Hun Sen's reminder: Cambodia needs $500 million to build the railroad line between Cambodia and Vietnam

$500 million needed to link Cambodia to Vietnam?
Cambodia's Prime Minister Hun Sen speaks at the ground breaking ceremony of a new railway at Serey Sophon town in Banthey Meachey province, 469km (291 miles) northwest of Phnom Penh, February 18, 2008. Cambodia launched on Monday a $73 million project for the restoration and reconstruction of over 600 km of railway track which will become part of the rail transportation route linking Singapore, Malaysia, Thailand and Vietnam to Kunming, China. REUTERS/Chor Sokunthea

Railway gets a new life

18 Feb 2008
By Ky Soklim
Cambodge Soir
Translated from French by Luc Sâr

On Monday morning, the authorities have officially inaugurated the restoration site for a railroad line. The restoration will involve 552 km of railway, and will cost $73 million. The Asian Development Bank (ADB), OPEC, Malaysia, and the Cambodian government will finance this ambitious project.

Seriously damaged by the civil war, railways in the kingdom will find a new youth. On Monday 18 February, in the province of Banteay Meanchey, the government has officially proceeded to the launch of the restoration work for a portion of the network, covering a distance of 552 km. These railways will connect Phnom Penh to Poipet (386 km) and Phnom Penh to Sihanoukville (266 km). The restoration of the Phnom Penh-Sihanoukville line will take 23 months, whereas the Phnom Penh-Poipet line will take 22 months.

The total cost will be $73 million. The Cambodian government will finance $15.2 million, the ADB $42 million, OPEC $13 million, and Malaysia $2.8 million. Haruhiko Kuroda, ADB president, is satisfied about this project: “This even shows the importance of the government policy for the return to prosperity in the kingdom.”

The Australian company Toll Holding obtained a 32-year concession for the railway network in Cambodia [KI-Media: Could this explain the presence of Kith Meng at the inauguration?]. A French-Belgium-Thai consortium will take care of the restoration project. The authorities hope that these improvements will lead to development of the transport of goods.

“The railways play an important role in the trade between our country and Thailand. They are of main importance as part of the trans-border railroad system,” Sun Chanthol, the minister of public works and transport, explained. This line will link, in 2015, Singapore to Kunming in China, crossing Thailand, Cambodia, Vietnam, Burma and Laos. Hun Sen took care to remind during the inauguration that: “$500 million is needed to build the railway line between Cambodia and Vietnam.”

Cambodia begins restoration of decades-old railway

PHNOM PENH, Feb. 18-(Kyodo), Cambodia began Monday restoring a 652-kilometer stretch of its decades-old railway system to enhance domestic and international trade, reduce transport costs and ease road traffic.

The $73 million rehabilitation project is expected to be completed in 23 months, according to Sun Chanthol, Cambodia's minister of Public Works and Transportation.

Of the outlay, the Asian Development Bank has provided $42 million in concessional loans, $13 million came from the Organization of Petroleum Exporting Countries as a grant, $2.8 million from Malaysia for iron materials and $15.2 million from the Cambodian government, he said.

The launch was presided over by Prime Minister Hun Sen and Haruhiko Kuroda, president of the ADB.

"This is one of the last steps in the creation of a regional railway that will stretch from Singapore to Beijing," Kuroda said at the inauguration ceremony in Sisophon near Cambodia's border with Thailand. "Soon, trains will be running from Singapore to Sihanoukville."

The project will rehabilitate two existing railways, 386 km from Phnom Penh to Poipet on the border with Thailand and another 266 km from Phnom Penh to Sihanoukville on the southwest coast.

The two routes were built in 1931 and 1960, respectively.

Railway services in Cambodia are now intermittent and unofficial trolleys with bamboo floors operate along portions of the railway.

The new project will rehabilitate 604 km of track and reconstruct another 48 km near the Thai border that was destroyed during wartime.

A statement by the ADB said in addition to supporting the repair of tracks and bridges, the bank is providing technical assistance to Cambodia to restructure the railway by appointing an international railway firm to operate, maintain and invest in the railway over the next 30 years.

"Investing in rail upgrade, maintenance, and better service delivery will help revitalize Cambodia's railways, enhance internal commerce and international trade, reduce transport costs, and ease road traffic," the ADB said.

The railway project is a vital component of the Greater Mekong Subregion's southern corridor that links Thailand, Cambodia and Vietnam.

Sun Chanthol said that once rehabilitation is completed, trains will operate with a speed of at least 50 km per hour.

Currently, Cambodian trains operate at speeds as low as 15 kmph.

