Digital transformation is modernising ports globally, reshaping logistics activity, optimising processes, and improving efficiency throughout the supply chain. More than 20 per cent of the 4,900 ports globally have already enhanced their digital capabilities to ensure supply chain connectivity—and this number continues to grow by the day.
Across Southeast Asia, several major port digitalisation projects could ease import and export challenges within the region. Key projects in Singapore, Thailand, Malaysia, Vietnam, and Indonesia utilise cutting-edge technologies such as automation, blockchain, and the Internet of Things (IoT) to optimise efficiency, promote sustainability, and ensure traceability within their port operations.
As ports are the lifeblood of global trade—after all, more than 80 per cent of merchandise trade is transported by sea—smarter ports and improved connectivity can positively impact businesses. Port digitalisation has a significant impact on costs, time, complexity, carbon footprint reduction, and compliance. Intelligent port logistics also help companies looking to expand overseas, lowering the barriers to entry in foreign markets.
In this article, we look at several projects to digitalise and decarbonise key ports in Southeast Asia.
Singapore Maritime Data Hub, Port of Singapore
Overview of project
The Port of Singapore has been consistently hailed as the “Best Global Seaport” and the “Best Seaport in Asia”. It is a key node in the global supply chain and one of the busiest container hub ports, home to over 5,000 maritime establishments and 130 international shipping groups. The Maritime and Port Authority of Singapore (MPA) continues to drive maritime decarbonisation and transformation, guided by its Maritime Digitalisation Playbook.
One of the MPA’s latest efforts to green Singapore’s ports is enforcing digital bunkering to speed up the refuelling of ships and eliminate the use of physical documents. By 2025, Singapore’s port will be the world’s first to fully implement digital bunkering, expected to help the industry save close to 40,000 man-days annually.
Key features
As part of its port digitalisation strategy, the MPA has implemented the following initiatives that form the core of Singapore’s digital port ecosystem:
- Singapore Maritime Data Hub (SG-MDH) is a cutting-edge data sharing and digital connectivity platform that facilitates collaboration and integration of systems among industry and technology partners. It is the backbone of data infrastructure supporting digital services in the Port of Singapore.
- digitalPORT@SG™, launched in 2019, is the key node for digital connectivity from the Port of Singapore, which streamlines regulatory transactions into one portal. This maritime single window enables a more seamless, efficient, and integrated ordering of port services and just-in-time operations.
- digitalOCEANS™ promotes interoperability between digitalPORT@SG™ and other digital platforms by using common data standards and exchange APIs (application programming interfaces) to facilitate port clearance worldwide.
Implications on SMEs
Digitalisation will be a pre-requisite for SMEs to benefit from digital port ecosystems like digitalPORT@SG™ and digitalOCEANS™. SMEs must beef up their strategy, cybersecurity, and data governance to take advantage of these developments and ensure business continuity.
Based on the UOB Business Outlook Study 2024, almost one in four SMEs in Singapore plan to digitalise their logistics and supply chain functions next in order to drive business success, having already digitalised their internal functions.
To guide them on their digitalisation journey, more businesses are also looking to banks and financial institutions (FIs) not just for financing, but also for expert insights and facilitation with the government and third parties. In fact, one in two businesses believe they save time and effort when supported by banks and FIs as they undergo digitalisation.
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Smart Port Development Strategy, Laem Chabang Deep-Sea Port, Thailand
Overview of project
The Laem Chabang port is the largest maritime port in Thailand, a commercial gateway for national and regional trade. In 2023, container throughput at Laem Chabang port amounted to around 8.68 million twenty-foot equivalent units (TEUs), making it the fourth busiest seaport in Southeast Asia and the 20th busiest port in the world for container traffic.
The Port Authority of Thailand (PAT) oversees the development of the port and its surrounding areas. The Laem Chabang port is part of PAT’s Smart Port Development Strategy, a roadmap to enhance the maritime industry’s operational efficiency and transition it towards digitalisation and automation. Part of this strategy is to decarbonise Laem Chabang port, reducing its carbon emissions by 10 per cent by 2030 and, ultimately, achieving carbon neutrality by 2050.
Key features
Under this strategy, the Laem Chabang port will transform into a digital port authority with a vehicle booking system, gate automation, container counting, and mobile application. The strategy also integrates other sustainable efforts to turn Laem Chabang into Thailand’s first “green” port, such as promoting the use of renewable energy within the port areas and upgrading to energy-efficient equipment, such as electric trucks.
- Port community system. The Laem Chabang port will be supported by an integrated service-oriented architecture (SOA) and port community system (PCS), an open platform that acts as a single window for real-time information for all maritime shareholders.
- 5G-powered smart ports. Since 2022, the PAT has been working with Huawei Technologies to develop smart port, 5G port, and green port technologies. The partnership will also upskill local talent to prepare for digital transformation.
Implications on SMEs
The strategy, which the PAT will carry through to 2030, lays the foundation for IT infrastructure and standardises processes for operations and management. Upon completion in 2030, the sustainability of these port development projects will stretch the global reach of Thai exporters, especially SMEs.
Port of Tanjung Pelepas (PTP), Malaysia
Overview of project
The Port of Tanjung Pelepas (PTP) is the third biggest port in Southeast Asia, with an approximate annual traffic of 12.5 million TEUs. Strategically located at the confluence of the main east-west shipping lanes, PTP is considered Malaysia’s most advanced container terminal.
It is one of the first ports in the country to digitalise and incorporate artificial intelligence (AI) and machine learning (ML) systems. Since 2020, PTP has undergone massive digital transformation, integrating cloud-based technologies and new Terminal Operating Systems (TOS).
PTP is also spearheading Malaysia’s efforts to decarbonise its maritime industry, leveraging inter-government partnerships to pilot greening initiatives and support its ambition of becoming a green bunkering hub for alternative fuels. Over the next five years, PTP will step up its efforts to reduce 45 per cent of its carbon emissions by 2030, and to be fully net zero by 2040.
Key features
PTP’s Marine Resource Management System (MRMS) integrates the entire process—from booking a berth to populating shipping registers, ordering pilots, and providing vessel arrivals and departures.
- Vessel management. PTP’s MRMS has a connected Vessel Traffic Monitoring and Information System (VTMIS) and a Vessel Traffic Management System (VTMS), improving the efficiency of vessel traffic movements and navigation safety.
- Information system. PTP’s MRMS also has an AI-powered Port Management Information System (PMIS), where agents can register vessels and order services to support arrivals such as supplies, logistics, and marine services, improving efficiency and optimising scheduling.
Implications on SMEs
Modern, high-quality ports can help Malaysian SMEs better link to suppliers and customers. The port terminal’s integration in the Pelepas Free Zone allows the seamless movement of cargo, providing a competitive advantage to customers and business partners.
Accelerating digitalisation and decarbonisation across the maritime supply chain
These port digitalisation projects will make import and export activities more convenient within ASEAN, lowering barriers to entry for businesses looking to expand overseas while decarbonising the maritime supply chain. Learning of the key structural and operational changes brought on by these intelligent ports can help businesses plan ahead and seize growth opportunities across ASEAN.
At UOB, we help businesses navigate the dynamic landscape of the ASEAN region to unlock their full potential. We help SMEs finance and facilitate secure transactions with shipping lines and port management companies to ensure business continuity.
Beyond traditional trade financing, we also provide green and transition financing to support the maritime industry’s decarbonisation push. Our comprehensive solutions help reduce cross-border risk and decarbonise ASEAN’s maritime supply chain, allowing SMEs to expand to new markets and grow their business sustainably.
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