Singapore’s YCH Group has been selected to develop a logistics complex in Phnom Penh (PPLC) at a virtual signing ceremony on 4 March, together with Cambodia’s Ministry of Public Works and Transport.
Under a framework agreement, YCH will design, develop, and operate the complex, which the 7PL logistics company says is predicated on its “superport plus” concept.
“In addition to being a modern, world-class logistics complex, PPLC will also feature the use of logistics technology to improve resilience, visibility and logistics process flow, and a training academy to develop Cambodia’s local human capital in the logistics sector,” it stated on a press release.
The proposed logistics centre in Phnom Penh is part of the SG Connect initiative, the fifth legacy project by the ASEAN Business Advisory Council (ASEAN-BAC) spearheaded by YCH, which aims to develop a network of smart cities across the region.
It is expected to help strengthen Cambodia’s connectivity with the broader intraregional trade flows, particularly among the Mekong countries (Cambodia, Laos, Myanmar, Thailand and Vietnam) and Southwestern China, and contribute toward the country’s long-term economic growth.
The project has garnered significant interest from financial institutions like the International Finance Corporation (IFC) and Clifford Capital, according to Infrastructure Asia, a broker for infrastructure projects, which facilitated the discussion between Cambodia and YCH.
The logistics complex in Phnom Penh will be the second project under the ASEAN Smart Logistics Network (ASLN) launched in November last year.
The first project, the Vinh Phuc inland container depot and logistics centre in Vietnam, is considered one of the largest logistic hubs in the north of Vietnam and is expected to demonstrate the advantages of multimodal transportation through its road, rail, air and sea linkages, with road and rail connecting China’s Yunnan province via Kunming city to Hanoi city and Hai Phong international port.
The project is being developed by YCH Group, together with Vietnamese conglomerate T&T Group, with funding of about $170 million, Payload Asia learned.