Logo of Phnom Penh Post newspaper Phnom Penh Post - Bonded warehouse opens its doors

Bonded warehouse opens its doors

Content image - Phnom Penh Post
Guests look at a model of the Kerry Worldbridge Special Economic Zone at its opening yesterday outside of Phnom Penh. Heng Chivoan

Bonded warehouse opens its doors

Local logistics firm Kerry Worldbridge officially launched its customs bonded warehouse yesterday, allowing firms to import and store materials in the facility without paying duties and taxes provided the final product is re-exported.

Located just south of the capital, the warehouse is part of the first stage of the company’s special economic zone (SEZ) development, which is expected to be completed in three stages covering 63 hectares at a total cost of $100 million.

Sear Rithy, chairman of Kerry Worldbridge Logistics, said during the facility’s inauguration that the company is expecting at least $300 million investment in the SEZ, though no official contracts have been signed yet. The company previously signed a memorandum of understand with German firm InSite Bavaria, to promote and attract high technology manufacturing to the SEZ.

“Our company strongly believes that this special economic zone and customs bonded warehouse will allow us to attract direct investments from foreign countries and increase their interest in investing in other fields in Cambodia,” Rithy said. “According to our projections, the flow of investment should be at least $300 million.”

Rithy said Kerry Worldbridge expects the SEZ will generate between 20,000 to 25,000 jobs once it is in full operation. Charles Esterhoy, chief operations officer of the Kerry Worldbridge SEZ, said after the event that the underlying goal of the zone is to attract high-level manufacturing, labelled as “Industry 4.0”. The company hopes to help Cambodia leapfrog stages of industrial evolutionary chain by introducing the highest level of technological manufacturing capacity to the Kingdom.

“We’ve all heard that 30 percent of garment jobs are going to be lost to robots [in Cambodia], that is the garment industry moving towards what is called Industry 3.0, which is automation,” he said.

“What we are doing is skipping Industry 3.0, and we will go straight to Industry 4.0, which is cyber-physical manufacturing, and is already in place in leading industrial nations like Japan or Germany.”

Esterhoy noted that in order for Cambodia to absorb such a high level of manufacturing, it will need to significantly improve the vocational skills of its workforce. He says Kerry Worldbridge’s MoU with InSite Bavaria includes providing training for workers while the firm also has an agreement with the National Polytechnic Institute of Cambodia (NPIC) to increase vocational training.

“In order to attract investment from German, EU or Japanese high tech manufacturers, we have to change vocational skills levels,” he said.“Cambodia is perfect for this because you have a relatively small and young population, and they understand technology.”

Figures from the Ministry of Economy and Finance showed that trade volume for SEZs in Cambodia grew by 1.2 percent last year, reaching 2.83 billion for both imports and exports.

George Yong Boon Yeo, president of the Kerry Group and CEO of Kerry Logistics, said that the new facilities and the customs bonded warehouse would satisfy a growing need for sophisticated logistics solutions in Cambodia.

“Kerry Logistics Network and our local partner Worldbridge Group . . . are working together to improve logistics in the Kingdom,” he said.

“This will help lower costs and make Cambodia an even more attractive country for investment.”

MOST VIEWED

  • Joy as Koh Ker Temple registered by UNESCO

    Cambodia's Koh Ker Temple archaeological site has been officially added to UNESCO’s World Heritage List, during the 45th session of the World Heritage Committee held in Riyadh, Saudi Arabia, on September 17. The ancient temple, also known as Lingapura or Chok Gargyar, is located in

  • Famed US collector family return artefacts to Cambodia

    In the latest repatriation of ancient artefacts from the US, a total of 33 pieces of Khmer cultural heritage will soon return home, according to the Ministry of Culture and Fine Arts. In a September 12 press statement, it said the US Attorney’s Office for the

  • Cambodia set to celebrate Koh Ker UNESCO listing

    To celebrate the inscription of the Koh Ker archaeological site on UNESCO’s World Heritage List, the Ministry of Cults and Religion has appealed to pagodas and places of worship to celebrate the achievement by ringing bells, shaking rattles and banging gongs on September 20. Venerable

  • Ream base allegations must end, urges official

    A senior government official urges an end to the allegations and suspicions surrounding the development of Cambodia’s Ream Naval Base, now that Prime Minister Hun Manet has addressed the issue on the floor of the 78th UN General Assembly (UNGA 78). Jean-Francois Tain, a geopolitical

  • CP denied registration documents by ministry

    The Ministry of Interior will not reissue registration documents to the Candlelight Party (CP). Following a September 21 meeting between ministry secretary of state Bun Honn and CP representatives, the ministry cited the fact that there is no relevant law which would authorise it to do

  • Manet touches down in Beijing for high-level meetings

    Prime Minister Hun Manet arrived in Beijing on September 14 for his first official visit to China, where he is slated to attend the 20th China-ASEAN Expo and meet other leaders including Chinese President Xi Jinping. Upon his arrival, Manet laid a wreath at the Monument