Cambodia is set to have its first modern, world-class logistics complex as the International Finance Corporation (IFC) recently signed a new collaboration agreement with two of the region’s leading logistics companies. The financial institution feels the new partnership will deliver a major boost to infrastructure, trade and connectivity in Southeast Asia.
The Cambodia SuperPort, or the Phnom Penh Logistics Complex (PPLC), will be developed by PPLC Support and Industrial Co. Ltd., a joint venture between Asia’s leading logistics conglomerate, YCH Group and Cambodia’s WorldBridge Group.
As Cambodia is located in the center of the Greater Mekong sub-region, the SuperPort could serve as a regional transport and logistics hub, contributing to a shift in trade routes through Cambodia, according to an IFC press release.
This will help reduce overall logistics costs, improving supply chain efficiency to integrate into regional ones, and boosting Cambodia’s competitiveness, it noted.
As part of the agreement, IFC will support the YCH Group and the WorldBridge Group to strengthen the technical, commercial, legal and environmental and social (E&S) aspects of the project to make it a bankable investment to attract financing from international lenders.
IFC will also provide the developers with its expertise in working in similar markets globally, support for mitigation of project risks as well as work to strengthen E&S standards in line with IFC’s performance standards, which will help improve the project’s overall bankability and sustainability.
The current project is YCH’s second partnership with IFC, following the ongoing collaboration to develop the Vietnam SuperPort. Fibre2Fashion News Desk (DS)
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Source: Khmer Times
Publication Date: 19 February 2023