PHNOM Penh's new ferry port officially launched on Monday with four ferries expected to transport 1,000 people and hundreds of vehicles daily between the capital and Arey-Ksat port in Kandal province's Lvea-Em district.

The ferry's port in the capital moved from its former Tonle Sap location, which has been handed over to the municipality's Naval Force unit, to its new home near Hun Sen Park.

Nhem Saran, director of the municipality's public works and transportation department, said the new location would benefit from remaining open during the annual Water Festival, which takes place at the end of the rainy season.

"The new location is much more convenient and will help to cut traffic during the Water Festival," he said.

Van Ramon, manager of the Phnom Penh-Arey Ksat Port, said the terminal cost US$150,000, and that the operator has a 10-year contract. The funds were spent mainly on infrastructure and a cargo terminal, with space set aside for motorbike taxis and tuk-tuks.

The operating company expects to earn minimum monthly revenues of $15,000.

The new ferry operation will run between 4am and midnight seven days a week and cost between 6,000 and 10,000 riels ($1.50-2.50) per vehicle, 700 riels for an individual.