Cambodia is slated to open its first modern logistics complex after IFC inked a collaboration agreement with two of the region’s leading logistics companies in a partnership that is set to deliver a major boost to infrastructure, trade, and connectivity.
The Cambodia SuperPort or Phnom Penh Logistics Complex (PPLC) will be developed by PPLC Support and Industrial Co. Ltd. This is a joint venture between Asia’s leading logistics conglomerate, YCH Group and WorldBridge Group.
According to a press release announcing the move, the SuperPort’s strategic location in Phnom Penh will enable it to become the country’s first fully multimodal logistics facility. As Cambodia is located in the center of the Greater Mekong sub-region, the SuperPort has the potential to serve as a regional transport and logistics hub, contributing to a shift in trade routes through Cambodia.
These elements will help drive down overall logistics costs, improve supply chain efficiency to integrate into regional ones, and boost Cambodia’s competitiveness.
“Today’s signing ceremony is another major milestone to develop logistics and supply chain connectivity across ASEAN. As part of SGConnect initiative and its second project, Cambodia SuperPort will raise the Kingdom’s competitiveness and attractiveness through a world-class, multimodal logistics infrastructure to accelerate the growth of the economy,” said Robert Yap, Executive Chairman of YCH Group and Singapore Chair of ASEAN Business Advisory Council.
“We are confident that Cambodia SuperPort will be one of the key driving forces in boosting the supply chain and logistics connectivity for ASEAN and beyond, with the use of state-of-the-art technologies and best-in-class processes to improve cost of logistics and time to market as well as developing local talents to uplift the standards for the logistics industry in Cambodia.”
Under the agreement, IFC has pledged to support YCH Group and WorldBridge Group to strengthen the technical, commercial, legal, and environmental and social (E&S) aspects of the project. The aim of this is to make it attractive to international investors.
IFC has also said it will provide the developers with the expertise of working in similar markets globally, support for mitigation of the project risks, as well as work to strengthen E&S standards in line with IFC’s Performance Standards. This will help improve the project’s overall bankability and sustainability.
“We are elated that IFC has chosen to support the Cambodia SuperPort. This facility will be a key contributor to the growth of Cambodia by providing the facilities for the next generation of manufacturing in the Kingdom,” said Rithy Sear, Chairman of WorldBridge Group.
“With YCH Group leading the project, we are confident that the capabilities of Cambodia SuperPort as a logistics value-added manufacturing hub will elevate Cambodia’s standing in the region and will be a major contributor to the economy of the Kingdom.”
The unveiling of the logistics hub is a welcome move, given logistics is a crucial sector for Cambodia to achieve its target of being an upper-middle-income country by 2030 and a high-income country by 2050.
The government is currently developing a master plan for Multi-modal Transport and Logistics Connectivity, meaning the project will drive the government’s vision to be a regional logistics hub, while enhancing the country’s logistics and supply chain connectivity.
“Developing a multi-million-dollar, world-class super port will play a key role in expanding Cambodia’s economy and driving connectivity across Southeast Asia, delivering a faster and more efficient supply chain in the region, which ultimately benefits consumers,” said Riccardo Puliti, IFC Regional Vice President for Asia and the Pacific.
“Logistics are the backbone of any economy, and this super port will also support the rapid growth of e-commerce and IFC will work with its partners to promote high-value manufacturing in the region while expanding its integration into global trade and supply chains.”
The current project is YCH’s second partnership with IFC, following the ongoing collaboration to develop a super port in Vietnam. Both projects form part of YCH Group’s strategy to expand its regional network in Southeast Asia and boost connectivity throughout ASEAN.
