Cambodia has taken a significant leap forward in its logistics and agricultural sectors with the opening of the Kandal Cold Storage Project, the country’s largest and first cross-docking warehouse. Situated along the scenic Mekong River in Kandal province, this state-of-the-art facility is set to revolutionize the way temperature-sensitive goods, including food and agricultural products, are handled, stored, and transported.
Cross-docking, the core concept behind this facility, is a logistics technique designed to enhance the efficiency of supply chains. It involves the quick transfer of goods from incoming to outgoing transportation, minimizing or eliminating the need for storage. This method is celebrated for its potential to expedite delivery processes and has been identified as a game-changer for Cambodia’s logistics industry.
The facility’s inauguration was conducted at the Phnom Penh Autonomous Port, with Bridgette L. Walker, the Deputy Chief of Mission from the US Embassy in Cambodia, presiding over the ceremony. The event saw attendance from various dignitaries, including representatives from the Cambodian government, and governments of the United Kingdom, Australia, Switzerland, and Singapore, as well as from InfraCo Asia and Khmer Cold Chain.
The Kandal Cold Storage Project, a brainchild of InfraCo Asia through its collaboration with Khmer Cold Chain (KCC), represents a significant advancement for Cambodia. Walker, during her speech at the ceremony, emphasized the strategic importance of the facility. She highlighted its role in boosting regional and international trade, preventing food spoilage, and offering economic benefits for businesses and consumers alike. She underlined that the facility would serve numerous import and export customers, directly and indirectly benefiting thousands of Cambodian farmers and consumers.
Spanning 6,046 cubic meters in Kien Svay district, the facility is poised to enhance Cambodia’s capabilities in storing and exporting temperature-sensitive agricultural products. This advancement is crucial in reducing food loss and waste, a significant concern in the agricultural sector.
The project is supported by USAID through the “Feed the Future” Market Systems and Partnerships (MSP) Activity, alongside other initiatives that aim to improve cold storage and logistical capabilities for agricultural purposes in Cambodia. The facility was funded through a partnership between USAID and KCC, with contributions of $999,604 from USAID and $1,017,605 from KCC.
The Kandal Cold Storage Project addresses key market system challenges, particularly in import-export opportunities for large corporations, small and medium-sized enterprises, and agricultural cooperatives. It focuses on improving access for smallholder farmers and supporting women and youth-owned businesses.
Equipped with a 50-foot cross-dock, the facility is ready to serve a wide range of clients including regional farmers, agribusinesses, food processors, pharmaceutical companies, food merchants, and the hotel and restaurant catering industry. It will offer a suite of services such as pre-cooling, co-packing and labelling, sanitary and phytosanitary services (SPS), picking, and direct store delivery, thereby enhancing the capacity of Cambodian SMEs to access more lucrative domestic markets.
An assessment indicated that Cambodia’s cold storage capacity needs to expand by 140,000 cubic meters by 2030 to meet supply chain demands. This facility is a crucial step towards meeting that goal and strengthening Cambodia’s position in the global agricultural and logistics market.
Source: Khmer Times
