Prime Minister Hun Manet has instructed the Ministry of Public Works and Transport and Royal Railway Cambodia to expedite discussions and finalise a memorandum of understanding (MoU), aimed to enhance the Kingdom’s rail infrastructure, by the end of the year.
Speaking at a ceremony marking the 20th anniversary of Cambodia’s ascension to the World Trade Organization on October 14, Manet noted that negotiations on this matter had been stalled for many years and should not be delayed any further.
“Therefore, I ask Okhna Kith Meng [the owner of Royal Railways] and transport minister Peng Ponea to conclude the negotiations for the railway agreement by the end of this year so that we can proceed with strengthening it. If the negotiations are not concluded, I will withdraw the license to operate the railway,” he said.
Manet emphasised that the initial stages of the development do not need to be perfect. What matters is that the project moves forward: improvements in quality will follow in the future.
"Let’s work together to reach an agreement in principle to make the railway operational, either through upgrades or repairs that allow it to function. We currently have some funding allocated for railway studies, but we must conclude negotiations before allocating this budget. Otherwise, we will waste money,” he added.
Manet highlighted that over 300 million yuan (around $42 million) in grant aid was provided by the Chinese government to Cambodia, a commitment made last week in Laos. He stated that this funding is intended for railway improvements.
The prime minister pointed out the potential of a modern rail network to significantly reduce transportation costs. He also explained that the government has a plan to connect an eastern railway line to the border with Vietnam.
According to the transport ministry, the Kingdom’s rail lines were initially constructed between the 1930s and 1960s, with two main lines – the northern and southern lines – totalling 650 kilometres in length.
The northern railway line, which is 386 kilometres long, stretches from Phnom Penh to Poipet and was built between 1929 and 1942, during the French colonial period.
The southern railway line, at 264 kilometres long, was constructed between 1960 and 1969, during the Sangkum Reastr Niyum era of the late King Father Norodom Sihanouk.
At present, both lines are maintained and operated through cooperation between the transport ministry and Royal Railway Cambodia, which provides passenger and freight services.