, while upgrading Sabah’s Sapangar Bay under new arrangements (UNCTAD, 2025; Embong, 2023; Sabah Ports, 2023). Myanmar’s Yangon (Thilawa) growth follows port master plans formulated with JICA support (Myanmar Port Authority, 2021; JICA, 2014). The Philippines relies on an extensive archipelagic network (Manila, Cebu, Davao, Subic, Iloilo, Zamboanga), with modernisation steered by the Maritime Industry Development Plan 2019–2028 (MARINA, 2019; UN ESCAP, 2025). Singapore is pushing decarbonisation and automation via the Maritime Singapore Green Initiative and the Decarbonisation Blueprint, alongside the phased rollout of Tuas Port (MPA Singapore, 2022; Singapore Ministry of Transport, 2025). Thailand operates deep‑sea and river ports (e.g. Laem Chabang, Bangkok, Ranong, etc.), is upgrading capacity, yet still faces connectivity gaps flagged in regional reviews (Bangkok Post, 2025; UN ESCAP, 2019). Timor‑Leste has commissioned the PPP‑built Tibar Bay Port, now its primary logistics hub (Government of Timor‑Leste, 2022; IFC, 2023). Last, Viet Nam is scaling hub ports (Lach Huyen, Cai Mep, Van Phong) under the 2021–2030 Seaport Master Plan while working to close shipbuilding and repair capacity gaps (Vietnam Ministry of Industry and Trade, 2021; Vietnam Briefing, 2023). Together, these initiatives show a region moving toward deeper capacity, greener operations and better intermodal links, but with uneven progress that keeps connectivity and cost disparities squarely on the policy agenda.
Human Capital.
Human Capital.
ASEAN ports and shipping face uneven human capital readiness, especially as operations digitalise and decarbonise. Regional stock‑takes highlight shortages of skilled labour, cybersecurity capability gaps, poor data quality, and resistance to digital change—issues that slow adoption of Port Community Systems, Maritime Single Windows and automated terminals (UN ESCAP/ASEAN port digitalisation briefing) (ASEAN, 2023). ASEAN’s Guidelines on Smart Ports add a Human Capital and Financial & Investment dimension to their performance index, signalling that workforce development is now a core prerequisite for bankable, technology‑heavy port upgrades (UN ESCAP, 2023; ASEAN, 2023).
In ASEAN, maritime training networks and national programmes are already in place, but they will need deeper integration to meet future workforce demands. The Sustainable Port Development for the ASEAN Region programme (ASEAN–German cooperation with APA/PEMSEA) strengthened Safety, Health and Environmental (SHE) systems and created a Regional Training Network to sustain improvements (GIZ, 2012; PEMSEA, 2016). More recently, Australia’s Partnerships for Infrastructure committed AUD 64 million (2024–2028) to support maritime decarbonisation, port digitalisation, and supply chain resilience, aligning with the Kuala Lumpur Transport Strategic Plan (ASEAN Transport Strategic Plan 2016–2025) and the Master Plan on ASEAN Connectivity 2025 priorities (Australian Minister for Foreign Affairs, 2024; ASEAN, 2015).
This initiative aims to provide technical assistance, and skills transfer for green shipping, port digitalisation and supply chain resilience, linking training to practical pilots and investment pathways (Partnerships for Infrastructure, 2024). Moreover, safety and security governance combines certification alignment and regional capacity building. ASEAN is advancing mutual recognition for Near Coastal Voyages (NCV) certificates in line with STCW Manila Amendments, reinforcing competency standards for smaller tonnage engaged in coastal trades (ICS-Shipping, 2020). For Non‑Convention Ships (NCS), the 2018 MOU on Safety Standards and Inspection and accompanying guidelines provide a common baseline for traditional and small vessels that underpin coastal logistics. Port security has been strengthened through ASEAN–Japan cooperation, with a booklet of best practices and a Model Audit Training adopted in 2022 to standardize ISPS implementation and auditing skills across the region (ASEAN, 2022). The overall idea is professionalising the region’s maritime workforce so ports can adopt advanced systems, meet climate goals, and attract capital at scale.
