Cambodia Investment Review
Phnom Penh Logistics Complex (PPLC), the multi-modal logistics hub set to be a key connection node for intra-regional trade and will assist in strengthening Cambodia as a key logistics hub. The logistics hub was unveiled in Phnom Penh during the 40th and 41st ASEAN Summit in Phnom Penh with an estimated investment of $300 million.
Daniel Sear, Chairman of Sear Brothers Investments, the Cambodian equity partner in the project told Cambodia Investment Review that: “PPLC will break ground early next year and will be completed in phases, starting with world-class logistics handling facilities.”
The unveiling ceremony of Phnom Penh Logistics Complex was presided over by H.E. Aun Pornmoniroth, Deputy Prime Minister, Minister of Economy and Finance, the High Representative of Samdech Techo Hun Sen, Prime Minister of the Kingdom of Cambodia, H.E. Sun Chanthol, Senior Minister, Minister of Public Works and Transport, and Dr Vivian Balakrishnan, Minister for Foreign Affairs of Singapore.
To read more about local business chambers collaborating with Cambodia Logistics Association to strengthen supply chains click here.
The guests-of-honor were joined by YCH Group’s Executive Chairman Dr Robert Yap and WorldBridge Group Chairman, Neak Oknha Rithy Sear. The event included attendance from senior officials from both countries, ASEAN Business Advisory Council leaders, Infrastructure Asia and distinguished guests.
Launched by YCH Group, Asia’s largest logistics and supply chain provider, the PPLC will feature the best sustainable logistical practices in the ASEAN region. Today’s unveiling ceremony follows the signing of the Framework Agreement between Cambodia’s MPWT and YCH Group, facilitated by Infrastructure Asia back in March 2021.
Speaking at the unveiling ceremony, H.E. Aun Pornmoniroth said that the transportation and logistics sectors are two interconnected sectors and the backbone and driving force connecting economic activities across all sectors, contributing to productivity and economic growth. PPLC helps to strengthen the connectivity in the transportation and logistics sectors within the Greater Mekong Subregion (GMS) framework, ASEAN and the world.
To reinforce Deputy Prime Minister H.E. Aun Pornmoniroth’s words, H.E. Sun Chanthol said, “PPLC plays important roles not only in strengthening Cambodia’s connectivity with regional trade, particularly among the GMS countries, improving the efficiency of multimodal transport – including roads, railways, waterways, deep seaport, and air transport in Cambodia, but it also creates an efficient logistics ecosystem, reduces logistics cost, improves competitiveness, integrates supply chain, drives and enhances regional economic growth.
“PPLC has been identified in our Logistics Master Plan as a strategic project to support Cambodia’s integration into the ASEAN Smart Logistics Network (ASLN), and also to boost Cambodia’s economic development and business connectivity in the ASEAN region,” he added.
At the launch, Dr Vivian Balakrishnan expressed that Singapore is looking forward to working with Cambodia on similar future projects to deepen the two countries’ 57 years of diplomatic ties in 2022. He added that such inter-regional collaboration is a testament of the strong bilateral ties between Singapore and Cambodia; and for the ASEAN countries, it is a pertinent attribute in raising each member states’ competitiveness and economy collectively.
Increase the speed and reliability of supply chains
The Smart Growth Connect (SGConnect) initiative, aiming to grow ASEAN economies without growing pains was spearheaded by YCH Group and launched as part of the ASEAN Business Advisory Council’s (ASEAN BAC) 2018 Fifth Legacy Project. PPLC is the second project to be launched under the SGConnect initiative.
It is also the second project to be unveiled under ASEAN Smart Logistics Network (ASLN), a platform that aims to promote logistics connectivity and resilience between ASEAN countries. In line with ASEAN’s Connectivity Master Plan 2025, which objectives are to lower supply chain costs, and increase the speed and reliability of supply chains in each ASEAN member state, PPLC aims to strengthen economies and promote inclusivity in the region, as well as train up skilled talents to grow the industry.
To read more about Cambodia being in a strong position for more foreign investment says Hun Sen at Davos click here.
Executive Chairman of YCH Group and ASEAN Business Advisory Council Singapore Chair, Dr Robert Yap, expressed, “In logistics, optimization and the ability to mitigate disruption in the post-pandemic era are empowered through connectivity. PPLC’s multimodal logistics infrastructure is built with the aim to achieve seamless connectivity across ASEAN, reinforced by strong diplomatic ties between Singapore and Cambodia.
“As part of the aspiration of SGConnect initiative and its second project, we are certain that PPLC will be one of the key driving forces in boosting the supply chain and logistics connectivity for ASEAN, with the use of state-of-the-art technologies to optimize operations as well as training up local talents to uplift the standards for the supply chain industry in Cambodia holistically,” he added.
“We are grateful to YCH Group for bringing this project to Cambodia. This project will be good for the development of the country and support economic growth,” said WorldBridge Group Chairman, Neak Oknha Rithy Sear.
Mr Lavan Thiru, Executive Director of Infrastructure Asia, said, “Connectivity plays a significant part in supporting ASEAN’s social and economic growth. Infrastructure Asia is pleased to facilitate this collaboration between Singapore and Cambodia to build a seamless logistics value chain across ASEAN through the PPLC. We are committed to catalyzing even more of such partnerships and working with even more Singapore-based companies to deepen their infrastructure capabilities in the region.”
YCH Group is Singapore’s leading homegrown, end-to-end supply chain solutions partner to some of the world’s largest companies and favorite brands across more than 100 cities in the Asia Pacific region.
YCH focuses on boosting productivity and sustainability for its customers with its proprietary best-in-class suite of award-winning solutions across industries such as fast-moving consumer goods, electronics, chemical and healthcare, cold chain logistics, and e-Commerce. A strong proponent of innovation, YCH is recognized for its 7PL approach in seamlessly integrating supply chain strategy with execution.