Logo of Phnom Penh Post newspaper Phnom Penh Post - Phnom Penh port expansion seeks funding solution

Phnom Penh port expansion seeks funding solution

Phnom Penh port expansion seeks funding solution

With construction on the second phase of a new cargo terminal at the Phnom Penh Autonomous Port (PPAP) set to begin in 2016, officials are now looking for ways to finance the project.

Hei Bavy, director general for PPAP, said the $20 million expansion will see the existing cargo terminal, located in Kien Svay district of Kandal province, increase its handling capacity from 150,000 shipping containers to more than 300,000 by 2017.“We have seen increasing export and import activities in the last few years. The terminal's expansion will make it easy for exporters and importers from the nearby zone,” he said.

PPAP is allegedly looking at two sources to fund the expansion including a loan from the Chinese government, which funded the first $28 million phase of the port’s development, or potentially listing the state-owned asset on the Cambodian Stock Exchange as early as next year.

However the budget for the expansion is likely to decline to about $10 million if the Chinese government does not agree to finance the project, the PPAP official said.

In addition to the cargo terminal’s expansion, PPAP is currently seeking approval from the government to build a new Special Economic Zone on a thousand hectares of land surrounding the new port.

“For the special economic zone, we are waiting for government approval, especially from Council Development of Cambodia, if they approve it, we will start right away, maybe next year,” Bavy said.

But Kim Savuth, president of local rice exporter Khmer Food Co, called on the PPAP to focus also on reducing costs and transit changeovers at the capital’s main port entry.

“Goods that are exported through PPAP have to be transited to another vessel once arriving at Vietnam port before going onto Singapore or Malaysia whereas vessels from Sihanoukville Port can go directly to Singapore or Malaysia,” he said.

“Can PPAP work out a way to stop transiting in Vietnam and directly head to Singapore or Malaysia to reduce transit fees?” he asked.

A third phase of expansion for the PPAP is planned to start from 2018, bringing the port's total handling capacity up to 500,000 containers.

More than 61,000 containers of goods passed through PPAP during the first half of the year, up about 21 per cent from 50,000 containers during the same period last year.

MOST VIEWED

  • Five-year-old Hanuman dances his way into hearts of Cambodia

    A young talent from a new-established settlement has emerged, captivating the online world with his mesmerising performances of the traditional Cambodian monkey dance. Roeun Kakada is a five-year-old prodigy who has taken the social media sphere by storm with his exceptional dance skills and dedication

  • Fresh Covid warnings as Thai hospital fills

    A senior health official reminds the public to remain vigilant, as neighbouring countries experience an increase in Covid-19 cases, with the latest surge appearing to be a result of the Omicron XBB.1.5 sub-variant. Or Vandine, secretary of state and spokeswoman for the Ministry of Health,

  • Honda shutters Siem Reap football club

    Japanese football legend Keisuke Honda, the owner of Siem Reap football club Soltilo Angkor FC, has been forced to shut the club down, after it failed to attract sponsorship for the upcoming season. Honda, the former manager of the Cambodia men's national football team, said

  • Hun Sen warns of regional tensions

    ASIA is becoming a dangerous geopolitical hotspot, with several countries announcing that they intend to send naval vessels towards Southeast Asia and on to the South China Sea, warned Prime Minister Hun Sen. “Heated geopolitical issues can easily escalate, namely to war. I am not

  • PM declares ASEAN Para Games open

    The 12th ASEAN Para Games officially kicked off on the evening of June 3 at Morodok Techo National Stadium in Phnom Penh, with a spectacular opening ceremony featuring fireworks and performances by some of the Kingdom’s most accomplished talents. Tens of thousands of sports fans

  • Waterway job still pending for Kampot tourism port’s opening

    The search is still on for a contractor to expand and deepen the Kampot International Tourism Port’s waterway and deliver additional enhancements allowing safe access for larger vessels, nearly a year after the main construction work on the 4.25ha site was completed on June 30, 2022.