Climate Resilient Port PPPs: Strengthening Climate-Resilient Maritime Infrastructure through ASEAN–Australia Cooperation

Maritime transport is the backbone of ASEAN’s economy. About 80% of international goods are traded by sea, making the region’s ports and shipping lanes critical to global supply chains. But these gateways face increasing risks from climate change, including rising sea levels, severe storms, and changing trade patterns. These impacts disrupt trade and put pressure on infrastructure and communities.

Tackling these challenges needs more than regular maintenance—it requires investment with the future in mind. According to the World Bank, investing in resilient infrastructure in low- and middle-income countries returns a net benefit of US$4.2 trillion over its lifetime, or four dollars for every dollar invested. Despite this, the global urban infrastructure investment gap is more than US$4.5 trillion per year. Making infrastructure low-carbon and climate-resilient may require an extra US$1.1 trillion investment.

Why focus on disaster- and climate-resilient ports?  

Ports face multiple climate hazards every year. A University of Oxford study found that 86% of ports may be affected by more than three types of natural hazards annually, and half could face four or five. Climate risks can lead to major economic losses. The estimated total climate risk to ports is $7.6 billion per year. Each year, port closures and repairs after disasters put $67 billion of trade at risk (Verschuur, et. al., 2023).

Figure 1: Examples of climate and disaster events that can affect ports

How can we reduce these risks?

Public–private partnerships (PPPs) are vital. The private sector’s funding and expertise help fill financial gaps. It is crucial that these partnerships incorporate climate and disaster risk management at every phase. Climate-resilient PPPs safeguard both new and existing infrastructure, ensuring they operate during disruptions and bolstering long-term development.

Several frameworks and resources are available to assess risks and guide adaptation planning—for example, PIANC WG 178’s four-stage approach:

1. Identify key hazards, such as sea level rise, storm surge, strong winds, and heatwaves. Quantify expected downtime and potential asset losses to inform early decisions on site, design and investment (UNCTAD).
2. Translate findings into practical resilience requirements, such as continuity targets and design allowances. These can be included in risk allocation, performance indicators, and emergency management within PPP contracts (IAPH).  
3. Use tools like the World Bank’s Climate Toolkits for Infrastructure PPPs to integrate climate risks into project planning, financial modelling and bidding, so adaptation needs are considered up front and priced transparently (World Bank).
4. Apply adaptive pathways, with defined trigger points, to allow for future upgrades during the concession period (PIANC).

Australia and ASEAN are working closely on maritime connectivity and climate-resilient port PPPs. The recent Climate Resilient Port PPP online workshop showcased best practice, new policies and practical tools for building resilience into PPP models. Effective resilience actions reduce long-term risks, keep trade moving, and foster sustainable growth—often at little extra cost.

You can watch the full workshop here: Climate Resilient Port PPPs

Australia is proud to support ASEAN’s leadership in maritime connectivity and climate action. By putting ASEAN at the centre of our efforts, we aim to help regional ports and shipping lanes stay strong, efficient and ready for the future. This benefits ASEAN’s economies and the wider Indo-Pacific region.