Worldbridge Group has signed a memorandum of understanding (MoU) with Singaporean company YCH Group to collaborate on the development and operation of the Phnom Penh Logistics Complex (PPLC).
At the signing ceremony of the MoU on May 3, YCH Group CEO Robert Yap said that the partnership is important for deepening and developing transport and supply chains across ASEAN.
He said he believed that as a “world-class” smart logistics complex, the project would “enhance the competitiveness and attractiveness of Cambodia” by accelerating economic growth.
WorldBridge Group chairman Sear Rithy said that his company was “honoured” to be selected by YCH Group to contribute its expertise in the development and management of the project, adding that the complex would have an “invaluable positive impact on improving the overall economic health of Cambodia”.
“As a Cambodian company specialising in international partnerships across diverse sectors, we are confident that our expertise in logistics and industrial development will make us a valuable partner for the YCH Group and [enable us to] support the Cambodian government in achieving economic growth,” he said.
According to the Framework Agreement signed by the Ministry of Public Works and Transport and YCH in March 2021, the Singaporean company is required to select a local partner to co-develop the PPLC. The signing of the MoU officially implements the agreement.
Minister of Public Works and Transport Sun Chanthol noted that the complex plays an important role in strengthening Cambodia’s connectivity with cross-border trade flows, especially among countries in the Mekong region. It also improves the efficiency of multi-way transport in Cambodia, and reduces transportation costs while improving competitive edge and supply chain integration, he said.
Cambodia Logistics Association (CLA) president Sin Chanthy expressed optimism that, once operational, the PPLC will finally bridge regional gaps in logistics connectivity.
“It would be nice to have this facility because it would reduce the time needed to transport goods. It is also located in the right place to facilitate direct transportation to ports and other areas where there has been a need,” he said.
In its Master Plan for Connectivity and Interactive Logistics, Cambodia announced its vision to become a regional logistics hub. It seeks to achieve this through three strategic objectives: to promote regional trade connectivity, connect Indochina with China and lure more investors to set up businesses and factories in the Kingdom.