Logo of Phnom Penh Post newspaper Phnom Penh Post - Royal Railway revenue steaming ahead in Q2

Royal Railway revenue steaming ahead in Q2

Content image - Phnom Penh Post
The Phnom Penh Railway Station in 2022. Heng Chivoan

Royal Railway revenue steaming ahead in Q2

Royal Railway Plc (RRC), a Royal Group of Companies Ltd (RGC) subsidiary with corporate bonds listed on the Cambodia Securities Exchange (CSX), reported an on-year increase in revenue in the second quarter of 2023 despite the slowdown in economic activities as a result of the ongoing Russia-Ukraine war.

In a filing with the CSX last week, RRC posted total revenue of 13.4 billion riel ($3.3 million) in the second quarter ended June 30, 2023, up 22.6 per cent year-on-year, with net loss for three-month period at nearly eight billion riel, which expanded 68 per cent from the same period in 2022.

As of June 30, 2023, total assets slipped seven per cent to 144.7 billion riel while total equity rose 71 per cent to 16 billion riel compared to December 31, 2022.

RRC and RGC chairman Kith Meng said Cambodia’s economic recovery, according to the Asian Development Bank, is forecast to grow at 5.5 per cent in 2023 and six per cent in 2024 on robust tourism recovery and increased growth in the services sector.

ADB reportedly said the tourism sector is expected to grow 7.3 per cent in 2023 before easing to 6.8 per cent in 2024. Inflationary pressure is anticipated to moderate at an average rate of three per cent in 2023 and four per cent in 2024.

Cambodia’s economic outlook also hinges on the country’s continuing efforts to scale up green investment to unlock long-term growth potential, Kith Meng said, quoting ADB.

Growth in exports of garments, footwear, and travel goods is projected to decelerate due to weak external demand in the US and Europe, the main export destinations.

The industrial sector, however, continues to benefit from policy reforms including the investment law 2021, which created a one-stop service for investors, and new trade agreements.

Amid the challenging business environment, RRC has played an essential part in contributing to sustainable economic development by engaging continuously with new clients for freight services, along with very reasonable prices to fit with the changes of the economic environment.

On the financial performance side, as of the second quarter of 2023, the increase in total assets and revenue were fuelled by the company’s successful implementation of a sound business strategy on the back of consistency and discipline until the goal of the company is reached, Kith Meng said.

“The board and shareholders have confidence that RRC’s leadership, strategy and people would enable it to continue its high level of performance for all investors,” he added.

RRC generates revenue from the three major sources - rail freight, train related value-added services, and warehousing service or lease.

Under the rail freight income category, freight service is provided to customers on both the Northern Line and Southern Line.

As train related services, fees are collected from lift-on-lift-off containers, customs scanned containers, customs clearance, storage fee and passenger fare.

Passenger service is offered on the Southern Line, which runs between Phnom Penh and Sihanoukville, and the Northern Line, from Phnom Penh to Poi Pet.

RRC listed its corporate bonds on CSX on October 31, 2022, raising about $10 million to expand their operations. Another $24 million was raised via bond issuance at the end of 2022.


  • Joy as Koh Ker Temple registered by UNESCO

    Cambodia's Koh Ker Temple archaeological site has been officially added to UNESCO’s World Heritage List, during the 45th session of the World Heritage Committee held in Riyadh, Saudi Arabia, on September 17. The ancient temple, also known as Lingapura or Chok Gargyar, is located in

  • Famed US collector family return artefacts to Cambodia

    In the latest repatriation of ancient artefacts from the US, a total of 33 pieces of Khmer cultural heritage will soon return home, according to the Ministry of Culture and Fine Arts. In a September 12 press statement, it said the US Attorney’s Office for the

  • Tina rebuffs ‘false claims’ over falling paddy price

    Agriculture minister Dith Tina has shed light on the trade of paddy rice in Battambang – Cambodia’s leading rice-producing province – in a bid to curb what he dubs a “social media fact distortion campaign” to destabilise the market. While acknowledging that the prices of paddy

  • Cambodia set to celebrate Koh Ker UNESCO listing

    To celebrate the inscription of the Koh Ker archaeological site on UNESCO’s World Heritage List, the Ministry of Cults and Religion has appealed to pagodas and places of worship to celebrate the achievement by ringing bells, shaking rattles and banging gongs on September 20. Venerable

  • Kampot curfew imposed to curb ‘gang’ violence

    Kampot provincial police have announced measures to contain a recent spike in antisocial behaviour by “unruly’ youth. Officials say the province has been plagued by recent violence among so-called “gang members”, who often fight with weapons such as knives and machetes. Several social observers have

  • PM outlines plans to discuss trade, policy during US visit

    Prime Minister Hun Manet is set to meet with senior US officials and business leaders during his upcoming visit to the US for the UN General Assembly (UNGA), scheduled for September 20. While addressing nearly 20,000 workers in Kampong Speu province, Manet said he aims to affirm