Singaporean Firms Unveil Details for US$200 Million Phnom Penh Logistics Complex

Relevant Singaporean firms held a roundtable meeting to discuss investment opportunities in Cambodia’s logistics system and revealed that the recently-inked Phnom Penh Logistics Complex (PPLC) could cost over US$200 million, according to The Straits Times.

The meeting was chaired by Infrastructure Asia and YHC Group and was attended by over 30 representatives from other key players including Surbana Jurong, DBS Bank, OCBC Bank, Clifford Capital, China Construction Bank, the International Finance Corporation and Silk Road Fund, among others.

The main purpose of the meeting was to discuss detailed plans as well as to seek funding and development partners for the project.

The framework agreement on the project was signed in March between the Ministry of Public Works and Transport (MPWT) and Singapore’s YCH and Infrastructure Asia (IA). (Read more)

According to the preliminary plan, the complex will include the construction of an integrated port and logistics operations centre, training academy and start-up hub. This project also is part of the Smart Growth Connect Initiative by the ASEAN Business Advisory Council.

YCH Group Chairman Robert Yab told The Straits Times that Cambodia is a high potential investment destination, especially in the sector of logistic infrastructure.

“Cambodia’s logistics infrastructure is not that well developed today, which is why many multinational companies’ distribution centres are in other countries such as Thailand or Vietnam,” Mr Yab explained.

“Having consulted some of our customers running supply chains in ASEAN, I think they would put their distribution facilities in Cambodia if the country were to have a world-class standard of infrastructure. So this is an opportunity for Cambodia to be in the game,” he added.

According to the master plan, Cambodia is not the only target, but the firm will continue to implement similar projects in other ASEAN countries.

“Such projects are multimodal in nature and connect land, air and sea. We are not looking at Cambodia alone, but also its relation to its connectivity to ASEAN, as well as connecting Asean to other countries such as China and India,” Mr Yab said in The Straits Times.

In fact, the first logistics centre and port project of YCH has already been planned for Vietnam, with construction set to begin in 2022.

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