Logo of Phnom Penh Post newspaper Phnom Penh Post - ‘Positive results’ for western PP logistics centre

‘Positive results’ for western PP logistics centre

Content image - Phnom Penh Post
A 2014 World Bank report showed that the Kingdom’s export costs were 30 per cent higher than those of neighbouring countries. POST STAFF

‘Positive results’ for western PP logistics centre

A recently-completed early-stage feasibility analysis of a groundbreaking trade logistics centre west of Phnom Penh provided positive results, Ministry of Public Works and Transport senior official Chhieng Pich told The Post on Wednesday.

Pich, director-general of the ministry’s General Department of Logistics, said the study showed that Phnom Penh Logistics Complex would be economically viable and commercialising it would benefit the private and public sectors.

He said the ministry forwarded the results of the analysis to the Ministry of Economy and Finance and is awaiting approval.

“If the Ministry of Economy and Finance gives us the green light, we will conduct a comprehensive feasibility study in collaboration with the Asian Development Bank,” he said.

The Phnom Penh Logistics Complex will be located on 98ha in Dangkor district’s Samrong Krom commune, an area lying just west of Phnom Penh International Airport.

The location is strategically significant as it sits between Sihanoukville Autonomous Port and the Poipet rail line on the border with Thailand. It is also located near National Roads 3 and 4, as well as the Phnom Penh Special Economic Zone.

Cambodia’s weak logistics infrastructure has long impeded its trade sector, with a 2014 World Bank report showing the Kingdom’s export costs were 30 per cent higher than those of neighbouring countries.

In 2016, the Japan International Cooperation Agency estimated that Cambodia charges its exporters $540 per twenty-foot equivalent units (TEU), compared to $200 in Thailand and $250 in Vietnam.

TEU is an inexact unit of cargo capacity often used to describe the capacity of container ships.

Cambodia Freight Forwarders Association president Sin Chanthy expressed optimism that the creation of the Phnom Penh Logistics Complex will provide an additional option for private sector investors in logistics, trim production costs and sharpen the Kingdom’s competitive edge.

“We are awaiting the arrival of investors to give a further impetus to the project. Hopefully something will come up soon,” he said.

MOST VIEWED

  • Seven positive for Covid-19, Hun Sen confirms local transmission

    Prime Minister Hun Sen announced that there has been local community transmission of Covid-19. However, he urged the people not to panic even though the Ministry of Health announced the discovery of seven new cases on Sunday. Among the victims are Chhem Savuth, the director-general

  • Cambodia at ‘most critical moment’, Hun Sen warns

    Prime Minister Hun Sen said the first community transmission of Covid-19 in Cambodia has led the country to the “most critical moment” that warranted urgent, large-scale operations to contain the pandemic. Hun Sen, who confirmed the first local transmission on November 28, said the source of

  • PM confirms community transmission, calls for unity

    Prime Minister Hun Sen has called on the public to stay calm, unite and follow the Ministry of Health guidelines after the wife of a senior official tested positive for Covid-19 in the Kingdom’s first case of community transmission. The case has drawn criticism

  • Over 110 garment factories close

    A government official said on November 22 that at least 110 garment factories had closed in the first nine months of the year and left more than 55,000 workers without jobs – but union leaders worry those numbers could be much higher. Ministry of Labour and Vocational Training undersecretary

  • Singapore group seeks $14M in damages from PPSP over ‘breach of contract’

    Singapore-based Asiatic Group (Holdings) Ltd is seeking a minimum of $14.4 million relief from Cambodia Securities Exchange (CSX)-listed Phnom Penh Special Economic Zone Plc (PPSP) for allegedly breaching a power plant joint venture (JV) agreement. Asiatic Group’s wholly-owned Colben System Pte Ltd and 95 per

  • PM vows to protect Hun family

    Prime Minister Hun Sen has vowed to continue his fight against opposition politicians who he said intend to smash the Hun family. Without naming the politicians but apparently referring to former leaders of the Supreme Court-dissolved Cambodia National Rescue Party (CNRP), Hun Sen said there