Cambodia Investment Review

Despite high fuel costs, Royal Railway PLC reports growth in all key areas in 2022

Despite high fuel costs, Royal Railway PLC reports growth in all key areas in 2022

Cambodia Investment Review

Despite the challenging economic environment, Royal Railway PLC has continued to invest in its growth and development. In addition to the listing of its corporate and guarantee bonds, the company has invested in new assets to support railway development, including locomotives and wagons, and has expanded its logistics offerings to meet the growing demand in Cambodia’s transport and logistics sector. The company has also developed land and properties that link into rail offerings, enhancing the integration of its service offerings.

Read more: International investors back Royal Railways latest bond issue on Cambodia’s stock market

Royal Railway PLC’s net loss of $4.1 million in 2022, compared to a net loss of $0.7 million in 2021, was mainly due to the continued impact of high fuel costs. The company’s revenue increased by 8% to $20.5 million in 2022, driven by growth in its core service offerings, including containerized freight and bulk fuel transport. However, the growth in revenue was not sufficient to offset the increase in operating expenses, resulting in the net loss for the year.

Royal Railways’ $24 million bond issue

In December 2022, Royal Railways’ $24 million bond issue was supported by both local and international investors and is an important step towards integrating Cambodia into the global capital markets, according to Hanna Mark, chief financial officer at the transport operator’s parent firm. The bond is rated Kh-AAA by the newly-minted Rating Agency of Cambodia and Mark said that this high rating was possible because it is underwritten by GuarantCo Ltd, a member of the London-headquartered Private Infrastructure Development Group.

Royal Railways’ bond launch hosted at CSX Head Office in Phnom Penh on 22, December 2022.

Royal Railway PLC’s strategy for 2023 and beyond focuses on becoming one of Cambodia’s top logistics providers, with a strong emphasis on safety and governance outcomes. The company plans to streamline its pricing and rate cards to provide more competitive and transparent pricing for customers. It also aims to develop its brand and marketing strategies to improve the awareness and perception of its services.

Relationships with government and private sector

To support its growth and development, Royal Railway PLC is building relationships with key government and private sector stakeholders. The company is working closely with the Ministry of Public Works and Transport to enhance service outcomes and improve the efficiency and safety of Cambodia’s railway network. It is also collaborating with leading logistics providers and other stakeholders in the transport and logistics sector to drive innovation and growth in the industry.

Despite the current economic challenges, Royal Railway PLC is committed to its vision of becoming a leading logistics provider in Cambodia. With its strong core service offerings, strategic investments, and focus on safety and governance outcomes, the company is well-positioned to capture the growing demand in Cambodia’s transport and logistics sector.

Related Articles