Every day, tens of thousands of massive ships crisscross the oceans, transporting billions of tonnes of essential goods – from apples, cars, to electronics – between commercial ports around the world. Yet, this artery of globalisation is also one of its gravest possibilities. If maritime shipping were a country, it would be the sixth largest emitter (surpassing even Germany).
Together with road, air, rail freight, and warehousing, the broader logistics sector accounts for 24% of global annual CO2 emissions . Without urgent action, emissions from logistics and other hard-to-abate sectors could rise more than 50% by mid-century, warns a Citi report . Fortunately, technology and policy shifts are creating new pathways for change.
With a maritime legacy shaped by centuries of East-West trade, Malaysia’s ports are well positioned to serve as a test bed for green logistics innovation. From pilot projects to an integrated national strategy, the nation is paving the way for a sustainable logistics ecosystem in ASEAN powered by clean, secure, and reliable electricity.
Ports as catalysts for maritime decarbonisation
As critical nodes in the global supply chain, ports are necessarily power-hungry places due to the intensive use of energy-demanding equipment. Moving large containers on and off ships, requires immense amounts of power, historically drawn from fossil fuels. At the same time, vessels can remain idle for days or weeks before docking, with engines burning bunker fuel that releases carbon and harmful pollutants into surrounding communities.
In response to mounting sustainability pressures, the International Maritime Organization (IMO) recently approved a historic plan to make the entire shipping industry net-zero by 2050. This legally binding framework introduces a new global fuel standard to reduce the GHG fuel intensity of ships, alongside a global pricing mechanism for ship CO2 emissions.
Change is evidently under way, but a web of complexities remains. Although many types of alternative ship fuels like hydrogen and biofuels are now being explored, there is no one clear frontrunner in the race just yet. Without clarity on how new ships will be fueled, shipowners are still hesitant to place orders for more advanced, carbon-free vessels.
Breaking a gridlock of this nature requires a fundamentally different strategy, one that can ignite change in one field while sparking powerful ripple effects in others. In this context, ports can play an important role as they offer many promising opportunities for power generation, ship infrastructure, and grid flexibility to interact in the same location.
This is why ports are emerging as critical ‘arteries of the energy transition’. They bring together maritime, energy, transport and manufacturing industries, creating natural hotspots for sector coupling and systems integration. This makes them ideal starting points for scaling decarbonisation across the logistics value chain, without waiting on slower shipside innovation.
Pilot projects driving real-world change
With over 40 ports serving as economic lifelines, Malaysia plays a pivotal role in Southeast Asia’s maritime industry. Situated along the Straits of Malacca, its ports handle billions in trade (RM265 billion in 2025 alone ), while the maritime sector contributes more than 40% national GDP .
As a signatory to the IMO, Malaysia has sought to ensure its ports remain competitive and compliant with global environmental standards. In response, major ports across the north, east, west, and south regions have begun embracing ‘green port’ initiatives, implementing diverse yet complementary sustainability upgrades.
Kuantan Port became the nation’s pioneer in providing onshore power supply (OPS) for tugboats, earning it the APSN Green Port status . OPS is recommended by the World Port Climate Initiative as a means for reducing shipping’s impact: while at port, ships can use clean electricity supplied directly from the grid instead of running their engines.
Beyond clean power generation, ports are also deploying energy-efficient equipment to drastically cut emissions. Penang Port is adding innovative hybrid cranes powered by both diesel and electric batteries. Port Klang, Tanjung Pelepas Port, Johor Port and Kuching Port are all piloting the use of B20 palm-based biodiesel in ground transport operations .
study by the Australian government found that Malaysia has strong potential to develop into a regional green bunkering powerhouse, given its location and natural resources.
The Port of Tanjung Pelepas (PTP) in Johor – a pilot participant in the study – has already demonstrated success with methanol and liquified natural gas (LNG) bunkering operations. PTP is now preparing its berths for hydrogen-ready bunkering in partnership with Australia, anchoring its position within ASEAN’s key green shipping lanes.
In addition to sustainable fuels, ports can similarly provide connectivity for the trade of captured carbon. PETRONAS has earmarked Kuantan Port for its carbon capture and storage (CCS) hub in Pahang, leveraging port infrastructure like pipelines to capture emissions from industries and transport them to offshore storage in depleted gas fields.
Together, these innovative projects form a patchwork of proof points that illustrate the significance of ports as critical enablers of logistics decarbonisation. With the right mix of policy, investment, and innovation, Malaysia’s ports can evolve into green energy hubs that accelerate a just transition to secure, sustainable, and cost-effective power systems.
Towards a national green logistics strategy
Despite strong fundamentals and growing investor confidence, the decarbonisation of Malaysia’s logistics sector must extend beyond headline projects and major terminals. Although leading ports have seen notable upgrades, the broader ecosystem remains hindered by fragmented processes and weak intermodal integration.
Connecting sea, rail, road, air, and even power as well digital infrastructure into one comprehensive, multimodal network is critical for securing Malaysia’s competitive edge. Stepping up to this challenge, the Ministry of Transport (MOT) is moving from passive enabler to play a more proactive role in integrating the logistics ecosystem.
As co-architect of the Malaysia Maritime Decarbonisation Strategy 2025-2050, the MOT is anchoring policy certainty for diverse industry players through a coordinated approach. Shaped by over 140 stakeholders, the forthcoming strategy will outline clear pathways for green fuels, intermodal links, and aligning ports with global carbon standards.
The MOT has also approved a RM2 billion upgrade to splice the East Coast Rail Link (ECRL) into Northport and Westport in Klang, which promises to bridge trade flows across the Peninsula and into mainland Asia. The effort is also expected to result in a significant 30% reduction in truck-borne emissions once operational in 2027.
Scaling OPS, electrified cargo handling, and other green port technologies will necessarily require robust substation capacity and grid reliability, signaling a greater role for utilities like Tenaga Nasional Berhad (TNB). Greater alignment between logistics and power transformation roadmaps will be critical for ensuring clean power supply can keep pace with large-scale logistics electrification.
Equally important is the need to mobilise partnerships and financing models that cut across traditional industry silos. Port authorities, energy utilities, shipowners and other diverse players that converge at ports have their own stakes in the energy transition. Greater synergy and collaboration can help spread both the risks and rewards of decarbonisation.
Turning the tides for sustainability at the dockside
Crucially, this transition isn’t just about carbon; it’s about competitiveness. As global trade shifts toward low-emission supply chains, Malaysia’s ports are retooling to stay ahead of the curve. In doing so, they are sparking change across industries and steering ASEAN logistics toward a more sustainable horizon.
Each hybrid crane, biodiesel truck, or OPS-enabled berth reflects a story of coordination, leadership and climate action. All depends on the backbone of clean, reliable electricity at scale.
By aligning port innovation with power sector transformation, Malaysia can create a multiplier effect where every investment in clean energy infrastructure accelerates the decarbonisation of logistics. With infrastructure, policy and partnerships moving in step, the nation can redefine its maritime legacy and position itself as a regional model for green growth.