Chinese manufacturer XCMG is best known for its construction equipment but has a growing presence in the ports and terminals sector – and plans to become a major player in the region.
Product development is focused in two areas: electrification and making machines more intelligent. Recently, it launched the Kunpeng S Economy Edition electric forklift along with the new E-series lithium forklifts. The company says they are specifically designed for the South East Asian market’s demand for high cost-effectiveness and adaptability to complex working conditions.
“The first batch of 20 units has been successfully deployed for trial use in Thailand and Malaysia, with positive customer feedback,” says Eden Gu, EU overseas business supervisor for XCMG’s forklift and port machinery division.
The company is also expanding its port equipment portfolio. The XCH1008E electric stacker with double-box spreaders has entered the final testing phase and is expected to be officially launched in early 2026, completing the port equipment range.
It now offers a dual line of fuel-powered and electric products, including reach stackers (XCS4531K/E), forklifts (XCH907K/E) and tractor units (XPT75E). Its electric port machinery products have passed CE and TUV certifications and meet the environmental standards of various Asia-Pacific countries.
In 2024, XCMG Special Machinery passed China’s level 3 certification for intelligent manufacturing capability maturity. “This means that we have reached the industry leading level in core technology research and development and digital production management, enabling us to provide the Asia-Pacific market with more efficient supply and higher-quality products,” adds Gu.
The results have been notable. In the South Korean market, through its distributor Port Rental, XCMG has delivered a total of 85 port machinery products, including 49 XCS4531K reach stackers and 26 XPT75E tractor units, achieving a market share of 34.38% from January to July 2024.
In the Philippine market, after a year of cooperation with Asia Global, it delivered eight reach stackers and 13 tractor units. In the Northwest Petrochemical sector in China, it recently completed the delivery of over 100 customised electric forklifts. They feature a pioneering enclosed, temperature-controlled cab and a seven-in-one integrated controller, helping ensure operation in extreme conditions from -25°C to 45°C.
Regional demand
The Chinese market has become more competitive and XCMG says it is now characterised by structural upgrading and demand segmentation. In 2023, the domestic sales volume of electric forklifts accounted for more than 60%, with lithium-ion forklifts growing at a rate of over 25%. “On the one hand, with the advancement of the dual carbon policy and the intelligent transformation of manufacturing, the demand for electric forklifts has remained strong,” says Gu.
“On the other hand, demand in niche sectors is becoming increasingly prominent. For example, the food industry prefers zero-pollution, low-noise equipment and the petrochemical industry needs explosion-proof and high/low temperature-resistant customised equipment. All of these factors are driving the market towards specialisation and scenario-based development.”
For XCMG, domestic electric forklift orders increased by 30% year-on-year in 2024, with customised solutions accounting for 18% of orders. “This shows that market demand is indeed strong, and customers also recognise the value of high-end equipment,” he adds.
Beyond China, it cites other high-demand countries as Thailand, South Korea, Malaysia and Singapore.
As a manufacturing and logistics hub in South East Asia, Thailand saw a demand for 15,800 forklifts in 2023, a year-on-year increase of 24.4%. “Furthermore, the electrification transformation is accelerating, with electric forklifts accounting for over 35% of the market for the first time in 2023,” says Gu.
Thailand’s port throughput has grown at an average annual rate of 8%, resulting in stable demand for port machinery. “From January to July 2024, XCMG’s reach stacker cranes achieved a 47% market share in Thailand, on par with SANY, primarily due to local customers valuing high cost-effectiveness and rapid service response,” he adds.
Thanks to South Korea’s solid industrial base, XCMG says its ports such as Busan and Incheon still have a great demand for port machinery and high-end forklifts. In 2023, the port machinery market size exceeded 500 million yuan. “Moreover, customers have high requirements for the intelligence of equipment,” says Gu.
In Malaysian ports, XCMG says it accounted for 17% share of the forklift market. “Customers want to control costs while also valuing equipment durability, and our XCMG Kunpeng series perfectly meets this need,” he adds.
The Singapore market is comparatively small, taking in around 5,000 forklifts in 2023. From January to July 2024, XCMG Port Machinery achieved a market share of 44.4% in Singapore, ranking first alongside SANY. “This success is mainly attributed to our reach stacker products and intelligent fleet management system, which can meet the needs of local port automation upgrades,” says Gu.
