Logo of Phnom Penh Post newspaper Phnom Penh Post - Firms say transport fee cuts not deep enough

Firms say transport fee cuts not deep enough

A truck is loaded with shipping containers at Sihanoukville Autonomous Port in 2011.
A truck is loaded with shipping containers at Sihanoukville Autonomous Port in 2011. Heng Chivoan

Firms say transport fee cuts not deep enough

Officially sanctioned reductions in port container fees will have little impact on the Kingdom’s trade competitiveness as deeply engrained problems in trucking and railways, as well as high custom fees, remain in place, stakeholders in the transport sector said yesterday.

“The cost reduction of transportation fees is better than nothing, but documentation, customs and administrative costs are big expenses that need to be reformed,” said Siev Eang Tang, an import supervisor for CTSI Logistics Inc.

On Sunday, Prime Minister Hun Sen announced that state-owned Sihanoukville Autonomous Port and Kampuchea Shipping Agency and Brokers would cut container costs by 10 per cent, while Phnom Penh Autonomous Port would reduce container fees by 5 per cent.

Tang said the cuts would have little effect on overall freight transport costs, as the majority of the company’s customers struggle with high tariffs and documentation fees.

Ly Meng, manager of Meng Hong Leap Logistics, agreed that the small reductions in port container fees would have little impact on the sector’s overall competitiveness.

“Reducing the loading costs provides a little help, but the overall costs are still high and the trucking sector has yet to be reformed,” he said.

While the two largest private associations for the Kingdom’s trucking industry – CamFFA and CAMTA – have already agreed to reduce container fees by $10, Meng said those cuts have yet to become official.

Song Saran, CEO of Amru Rice, said that the cuts imposed by the prime minister were a positive step in a challenging sector that would eventually increase overall trade competiveness. But he argued that railway costs and trucking fees should also be closely examined.

“[The port] fees are only a small part of the production line,” Saran said.

“The government should continue to call on the logistics sector to discuss cutting costs together.”

Logistics companies have also complained of being charged onerous informal fees by state officials, which increase the cost of freight shipments and reduce export competitiveness.

MOST VIEWED

  • Ministry mulls ASEAN+3 travel bubble

    The Ministry of Tourism plans to launch a travel bubble allowing transit between Cambodia and 12 other regional countries in a bid to resuscitate the tourism sector amid crushing impact of the ongoing spread of Covid-19, Ministry of Tourism spokesman Top Sopheak told The Post on

  • Courts’ decisions now published as reference source

    The Ministry of Justice has published 44 verdicts from civil litigation cases which can be used as models for court precedents and for study by the public and those who work in pertinent fields. Publication of the verdicts on December 31 came as the result of joint

  • ‘Kingdom one of safest to visit in Covid-19 era’

    The Ministry of Tourism on January 12 proclaimed Cambodia as one of the safest countries to visit in light of the Kingdom having been ranked number one in the world by the Senegalese Economic Prospective Bureau for its success in handling the Covid-19 pandemic. In rankings

  • Quarantine site in north Phnom Penh inaugurated

    A four-building quarantine centre in Phnom Penh’s Prek Pnov district was formally inaugurated on January 6. The centre can house up to 500 people, according to Phnom Penh municipal governor Khuong Sreng. At the inauguration ceremony, Sreng said the municipal hall had cooperated with the Ministry

  • China firm to develop Mondulkiri airport

    Tourism to the Kingdom’s northeast corridor could experience a remarkable metamorphosis after the government decided in principle of a Chinese company to study and develop a proposal to build a regional-level airport in Mondulkiri province, according to industry insiders. The Council of Ministers said

  • More than 5K workers rush from Thailand amid outbreak

    Following the recent outbreak of Covid-19 in Thailand’s Samut Sakhon province, Cambodian migrants working in Thailand were gripped by worry over the situation and many rushed to return to their homeland. Over the past 10 days, more than 5,000 migrant workers have returned from Thailand through