Cambodia expands handling capacity

In-Depth 1 Nov 2023 by WCN Editorial

Two large-scale container terminal development projects are set to change the trading landscape in Cambodia over the next fiveto-10 years. At Sihanoukville Autonomous Port (SAP), currently the main port in the country, container handling capacity will more than triple over the next six years, while at Kampot, a new port and integrated logistics centre under development, facilities capable of handling at least 600,000 TEU will come on stream from 2025-26.

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Construction of the new terminal in SAP started earlier this year and is taking place in three phases with the first phase expected to be completed in 2026. This will cost an estimated US$275M and comprise a 350m long quay with a depth alongside of 14.5m.

Phases two and three, which will cost in excess of US$650M to execute, are scheduled to commence in 2025 and 2026, respectively. The project is targeted for completion in 2029 at which point, SAP’s total box handling capacity will have been increased from approximately 700,000 TEU a year currently to 2.6M TEU a year.

The new terminal will allow Panamax/small post-Panamax ships to dock and will, according to Sun Chanthol, Cambodia’s Minister of Public Works and Transport, who attended the ground breaking ceremony for the project in May, result in “significantly reduced ocean freight costs for Cambodia, help attract investors and accelerate our economic development”.

Management at SAP hope the additional capacity and deeper water will enable the port to perform more of a hub role and attract shipping lines to route some of their services, at least those operating within the Asia region, to call directly at the port. Currently, most of Cambodia’s import and export traffic is transhipped over ports such as Singapore and PTP.

Chey Sokunthea, director of SAP’s marketing department, explained: “When all three phases are completed, the ‘port of Cambodia’ will be a deep-sea port, allowing 93% of sea-going vessels to land.”

The biggest investment is at Kampot in the south west of the country where construction work on the so-called International Multi-Purpose Logistics and Port Centre has been under way for more than 18 months. The complex will cost in excess of US$1.5B to develop with its first phase expected to open in 2025-26. By 2030, the port should have the capacity to handle 600,000 TEU a year.

In addition to the port’s cargo handling facilities, the complex will comprise free trade and industrial zones, areas for logistics, warehousing and distribution activities, plus retail and residential districts. It is one of the many infrastructure projects that the Cambodian Government hopes will help it achieve its objective of transforming the nation from an upper middle-income country by 2030 to a high-income country by 2050.

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This complete item is approximately 410 words in length, and appeared in the November 2023 issue of WorldCargo News, on page 18. To access this issue download the PDF here