Cambodia: Hopes High for New Logistics Hub

The Phnom Penh Post via Asia News Network

13:00 JST, March 18, 2023

Locally owned KLP.T Transportation Co.’s new multipurpose port and logistics center just east of Kampong Chhnang town is expected to provide a substantial boost to Cambodian freight movement, particularly of agricultural products from the provinces bordering Tonle Sap Lake to international markets.

Formally breaking ground on Jan. 20, the center — set to cost $300 million to $500 million — is located on a 100-hectare site in Kampong Hao commune, Kampong Leng district, Minister of Public Works and Transport Sun Chanthol told the media during a site visit on March 9.

“The multipurpose port project will have many positive effects for the Cambodian economy, such as: firstly, creating jobs for the people; secondly, attracting investors to invest in Cambodia; and thirdly, helping to bring products abroad.

“The national economy will grow thanks to the private sector’s involvement, including this, the construction of a multipurpose port in Kampong Chhnang Province,” he said.

Although the minister assured that KLP.T Transportation wants to “build quickly” and that the project would be “completed soon,” he asked the company to cooperate with the authorities to ensure the development is in line with legal and other standards.

A company representative commented that the center would provide a leg up to inland water freight transportation as well as exports, thereby fueling economic growth, while doing its part to reduce road traffic.

Company plans show that fuel storage facilities, tourist attractions, industrial parks and special economic zones will accompany the project.

Logistics and Supply Chain Business Association in Cambodia President Chea Chandara commented to The Post on March 9 that the government’s transportation diversification initiatives have yielded positive results for economic growth.

“Multipurpose and satellite ports make it easier to transport goods, especially agricultural products,” and considerably increase exports, he said, adding that waterways offer the transportation sector a convenient, low-cost, high-yield alternative to the often congested and riskier national roads.