Phnom Penh
17 August 2009
Plans to finally finish the massive Trans-Asia Railway have hit cost hurdles in Cambodia. The initial findings in a Chinese feasibility study shows the need to build several bridges in the Mekong River Delta will raise the final cost of linking Phnom Penh with the Vietnamese border by rail. New estimates put the cost at $600 million for the Phnom Penh to Vietnam leg.
A preliminary technical study report says that two big bridges - a thousand meter span over the Mekong River and 1,500 meter bridge over the Tonle Sap - will be the big ticket items. The Chinese-funded study, which will be published soon, estimates they will have a combined price tag of $262 million.
More than $100 million will also be spent on smaller bridges to enable safe passage across the Mekong Delta.
Cambodia has divided its railway system in two. The China Railway Group will build an entirely new 255 kilometer line in the east while Australia's Toll Holdings will take control and reconstruct old French-built lines in the west.
Derek Mayes is a board member of the Australian Business Association of Cambodia. He says the economic benefits will be enormous for the Southeast Asian economy, with rail offering a cheaper and safer alternative to road.
"I think it will be very large, it certainly will increase traffic on the rails because road transport as we know is very expensive and considerably dangerous, considering the safety aspects on the roads here," Mayes said.
The problem, though, is the initial costs. Touch Chankosal is Cambodia's undersecretary of state for the Ministry of Public Works and Transport. He says that the $600 million needed to connect Phnom Penh to Vietnam represents a huge sum for the Cambodians. The government probably will have to seek additional capital from outside the country, possibly the Asian Development Bank, if it is to be completed.
The Trans-Asian Railway project intends to use existing and new rail lines to connect all of Asia to Central Asia, South Asia and Western Europe. In all, tracks will link 28 countries, although only less than half that number has ratified the agreement with the United Nations Economic and Social Commission for Asia and the Pacific.
In Southeast Asia, the line will connect Singapore to Turkey, with tracks running through Burma, Cambodia, Thailand and Vietnam.
A preliminary technical study report says that two big bridges - a thousand meter span over the Mekong River and 1,500 meter bridge over the Tonle Sap - will be the big ticket items. The Chinese-funded study, which will be published soon, estimates they will have a combined price tag of $262 million.
More than $100 million will also be spent on smaller bridges to enable safe passage across the Mekong Delta.
Cambodia has divided its railway system in two. The China Railway Group will build an entirely new 255 kilometer line in the east while Australia's Toll Holdings will take control and reconstruct old French-built lines in the west.
Derek Mayes is a board member of the Australian Business Association of Cambodia. He says the economic benefits will be enormous for the Southeast Asian economy, with rail offering a cheaper and safer alternative to road.
"I think it will be very large, it certainly will increase traffic on the rails because road transport as we know is very expensive and considerably dangerous, considering the safety aspects on the roads here," Mayes said.
The problem, though, is the initial costs. Touch Chankosal is Cambodia's undersecretary of state for the Ministry of Public Works and Transport. He says that the $600 million needed to connect Phnom Penh to Vietnam represents a huge sum for the Cambodians. The government probably will have to seek additional capital from outside the country, possibly the Asian Development Bank, if it is to be completed.
The Trans-Asian Railway project intends to use existing and new rail lines to connect all of Asia to Central Asia, South Asia and Western Europe. In all, tracks will link 28 countries, although only less than half that number has ratified the agreement with the United Nations Economic and Social Commission for Asia and the Pacific.
In Southeast Asia, the line will connect Singapore to Turkey, with tracks running through Burma, Cambodia, Thailand and Vietnam.
4 comments:
of course, naturally, in any new development, it involves a lot of initial capital funds. however, think of it in long terms benefit, and you will see it differently. if it's necessary and mandated to put a rail way line through cambodia, then by all mean, don't let money issue be the problems. i think all asean nation to include china, and all the countries whose this major railway projcet is to benefit, should be pitching in the funds to get this project going. because this railway system in cambodia will benefit all nations in the region as far as even the middle east and europe and so forth. so, it's worth it to build it in cambodia as it will benefit everyone in the region in the term run, really! think about it, and don't let the money be the issue. cambodia needs this economic development so our country will be better off in the long run, really. god bless cambodia.
I know that you are a nutsucker to Hun Sen but I have to agree with financial advantage to this project. There is one thing that you really need to protect, the environment. If they develop this without any regard to the environmental impact, Cambodia will become just another Japan...crap!
From corruptions, $600 millions will go up to $1 trillion. $500 millions of corruption can be earned in just one year.
hurry up and build railroads in cambodia. i want to take a train ride in cambodia to see the beautiful scenery, etc... can't wait forever, you know!
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