International Finance Corp (IFC), the private-sector arm of the World Bank, announced Thursday a collaboration agreement with Singapore-based logistics giant YCH Group and Cambodia's largest logistics provider, WorldBridge Group.

“The new partnership will deliver a major boost to infrastructure, trade, and connectivity in Southeast Asia,” a statement said.

Under the agreement signed in Singapore Thursday, a joint venture between YCH and WorldBridge is developing a Phnom Penh Logistics Complex known as the Cambodia SuperPort.

"The SuperPort's strategic location in Phnom Penh, the centre 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,” the statement said.

“As Cambodia is located in the centre 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.

“This will help reduce overall logistics costs, improving supply chain efficiency to integrate into regional ones, and boosting Cambodia's competitiveness."

The IFC said the signing ceremony marked “another major milestone to develop logistics and supply chain connectivity across the Association of Southeast Asian Nations.”

“Cambodia SuperPort will raise the Kingdom's competitiveness and attractiveness through a world class, multimodal logistics infrastructure to accelerate the growth of the economy,” it said.

YCH Chairman Robert Yap expressed confidence that the SuperPort would be “one of the key driving forces in boosting the supply chain and logistics connectivity for ASEAN and beyond.”

Yap — who is also Singapore Chair of ASEAN Business Advisory Council — noted its “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.”

WorldBridge Chairman Neak Okhna Rithy Sear said the logistics hub would 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 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,” he said.

Under the agreement, the IFC said it would support the Singapore and Cambodian companies to strengthen the technical, commercial, legal, environmental and social aspects of the project.

The goal is “to make it a bankable investment to attract financing from international lenders,” the statement said.

In addition, the IFC will provide expertise in working in similar markets, support for risk mitigation and strengthen environment and social standards in line with IFC's Performance Standards.

The IFC noted that the Cambodian project was its second partnership with YCH in addition to the development a SuperPort in northern Vietnam.

“Both projects are part of YCH Group's strategy to expand its regional network in Southeast Asia and boost connectivity in the ASEAN countries,” it said.

IFC Regional Vice President Riccardo Puliti said the Cambodia port would “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.

"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,” he said.

The statement noted that logistics is a crucial sector for Cambodia to achieve its targets 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 realising its vision to be a regional logistics hub and enhance the country's logistics and supply chain connectivity,” it said.

Source: Agency Kampuchea Press