Cambodia’s Regional Connectivity | Unlocking the Full Potential of Transport Corridors

Cambodia’s export-driven growth has resulted in increased freight demand. Containerized import and export cargo movement has increased more than five-fold over the past 12 years. By 2030, it is expected that trade volumes moving along highways and through ports, airports, and warehouses will double. However, high transport and logistics costs are major bottlenecks to Cambodia’s economic competitiveness and diversification. The Royal Government of Cambodia (RGC) developed the Comprehensive Intermodal Transport and Logistics System (CITLS) Master Plan for 2023–2033 to support improving the performance and efficiency of the transport sector and supporting the achievement of the national development objectives as defined in the RGC’s Pentagonal Strategy Phase 1. However, many of the projects put forward in the CITLS are in the conceptual phase requiring further technical studies and prioritization prior to securing financing from the public and private sectors. This report prepared by the World Bank team aims to complement the RGC’s efforts by focusing on immediate investments and policy actions to unlock opportunities along the existing transport corridors in Cambodia. The analysis and proposals described in this report focus on the short to medium-term priorities. By providing alternative insights on the role and performance of the existing roads, waterways and maritime transport, railways, and cross-border trade facilitation the report is designed to complement the CITLS. Throughout the course of this study, stakeholder consultations were conducted with involved public sector institutions and major private sector players in freight transportation and logistics.