PM ends Royal Railway’s contract, earmarks $100 million for railroads

01 Apr 2019 2142 | Cambodia Travel News

Prime Minister Hun Sen on Friday said he is ending Royal Railway’s contract managing the nation’s railroad system and asked that an additional $100 million be invested in improving railroads in the country.

Mr Hun Sen’s announced his decision to terminate Royal Railway’s contract during the Government-Private Sector Forum, held Friday at Phnom Penh’s Peace Palace.

The announcement followed a request from the private sector that the government focuses on improving the country’s transportation and logistics networks.

“Today I decided to terminate the contract [of Royal Railways].

“In order to improve the railway system, the Royal Government of Cambodia has decided to terminate the contract of Royal Railway Cambodia for the management of the railway system,” he said, adding that the Ministry of Public Works and Transportation will assume control of the railroads temporarily.

He said the government must now draft a plan to transfer management of the railway system efficiently and calculate how much money Royal Railway is owed.

“We are now at a transitional period, and, during this period, we must ensure that our railway system is efficient.

“We have to make the two railway lines run efficiently. To make this happen, His Excellency Aun Pornmoniroth has to take money from the government’s r

budget in addition to what has been allocated to the railway system.

“We need to build more roads and improve ports, airports, and, particularly, the railroad network which should be the most economical mode of transport, ensuring good connectivity to global markets,” he added.

In 2009, the government signed on a 30-year concession agreement, allowing Toll Cambodia – a joint-venture between Australia-owned Toll Holding Limited and local conglomerate Royal Group – to manage the operation of the railway system in Cambodia.

In 2014, Toll Holding transferred all its shares to its local partner, making Royal Group the only shareholder. The company was re-named Royal Railway Cambodia.