Cambodia’s Regional Connectivity

Investment Rating - The report does not explicitly provide an investment rating for the industry. Core Insights - Cambodia's export-driven growth has led to a significant increase in freight demand, with containerized cargo movements increasing more than five-fold over the past 12 years. By 2030, trade volumes are expected to double, but high transport and logistics costs remain major bottlenecks to economic competitiveness [20][21][52]. - The Royal Government of Cambodia has developed the Comprehensive Intermodal Transport and Logistics System (CITLS) Master Plan for 2023–2033 to enhance transport sector performance and efficiency, but many projects are still in the conceptual phase [21][24]. - The report emphasizes the need for immediate investments and policy actions to unlock opportunities along existing transport corridors, focusing on short to medium-term priorities [22][52]. Summary by Sections Chapter 1: Importance of Regional Transport Connectivity - Trade, transport, and logistics efficiency are crucial for Cambodia's growth, with exports and imports by value growing by 340% from 2010 to 2021. Containerized cargo movements increased by 400% from 2010 to 2022 [57][60]. - High logistics costs in Cambodia are estimated at 26% of GDP, significantly higher than regional peers, with transportation costs comprising over 40% of total logistics costs [30][36]. Chapter 2: Overview of the Transport Sector - The transport sector analysis covers roads, inland waterways, maritime transport, and railways, highlighting inefficiencies in border clearance and trade procedures, as well as a significant infrastructure investment gap [30][36]. Chapter 3: Corridor Analysis - Three prioritized transport corridors are identified: - Corridor A: East-West road connecting Laem Chabang to Poipet, with significant development potential [37]. - Corridor B: Inland waterway corridor from Phnom Penh to Cai Mep, which offers lower transport costs [37]. - Corridor C: Existing rail corridor from Poipet to Phnom Penh, which requires upgrades to enhance its role in trade [37]. Chapter 4: Proposed Improvement Directions - Recommendations include improving cross-border transport and trade facilitation, modernizing the truck fleet, and enhancing the capacity and efficiency of inland waterways and railways [45][49]. - Specific actions are proposed for short-term and medium-term priorities, focusing on enhancing cross-border trade movement efficiency and improving road connectivity [49].