Prime Minister Envisions Preah Sihanouk as Cambodia’s Premier Logistics Hub, Driving Economic Growth

Prime Minister Hun Manet unveiled the Royal Government of Cambodia’s ambitious plans to transform the coastal province of Preah Sihanouk into the nation’s foremost logistics hub during a gathering with garment workers in the Prey Nob district of Preah Sihanouk. The Prime Minister emphasized that the government has already set in motion a comprehensive master plan for the province’s development.

In this endeavor, the Ministry of Public Works and Transport (MPWT) has been tasked with the pivotal role of enhancing railway and deep-seaport infrastructure to facilitate the efficient movement of goods. Prime Minister Hun Manet underscored the pivotal role that port and railway infrastructure development will play in propelling Cambodia’s rapid socio-economic expansion.

He articulated, “The initial phase of the deep-sea port expansion will significantly enhance the flow of goods within Cambodia and to and from the country. This will render cross-border shipments through Cambodia’s deep-sea port far more cost-effective.”

The successful completion of the first phase of the deep-water port expansion is projected to streamline cargo container movement, reducing shipping costs from the current $400 to $500 per container to a mere $200. The Sihanoukville Autonomous Port Terminal’s initial phase boasts a length of 350 meters and a depth of 14.5 meters and is being constructed with a loan exceeding $200 million from Japan.

Furthermore, the Prime Minister urged MPWT to investigate the feasibility of upgrading railway lines to achieve a maximum speed of 80 kilometers per hour, up from the current 50 kilometers per hour. He explained, “I have advised MPWT to explore ways to reduce land transportation costs. The completion of this railway project will significantly enhance our capacity to transport goods.”

Emphasizing the government’s unwavering commitment to infrastructure development, the Prime Minister assured, “The Cambodian government will persist in building infrastructure, as it serves to diminish transportation expenses and invigorate the economy.”

At present, Cambodia boasts two railway lines, with one connecting Phnom Penh to Sihanoukville and the other linking Phnom Penh to Poipet in Banteay Meanchey province, where it shares a border with Thailand. The Royal Railway, a subsidiary of the conglomerate Royal Group, manages the country’s railway system. In early 2023, MPWT, in collaboration with Chinese companies, presented the results of a study on the Phnom Penh-Poipet railway project, encompassing a total length of 382 kilometers.