Cambodia Developing to Become a Regional Logistics Hub

• 23 April 2019
• Local News
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Photo by MPWT

The Cambodian government has unveiled its plan for the country to become a regional logistics hub, for goods warehousing and goods transportation in ASEAN, particularly between Vietnam and Thailand through strengthening the quality of transportation infrastructure.

H.E Sun Chanthol, Senior Minister and Minister of Public Works and Transportation said that to become the regional logistics hub, Cambodia needs to restore and develop its own transportation infrastructure to ensure the goods being transported cross through the country effectively.

“Currently, the government is expanding the National Road No. 5 from two lanes to four lanes for facilitating transporting goods and travel of tourists,” H.E Sun Chanthol said. “National Road No. 1 from Phnom Penh to Bavet, sharing the border to Vietnam, is strengthening the quality to be an AC standard road.”

To build an expressway from Phnom Penh to Bavet town, for which a feasibility study has just been completed, the government will seek investment partners to build it to allow goods transported from Thailand to Vietnam to pass through Cambodia, according to H.E Sun Chanthol.

“Goods crossing through the country make us generate jobs. We are the warehouse, so for transporting across takes us as their warehouse, unless we have good logistics hub, good check places, wide roads, they will then come cross through our country,” H.E Sun Chanthol said.

The strengthening of the quality of the transportation infrastructure will make Cambodia connected with the ASEAN highway linking transportation to China.

“Because of Cambodia is geographically centered between Thailand and Vietnam, goods transported to Vietnam will use ASEAN Highway No 1, linking from China, to Myanmar, to Thailand, to Cambodia and to Vietnam through our National Road No. 5 and National Road No. 1,” H.E Chanthol said.

The study of the Phnom Penh-Bavet expressway, conducted by the Japanese International Cooperation Agency (JICA), showed that US$3.8 billion is needed to build the expressway.

H.E Vasim Sorya, spokesman at Ministry of Public Works and Transportation, said that the government needs the private sector to develop the expressway.

“For this expressway, we need the private sector to join because we need the expressway, but we don’t have budget to implement the construction,” H.E Sorya said. “We need a lot of budget, it is expensive, so if the government uses its national budget or ask assistance from development partners, it is difficult. But if we seek from the private sector, it also takes time, as the private sector needs to study and if they can find the benefit from the investment.”

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