As part of its efforts to enhance the transportation sector and drive economic growth, the Cambodian government is rolling out plans for the development of eight major railway projects, with a projected total investment of over $10 billion.
Experts and economists have highlighted how the expansion of the rail network will play a key role in stimulating economic development.
According to the Ministry of Public Works and Transport’s first-half progress report for 2024, obtained by The Post on November 13, the Kingdom’s rail network currently comprises two main lines, totaling 652 kilometres.
The first line, in the north, stretches 386 kilometres, linking Phnom Penh to the border town of Poipet, while the second line, in the south, spans 266 kilometres, connecting the capital to Sihanoukville.
The report revealed that the government’s railway development strategy focuses on upgrading existing tracks to high-speed rail and developing new railway routes. Cambodia has eight railway projects planned, with a total investment of $10.01 billion. Four of them, scheduled for between 2023 and 2027, will cost approximately $3.8 billion, while the remaining four, slated for 2028 to 2033, are expected to require $6.21 billion in investment.
“The government has launched a comprehensive railway development strategy as part of the National Transport Master Plan 2023-2033, aimed at ensuring a more efficient, timely and cost-effective railway system,” said the report.
The ministry explained that most of the projects are still in the study phase. Among the planned developments, the upgrade of the Phnom Penh-Poipet railway line is currently being studied by the ministry’s railway department, in collaboration with CRBC (China Railway Construction Corporation) and Royal Railway Cambodia.
Additionally, new railway lines connecting Phnom Penh to the Techo International Airport in Kandal Province and Siem Reap town to Angkor International Airport are also under consideration, in partnership with China Metro.
A section of the southern line, which connects Phnom Penh to the coastal town of Sihanoukville. Post Staff
“The railway development plan is based on an analysis of Cambodia’s evolving economic, social and transport needs, incorporating successful regional experiences and practices,” added the report.
Chea Chandara, president of the Logistics and Supply Chain Business Association in Cambodia, told The Post on November 14 that he believed that enhancing and expanding the railway system is vital for Cambodia’s economic growth. Rail transport is expected to offer multiple benefits to the economy, including the ability to move larger quantities of goods and people at lower costs, reduce traffic congestion and decrease government spending on road maintenance.
“The development of the railway system will significantly contribute to Cambodia’s economic growth by lowering production costs, which is essential for improving competitiveness in international markets. Low transport costs will also help reduce the price of goods on the market,” he said.
Hong Vanak, an economist at the Royal Academy of Cambodia, agreed that transportation is a critical element in the economy, influencing both supply and demand dynamics, as well as prices. Strengthening and expanding various transportation modes – whether rail, road, water or air – will have a positive impact on the national economy. He noted that rail transport is popular worldwide due to its low costs, high capacity and fewer congestion issues compared to road transport.
He also believed that railway development could boost Cambodia’s appeal to international tourists and investors.
“With good rail infrastructure and better connectivity to key destinations, Cambodia will attract more tourists, contributing positively to the national economy through reduced production costs,” he said.
Statistics from Cambodia’s General Department of Customs and Excise (GDCE) show that from January to October, Cambodia’s trade with all partner countries reached a total of $45.06 billion, marking a 16.5% increase compared to the same period in 2023, when it totalled $38.67 billion.
Exports were valued at $21.57 billion, a 16% increase from $18.59 billion, while imports reached $23.49 billion, up 16.5% from $20.07 billion.