The forthcoming Funan Techo Canal (FTC), set to be developed through a public-private partnership, is poised to significantly enhance the shipping capacity of the Sihanoukville Autonomous Port (PAS). A recent report by the Council for Development of Cambodia (CDC) reveals that the construction of the FTC is expected to escalate the port’s shipment activities to a striking 90%.
As it stands, a majority of Cambodia’s exports, accounting for 67%, are routed through the PAS, while the remaining 33% are processed by the Phnom Penh Autonomous Port (PPAP) and subsequently shipped through Vietnamese ports to reach global markets. This distribution underscores the crucial role of PAS in Cambodia’s trade framework.
Deputy Prime Minister Sun Chanthol, who also chairs the CDC, highlighted the canal project’s potential during a press conference. According to Chanthol, the establishment of the canal will redirect the shipment of goods exclusively through PAS to the deep seaport in Sihanoukville. Consequently, shipment activities at PAS are anticipated to rise from 67% to 90%, while PPAP’s contribution will likely retract to 10%. This strategic shift will offer exporters a choice of shipping routes, providing a blend of efficiency and convenience.
Chanthol underscored the multiple advantages this public-private partnership project will bestow upon Cambodia, including cost reductions and expedited transport times.
In the previous year, PAS, Cambodia’s premier maritime gateway, saw a handling of 797,778 20-foot-equivalent units (TEUs), a 6.35% increase from the preceding year. On the other hand, PPAP, the second-largest container hub in the nation, witnessed a slight downturn in container throughput, with a five percent decrease in 2023.
The anticipated Funan Techo Canal project, stretching approximately 180 kilometers and connecting key provinces such as Kandal, Takeo, Kampot, and Kep to the sea, marks a significant infrastructural advancement. With an estimated cost of around $1.7 billion, the project has undergone comprehensive study and planning phases.
Prime Minister Hun Manet recently indicated that a partnership agreement for the canal’s development is on the horizon, with construction anticipated to commence towards the end of this year or the start of the next under a Build-Operate-Transfer model. The project has garnered widespread support, promising to elevate Cambodia’s socio-economic landscape by addressing current challenges in water transport and enhancing the nation’s commercial and trade capacities. Emphasizing the non-military intent of the canal, the Prime Minister assured that the project is squarely focused on fostering trade and commerce, setting a new milestone in Cambodia’s maritime endeavors.
Source: Khmer Times
