Khmer Cold Chain Co Ltd (KCC) and publicly-listed Phnom Penh Autonomous Port (PPAP) on December 30 announced a partnership agreement to build a cross-docking facility with controlled temperature conditions in eastern Kandal province’s Kien Svay district.
The two firms are also reportedly in the process of developing a large-scale cold storage warehouse and distribution centre in the capital.
Located in Banteay Dek commune’s Kandal Leu village near the PPAP-operated LM17 terminal east of the capital, the facility will include a cold storage system, 50-foot (15m) dock and a dedicated space for value-added services such as pre-cooling, co-packing and labelling, sanitary and phytosanitary services (SPS), picking, and direct store delivery, KCC said.
The firm said the facility would increase operational efficiency for the importation and distribution of goods, provide temperature-controlled logistics (TCL) services, and serve Cambodian and regional farmers, agribusiness, food processors, pharmaceutical companies, food retailers, and hotel and restaurant catering businesses.
“[During] the Covid-19 pandemic, many countries, including Cambodia, have relied on international supply chains as vaccines are produced in one part of the world and shipped to another,” KCC said.
It added that the cold storage system “could potentially provide the ultracold warehousing solutions needed for vaccine and drug storage”.
PPAP spokesman Kong Channy said that as Cambodia modernises, its supply chain needs to be built out in a way that both sets the stage for economic growth and allows the country to respond to potential crises, such as food shortages and the need to ramp up the acceptance and distribution of medical supplies.
“We are designing the facilities with these needs in mind, including plans to construct them in a way that will allow for compliance with international sanitary standards,” he said.
KCC director Heng Sovathara said the facility would represent a significant step forward for Cambodia’s ability to take in the goods that it needs, and export profit-making merchandise.
“Through this partnership, we aim to fulfil the complete spectrum of cold-chain needs of local businesses through the facility and inspire others to undertake the development of cold-chain businesses across the country,” he said.
An additional 140,000 cubic metres of capacity must be added to Cambodia’s existing cold storage volume to meet its supply chain needs by 2030, KCC said, citing the feasibility study for the facility.
The new installations will supply 36,205 cubic metres – filling more than 25 per cent of the current gap – to meet the increasing market demand, it said.
Construction will provide 150 local jobs, and 100 more long-term positions will be available for residents of the capital and Kandal when the facility is in operation, it added.