An extension of Phnom Penh Autonomous Port under construction in nearby Kandal province is nearly finished and expected to come online in July, according to a PPAP official.

Construction on the planned container lot, located in Kandal province’s Kien Svay district, began in early 2010. PPAP general director Hi Bavy said yesterday the project is now 85 per cent complete and will begin operations on July 1.

“The construction of the port is to expand our capacity to stock goods, which will make the circulation of products easy and fast,” he said, adding that it would help to reduce congestion at the original port, which is located near the Cambodian-Japanese Friendship Bridge.

The new port cost US$28.2 million and was funded by a loan from the Chinese government, Hi Bavy said. The location will hold 120 twenty-foot-equivalent units (TEUs), he said.

Cambodia now has two international ports, Phnom Penh Autonomous Port and Sihanoukville Autonomous Port, and another in Kampot is presently under construction.

Sin Chanthy, general director for Cambodian Freight Forwarder Association and  for Linehaul Express Co, Ltd, said the industry welcomed the arrival of the new port.

“When the port starts, it will be very good because nowadays Phnom Penh port is small. Sometimes I ship my goods at night because it’s is overcrowded because it is the town,” he said.

Sin Chanthy noted that only smaller vessels can dock at PPAP, which forces shipment transfers to larger vessels at Cat Lai port in Vietnam before going on to other international destinations, further slowing the trade process.

However, he said the Kandal port also would allow greater shipment of goods at cheaper rates, as Phnom Penh was the destination for most goods  exported to Cambodia. Therefore, the increased capacity meant those goods would go directly to the capital rather than stopping first in Sihanoukville and then travelling overland to Phnom Penh.

About 81,600 TEUs passed through Phnom Penh Autonomous Port last year, up 31 per cent from 2010, according to official PPAP figures.