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General Department Of Logistics

Secretariat of National Logistics Steering Committee

Phnom Penh Port Competitiveness Enhancement Project (P15-S1)

The project aims to construct more quays, jetties and terminals along Mekong and Tonle Sap River at PPAP Commercial Zone as well as construct warehouses and logistic center at Phnom Penh City. The project objectives include the promotion of international water transport of the Mekong River and Tonle Sap River. The project aims to facilitate effective logistics around the Phnom Penh City, what is expected to lower transport costs and provide better logistic services, and provide safe handling & storage facilities for transit dangerous cargoes within the port area in compliance with agreement among ASEAN countries.

Project contains following seven components:

1. Expansion of New Phnom Penh Port 
2. Port service Improvement such as logistic center etc. 
3. Dangerous Goods Area Development including its operation and management 
4. Capacity Building for maintenance of navigation channel 
5. Vessel Trafficking Management Information System 
6. Development of Multi-purpose Terminals along the Rivers 
7. Development of port promotion and sales enhancement strategy 

This project is implemented by the PPAP with Investment budget of PPAP and Investment partners. The project will have benefits including improvements of operational and financial efficiency, Reduced logistics costs due to safer and faster navigation and efficient services and Higher trade volumes and increase of government revenue.

Currently, the project is on-going. The project progress through various components includes: Expansion of Container yard for phase 3 at LM17: (50%) The development of SEZ: The project has not been started yet ( PPAP has already had the land and looking for the investor) The development of container yard for Dangerous Goods including the operation and management: Currently, PPAP is using part of container terminal LM17 for the storage of Dangerous Goods. The Building of additional capacity for dredging and the maintenance of navigation channel: Annually, PPAP always does the surveying, dredging and maintenance of navigation from Kaam Somnor to Tonle Bet Terminal UM2 and from Chaktomuk to Chhnok Trou.
The management of Vessel Trafficking Information has been modernized: (50%)
The development of Multi-purpose Terminals along the Rivers: (13%) a. Multipurpose sub-feeder port UM2: 16% of the development project b. Multipurpose sub-feeder port Koh Rokar (LM26) : 4% of the development project (Currently, the operation of agricultural products at Multipurpose sub-feeder port Koh Rokar (KRK) has been started by using 7 units of conveyor and 2 units of weight scales) c. The development of Multipurpose sub-feeder port TS11 : 23% of the development project. The strategy development of advertisement and sale promotion is regularly conducted.

The project has been facing issues, including: lack of capital investment and investment partners, no road connection from Ring Road Number 3 to the SEZ, lack of land for dangerous goods, lack of protection and emergency equipment, lack of AIS system for the installation on vessels, and lack of human resources.

However, the project team has also devised solutions to tackle these problems includes; 1) proposing the Ministries to help finding investment partners for SEZ and construction of road connection from Ring Road Number 3 to SEZ, as well as, the rail connection to LM17 and TS11, 2) Requesting for additional assistance on materials and equipment for dredging, 3) Requesting fund for the installation of AIS system, 4) Requesting the ministries to find the investment partners to develop sub-feeder ports along the river and to create the direct call between sub-feeder ports and hub ports in Vietnam and lastly, 5) PPAP will conduct more training courses to improve the human resources.