Logistics Centre planned for Cambodian capital Phnom Penh

by Textile Quotient News Desk
19 Jan 2019

Cambodia’s garment sector is the backbone of the country’s export-driven economy and employs 86 percent of all factory workers. About 40 percent of Cambodia’s GDP comes from garment exports, while more than 800,000 people are employed in garment factories around the country. But the sector is facing problem to offer competitive prices from increasingly competitive regional neighbours because of high freight costs, the inevitable shift to automation.

Aiming to reduce freight costs in the country, the Ministry of Public Works And Transport is considering building a logistics centre in Phnom Penh to make multimodal transportation more seamless.

The project, now being reviewed by the Ministry of Public Works in collaboration with the Asian Development Bank, looking at enhancing connectivity between roads, waterways, and railroads.

Pich Chhieng, director of the general directorate of logistics, said the project will reduce logistics costs in Cambodia as presently the different transportation modes are not integrated. “Our high logistics costs negatively affect the national economy, making our products less competitive, which translates into lower investment in the sector. Transportation from one port to another is not efficient. We believe the situation could be improved by establishing a logistics complex in the capital. We can reduce logistics costs by improving railroad and waterway transportation; currently, we rely too heavily on roads,” reasoned Chhieng.

 The project will be a public-private partnership and shall be built northwest of Phnom Penh, on a 100-hectare plot located between National Road No 3 and National Road No 4.The plan is to build this complex near national roads and also the waterways to enhance its connectivity.

Combodia News Region

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