Cambodia is developing a railway strategy.

The Ministry of Public Works and Transport is working on a railway development strategy to modernize and improve train transportation.

Sun Chanthol, Senior Minister of Public Works and Transport, announced the approach at a meeting of the Infrastructure and Regional Integration Technical Working Group.

According to Chanthol, Cambodia's railway development strategy is in line with the country's growing transportation need.

“Rail freight traffic has expanded dramatically in recent years, and I hope to see rail freight expand in Cambodia and assist to minimizing road damage,” he said.

After the railway development strategy is completed, the ministry will submit the document to the government for final approval in the near future.

Cambodia has two railway lines: one between Phnom Penh and Banteay Meanchey, and the other connecting Phnom Penh and Sihanoukville, the country's deep-sea port.

Under the railway development investment scheme, the government granted Royal Railways, a subsidiary of the conglomerate Royal Group, the concession for management.

The ministry has also approved a feasibility study for a railway line between Phnom Penh and Bavet city in Svay Rieng province by China Railway International Group. Bavet City is located near the Vietnamese province of Tay Ninh.

According to the government, the study is now being completed.

The Cambodia Logistics Association's president, Sin Chanthy, praised the government's initiative.

“In order to build the logistics sector, we need efficient transportation infrastructure — roads, railways, and waterways,” he stated.

“Railway development is included in the national logistics master plan, therefore we expect the government and the Public Works Ministry to advance the plan soon,” Chanthy said.

According to a report commissioned by the Organisation for Economic Co-operation and Development (OECD) and released in July, transportation and logistics account for around 8% of Cambodia's GDP, but existing laws have hampered expansion, making it more expensive and lowering competitiveness.

“One of the things we discovered is that logistics expenses account for around a fifth of the overall cost of every commodity sold on average in Cambodia,” said Ruben Maximiano, an OECD senior competition expert.