The Kingdom’s only deep-sea port, operated by state-owned Sihanoukville Autonomous Port (PAS), will launch a new multipurpose terminal on June 25, to accommodate larger vessels with heavy loads, it said on Wednesday.
PAS Chairman and CEO Lou Kim Chhun said the inauguration of the multipurpose terminal will be presided over by Prime Minister Hun Sen.
Once in operation, the new facility will be able to load shipments weighing in the range of 40,000-50,000 tonnes. This is more than twice the limit of existing terminals.
“As the terminal at the sea-port is deeper and can handle bigger vessels with heavier loads, sea transportation costs will become cheaper,” Kim Chhun said.
He said construction of the new terminal began in early 2015 using a soft loan from the Japanese development agency JICA. The final cost will be more than $70 million.
Cambodia Freight Forwarders Association (CFFA) President Sin Chanthy said that PAS’s new facility will contribute to a greater level of competitiveness in exporting goods and will simplify the work of freight forwarders.
Without the new terminal, Chanthy said PAS could not handle large vessels. This led to fewer customers and congestion while at port.
“With the new terminal becoming operational, large vessels will make up a larger part of the traffic. Goods will be delivered on time in a shorter period which will strengthen the business’s competitiveness,” he said.
Late last year, PAS unveiled plans to build a new container terminal as part of its expansion project after signing an agreement for a low-interest loan of some $209 million.
Completion in 2022 Construction will start by early 2019 and is scheduled to be completed by the end of 2022.
PAS became the fifth listed firm on the Cambodia Stock Exchange (CSX) in June last year, after successfully raising $27 million in its initial public offering process.
The company saw 1,000 shares traded on Wednesday – worth about $1,250. However, there was no movement in its share price which remained at 5,000 riel each, similar to the day before.