Cambodia is moving closer to transforming its logistics sector with a proposed new law designed to reduce transportation costs, improve supply chain efficiency, and strengthen the country’s economic competitiveness. The draft legislation, currently under inter ministerial consultation, introduces a comprehensive legal framework to regulate and develop logistics services across the nation. It also includes standards for temperature controlled transportation to protect sensitive goods such as food, medicines, chemicals, and electronic products while they are being transported. The initiative reflects Cambodia’s broader strategy to modernise its logistics network and create a more reliable business environment.
The proposal was discussed during a logistics workshop held in Phnom Penh over the weekend, where government officials and development partners reviewed transport connectivity, time efficiency, and transaction costs across road, air, and water transport. Supported by the World Bank, the initiative seeks to align Cambodia’s logistics performance with regional ASEAN standards while making trade faster, safer, and more cost effective.
Building a Modern Legal Framework for Logistics
The proposed logistics law is being developed to provide Cambodia with a unified legal framework for managing, promoting, and expanding its logistics industry. According to the National Logistics Council, the legislation is intended to make the sector more competitive, efficient, and secure while supporting long term economic growth.
The draft law contains 15 chapters and 161 articles and is currently undergoing consultations among relevant ministries. Once approved, officials believe it will significantly reduce transportation costs and delivery times, allowing businesses to move goods more efficiently while ensuring smoother supply chain operations throughout the country.
World Bank Supports Logistics Reform
The World Bank is working closely with Cambodia to establish a unified logistics performance measurement system that follows a common ASEAN programme. This effort supports the government’s goal of liberalising the logistics market while modernising infrastructure that serves transportation and logistics operations nationwide.
During the workshop in Phnom Penh, participants compared transport connectivity, travel times, and transaction costs across different modes of transportation, including road, water, and air. The findings are expected to help policymakers identify opportunities to improve logistics efficiency and strengthen Cambodia’s position as a regional trade hub.
Protecting Products During Transportation
One of the key features of the proposed legislation is the introduction of temperature standards for transporting sensitive products. These regulations would apply to food products, medicines, chemical substances, and electronic devices to help preserve product quality and reduce the risk of damage during transit.
Officials believe these standards will improve consumer safety while reducing losses for businesses. By introducing proper handling requirements, Cambodia aims to strengthen confidence in its logistics sector and ensure products reach consumers in the best possible condition.
Cold Chain Logistics to Strengthen Food Safety
The draft law also supports the expansion of cold chain logistics, an essential component of modern food distribution. Cambodia plans to promote safer food transportation by adopting internationally recognised practices, using ASEAN Japan guidelines as a reference for implementation.
Developing reliable cold chain infrastructure will not only improve food safety but also benefit farmers, food producers, healthcare providers, and exporters. Better refrigerated transport systems are expected to reduce spoilage, improve product quality, and create new opportunities for agricultural exports.
National Logistics Complexes to Lower Costs
Another important proposal within the legislation is the establishment of national logistics complexes across Cambodia. These facilities would serve as integrated logistics hubs, helping consolidate transportation, storage, and distribution services to improve operational efficiency.
Officials expect these logistics centres to reduce transportation expenses while streamlining cargo movement between provinces and international borders. Improved logistics infrastructure could also attract greater domestic and foreign investment by making Cambodia a more efficient location for manufacturing and regional trade.
Cambodia Expands Regional Logistics Cooperation
Cambodia has also been actively participating in regional initiatives aimed at improving logistics performance across Southeast Asia. On April 1, Cambodia joined five other ASEAN member countries at the conference titled “Driving Economic Growth through Logistics.”
The conference focused on accelerating logistics modernisation throughout the region by improving trade routes, strengthening regional connectivity, and building greater economic resilience among ASEAN member states. Cambodia’s proposed logistics law aligns closely with these regional ambitions and demonstrates the country’s commitment to enhancing its role in international trade.
Conclusion
Cambodia’s proposed logistics law represents a significant step toward building a more efficient, competitive, and resilient logistics sector. By reducing transportation costs, improving supply chain performance, introducing modern cold chain standards, and expanding logistics infrastructure, the legislation has the potential to benefit businesses, consumers, investors, and exporters alike. If successfully implemented, the new legal framework could strengthen Cambodia’s position as an important logistics and trade hub within the ASEAN region.