Logistics Development

Opportunities and

Challenges in Cambodia

-Key findings from “The data collection survey on

international logistics in the kingdom of Cambodia”

5 December 2016

Daisuke Fukuzawa, JICA Cambodia Office

Contents

1. Overview of Transport and Logistics

2. Characteristics of four major corridors

1) Thailand – Phnom Penh route (Road)

2) Vietnam – Phnom Penh route (Road)

3) Vietnam – Phnom Penh route (Inland waterway)

4) Sihanoukville – Phnom Penh route (Road & Rail)

3. Issues

1. Overview of Transport and Logistics

Population and industries are concentrated along the Southern

Economic Corridor. Thus strengthening it, as well as connecting all

regions to it, are vital for Cambodia’s future development.

The logistics situation in Cambodia has steadily improved in the last 6

years, approaching to Thailand and Vietnam.

GMS Population in 2010

COUNTRI

ES

2016 (OF

160)

2014 (OF

160)

2012 (OF

155)

2010 (OF

155)

CHANGE

(2010-

2016)

Thailand 45 35 38 35 -10

Vietnam 64 48 53 53 12

Cambodia 73 83 101 129 59

Lao PDR 152 131 109 118 -34

Myanmar 113 145 129 133 20

Source: World Bank

Logistics Performance Index 2010 – 2016 (rank)

-3-

Contents

Overview of Transportation

History of JICA’s Cooperation

JICA’s Current Projects

Strategies for future assistance

-4-

Sihanoukville

Im: 167,125

Ex: 121,463 Inland waterway

Im: 45,741

Ex: 58,756

Bavet

Im: 70,212 (bulk truck: 1,794)

Ex: 24,384 (bulk truck: 224)

Phnom Penh – Poi petBorder: New border facility to be constructed (Thai)Road: (NR5) 2-lane, to be widened into 4-lane by

2020 (JICA)

Phnom Penh – SihanoukvillePort: Multi-purpose terminal under construction, new

terminal construction under study (JICA)Road: (NR4) 2-lane (partly 4 lane)

(Expressway) under contract negotiation (BOT, China)Railway: 2-3 operations/day (rehabilitated by ADB)

Phnom Penh – Vietnam (inland waterway)

Port: Container Yard to be expanded (PPAP)Road: Ring Road 3 to be constructed (China)

Phnom Penh – BavetBorder: New border under consideration

Road: (NR1) 2-lane (rehabilitated by ADB + JICA) (Expressway) under study (JICA)

Unit: TEU/truck number per year in 2015

(exc. empty) .

*TEU.at Poipet is calculated by multiplying

container numbers by 1.85.

Source: GDCE, PAS, PPAP, MPWT(map)

Poipet:

Im: 9,751* (bulk truck: 66,972)

Ex: 1,846* (bulk truck: 144)

1. Overview of transport and logistics (major corridor)

Bangkok

Warehouse in Poipet

SEZ in Poipet

Phnom Penh (SEZ, etc.)

Aranyaprathet

Poipet

Ex/importer in Poipet

Lat Krabang ICD

LCM PortLCM: Laem Chabang

ICD: Inland Container Depot

2. Characteristics of each corridor

1) Thailand – Phnom Penh route (Road)

Major import cargoes are portland

cement and motorcycles. Major

export cargoes are vehicles.

The import volume widely exceeds

the export volume and most of the

import cargoes are carried by bulk

trucks.

Traffic congestion at the Thai

border is severe only in the

morning.

New border facilities are to be

constructed . NR5 is to be widened

into 4-lane.

5

6

Dry Port in Bavet

SEZ in Bavet

Phnom Penh (SEZ, etc.)

Moc Bai

Bavet

Ex/importer in Bavet

HCM city Cat Lai Port Cai Mep Port

2. Characteristics of each corridor

2) Vietnam – Phnom Penh route (Road)

Major import cargoes are fabrics.

Major export cargoes are

household articles and shirts.

The import volume exceeds the

export volume by around three

times. Most cargoes are carried by

containers. SEZ and Dry ports are

much utilized.

Traffic congestion in Vietnam is

more severe than in Cambodia.

