PHNOM PENH: Cambodia’s Minister of Public Works and Transport, H.E. Sun Chanthol, recently announced a $50 billion plan to upgrade the country’s logistics sector. The plan will be implemented over the next 10 years and aims to make Cambodia more competitive in the regional logistics market.
The plan includes several infrastructure projects, such as the construction of new roads, railways, and ports. It also has investments in logistics facilities, such as warehouses and distribution centers.
Minister said the plan is necessary to improve Cambodia’s logistics performance and attract more foreign investment. He noted that the current logistics costs in Cambodia are high compared to neighboring countries, which makes it difficult for businesses to compete.
The plan is still under development, but it is expected to be submitted to the Cambodian government for approval in the coming months.
The plan includes several mega projects, such as a logistic complex from YCH that has already signed a framework agreement with local company World Bridge for Phnom Penh and a future plan for Sihanoukville. The complex is also expected to receive funding from the World Bank for a study project.
The Phnom Penh Logistics Complex (PPLC) worth about $200 million was officially unveiled during the 40th and 41st ASEAN Summit and Related Summits to transform Cambodia as a high-potential logistics hub that will be a connectivity point for serving regional trade.
To help Cambodia deliver on its aim—to become a new regional logistics hub in Southeast Asia, the International Finance Corporation (IFC) has signed a new deal with the Ministry of Public Works and Transport to set up a public-private partnership (PPP) for this logistics complex in Sihanoukville province.
The minister said that the government hopes to extend the logistic complex to other areas, such as Bavet and Poipet. This would create a larger logistics system that would be more competitive in the region and attract more investors to Cambodia.
