A passenger train departs from the Royal Railway Station in Phnom Penh. Supplied
The private sector has applauded calls by Prime Minister Hun Manet to hasten the development of Cambodia’s railway networks.
He encouraged the completion of negotiation procedures for a railway concession agreement, by resetting the framework for public-private partnership (PPP) investment in existing lines.
In addition to investment which would enhance existing railways, he urged that the possibility of connecting rail lines to special economic zones (SEZ) in Pursat province be studied.
As he addressed the closing ceremony of the 2024 annual meeting of the Ministry of Public Works and Transport on January 23, Manet suggested that the ministry’s leadership push for studies and feasibility assessments for seeking private investments in railways, especially the northern line which connects Phnom Penh to Poipet and onwards to the Thai railway system.
Additionally, he explained that there is a need to explore the feasibility of linking the northern railways to SEZs in Pursat province’s Krakor district, which are expected to open soon.
“We must collaborate with Thailand to push for the implementation of the 2019 Cambodia-Thailand bilateral agreement on joint railway traffic and feasibility studies for building a new international railway station at Stung Bot (in Poipet), replacing the current Poipet station. This effort can also look into areas such as Pursat, where we need to connect special economic zones to our railway system,” he said.
The prime minister added that a railway connection would support the transport of goods from the automotive assembly factories and other enterprises in Pursat to Phnom Penh, the coastal port in Preah Sihanouk and the Thai border.
He also noted that future SEZ investment projects will also require rail connections.
Cambodia’s railway network consists of two main lines, the northern and southern, which stretch for 650 kilometres. The northern line, which runs for 386 kilometres between Phnom Penh and Poipet, on the Cambodia-Thailand border, was built between 1929 and 1942 during the French colonial period.
The southern line, which is 264 kilometres long, was constructed between 1960 and 1969 during the early years of the Kingdom’s independence.
Both lines suffered heavy damage – with some sections being completely destroyed – during the civil wars of the last sentry. At present, both lines are being rebuilt and upgraded through cooperation between the transport ministry and the Royal Railway Corporation (RRC).
Chea Chandara, president of the Association of Freight Forwarders and Supply Chains in Cambodia (LOSCBA), told The Post on January 24 that rail transportation costs less and can carry more than road transport like trucks.
He gave the example of Laos, where lines have been connected with Chinese railways. Now, freight transportation between the two countries is almost entirely conducted by rail. He believed that as Cambodia expands its railway network, transportation costs will decrease, especially in enhancing export volumes to international markets.
“If the government can accelerate the construction of rail links between neighbouring countries and manufacturing locations within Cambodia, I believe it will not only attract more foreign direct investment but also help reduce the production costs of goods,” he said.
Sam Soknoeun, chairman of SAM SN GROUP, is studying the possibility of establishing a Cambodia-Japan special economic zone. He stated that before making any investment decisions, investors always study the transportation infrastructure for the import and export of goods.
He saw the promotion of rail capacity as an opportunity to attract more investors to Cambodia.
“Through the achievements and efforts of the government in developing transportation infrastructure, I am optimistic that Cambodia will be able to attract more investors to open factories and that exports will also increase,” he added.