Social Capital.
Social Capital.
Southeast Asia’s predominance of sea over land makes maritime logistics and connectivity central to ASEAN regionalism (Asia Society, n.d.; Verico, 2023). Connectivity spans two tiers: intra‑ASEAN links that support regional trade and mobility, and international sea lanes that tie the region into Indian and Pacific Ocean networks (ASEAN, 2025). Accordingly, maritime connectivity is a core pillar of Master Plan on ASEAN Connectivity (MPAC) 2025 and the ASEAN Transport Strategic Plan (ASTP) 2016–2025 (ASEAN, 2015, 2021). Stronger intra‑ASEAN maritime links can lift logistics efficiency, accelerate growth, and deepen regional integration while advancing Blue Economy objectives and supporting better maritime security outcomes (ASEAN, 2023; Ramli & Waskitho, 2023; Mon, 2024; Gopal & Wuwung, 2025).
The ASEAN Transport Ministers Meeting (ATM) is the apex body responsible for setting regional transport policy and adopting sector-wide frameworks that shape marine logistics. Most recently, it endorsed the ASEAN Transport Sectoral Plan (ATSP) 2026–2030, along with measures on port digitalisation and maritime supply chain resilience (ASEAN, 2024, 2025). The ASEAN Senior Transport Officials Meeting (STOM) supervises and coordinates implementation, with the Maritime Transport Working Group (MTWG) acting as STOM’s implementing arm for maritime transport initiatives (ASEAN, n.d.; MTIC Brunei, 2025). These mechanisms also engage dialogue partners to align standards and accelerate decarbonisation and digitalisation across the maritime logistics ecosystem (MTIC Brunei, 2025).
ASEAN’s logistics governance for shipping and ports is anchored in the Kuala Lumpur Transport Strategic Plan (KLTSP) 2016–2025 (ASEAN, 2015) which prioritises the ASEAN Single Shipping Market (ASSM), harmonised procedures, and port efficiency to support a deeply integrated regional economy. Connectivity governance has focused on RO‑RO/short‑sea corridors to improve intra‑ASEAN flows and resilience. The Davao–General Santos–Bitung service was launched in April 2017 to cut transit times and costs between the Philippines and Indonesia, with stakeholders working to revive and sustain volumes post‑pandemic (Presidential Broadcast Staff – Radio Television Malacañang [PBS-RTVM], 2017; BIMP-EAGA, 2025). Similarly, the Indonesia–Malaysia–Thailand Growth Triangle (IMT GT) are advancing the Dumai–Melaka roll on/roll off (Ro Ro) link by aligning Malaysia’s Tanjung Beruas port timeline and completing customs, immigration, quarantine, and security (CIQS) and joint standard operating procedures (SOPs) via a Joint Task Force (Ministry of Transport Indonesia, 2024). On the Indonesian side , Bandar Sri Junjungan Port (Dumai) has completed landside rehabilitation and reserved CIQS space while domestic services run pending final SOPs (Warta Ekonomi, 2025). Stakeholder business matching and provincial meetings in November 2025 show ongoing mobilisation to synchronise port readiness and regulatory steps ahead of the 2028 launch (Mediacenter Riau, 2025; Utusan Rakyat, 2025).
The Master Plan on ASEAN Connectivity (MPAC) 2025 set the policy direction for maritime connectivity in Southeast Asia, which prioritises seamless logistics and sustainable infrastructure to lower supply‑chain costs and raise reliability across gateways and corridors (ASEAN, 2017). ASEAN’s port connectivity agenda prioritises sustainable infrastructure and seamless logistics to cut supply‑chain costs and improve reliability across regional gateways and corridors, and is operationalised through the Kuala Lumpur Transport Strategic Plan (KLTSP) 2016–2025 with concrete maritime actions (e.g., Ro‑Ro routes, inland waterways, and port‑land interfaces) to integrate multimodal trade (ASEAN, 2015). Within this framework, the ASEAN Single Shipping Market (ASSM) aims to harmonise and liberalise maritime services to boost capacity and competitiveness, including ongoing discussions around cabotage and market access (ASEAN, 2019; Ezeoke, 2017, 2022).
