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Japan firm opens logistics centre in PPSEZ

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A view of the Phnom Penh Special Economic Zone (PPSEZ). Nippon Express launched its logistics centre in PPSEZ on Monday. post staff

Japan firm opens logistics centre in PPSEZ

Nippon Express (NPEXY), a Japanese firm specialising in lorry, rail, and air transport services, launched its new logistics centre at the Phnom Penh Special Economic Zone (PPSEZ) on Monday.

NPEXY Department of Operations and Logistics senior manager An Sinath told The Post on Tuesday that the new logistics centre had 4,258sqm of space divided into four blocks for the storage of goods.

“I am happy that [NPEXY] has chosen to invest in a logistics centre in our country. The facility is of very high standards and unlike any other. I believe it will create new job opportunities for Cambodians and boost economic growth,” he said.

The total amount of investment in the project was not disclosed.

NPEXY said with further growth projected in Cambodia and across Southeast Asia, the firm was striving to bolster its logistics services in the area and expand its global operations.

Dozens of firms have sought out a presence at the PPSEZ due to its advantageous location between Sihanoukville Autonomous Port and the northern railway line to Thailand via Poipet town.

And, it is also located near National Roads 3 and 4 about 8km from Phnom Penh International Airport.

General Department of Customs and director-general Kun Nhem told an audience at the centre’s launch on Monday that there are some 43 Japanese firms currently operating in PPSEZ.

The firms, Nhem said, produced food products, garments, footwear, auto parts and electronic accessories.

“I hope the presence of the Japanese companies will play an important role in strengthening services, the supply chain and trade,” he said.

Nhem credited Japanese investment in PPSEZ to increasing bilateral trade between Cambodia and Japan, which reached $183 million last year, up from $155 million in 2017.

“The logistics centre’s operations are in line with the Logistics Master Plan Development of the Kingdom of Cambodia that is supported by Japan International Cooperation Agency (Jica),” he said.

Council for the Development of Cambodia (CDC) data showed there were 141 Japanese investment projects in Cambodia as of September, with some $2.5 billion in capital investment.

Of these investment projects, 66 are located in special economic zones with an estimated capital investment of $340 million, according to the CDC.

Bilateral trade between Cambodia and Japan reached $1.9 billion, in the first 10 months of this year – a slight increase of 0.44 per cent compared to the same period last year, said Japan External Trade Organisation (Jetro) data.

A breakdown of the Jetro data showed that exports to Japan were worth $1.45 billion, marking a 7.8 per cent increase from last year. Meanwhile, Japanese imports were worth $444.937 million, marking a 34.2 per cent increase, according to the report.


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