Logo of Phnom Penh Post newspaper Phnom Penh Post - Cambodia, Singapore study logistics hub set for capital

Cambodia, Singapore study logistics hub set for capital

Cambodia, Singapore study logistics hub set for capital

Cambodia and Singapore are jointly studying the draft framework agreement on the development of the Phnom Penh Logistics Centre (PPLC).

The centre will be located on 98ha in Dangkor district’s Samrong Krom commune, an area lying just west of Phnom Penh International Airport. It is part of the government’s logistics master plan and aims to trim production costs and increase exports.

Minister of Public Works and Transport Sun Chanthol held a video conference on Thursday morning to gather input from relevant institutions and ensure that the agreement provides a comprehensive legal framework that is acceptable to all parties concerned.

Present at the meeting were senior leaders of relevant ministries and institutions of both countries, as well as senior executives of Singapore’s YCH Group and IA Group.

Chanthol boasted that the PPLC will heighten transportation sector efficiency and competitiveness to levels that are comparable to countries regionally and globally in terms of prices and services.

This, he said, will create the impetus for the Kingdom’s economic growth and deliver a boost for the government’s vision of becoming an upper middle-income country by 2030 and a high-income country by 2050.

“To make the project run smoothly and move forward as planned, the ministry is looking for development partners and reports to submit to the leadership for further guidance and additional recommendations before the next meeting,” Chanthol said.

The ministry’s General Department of Logistics director Chhieng Pich told The Post in August that a then-recently-completed early-stage feasibility analysis of the PPLC had provided positive results.

He said the study showed that the project would be economically viable and commercialising it would benefit the private and public sectors.

He said the ministry forwarded the results of the analysis to the Ministry of Economy and Finance and is awaiting approval.

“If the Ministry of Economy and Finance gives us the green light, we will conduct a comprehensive feasibility study in collaboration with the Asian Development Bank,” he said.

The location is strategically significant as it sits between Sihanoukville Autonomous Port and the Poipet rail line on the border with Thailand. It is also located near National Roads 3 and 4, as well as the Phnom Penh Special Economic Zone.

Cambodia’s weak logistics infrastructure has long impeded its trade sector, with a 2014 World Bank report showing that the Kingdom’s export costs were 30 per cent higher than those of neighbouring countries.

In 2016, the Japan International Cooperation Agency estimated that Cambodia charges its exporters $540 per twenty-foot equivalent units (TEU), compared to $200 in Thailand and $250 in Vietnam.

TEU is an inexact unit of cargo capacity often used to describe the capacity of container ships.


  • Phnom Penh unveils rules for post-lockdown transition

    The Phnom Penh Municipal Administration issued a set of detailed guidelines for the seven days to May 12 after the capital emerges from lockdown at the onset of May 6. In the 14-page document signed by municipal governor Khuong Sreng released on the evening of May 5, the

  • SBI LY HOUR Bank Launches Cross Border Money Transfer Service between Cambodia and Vietnam on RippleNet, utilizing DLT

    SBI LY HOUR Bank Plc and Hanoi-based Tien Phong Commercial Joint Stock Bank (TPBank) on Friday launched the first Cambodia-Vietnam money transfer service in real currency via RippleNet, provided by SBI Ripple Asia Co Ltd to provide safe, fast and convenient services. SBI LY HOUR

  • Gov’t issues guidelines as lockdown nears end

    The government has issued a five-page set of instructions to be enforced when the three-week lockdown of Phnom Penh and adjacent Takmao town in Kandal province ends on May 6. According to an announcement signed by Prime Minister Hun Sen on May 4, the instructions cover a

  • Cambodia ready to exit LDC status

    Cambodia is well-prepared to minimise economic risks when it graduates from its Least Developed Countries status, according to a senior official at the Ministry of Commerce on May 7. Four LDCs – Cambodia, Laos, Bangladesh and Nepal – met at a virtual workshop last week to explore potential

  • Tottenham Hotspur to wear ISF Cambodia logo on jerseys in match against Sheffield United

    Last year, the Indochina Starfish Foundation (ISF) – an NGO providing education to underprivileged children in Cambodia – made global headlines with its “socially distanced” football initiative. This year, a world-class football club – Tottenham Hotspur FC – will wear special edition jerseys to show their support for ISF

  • Nine US franchises eye Cambodia debut

    Nine famous US franchising companies are looking for business opportunities and expansion into Cambodia to build a footstep for a strong foundation in Southeast Asia. The US embassy in Phnom Penh, in partnership with the US Foreign Commercial Service and with support from the American