The Overseas Cambodian Investment Corporation (OCIC) has unveiled a $100 million plan to construct a 10-kilometer canal linking the newly inaugurated Techo International Airport (TIA) with the Bassac River and Funan River, marking a significant step in Cambodia’s transport and logistics development. Announced by Oknha Pung Khev Se, OCIC’s chairman, during TIA’s official opening on October 20, the canal will run from Boeung Cheung Lung to the Bassac River, extending toward the Funan River and ultimately the Kep Strait. The initiative aims to establish an integrated air, land, and water transport hub, reducing logistics costs, improving trade efficiency, and positioning Cambodia as a competitive player in regional commerce. The project forms part of OCIC’s long-term vision to develop a multi-modal transportation ecosystem that supports national economic growth and investment attraction.
In parallel, OCIC is advancing the TIA City development, a large-scale airport city combining residential, commercial, and transit-oriented infrastructure. Currently in its first construction phase, TIA City reflects Cambodia’s push for sustainable urbanization and smart city planning. OCIC, renowned for major projects including Koh Pich, Norea City, Chroy Changvar, and Olympia City, continues to play a central role in shaping Phnom Penh’s modern landscape. The canal, alongside the Funan Techo Canal project, is projected to strengthen agricultural and industrial logistics by linking provinces along the Tonle Sap and Mekong Rivers with export routes, fostering job creation, enhancing rural economic activity, and reinforcing Cambodia’s emergence as a logistics and trade hub in the Mekong region.
1. Boosting Trade and Export Efficiency
By creating a direct waterway connection between TIA and the Bassac-Funan river system, the canal will give Cambodia a cost-effective transport alternative to road and air freight. This means goods can move from Phnom Penh’s logistics hub to Kep Strait and the open sea much faster, reducing transport time and costs for exporters. Agricultural producers, industrial manufacturers, and small exporters will benefit from lower shipping costs and better access to international markets, making Cambodian products more competitive regionally.
Read more: 5 Reasons Why Chrey Thom Will Become Cambodia’s Next Economic Hub
2. Strengthening Local Businesses and Supply Chains
The canal will attract logistics companies, warehouses, and small-scale suppliers to set up operations around TIA and the new TIA City. This ecosystem will generate new opportunities for local entrepreneurs, from construction and transport firms to hospitality, retail, and real estate. Farmers and rural producers from provinces bordering the Tonle Sap and Mekong rivers can ship their goods more directly, linking them to domestic and export markets efficiently.
3. Stimulating Job Creation and Skills Development
OCIC’s project will generate thousands of construction jobs during the development phase and long-term employment in logistics, maintenance, and commercial services once completed. The establishment of TIA City near the canal will further support new urban communities, leading to demand for skilled workers in retail, technology, hospitality, and business services. This will not only reduce unemployment but also help upskill Cambodia’s workforce.
Read more: Can Cambodia Become Southeast Asia’s Next Startup Powerhouse?
4. Encouraging Foreign Direct Investment (FDI)
A modern, multimodal transport hub combining air, land, and water connectivity is a magnet for foreign investors. The canal will improve Cambodia’s reputation as a strategic logistics and manufacturing base for investors seeking alternatives to Vietnam or Thailand. This can lead to industrial park expansions, joint ventures, and public-private partnerships, further driving economic growth.
5. Supporting Tourism and Regional Connectivity
The project could also have a secondary benefit for tourism. With TIA serving as a new international gateway, the canal’s connection to the Bassac River can open opportunities for river tourism, sightseeing cruises, and leisure developments. Enhanced infrastructure and accessibility will strengthen Cambodia’s position as a regional tourism and business hub in the Mekong region.
Read more: 3 Best Businesses to Make Passive Income in Cambodia
6. Long-Term National Economic Impact
Ultimately, the canal project aligns with Cambodia’s long-term goals under its “Vision 2050” strategy to modernize logistics, diversify exports, and expand trade corridors. The integrated network around TIA will help reduce dependency on congested road systems and neighboring ports, keeping more economic value inside Cambodia. This means stronger GDP growth, export diversification, and improved resilience of local industries.
Conclusion
The $100 million canal project is not just an engineering endeavor, it’s an economic catalyst. By linking Techo International Airport to vital waterways, OCIC is laying the groundwork for sustainable growth, regional competitiveness, and inclusive prosperity. This visionary project has the potential to transform Cambodia’s logistics landscape, empower small businesses, and elevate the nation’s status as a modern, connected economy in Southeast Asia.