Logistics overhaul to cost $19b

31 Oct 2018 2129 | Business & Trade Fairs

Cambodia expects to roll out $19 billion worth of projects contained in the logistics masterplan in the next seven years with a vision of becoming a warehousing logistical hub serving the greater Mekong sub-region, as well as Thailand, Laos and Vietnam.

Public Works and Transport Minister Sun Chanthol said trade volume between Thailand and Vietnam is over $10 billion per year but it does not go through Cambodia.

“So how can we turn this and let them (Vietnam and Thailand) trade using Cambodia, so we can benefit from that. The masterplan can be geared to that,” said Mr Chanthol at the launch of the masterplan in Phnom Penh.

The masterplan, jointly developed by Cambodian stakeholders with the World Bank and the Japanese International Cooperation Agency (JICA), was incubated over two years that saw the establishment of the National Logistics Council of Cambodia and the National Logistics Steering Committee.

“After two years of hard work, we bear the fruits of our labour – we have completed and published the National Logistics Study Report. I feel that the report is not only comprehensive but also highlights 25 programmes lined up for the short-term, medium-term and long-term logistics in Cambodia.

“It also provides specific 75 project proposals implemented by relevant authorities and agencies in the next seven years to ensure the masterplan can be realised at a cost of $19 billion,” Mr Chanthol added.

However, the logistics masterplan would need to complement the transport masterplan to make logistics more competitive and cost-effective.

Mr Chanthol said that, over the years, various masterplans have been conducted by development partners, including for expressways, the road network, as well as the railway and waterway systems.