A bird’s-eye view of cargo container being unloaded at the Phnom Penh Autonomous Port (PPAP). PPAP
As construction of the Funan Techo Canal begins to gather steam, the Kingdom is working to develop a legal framework for the management of freshwater ports.
The 180km canal will link the Phnom Penh Autonomous Port to international seaports, enhancing access of Cambodian goods to international markets.
Minister of Economy and Finance Aun Pornmoniroth chaired a February 13 meeting to review the progress of the “Framework for the Development and Management of River Port Business in Cambodia”.
The meeting, held at the finance ministry headquarters, was attended by senior officials from several ministries and government institutions.
“The framework is being developed with the aim of supporting the implementation of laws related to waterway transportation. The framework's objective is to expand and increase the use of waterway transport by improving infrastructure, enhancing port service efficiency through the use of advanced technology and reducing logistical costs,” explained a finance ministry press release.
“This aims to contribute to the long-term sustainability of Cambodia’s economic growth and boost the country’s competitiveness in the regional and global markets,” it added.
Pornmoniroth, who also serves as chairperson of the Economic and Financial Policy Committee, emphasised that the new framework is essential for promoting the development of the river port transport sector in the short, medium and long term.
He urged all ministries, specialised institutions and stakeholders to work together to ensure that the draft of the framework is clear, thorough and ready for review and approval by the government.
The meeting coincided with efforts to mitigate any potential impacts of the new canal on local residents.
On February 10, officials from the finance ministry, Ministry of Public Works and Transport, Ministry of Land Management, Urban Planning and Construction, Ministry of Water Resources and Meteorology and Kandal Provincial authorities organised a forum to discuss plans to meet with local authorities and residents in the path of the canal and resolve any issues they may have.
Chea Chandara, president of the Logistics and Supply Chain Business Association, told The Post on February 13 that the creation of the new river port framework will be a positive step for the waterways transport sector.
“It is beneficial for Cambodia to increase waterway transportation because, at present, we can see that neighbouring countries are much more active in this area. Our use of waterways remains limited, so we should focus on improving this. It helps reduce transportation costs and other risks, and also preserves roads better,” he said.
“Once waterway transport becomes more common in the future, the Funan Techo Canal project, which opens a route for cargo ships to reach seaports, will be an excellent transportation method that will provide convenience for investors looking to invest in Cambodia,” he added.
Hong Vanak, an economic researcher at the Royal Academy of Cambodia, believed the new framework would benefit wider society, as well as the economy.
He noted that the transportation of tourists from Phnom Penh to various provinces and the vital waterway connections for transporting goods from the Tonle Sap River port to seaports in Kep and Preah Sihanouk are key benefits of the initiative.
“It will improve the transportation of tourists from Phnom Penh, as the city has potential access to the Chaktomuk and Tonle Sap rivers, which can increase tourism activities, as well as evening recreational activities along the riverside. We need to pay close attention to the development of the port to serve both domestic and international tourists,” he said.
“In the long term, once the Funan Techo Canal is completed, it will expand the capacity of the river transport sector, necessitating further investment in river port businesses. This will generate state revenue and provide jobs for citizens,” he added.
The Funan Techo Canal will largely be built along natural waterways and ancient water routes that have existed since the Funan era. The project is expected to take 48 months to complete, with completion planned for 2028, at a total estimated investment of $1.8 billion.
The completed canal will allow the transportation of people and goods between the Phnom Penh Autonomous Port – on the Tonle Sap River – and seaports in Preah Sihanouk, Kampot, Kep and Koh Kong provinces.
