Japan to Fund Port Expansion

The Japan International Cooperation Agency (JICA) signed a loan agreement with the Cambodian government in August to expand Sihanoukville Port.

Signed in Tokyo, the agreement provides a loan of USD216 million to double the capacity of the nation’s only deep-water port. Improvements to the port will include a new container terminal, access roadwork, dredging, cargo-handling equipment and consulting services.

The 40-year loan has been provided at an annual interest rate of just 0.01% and JICA believes that Sihanoukville will become a logistics hub for southeast Asia overall due to its strategic location on an international trunk road connecting Ho Chi Minh City (Vietnam), Phnom Penh (Cambodia), and Bangkok (Thailand).

JICA purchased a 13.5 percent stake in the Port Authority of Sihanoukville in 2017 when it listed on the CSX.

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