Railway firm eyes Cambodia

May Kunmakara / Khmer Times No Comments Share:

Chinese locomotive and railway equipment giant CRRC Zelc is to conduct a feasibility study into the investment potential of Cambodia to help improve the kingdom’s railway system while contributing to the One Belt; One Road initiative.
CRRC vice president Zhang Liquiang said that as the company expands abroad, Southeast Asia will be a good frontier market.
Speaking in Changsha city in Hunan province, Mr. Zhang s said the company will conduct research about the Cambodian market for investment and business cooperation potential.
“Our company produces locomotives and constructs railways here in China,” he said.
“For the Asean market, we have already been to Thailand, Malaysia and Vietnam.
“In Cambodia we will contact the relevant authorities to seek a possible study into the potential to enter the market,” he said.
“We don’t have any sales of our product in Cambodia yet.
“But, we do hope that in the next few years when we get more investment information, we will do business there.
“Asean is our main market so we will go to all these countries because under the initiative of President Xi Jingping over the Maritime Silk Road, there will be more connections among all countries in Asean and with others. We are part of that push,” Mr. Zhang said.
Alice Sheng, senior commercial manager for the overseas business division of CRRC, said her company had already entered some Asean markets and she would visit Cambodia soon to get more investment information.
“I’m studying the market for the whole of Southeast Asia and next year we are going to research the market in Cambodia,” she said.
In 2015, China Railway International Group conducted a feasibility study to invest in railway-building in Cambodia after they met then Minister of Commerce Sun Chanthol who is currently Minister of Public Works and Transport.
In 2010, two Chinese owned-companies, Cambodia Iron & Steel Mining Industry Group and the China Railway Group, signed a joint venture worth $9.6 billion to build a new railway line with 11 stations as well as an iron and steel factory in Preah Vihear province.
The companies, in a joint statement, said the railway will be 405km long, stretching from the mining area of Preah Vihear province through the southern provinces of Kampong Thom, Kampong Chhnang, Kampong Speu and finally Koh Kong province. It will not connect to the existing lines of Toll Royal Railways.
The money will also cover the cost of a new port and a new bridge in Koh Kong.
The planned iron and steel plant in Preah Vihear will cost $1.6 billion. But so far, no action has been taken over the project.    
Chinese companies are also set to build a $7 billion, 400km high-speed rail link through neighboring Laos and are trying to win contracts to build new lines in Thailand.

Share and Like this post

Related Posts

Previous Article

Thai exports on track

Next Article

A hard slog for Cambodia’s palm sugar producers