Natural Capital.
Natural Capital.
Complementing hard‑ and soft‑infrastructure, ASEAN’s environmental and capacity‑building track includes the ASEAN Green Ship Strategy, aligning regional practice with IMO decarbonisation and sulphur limits (Ministry of Transport Indonesia, 2019; ASEAN, n.d.). The Marine Environment Protection of the South‑East Asian Seas (MEPSEAS) project (2018–2022) helped ASEAN states ratify and implement key IMO instruments, such as the International Convention on the Control of Harmful Anti-fouling Systems on Ships (AFS), the International Convention for the Control and Management of Ships’ Ballast Water and Sediments (BWM), MARPOL Annex V, and the London Protocol, through legal reviews and port/flag‑state capacity building initiatives (IMO, n.d.; MEPSEAS, n.d.).
ASEAN integrates sustainability into marine logistics development, with decarbonisation guided by the ASEAN Green Ship Strategy and ongoing initiatives on smart ports. The Guidelines on Smart Ports and the Smart Port Performance Indicators (SPPI) were adopted in 2023 to benchmark digitalisation and enhance port performance (ASEAN, 2023). Port authorities across the region are transitioning from traditional paper-based procedures toward smart port digitalisation, incorporating Port Community Systems, Maritime Single Windows, Electronic Data Interchange, and standardised performance indices (IMO, 2024; ASEAN, 2023). This shift is guided by the ASEAN Guidelines on Smart Ports adopted at the 29th ASEAN Transport Ministers Meeting (ATM) in November 2023 (ASEAN, 2023; UN ESCAP, 2023). Collectively, these efforts aim to enhance trade resilience, attract foreign direct investment in logistics and manufacturing, and narrow development gaps across archipelagic and mainland sub‑regions, advancing a more integrated, digitally enabled, and sustainable ASEAN maritime ecosystem (ASEAN, 2017, 2025).
Additionally, connectivity on inland waterways is being advanced via the Development Study for Inland Water Transport Improvement in T‑CLMV (Thailand, Cambodia, Lao PDR, Myanmar, Viet Nam) under ASEAN–ROK cooperation, supporting cross‑border trade and navigational safety in the Mekong system (ASEAN, 2018; Mekong River Commission, 2015). ASEAN countries also take initiatives to modernise their ports, by mainstreaming smart port standards and mobilizing green finance through the Master Plan on ASEAN Connectivity (MPAC) 2025 rolling priority pipeline and the new ASEAN Connectivity Strategic Plan (2026–2035) (Suthy, 2022; ASEAN, 2017, 2018, 2025).
Assessment of Capacity for Growth
Assessment of Capacity for Growth
MODERATE
(moderate development potential)
Maritime logistics and connectivity are central to ASEAN’s regional development. Connectivity remains uneven, with Singapore and Malaysia leading, Viet Nam rising, Thailand, Indonesia, and the Philippines in the middle tier, and Brunei Darussalam, Cambodia, and Myanmar lagging, creating disparities that demand investment and trade-flow adjustments. At the port level, hubs like Singapore, Port Klang, Tanjung Pelepas, Laem Chabang, Ho Chi Minh City, and Haiphong form competitive clusters, while others require significant development. This highlights the need for coordinated and sustainable port strategies to prevent commercial decisions from undermining inclusive Blue Economy goals. Future growth depends on closing connectivity gaps through targeted investments, port digitalisation, and green corridor initiatives. Expanding short-sea shipping, harmonising standards, and leveraging PPP financing can enhance resilience, inclusivity, and accelerate decarbonisation.