Meanwhile in the Philippines, investment in infrastructure and logistics has been increasing in recent years, with XCMG citing forklift demand growing by 46.2% year-on-year in 2023. “Ports like Manila Port also have a strong need for replacing used equipment,” says Gu. “XCMG Port Machinery, with its advantages of high cost-performance ratio and five-year warranty, has already captured a 15% market share in the southern Philippines and is currently expanding into the northern market.”
Differentiation
In a highly competitive marketplace, XCMG offers three strands to its differentiation: customisation, adaptability and integrated service. “Unlike other brands that focus on standardised mass production, XCMG excels at overcoming technical challenges for different niche scenarios,” says Gu.
A good example is its pioneering low position side battery replacement technology for multi-shift applications. This enables a battery replacement to be completed in three minutes, which it claims is 80% faster than the industry average.
Other product developments include the XEC electronic control technology, which can achieve millimetre-level material alignment and its proprietary battery management system for monitoring of the entire battery life cycle.
For service, it has developed what it calls the ‘iron triangle’, directly deploying product managers, technical support and a service personnel network in each of its core markets. It has also established spare parts fulfilment centres in Thailand, South Korea and Singapore. In Thailand, it has opened an EV training centre, training more than 500 people last year.
“For example, when cooperating with ASIAPORT in Malaysia, we not only provided port machinery, but also provided agency services for Dana gearboxes and forward tyres, achieving a one-stop solution,” says Gu.
Key trends
Based on market data and project experience, XCMG identifies three main development trends in port handling equipment in the Asia- Pacific region: electrification; intelligence and automation; and dealing with larger ships.
In 2023, the sales share of electric port machinery in the Asia-Pacific region reached 28%, compared to only 12% in 2021. “For example, the procurement volume of electric reach stackers in South Korean ports increased by 40% year-on-year in 2023,” he adds. “Our XCMG XCS4531E electric reach stacker, with its advantages of zero emissions and 20-hour range, has already been used in batches in ports in South Korea and Singapore.” The Thai port machinery market also plans to increase the proportion of electric equipment to 35% by 2025.
When it comes to upgrading ports to automation, XCMG says this has become an industry-wide consensus, with AGVs, unmanned reach stackers and intelligent fleet management systems being used more widely.
After the Port of Klang in Malaysia introduced XCMG’s intelligent fleet management system, equipment utilisation increased by 15% and operating costs decreased by 8%.
In addition, as container ships grow larger, port machinery is also developing towards large tonnage and multi-functionality machinery. “The demand for double-container stackers such as our XCMG XCH1008K is increasing,” Gu says. These machines can simultaneously load and unload two 20-foot containers, improving efficiency by 50%.”
Naturally, there are also customer challenges, which can vary significantly in such a geographically large region.
“Customers like Northwest Petrochemical face a 30°C temperature difference between day and night and are working in a corrosive environment,” he says. “Traditional forklifts often experience battery failure and component corrosion.” XCMG’s solution was to create customised hardware. “We developed a corrosion-resistant vehicle body, a temperature-controlled cab, and a long-range battery capable of 12 hours of driving on a single charge for petrochemical customers.”
All customised products undergo 1,000 hours of simulation testing in XCMG’s extreme environment laboratory to ensure equipment reliability.
Like the rest of the world, many ports in the region run multiple shifts, a challenge for the traditional forklift recharging model which requires 8–10 hours. “A logistics customer in Malaysia has a vehicle empty load rate of 25% due to a lack of data monitoring,” says Gu.
XCMG solved this with its battery swapping system, combined with high-voltage fast charging that replenishes the battery to 80% in one hour. “For example, after a port in Thailand used our XCMG port machinery, the equipment utilisation rate increased by 30%,” he adds.
This is supported by the intelligent BMS, which monitors vehicle load, range and fault status in real time. “After using it, the Malaysian customer saw their no-load rate drop to 12%, saving over one million yuan annually.”
Another challenge is parts availability in some markets such as Vietnam – XCMG is solving this by opening more parts warehouses across the region. It plans to add two spare parts centres and a localised team of 100 people in Vietnam and the Philippines in 2026.
Substantial investment
Meanwhile, SANY Heavy Industry is now officially listed on the Main Board of the Hong Kong Stock Exchange, bringing significant investment. This follows its debut on the Shanghai Stock Exchange in 2003.
The Hong Kong IPO attracted 21 major investors subscribing for a total of US $759m, including Temasek, BlackRock, Hillhouse, UBS Asset Management, LMR and Oaktree Capital.
