Cambodia’s freight transport industry

Cambodia’s freight transport industry

Cambodia’s freight transport industry plays a crucial role in supporting the country’s trade and economic development. Positioned strategically in Southeast Asia, Cambodia shares borders with Thailand, Vietnam, and Laos, and has direct access to the Gulf of Thailand. This makes it a vital link in regional supply chains and trade corridors such as the Greater Mekong Subregion (GMS) and ASEAN economic integration initiatives.

Road Transport

Road freight is the dominant mode of cargo transportation in Cambodia, accounting for over 65% of the country’s total freight movement. The national road network has significantly improved over the past two decades, aided by infrastructure investments from China, Japan, and multilateral development banks. Major highways such as National Roads No. 1, 4, and 5 connect key economic hubs, including Phnom Penh, Sihanoukville, and border crossings. Despite progress, challenges remain, including traffic congestion, poor road maintenance in rural areas, and outdated logistics practices.

Rail Transport

Cambodia’s railway network, though limited, is undergoing revitalization. The southern line from Phnom Penh to the Port of Sihanoukville and the northern line toward the Thai border are essential for bulk cargo transport, especially for construction materials and petroleum. The revival of the railway system, largely operated by Royal Railway Cambodia, is expected to reduce road congestion and transportation costs. However, usage remains low due to limited coverage and the need for modernization.

Inland Waterways

Cambodia’s rivers, particularly the Mekong and Tonle Sap, offer a cost-effective and environmentally friendly mode of freight transport. These waterways are especially valuable during the rainy season and serve remote areas not easily accessible by road. Phnom Penh Autonomous Port is a major inland port that connects the capital with Vietnam via the Mekong River, facilitating container traffic and agricultural exports.

Maritime and Air Freight

The Sihanoukville Autonomous Port is Cambodia’s only deep-sea port, handling the bulk of international cargo. It has undergone major upgrades to handle growing container volumes and is a key gateway for imports such as machinery, vehicles, and consumer goods. Meanwhile, air freight, though limited by volume, is crucial for high-value and time-sensitive goods. Phnom Penh International Airport and Siem Reap Airport support air cargo services, although high costs restrict their broader use.

Industry Challenges and Opportunities

Key challenges facing Cambodia’s freight transport sector include limited cold chain logistics, weak enforcement of vehicle regulations, insufficient digitalization, and limited intermodal integration. However, government initiatives such as the Cambodia Logistics Master Plan and support from development partners aim to boost capacity, improve efficiency, and attract foreign investment.

The growth of e-commerce and regional trade agreements like RCEP offer additional opportunities for expansion. With the right investment and policy reforms, Cambodia’s freight transport industry has the potential to become a more competitive player in the ASEAN logistics landscape.