Infrastructure

Development of the transport and communications systems and improved delivery of water and power supplies is essential to the achievement of economic growth with equity and social development. In fact, Cambodia's infrastructure, which was almost completely destroyed after more than twenty years of warfare, civil strife and neglect, is slowly being restored.

The current transport system consists of the road network, railways, inland waterways and ports, and air transport. For domestic traffic, the road network is dominant: almost 65% of passenger kilometers per year and 69% of the freight are carried by road. Boats carry about 15 and 20% of the passengers and cargo, respectively; and rail carries the remaining 20% of passengers and 10% of cargo. International seaports at Sihanoukville and Phnom Penh are the key gateways linking the country to regional and international markets, handling an estimated 1.6 million tons of cargo in 2003. International airports in Phom Penh and Siem Reap are also important gateways for growing passengers traffic.

Road transport

The Cambodian government has not allocated significant budget resources to repairing the country's roads but the highways system is therefore being rehabilitated through bilateral foreign assistance projects and multilateral loans, as they become available. For example, completion of the US Aid-funded Route 4 rehabilitation project in late 1996 improved links between Phnom Penh and the deepwater port of Sihanoukville. Japan has rebuilt portions of routes 6 and 7 between the capital and Kampong Cham and it is constructing a USD 57 million bridge over the Mekong River at Kampong Cham. The World Bank and ADB also plan to support rehabilitation of routes 3, 5, 6 and 7 with loans.

At the Ministry of Public Works & Transports (www.mpwt.gov.kh), H.E. Minister Khy Taing Lim, explains: "The first priority will be given to the 2.800 km of the National road system that connects the capital to the provinces". The second priority will be given to an additional 1900 km of the National road system that more directly links adjacent provinces and connects small communities with towns and cities. This road rehabilitation will strengthen the linkage between the three broad economic zones which are: tourism zone formed by Siem Reap, Preah Vihear and Kompong Thom, the industrial zone defined by the coastal region and the agricultural zone, covering the eastern region of the Mekong river.

Ongoing projects will cost a total of USD 236.6 million, of which donors will finance 71% and the government 19%, leaving 10% not funded at the start of second Road Rehabilitation Program.

Railway transport

The railway system consists of a 386 km Northern line constructed between 1929 and 1942, which runs from Phnom Penh to Poipet in the north west; and a 246 km Southern line built in the late 1960s which runs from the capital to the deep sea port at Sihanoukville. The line near Thai border was so damaged as to make it unusable at any speed and the Southern track remained in reasonable condition but the formation was poor and 70% of sleepers needed replacing. Rail traffic nonetheless showed signs of increasing as peace and security were established. In 1997, it was estimated that a total investment of USD 7-10 million would be needed to allow safe operations and increased capacities of 7-8 trains per day on the Southern line. The Northern line runs through rich agricultural areas that are poorly served by the road network, and potentially connects with the Thai railway system, becoming part of the proposed Trans Asian Railway linking the ASEAN sub-region with China. In this aspect there is still much to do as H.E. Minister Khy Taing Lim, underline: "just to give you an idea, I will share with you a significant figure; before the war the average speed on our railways system was about 60km/hour, nowadays we are hardly reaching 20km/hour and with a significant highest rate of accidents (...) But the royal government can not face this challenge by its own and hopes to find foreign investors that would be interested in a Joint Venture, which will allow the railways to remain public but would grant them the rehabilitation and commercial management."

Cambodian airports and the "Open sky policy"

In the airway sector we can underline the strong participation of foreign investors. At present, seven domestic airports are operated in Rattankiri, Mondulkiri, Stung Treng, Battambang, Koh Kong, Previhear and Kratie. H.E Sok An, Minister of the council of Ministers insist that: "BOT/BOO/BOOT arrangements are being sought for upgrading five of these; Koh Kong, Stung Treng, Rattankiri, Previhear and Mondulkiri."

Pochetong International Airport in Phom Penh is contracted out for operation, management and development on a built-operate-transfer basis to a French-Malaysian consortium, SCA (Société Concessionnaire de l'Aéroport) , and for the operational side of the airport to CAMS . In April 2000, the government entered into an agreement that provides for a concessionaire to operate Siem Reap Airport and share revenues with the government. Mr. Denis Leluc, General Manager of CAMS said: "(…) in April 2000, CAMS was operating only one airport and with a staff of 150. Three months later, in June, we had 2 airports, cargo terminals, ground activities and 600 staff. (…) Our main objective has been always to improve the quality of our operations and to bring both airports to international standards".

In the long term it is expected that a new international airport will be constructed in Siem Reap to meet the demand of growing air traffic and for development into a profitable and self-financing operation. Having a grid of airports, the next challenge was indeed to increase the traffic and by the open sky policy the government has seen an opportunity not only to boost the airports activity but also its tourism sector as H.E Veng Sereyvouth, Minister of Tourism underlines: "When you are relying on the regional market and the local market you have no other policy than to allow them to fly direct to our country. Open up the country, open up the sky".

Concerning the possible creation of a new national carrier -the Royal Air Cambodge -bankrupted in 2000- the Minister in charge of The Council of Ministers H.E. Sok An, informed that "Our royal government is doing its best to find out a partner for re-establishing our new national airlines", but so far no agreement have been achieved.

Shipping and fluvial transport

There is one fluvial port in Phom Penh, which was rehabilitated with Japanese assistance. The internal waterways have a high potential with their 1700 km, but only 100km are currently used. Plans are on their way to reactivate the life of this port, which is located in the center of Cambodia, in the crossroads of the main rivers of the country (Mekong, Tonle Sap and Bassac) and close to the manufacturing centers as well as to the consumers themselves. To realize this change, the Port's Director General, Mr. Hei Bavy is applying a new strategy: "Although the Port of Phnom Penh was designed for general cargo, in 2002 we started considering a change in our strategy to swift our activities towards the main purpose of serving the container traffic"

The second and most important port of Cambodia, is the deep sea Autonomous Port of Sihanoukville (www.pas.gov.kh). It is managed by a state-owned enterprise; it is involved in its third phase of reconstruction. This phase started in 2002 and will be finished by April 2004, once finished the port will have a fully operational container terminal. The Minister of Public Works and Transport forecasts an increase of the harbor's activity with an improvement of high technological facilities linked with a sound management which will allow a decrease of running costs, as the Kingdom is located at the heart of the ASEAN market. The improvements are already starting to be seen in the statistics of the port's activity, as the Sihanoukville's Autonomous Port General Director, Mr. Lu Kim Chhun explains: "the current statistics are very encouraging; in the first three months of this year 2003 the volume increased 28 percent compared with same time in 2002".

Rebuilding infrastructures in indeed one of the main challenges of the Royal Government of Cambodia. Nevertheless foreign assistant in this matter is crucial and haven't achieved the level expected in order to open up the country and therefore speed up its development. In terms of development of the tourism sector for instance the road from Siem Reap to Phonm Penh, is still a pity and discourage many to even think about traveling by road in between this two destination. On the same way the road linking Phnom Penh to Hanoi lack of liability and comfort and discourage the entry of nearly 10 million tourists visiting the neighboring countries. A special emphasis has nevertheless been put in the road network and significant improvements are to be seen in the coming years.