Expressway is under study both in

Cambodia and Vietnam. NR1 will

be rehabilitated under ADB’s loan.

Phnom Pen Port

7

2. Characteristics of each corridor

3) Vietnam – Phnom Penh route (Inland waterway)

Phnom Penh (SEZ, etc.)

Cat Lai Port Cai Mep Port Major import cargoes are cement

and fabrics. Major export cargoes

are rice and garment.

The export volume slightly

exceeds the import volume.

Large vessels cannot pass a canal

and low bridges in Vietnam. Border

procedures are longer than other

checkpoints.

Phnom Penh Port Authority is

expanding the container yard. Ring

road 3 (connect the port with NR3

and NR4) is under study.

50-80 km

2.5-3 hour

Cost Transport Charge $150

Distance

Time

*excluding port charges

Sihanoukville Port

Rail

SEZ/Dry port in Phnom Penh

Phnom Penh Railway ICD

Truck

8

2. Characteristics of each corridor

4) Sihanoukville – Phnom Penh route (Road & Rail)

Major import cargoes are fabrics.

Major export cargoes are rice.

The import volume slightly

exceeds the export volume.

Traffic accidents happen frequently

along NR4. Traffic congestion at

the gate of the port and near

Phnom Penh is severe.

Multi-purpose terminal is under

construction. New container

terminal and expressway is under

study.

$200 $200

*excluding port charges*excluding port charges

9

InstitutionalResponsibility

in Management of Logistics

Infrastructure

Rural Roads

National,Provincial Roads ASEAN Highways Expressways (Planning) River Port, Sea PortWaterways/Ferries Railways

Dryports/ICD

SEZs

Private Ports/Warehouse

Airports

MPWT

SSCA

MRD

MEF/Customs

CDC

Local Gov’t…?

PP City Roads MPP

3. Issues

1) Lack of coordination mechanism

Infrastructure progressing well but the coordination among stakeholders is

limited and overall strategic plan does not exist.

Formulate a national committee/council for logistics improvement with

attention to both top-down and bottom-up approaches.

Utilize the committee/council to develop, implement and monitor an action

plan.

‹#›

11

3. Issues

3) One-way-cargo

A lot of one-way-cargo due to under-developed export industries, which increase

logistics cost

Consolidate cargoes among ICD/Dryport/SEZ

Increase number of double-license vehicles and simplify the procedure

ICD: Inland Container Depot

12

Example of Fatal Accident in NR.4 Trailer Queue inside SHV city

3. Issues

4) Insufficient road development

Severe traffic congestion especially at the gate of SHV port and inside Phnom

Penh.

Poor road network and condition increase transportation time and hinder

business opportunity

Further develop road network especially widening NR4 and enhancing

expressway development

Develop bypass roads to SHV port and ring roads of Phnom Penh

Strictly regulate overloaded trucks and improve asset management

13

3. Issues

5) Insufficient rail-ICD and railway capacity

Rail-ICD at PP only serves a role of transport mode changes between truck and

rail

Railway usage is limited

Improve rail track

Develop a functional ICD and introduce carriers haulage

14

0 20 40 60 80

PHN Im

SHV Im

LCB Im

Exp

Imp

$/20 F

LOLO charge as of Jan. 2016Source; PAS, PPAP, LCB

Service Group

Major Examples

Navigation Port Dues, Pilotage, Tug, Mooring

Berth Berth hire, Wharfage

Cargo Operation

Stevedorage, Wharf handling incl. LOLO, Storage

Lease Rental Charge

Formality Service Charge (KAMSAB)

General Structure of Port Charges

3. Issues

6) High port charges

LO/LO charges in Cambodia are more expensive than in Laem Chabang Port.

Various charges are required

Rationalize port charge system and set competitive charges

Improve the efficiency of cargo handling

Current State

15

Hand writings

Original docs & signatures required

Similar docs for different parties

Unique formats

Port EDI

One-time input electronically assisted

EDI data &Electronic signatures

Single database shared by parties

International standard formats

(EDI: Electronic Data Interchange)

3. Issues

7) Lack of port EDI

Procedures at ports are redundant and time consuming, creating unofficial cost.

Rationalize, computerize and harmonize port procedures

Integrate port EDI into National Single Window