Cambodia Expands Railway Infrastructure with New Transport Agreement

Cambodia Advances Railway Development with Strategic Partnership. This was reported by the railway transport news portal Railway Supply.

Cambodia is strengthening its railway infrastructure with a new transport agreement. This collaboration with Royal Railway supports logistics efficiency, economic growth, and sustainable transport expansion.

Cambodia’s Transport Ministry Signs Key Railway Agreement

Cambodia’s Transport Ministry and Royal Railway formalized a public-private partnership to enhance rail networks. This initiative aims to modernize infrastructure and improve the country’s transport efficiency.

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Transport Minister Peng Ponea and Royal Railway Chairman Kit Meng signed the agreement on February 13. The ministry stated that this framework sets the stage for further strategic partnerships.

The agreement aligns with Cambodia’s vision of developing a sustainable railway system. It promotes economic growth and ensures efficient transport for freight and passengers nationwide.

Royal Railway expressed pride in finalizing this landmark collaboration with the government. They emphasized the agreement’s role in advancing infrastructure and delivering high-quality railway services.

The Cambodian government remains focused on expanding railway connectivity to enhance economic opportunities. Royal Railway reiterated its commitment to infrastructure development and efficient transport solutions.

How Cambodia’s Railway Expansion Supports Economic Growth?

Prime Minister Hun Manet instructed the transport ministry to explore national railway network expansion. This partnership directly supports his vision of strengthening domestic and regional freight transportation.

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Sin Chanthy, president of the Cambodia Freight Association, welcomed the government’s focus on railway development. He highlighted its economic benefits, including cost reductions and improved market competitiveness.

He noted that railways efficiently transport large cargo volumes while easing road congestion. This strengthens Cambodia’s logistics sector and trade potential in international markets.

“Rail transport remains essential for logistics and is in high global demand. We anticipate continuous improvements from Royal Railway and the ministry,” he stated.

Recently, Royal Railway acquired several new locomotives to enhance freight capacity. This investment demonstrates a long-term commitment to advancing Cambodia’s transport sector.

During the transport ministry’s annual January conference, the prime minister reaffirmed infrastructure priorities. He emphasized railway modernization as crucial for economic progress and national connectivity.

In 2024, freight transport along Cambodia’s rail network saw significant growth under Royal Railway’s investment. Shipments on the Phnom Penh-Poipet and Phnom Penh-Sihanoukville routes reached 1.16 million tonnes.

This marked an 8.29% increase from 2023 when cargo transport totaled 1.07 million tonnes. However, passenger rail travel declined, recording a 16.98% drop compared to 2023 figures.

The transport ministry reported that passenger numbers fell to 104,100 in 2024, down from 125,400 in 2023. Despite this, railway investments continue to focus on freight efficiency and long-term infrastructure goals.

This agreement highlights Cambodia’s commitment to modernizing transport networks through strategic investments. It represents a vital step toward a more sustainable and high-performance railway system.

Source: www.thestar.com.my

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