“It reflects the capital market’s strong confidence in SANY’s high-quality development and marks a historic opportunity to expand our international financing channels,” says Xiang Wenbo, rotating chairman of SANY Group and chairman of SANY Heavy Industry. “Leveraging Hong Kong’s position as a ‘super connector’ for global capital, SANY will continue creating sustainable value and contributing to a greener world under its strategies – globalisation, digitalisation and decarbonisation.”
According to Frost & Sullivan, based on cumulative revenue of core construction machinery from 2020–2024, SANY ranks as the world’s third largest and China’s largest construction machinery manufacturer. Overseas revenue is growing at a compound annual growth rate of 15.2%.
SANY’s marine division recently held a global customer conference as it looks ahead to further growth in the ports segment. This follows the launch of what it claims is the world’s first 50t battery-powered reach stacker. The SRSC5035E is specifically engineered for handling energy storage containers.
To meet changing energy requirements, several companies have developed containerised battery energy storage systems (BESS). These often paired with renewable energy generation, enabling storage of energy for later use. SANY’s new machine offers stacking capacity for up to six of these containers. With a maximum hoisting capacity of 50t, it ensures the efficient transfer and installation of energy storage systems.
The machine is equipped with an advanced electric control pump, precisely controlling the current output through programmes and algorithms. The high-pressure hydraulic system reduces pressure loss by 50%, further lowering energy consumption. Energy recovery is a key feature, with a recovery efficiency of over 65%.
That means every 1kWh of consumption in lifting can be recovered by 0.4kWh during descent.
Major milestone
E-Crane Asia also marked a major milestone achieved by one of its customers in Indonesia.
Bayan Group’s three E-Cranes have collectively reached 100,000 hours of successful operation. E-Crane says that what makes this milestone particularly significant is that the operating hours were reached under a Full Maintenance Contract directly with E-Crane Asia. Through this arrangement, Bayan has been able to focus fully on productive coal handling operations, while E-Crane ensures the cranes remain in peak condition.
The contractual agreement specifies a minimum 95% equipment availability. In practice, Bayan’s E-Cranes have achieved availability rate exceeding 99%. It also covers an all-inclusive consumables and spare parts agreement, as well as 24/7 service and support, coordinated from E-Crane Indonesia’s facilities in Balikpapan. E-Crane says that the contract guarantees transparent, predictable costs, allowing Bayan to optimise its costs per operating hour.
Bayan Group is one of Indonesia’s leading coal producers, with integrated operations covering mining, infrastructure and logistics. The company supplies high-quality coal to both domestic and international markets. One 2000B Series EC18264 PD-E machine is barge-mounted on the Mahakam River, where it transfers coal efficiently from feeder barges to mother barges. Two 2000B Series EC15317 PD-E cranes are operating at the Balikpapan Coal Terminal, providing reliable and continuous coal handling operations at one of Bayan’s key export hubs.
Golden age
All the signs are that port and terminal material handling equipment sales will continue to grow in this region. “From an industry perspective, the next five years will be a golden age for port and terminal material handling equipment in the Asia-Pacific region, characterised by “high growth and high upgrading,” says XCMG.
It believes this is driven by three core factors. Firstly, infrastructure investment continues to increase. South East Asian countries, including Thailand, Vietnam and the Philippines, plan to invest over US $50bn in port expansion between 2024 and 2030. Key projects include the Laem Chabang Port Phase III in Thailand and the upgrade of Manila Port in the Philippines. This will directly drive demand for port machinery, with an estimated average annual growth rate of 10%.
Secondly, green policies are driving transformation. “China’s dual carbon policy, South Korea’s 2030 Carbon Neutral Port Plan, and Singapore’s Green Port Blueprint policies will accelerate the replacement of traditional equipment with electric port machinery,” says XCMG. It estimates that, by 2027, the proportion of electric port machinery in the Asia-Pacific region will exceed 50%, far exceeding the global average.
Thirdly, automation will move from pilot projects to large scale adoption. “For example, Singapore’s PSA and Busan Port in South Korea have planned to achieve 30% automation of operations by 2026, which will create demand for high-end intelligent equipment. For XCMG, we will seize three opportunities: first, to further improve our electric product portfolio; second, to accelerate the implementation of intelligent technologies; and third, to strengthen our localised service capabilities.”
XCMG’s goal is to achieve a market share of over 25% in the Asia-Pacific port machinery market by 2027 and become a leading material handling solutions provider in the region.
A company spokesperson says, “In the future, XCMG will continue to focus on safety, greenness and intelligence, working hand in hand with customers in the Asia-Pacific region to promote the high-quality development of the port logistics industry and truly realise its brand promise of making material handling more efficient.”
