Cambodian, Singapore conglomerates to develop modern logistics hub in Phnom Penh

PHNOM PENH (Xinhua): Cambodia's key logistics provider WorldBridge Group and Singapore's home-grown supply chain solutions company YCH Group will jointly build a modern logistics complex in Phnom Penh, with support from the International Finance Corporation (IFC), according to a press statement on Thursday (Feb 16).

The two companies signed a collaboration agreement with the IFC on Wednesday in Singapore, the statement said, adding that the two logistics providers would develop a Cambodia SuperPortTM or the Phnom Penh Logistics Complex.

"This will help reduce overall logistics costs, improving supply chain efficiency to integrate into regional ones, and boosting Cambodia's competitiveness," the statement said.

Robert Yap, executive chairman of YCH Group, said Cambodia SuperPortTM will raise Cambodia's competitiveness and attractiveness through a world class, multimodal logistics infrastructure to accelerate the growth of the economy.

"We are confident that Cambodia SuperPortTM will be one of the key driving forces in boosting the supply chain and logistics connectivity for the Association of Southeast Asian Nations (Asean) and beyond," he said.

Logistics is a crucial sector for Cambodia to achieve its target of becoming an upper middle-income country by 2030 and a high-income country by 2050.

"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," Rithy Sear (pic), chairman of WorldBridge Group, said.

"We are confident that the capabilities of Cambodia SuperPortTM 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," he added.

The IFC will support both conglomerates to strengthen the technical, commercial, legal, and environmental and social aspects of the project to make it a bankable investment to attract financing from international lenders, according to the statement.