Logo of Phnom Penh Post newspaper Phnom Penh Post - Capital’s port to lease out unused land

Capital’s port to lease out unused land

Capital’s port to lease out unused land

The capital’s listed port operator has agreed to lease a portion of its container yard in Phnom Penh to a Chinese developer under a 40-year deal that it anticipates will generate rental revenue and increase port throughput.

Hei Bavy, director-general of Phnom Penh Autonomous Port (PPAP), said yesterday that the company signed an agreement on Friday to lease 9.6 hectares of its old container yard to Yunnan Sengmao Investment (YSI) for 40 years. He said the Chinese firm would use the land to build a construction material supply centre with 700 showrooms for retailers to display their products.

According to Bavy, the agreement falls under the build, operate, transfer (BOT) model, with YSI obliged to construct and then operate the supply centre for 25 years before turning it over to PPAP. YSI would have the option to continue operating the centre beyond the 25th year, in which case the rental fee would increase by 50 percent for the remaining 15 years.

Bavy said the decision to lease out an unutilised portion of PPAP’s old container yard aims at generating rental income from the company’s land bank, but was also expected to increase the volume of container traffic as retailers import goods to sell at the new supply centre.

“We expect that by having this agreement, we will generate revenue from land in our old port, while we hope it will bring 20,000 TEU of container traffic to the old port annually,” he said.

PPAP relocated its main container terminal to a purpose-built 10-hectare site in Kandal province in 2013. Its old container terminal in Phnom Penh is now rarely used.

MOST VIEWED

  • No more Africa travel ban but new rules for arrivals

    The Ministry of Health has decided to lift the ban on travellers from or who have travelled through 10 African countries and instead issued a set of standard operating procedures to manage passenger arrivals at Cambodia’s international airports. The 10 African countries are Botswana, Eswatini, Lesotho,

  • Prince Norodom Ranariddh passes away at 77

    Prince Norodom Ranariddh, the second son of the late King Father Norodom Sihanouk and former First Prime Minister of Cambodia, has passed away in France at the age of 77. “Samdech Krom Preah Norodom Ranariddh has passed away this morning in France just after 9am Paris-time,”

  • Cambodia purchases 4 million Molnupiravir tablets

    Cambodia has arranged for the purchase of four million US-made Molnupiravir pills – enough to treat 100,000 Covid-19 patients – even though the current rate of daily infections in Cambodia remains low. The medicine will be distributed to state hospitals, pharmacies and private clinics, according to the Samdech

  • Rise in planned flights lifts travel hopes

    Six airlines have applied to resume flights in December, while two others have put in for additional flights and routes, according to State Secretariat of Civil Aviation (SSCA) head Mao Havannall on November 29. These account for 43 new weekly domestic and international flights in December, up 16

  • Is Cambodia’s travel sector in for another cheerless holiday season?

    The travel and tourism sector was heaving back to life as borders started to reopen, promising a festive vibe for the holidays and New Year. But Omicron and other Covid-related issues are threatening to close the year on a bleak note ‘Seems [like] Covid-19 won’

  • PM blasts Vietnam general over Covid claims

    Prime Minister Hun Sen on December 6 expressed dismay after Vietnamese general Hoang Xuan Chien, formerly in charge of Vietnam’s border defences, claimed that Cambodia was a source of Covid-19 transmissions to the country. Speaking at the opening ceremony for National Road 11 connecting Prey Veng