What does Cambodia’s transport ministry see as the engine of economic growth in the coming years? At its 2025 Annual Review Conference in Phnom Penh, the Ministry of Public Works and Transport laid out a clear answer by placing infrastructure efficiency, digital public services and logistics connectivity at the centre of its 2026 agenda. Minister Peng Ponea explained that roads, ports, railways and digital transport systems are not just public assets but practical tools to reduce business costs, improve trade flows and strengthen national competitiveness. The conference brought together officials, development partners and private sector representatives to review 2025 performance while aligning next year’s priorities with the Royal Government’s goal of sustainable and inclusive socio economic growth under the Pentagonal Strategy Phase I.
Why Does Infrastructure Matter So Much to National Competitiveness?
Why does the government continue to prioritise transport and public works so heavily? According to Peng Ponea, infrastructure development sits at the core of the Pentagonal Strategy’s five pillars of people, roads, water, electricity and technology. He stressed that better connectivity directly lowers logistics costs, shortens transport times and expands market access for businesses across the country. “Infrastructure connectivity and transport efficiency are fundamental to economic growth,” Ponea said, pointing out that efficient logistics systems support not only trade but also tourism and investment while helping Cambodia integrate more deeply into regional and global supply chains.
What Strategic Direction Is the Ministry Setting Beyond 2025?
So what exactly will change in 2026 and beyond? The ministry has outlined two strategic visions that will guide its work. The first focuses on accelerating the modernisation and digitalisation of transport services so they become faster, more transparent and more reliable for users. The second centres on improving the quality, safety and long term sustainability of infrastructure across roads, railways and waterways. Together, these priorities are designed to ensure that infrastructure spending delivers measurable economic returns rather than simply expanding physical assets.
What Progress Was Made in Transport Services During 2025?
How did the sector perform over the past year? Peng Ponea reported strong gains across multiple areas. Land transport services recorded higher numbers of vehicle registrations, driving licences and goods transport permits, while technical violations and overloading cases declined. Road safety also improved, with fewer fatalities and injuries compared to 2024. In the maritime sector, cargo volumes increased at both Sihanoukville Autonomous Port and Phnom Penh Autonomous Port, reflecting stronger trade activity. Rail freight volumes rose on both national lines as new operational agreements with Royal Railway took effect and groundwork continued for a future build operate transfer public private partnership.
How Is the Ministry Investing in Skills and Infrastructure Delivery?
Beyond physical infrastructure, what about people and capacity building? The ministry continued to invest in human capital by training 518 students in public works, transport, logistics management and navigation, with most graduates moving into public service, private sector roles or further education. On the infrastructure front, MPWT managed 884 national and provincial roads in 2025, covering more than 20,700 kilometres and marking an expansion of over 426 kilometres from the previous year. Major road, bridge and expressway projects progressed with support from the national budget and development partners, strengthening domestic and cross border economic links.
How Are Waterways, Ports and Rail Shaping Cambodia’s Logistics Future?
What role will alternative transport modes play in reducing logistics costs? Waterway and port development featured prominently, with continued progress on the Funan Techo Canal and the first phase of a new deep sea container port in Sihanoukville. These projects aim to diversify transport options, reduce reliance on road freight and position Cambodia as a regional logistics hub. At the same time, railway modernisation advanced through regulatory reforms and feasibility studies, including plans to upgrade the Phnom Penh Poipet line, explore a light rail connection to Takhmao International Airport and conduct early studies for a future Phnom Penh metro system.
Why Are Urban Water and Drainage Projects Part of the Growth Strategy?
How does wastewater and drainage infrastructure connect to economic development? MPWT highlighted investments in urban wastewater and drainage systems in Phnom Penh and Takhmao as essential to improving environmental standards, public health and urban resilience. These factors, increasingly recognised as critical to sustainable growth, support livable cities that attract investment, talent and long term economic activity.
Conclusion
Looking ahead to 2026, Peng Ponea emphasised that infrastructure alone is not enough without strong institutions, effective project oversight and close coordination among ministries. With logistics efficiency now a key measure of competitiveness, the ministry’s work is expected to play a decisive role in translating infrastructure spending into real economic gains and supporting Cambodia’s Vision 2050 ambition of becoming a high income country.