Cambodia Gets Loan for Sihanoukville Port Expansion
- Business & Finance
The Japan International Cooperation Agency (JICA) has signed a loan agreement to provide up to CNY 23.5 billion (USD 3.5 billion) for the development of Sihanoukville Port New Container Terminal in Cambodia.
Under the agreement signed on August 7, the Japanese ODA loan would be used to for the project to develop a new container terminal and improve the cargo handling capacity at the port with the objectives of improving the logistics environment in Cambodia and promoting trade.
The loan funds will be allocated to container terminal and access road development, public works relating to marine routes and mooring basin dredging, the procurement of cargo-handling equipment, and consulting services.
With the project, Sihanoukville Port’s container cargo handling capacity would be increased by 450,000 TEUs to more than one and a half times the current capacity. The project will enable the only deep-sea port in Cambodia to accommodate larger sized vessels.
Due to its strategic location on the Southern Economic Corridor, which has been a focus of support from Japan, Sihanoukville Port is expected to become a logistics transfer hub for ASEAN overall, according to JICA.