Logo of Phnom Penh Post newspaper Phnom Penh Post - South Korean cargo line aims to double shipments

South Korean cargo line aims to double shipments

A tug boat moves into position with a Hyundai container ship in the Port of Los Angeles in 2013. Bloomberg
A tug boat moves into position with a Hyundai container ship in the Port of Los Angeles in 2013. Bloomberg

South Korean cargo line aims to double shipments

The volume of goods shipped has grown steadily in the three months since South Korean sea shipping line Hyundai Merchant Marine began calling at Sihanoukville port, and cargo sizes are expected to double in the coming month, a local company representative said yesterday.

Siv Mann, sales manager of Hyundai Logistics (Cambodia) Co Ltd, said the cargo line first added Cambodia’s principal seaport to its service roster in March, with its Feedermax container ships sailing from Busan, South Korea, to Sihanoukville once a week.

The ships deliver goods to Sihanoukville such as textiles, factory equipment and spare parts to support the local garment industry. On the way out they primarily pick up garments and footwear products bound for Western markets.

One issue the company has faced, according to Mann, is the imbalance between the volume of goods shipped in and those shipped out, which increases the number of empty containers on the route. Hyundai Merchant Marine’s 2,200-TEU ships deliver about 100 20-foot equivalent units, or TEUs, to Cambodia and initially brought out just five TEUs. That has since increased to 15 TEUs per trip, while the company is targeting 30 TEUs.

“We still need more goods to ship out even though we’re now receiving more garment products for delivery to Japan,” he said. “We expect that we will hit our target in July because it is the high season.”

Meas Sopong, general manager of logistics firm Kuehne + Nagel (Cambodia) Ltd, said it is normal for shipping lines serving Cambodia to have an imbalance in favour of imports as the Kingdom’s export volume remains small, limited to mainly garments and agricultural products.

“If Cambodia’s garment exports decrease, it will hurt the shipping business,” he said, adding, however, that an influx of Japanese investment in the country was expected to result in more shipments of industrial products to Japan.

According to officials at Sihanoukville Autonomous Port (SAP), Hyundai Merchant Marine is one of more than 10 international shipping lines that currently call at the deepwater port. Four, including Chinese shipping behemoth COSCO, launched services in the past year.

Lou Kim Chhun, director-general of SAP, said more direct shipments from Cambodia to regional port destinations would help cut costs and save time in transporting goods to international markets.

“The traffic of goods between South Korea or Japan and Cambodia is increasing every year and will grow stronger in the future,” he said.

MOST VIEWED

  • With herd immunity likely in 2022, is Cambodia ready to reopen for tourism?

    The government aims to inoculate 80 per cent of the target population by June next year, giving it a head start among regional peers to reboot the sector but first, it has to do a few things to up its game A sign on a glass

  • Quarantine still a must for all arrivals, in next Covid chapter

    Since early May, an average of five to 10 Cambodian people have died from Covid-19 a day with many others testing positive amid the ongoing community outbreak. At the same time, however, hundreds of patients also recovered a day. The first Covid-19 case in Cambodia was

  • US wants 'full access' to Ream Naval Base

    On June 11, the US embassy's Defense Attaché Colonel Marcus M Ferrara visited Ream Nava Base in coordination with Cambodian officials following the recent approval of Prime minister Hun Sen to allay the concerns on Chinese military presence at the base as raised by US Deputy

  • Jab drive heading to 5 provinces

    The government is set to vaccinate more than 1.2 million people in five provinces after finishing with Phnom Penh and neighbouring Kandal in an ongoing campaign administered by the ministries of Health and National Defence. The five provinces are Preah Sihanouk, Kampong Speu, Takeo, Kampong Cham

  • New immigration bill targets illegal foreigners in Kingdom

    General Department of Immigration (GDI) officials are discussing revisions to the new draft law on immigration to prevent foreigners from entering Cambodia illegally and to supervise those living in the Kingdom more effectively. The revisions draw wide support among civil society organisations. GDI director-general Kirth

  • Kingdom set to be a gold producer

    Cambodia will soon join the roster of gold producing countries after the government announced the commencement of commercial gold mining operations in the Okvau area in southwestern Mondulkiri province's Keo Seima district from June 21. Prime Minister Hun Sen on June 10 announced that after 14 years of