Cambodia is set to have its first modern, world class logistics complex as IFC signed a new collaboration agreement with two of the region’s leading logistics companies. The new partnership will deliver a major boost to infrastructure, trade, and connectivity in Southeast Asia. 

The Cambodia SuperPortTM 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 largest logistics provider, WorldBridge Group.  

The Cambodia SuperPort^TM’s strategic location in Phnom Penh, the center of the country and its economic hub, with connections to all modes of transportation, will enable it to become the country’s first fully multimodal logistics facility. As Cambodia is located in the center of the Greater Mekong sub-region, the SuperPort^TM could serve as a regional transport and logistics hub, contributing to a shift in trade routes through Cambodia. This will help reduce overall logistics costs, improving supply chain efficiency to integrate into regional ones, and boosting Cambodia’s competitiveness.   

“The signing ceremony is another major milestone to develop logistics and supply chain connectivity across the Association of Southeast Asian Nations (ASEAN). As part of SGConnect initiative and its second project, Cambodia SuperPort^TM will raise the Kingdom’s competitiveness and attractiveness through a world class, multimodal logistics infrastructure to accelerate the growth of the economy. We are confident that Cambodia SuperPort^TM will be one of the key driving forces in boosting the supply chain and logistics connectivity for ASEAN and beyond, with the use of state-of-the-art technologies and best-in-class processes to improve cost of logistics and time to market as well as developing local talents to uplift the standards for the logistics industry in Cambodia,” said Robert Yap, Executive Chairman of YCH Group and Singapore Chair of ASEAN Business Advisory Council. 

As part of the agreement, IFC will support YCH Group and 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. 

“We are elated to that IFC has chosen to support the Cambodia SuperPort^TM. 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. With YCH Group leading the project, we are confident that the capabilities of Cambodia SuperPort^TM 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,” said Neak Okhna Rithy Sear, Chairman of WorldBridge Group. 

Logistics is a crucial sector for Cambodia to achieve its target of being an upper middle-income country by 2030 and a high-income country by 2050. As the government of Cambodia is developing a master plan for Multi-modal Transport and Logistics Connectivity, the project will support the government in realizing its vision to be a regional logistics hub and enhance the country’s logistics and supply chain connectivity. 

“Developing a multi-million-dollar world class super port will play a key role in expanding Cambodia’s economy and driving connectivity across Southeast Asia, delivering a faster and more efficient supply chain in the region, which ultimately benefits consumers,” said Riccardo Puliti, IFC Regional Vice President for Asia and the Pacific. “Logistics are the backbone of any economy, and this super port will also support the rapid growth of e-commerce and IFC will work with its partners to promote high-value manufacturing in the region while expanding its integration into global trade and supply chains.” 

The current project is YCH’s second partnership with IFC, following the ongoing collaboration to develop the Vietnam SuperPort. Both projects are part of YCH Group’s strategy to expand its regional network in Southeast Asia and boost connectivity in the ASEAN countries.