December 28, 2023
PHNOM PENH – In a significant development, the Japanese government has delivered two mobile harbour cranes to the Sihanoukville Autonomous Port (PAS) to enhance its operations. Each crane boasts a robust lifting capacity of 100 tonnes for containerised cargo, with a total value of $13.9 million.
The delivery was reported in a filing to the Cambodia Securities Exchange (CSX) by PAS on December 22, highlighting the support provided by Japan to Cambodia’s sole international and commercial deep seaport.
“PAS is delighted to share with investors and the public that our port has welcomed two lifting cranes, provided through assistance from the Japanese government. The official operation of these cranes commenced on December 22, marked by an inaugural ceremony presided over by Prime Minister Hun Manet at the Sihanoukville Port Special Economic Zone,” stated the filing.
At the ceremony, Manet said that thanks to a robust national economy, Cambodia continues to stand out as a key destination for foreign direct investment (FDI) in both the region and the world.
“Cambodia takes pride in its dynamic young workforce, a crucial driving force in our economic landscape. The nation places a high priority on modernising its infrastructure, including international airports, deep-sea ports, roads, waterways and logistics systems. These improvements, combined with distinctive investment opportunities, position Cambodia as an attractive destination,” he said.
In a filing with the CSX on August 14, PAS highlighted its business activities, backed by solid government support. The revenue experienced growth of 0.91%, reaching 92 billion riel ($22.4 million) over the previous year, while net profit approached 30 billion riel in the second quarter of 2023, marking a 33.3% decrease of 15 billion riel compared to the same period in 2022.
Despite a 12.8% increase in container throughput, totalling 23,366 TEUs (20-foot equivalent units) and reaching 205,307 TEUs in the period, the net profit declined due to a reduction in unrealised foreign exchange gain, particularly from the Japanese yen. Consequently, PAS’ earnings per share stood at 349.27 riel in the second quarter of 2023.
PAS chairman Lou Kim Chhun emphasised the commitment to ongoing efforts aimed at enhancing the port’s business and service operations, striving to deliver optimal results for the benefit of shareholders.
“PAS has boosted its efficiency and expanded infrastructure to keep pace with the demands of customers and the economy. Responding to increased cargo volume and container throughput, PAS transformed the newly renovated wharf, with an additional container terminal measuring 253m in length. Currently, the port operates with just two terminals,” he said.
The port has set in motion plans to build a new container terminal, spanning 350m in length and with a depth of 14.5m. The development includes the installation of three quality control systems, nine rubber tire gantry cranes, two empty reach stackers, 16 container trucks, and an automated container terminal management system.
“The upcoming terminal will welcome larger vessels, addressing our port’s water depth limitations. It ensures competitive freight costs akin to neighbouring nations, fostering trade facilitation and contributing to the socio-economic progress of Cambodia,” Kim Chhun said.
He said he anticipated the project’s completion by mid-2025, foreseeing the container handling capacity reaching 1.2 million TEUs within a year of the new terminal’s operation commencement in 2025.