Passengers disembark from a locomotive belonging to Royal Railway at the Phnom Penh Railway Station. Royal Railway
As part of the government’s efforts to improve the Kingdom’s transport infrastructure across all modes of transport, the Ministry of Public Works and Transport has signed a framework agreement with private company Royal Railway Co., Ltd.
The new agreement aims to push the development of Cambodia’s rail network through a public-private partnership.
Transport minister Peng Ponea and Kit Meng, chairman of the board of Royal Railway, signed the agreement in a special February 13 ceremony at the ministry headquarters.
The ministry described the new agreement as laying the groundwork for further negotiations and public-private partnership agreements with strategic partners with expertise and experience in the railway sector.
This aims to support the development of a more efficient and effective railway system in Cambodia, in line with the government’s vision.
“We are extremely proud to announce the signing of the Framework Agreement with the transport ministry. This marks a significant milestone in strengthening Cambodia's railway infrastructure and ensuring sustainable and efficient transportation solutions for the future,” said Royal Railway, via social media.
“This agreement demonstrates the Cambodian government's strong commitment to enhancing railway connectivity and driving economic growth. Royal Railway remains dedicated to providing high-quality railway services to promote the development of Cambodia,” it added.
Prime Minister Hun Manet previously instructed the transport ministry to explore the feasibility of developing, establishing and connecting a national railway network to facilitate both domestic and regional transportation of goods. The new agreement aligns with his directive.
Sin Chanthy, President of the Cambodia Freight Association, expressed his satisfaction with the government’s focus on the development of the Kingdom’s railways.
He believed this would provide major benefits to the economy, as railways can carry large volumes of goods, avoid traffic congestion and offer lower costs.
These factors help reduce production costs and improve the competitiveness of goods in international markets.
“Rail transport remains a vital mode of transportation for the logistics sector. There is strong global demand for rail transport. Through this agreement, we hope that Royal Railway and the transport ministry will continue to enhance this important project,” he said.
He also noted that Royal Railway recently purchased several new locomotives for transporting containers, further improving the railway transport sector in Cambodia.
During the transport ministry’s late-January annual conference, the prime minister reiterated that his seventh-mandate government would continue to prioritise the public works and transport sector as key to driving economic growth and social development.
In 2024, through a cooperative investment agreement with Royal Railway, cargo transportation by rail along both the northern (Phnom Penh - Poipet) and southern (Phnom Penh - Sihanoukville) rail lines reached 1.16 million tonnes, an 8.29% increase over 2023, when 1.07 million tonnes were recorded.
Passenger traffic totalled 104,100, a 16.98% decrease compared to 2023, which saw 125,400 passengers, according to transport ministry.
