Growing export powerhouse Cambodia is speeding up port development and looking for foreign investors as box volumes soar.
The $12m second phase expansion at state-run the flagship box terminal run by Phnom Penh Autonomous Port (PPAP) has commenced earlier than planned. The terminal, located 30 km south of the capital, is making plans to double capacity. Last year it handled 145,000 teu, this year volumes are predicted to hit 160,000 teu, 10,000 higher than its actual design capacity.
The second phase development will be completed next year. A third phase is already in the planning stage which would take the port’s capacity to 500,000 teu by 2028.
The port expansion comes as the Southeast Asian nation climbs the manufacturing ranks. Cambodia surpassed Vietnam in garment and textile exports to the European Union (EU) last year. In 2015, Cambodia’s garment exports, shipped largely to the EU and the US, were valued at $5.7bn, up by almost 7%on the previous year.
Prime Minister Hun Sen said yesterday Cambodia needed to rapidly increase investment in its road, rail, sea and air links if it is to take advantage of regional integration and remain internationally competitive.
Speaking at the annual Cambodia Outlook Conference organized by the Cambodia Development Resource Institute and ANZ Royal in Phnom Penh, the prime minister his government will develop a focused public-private partnership policy to help fund the country’s massive infrastructure and logistics requirements. The politician also revealed plans to develop new rail links to neighbours Vietnam and Thailand while also improving navigation along the kingdom’s inland waterways.