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The Better Cambodia > Blog > News > Southwest Cambodia Envisioned as Future Logistics Center
News

Southwest Cambodia Envisioned as Future Logistics Center

Surya Narayan
Last updated: March 13, 2024 2:24 am
Surya Narayan
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Prime Minister Hun Manet recently articulated the government’s vision to transform the southwestern region of Cambodia into a major logistics hub, leveraging the construction of critical infrastructures like ring roads, an expressway, a river-to-sea canal, and a top-tier airport.

During his visit to the ongoing construction site of the 4F-Class Techo International Airport, which spans across Kandal and Takeo provinces, Hun Manet shared insights on the strategic focus on the western part of Cambodia. The region is earmarked for significant public investment in road networks, waterways, and airport facilities to foster this area as a dynamic western pole.

The Prime Minister emphasized the transformative potential of these infrastructural projects. Upon completion, the region is expected to host a logistic nucleus, numerous industrial parks, and special economic zones, generating substantial economic benefits for local residents.

A cornerstone of this vision is the Techo Funan Canal, poised to revolutionize river-to-sea transportation, create employment opportunities, and reduce transit costs. Stretching 180 km from Prek Takeo on the Mekong River to Kep province, and threading through Kandal, Takeo, and Kampot provinces, this canal will impact approximately 1.6 million people living along its path. With an estimated budget of $1.7 billion and a four-year construction timeline, the canal is a significant part of the nation’s infrastructural blueprint.

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Hun Manet highlighted the broader implications of these developments, foreseeing a decrease in logistical expenses and an uptick in industrial activities within the region. Additional pivotal projects include the construction of Ring Roads Number 3 and 4, the $1.5 billion Techo International Airport, and enhanced road connectivity.

In line with these developments, the Cambodian government has also approved a feasibility study by China Metro Group for a light rail project that would link Techo International Airport to central Phnom Penh, with expectations for the initial phase to be operational by mid-2025.

In discussions about fostering logistics in the area, the Prime Minister engaged with prominent US logistics companies, encouraging them to explore the southwestern region’s potential as a logistics hub, bolstered by its robust road infrastructure and the forthcoming airport facilities. These dialogues underscore Cambodia’s strategic efforts to attract international expertise and investment to realize the southwestern region’s full potential as a logistics and economic powerhouse.

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BySurya Narayan
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Founder at The Better Cambodia | Communication Advisor to the Minister attached to the Prime Minister of Cambodia | Marketing Director at True North Lean
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