Cambodia eyes revamp of its logistics sector

TUESDAY, SEPTEMBER 13, 2022

Cambodia is exploring options to expedite preliminary studies on key public railway infrastructure projects, especially converting the Northern Railway Line into a high-speed one. This railway line links to Thailand.

Railway freight and passenger transportation have been pinpointed as potential engines of economic growth and employment opportunities as well as a magnet for inbound foreign investment.

Public Works and Transport Minister Sun Chanthol recently said feasibility studies are being done on modernising and upgrading the Phnom Penh-Poipet and Phnom Penh-Sihanoukville lines – also known as the Northern and Southern Railway Lines.

He also mentioned metro, monorail and automated guideway transit (AGT) options to reduce traffic congestion in Phnom Penh.

The minister had noted in April 2019 that a metro and AGT system would be the most expensive of the three choices.

Ministry undersecretary of state Vasim Sorya told The Post on September 12 that these and similar railway-related projects are in the study phase and that many procedures must be completed before a time frame for construction and development can be set.

Once the studies are completed, there are still discussions with ministry experts, inter-ministerial meetings, and the procurement of partners in addition to a substantial amount of funds, he said.

“The ministry is willing to get the study done as soon as possible, but everything takes time. The modernisation of the railway connecting Cambodia to Thailand is essential to prop up freight transportation as well as the tourism sector,” he said.

Logistics and Supply Chain Business Association in Cambodia (Loscba) president Chea Chandara said the transport sector is seeking development on all fronts – road, railway, waterways and air – to reduce the cost of logistics. He noted that railways are a popular option for moving large and heavy cargo.

“More long and high-speed railways will not only make it easier to transport goods, but also encourage investors to come and invest in Cambodia,” he said, adding that an adequate railway system would provide better access to the international market, and reduce the number of heavily loaded trucks on the road.

The Phnom Penh Post

Asia News Network

Cambodia eyes revamp of its logistics sector