ADB to provide Cambodia with 42 mln usd loan to upgrade rail network

Mon, Feb 18 2008

LONDON (Thomson Financial) - The Asian Development Bank (ADB) and the government of Cambodia have launched a project to restore rail traffic between Thailand and Cambodia by 2010, by rehabilitating around 600 kilometers of track and reconstructing another 48 km near the Thai border.

The ADB will prive a 42 mln usd concessional loan for the project -- a vital component of the Greater Mekong Subregion's southern corridor which links Thailand, Cambodia and VietNam -- from its Asian Development Fund.

In addition, the ADB will provide technical assistance to Cambodia to restructure the railway by appointing an international railway operator to operate, maintain and invest in the railway over the next 30 years.

"This is one of the last steps in the creation of a regional railway that will stretch from Singapore to Beijing," said ADB President Haruhiko Kuroda. Railway services in Cambodia are presently intermittent, and unofficial trolleys with bamboo floors operate along portions of the railway.

Investing in rail upgrade, maintenance, and better service delivery will help revitalize Cambodia's railways, enhance internal commerce and international trade, reduce transport costs, and ease road traffic, the international agency stated.

For once Cambodia's Strongman actually puts his muscle to some use

Cambodia's Prime Minister Hun Sen participates in the ground breaking ceremony of a new railway at Sisophon town in Banthey Meachey province, 469km (291 miles) northwest of Phnom Penh, February 18, 2008. Cambodia launched on Monday a $73 million project for the restoration and reconstruction of over 600 kmof railway track which will become part of the rail transportation route linking Singapore, Malaysia, Thailand and Vietnam to Kunming, China. REUTERS/Chor Sokunthea
Asian Development Bank (ADB) President Haruhiko Kuroda drives a bulldozer during the ground breaking ceremony of a new railway at Sisophon town in Banthey Meachey province, 469km (291 miles) northwest of Phnom Penh, February 18, 2008. Cambodia launched on Monday a $73 million project for the restoration and reconstruction of over 600 km of railway track which will become part of the rail transportation route linking Singapore, Malaysia, Thailand and Vietnam to Kunming, China. REUTERS/Chor Sokunthea
Cambodia's Prime Minister Hun Sen (L) waves while walking with Asian Development Bank (ADB) President Haruhiko Kuroda during the ground breaking ceremony of a new railway at Sisophon town in Banthey Meachey province, 469km (291 miles) northwest of Phnom Penh, February 18, 2008. Cambodia launched on Monday a $73 million project for the restoration and reconstruction of over 600 km of railway track which will become part of the rail transportation route linking Singapore, Malaysia, Thailand and Vietnam to Kunming, China. REUTERS/Chor Sokunthea

Cambodia To Start Restoring Decades-Old Railway System

Phnom Penh, Feb. 16 (Xinhua) - Cambodia will hold a ceremony on Monday in Serey Sophon, Banteay Meanchey province, next to the border with Thailand, to restore its decades-old national railway system, an official said here on Saturday.

Budget for the rehabilitation is from grant aid and loan package of the Asia Development Bank (ADB), said Ou Pheak Von Mony, director general of the Royal Cambodian Railway Company.

Upon completion, the railway will become part of the Asia network which links Singapore and China, national television network TVK quoted the official as saying.

The ceremony will be presided over by Prime Minister Hun Sen and visiting ADB President Haruhiko Kuroda, said an ADB press release.

The total cost stands at 73 million US dollars, with 42 million US dollars of loan from ADB, 13 million US dollars of grant aid from the Organization of Petroleum Exporting Countries ( OPEC), 15.2 million US dollars from the Cambodian government, and 2.8 million US dollars of grant aid for iron materials from Malaysia, it said.

The project aims to support Cambodia's economic development and strengthen sub-regional integration by enabling cost-effective and efficient railway transport within Cambodia and between Cambodia and Thailand, Malaysia, and Singapore, it said.

Access to efficient railway services would substantially improve the efficiency of Cambodia's transport system by enabling efficient and safe railway transport for heavy, bulky, and hazardous cargo, such as cement, containers, and fuel, which are currently carried by more expensive and less safe road haulage, it added.

The 264-km Phnom Penh-Sihanoukville route and the 386-km Phnom Penh-Poipet route were respectively built in 1960 and 1931. They are the only two railways of the kingdom, currently providing transportation for trains at a speed as low as 15 km an hour.

The Asia railway network is expected to run 5,500 km, linking Singapore and China and including Malaysia, Thailand, Cambodia and Vietnam en route.