EuroCham Cambodia and CDC Join Forces to Boost Efficiency at Sihanoukville Autonomous Port

EuroCham Cambodia and the Council for the Development of Cambodia (CDC) met on 16 January 2026 for a meeting focused on optimizing operations at the Sihanoukville Autonomous Port (PAS).

Presided over by His Excellency Sun Chanthol, Deputy Prime Minister and First Vice-President of the CDC, and led by Tassilo Brinzer, Vice-President of EuroCham, the meeting addressed the looming saturation of Cambodia’s only deep-sea port, as container volumes approach 1.5 million TEUs in 2026

Critical Role of PAS in Cambodia’s Economy

PAS handles nearly 70% of the Kingdom’s containerized cargo, a vital share for a country whose exports rose by 12% in 2025, driven by textiles, electronics, and agribusiness. This momentum persisted throughout 2025 despite recurring weekend traffic bottlenecks that slowed supply chain fluidity.

Behind these strong results lie structural vulnerabilities: congestion at the port gates, excessive reliance on road transport (85% of containers), and traffic spikes linked to weekly vessel rotations.

Amid fierce regional competition from giants like Singapore and Shanghai, PAS must accelerate modernization to support Cambodia’s goal of reaching USD 20 billion in exports by 2028.

Concrete Proposals from the Private Sector

The EuroCham Transport & Logistics Committee, chaired by Kaushal Rohilla (Managing Director, CMA CGM Cambodia), presented a structured set of recommendations built around four pillars:

1. Digital integration: Harmonize EDI (Electronic Data Interchange) systems among PAS, customs, and private operators to cut processing times from 48 to 12 hours.

2. Infrastructure improvement: Expand road access and implement AI-based gate management systems inspired by Rotterdam’s models.

3. Rail development: Adjust railway tariffs to make rail freight more competitive with trucking, targeting a 20% modal shift by 2028, supported by the renovated Phnom Penh–Sihanoukville railway line.

4. Traffic balancing: Offer tax incentives and weekday handling fee discounts to ease weekend congestion.

These initiatives align with the government’s National Logistics Master Plan, which aims for a Logistics Performance Index (LPI) score of 3.0 by 2030.

Expansion Prospects: Toward a Regional Hub

By 2027, PAS will launch its NCT2 and NCT3 terminals, financed through loans from JICA (Japan International Cooperation Agency), increasing capacity to 1.45 million TEUs per year.

These facilities will accommodate 93% of the Asian fleet, with direct routes to Europe and the U.S., thus reducing dependence on transshipment through Laem Chabang (Thailand). The adjacent Sihanoukville Port Special Economic Zone (SPSEZ), covering 112 hectares with 45 factories, adds momentum, generating USD 1.2 billion in FDI in 2025.

Despite these advances, challenges remain. Cambodia’s LPI remains stagnant at 2.4/5 (World Bank 2022), hampered by paper-based customs and limited cargo traceability. EuroCham advocates for rapid digitalization—including the ongoing Single Window pilot scheme—and operator training through Japan’s OCDI.

Macro and Regional Implications

This public-private partnership positions Cambodia as a logistics pivot in Southeast Asia, amid forecasts of +5.7% annual freight growth across the region through 2030 (WTO). For European investors, this translates into 15–20% lower logistics costs, enhancing export competitiveness toward the EU under the EBA agreement while mitigating geopolitical risks in the South China Sea.

Tassilo Brinzer emphasized: “Express logistics is improving, but large-scale volumes demand systemic transformation.”Sun Chanthol welcomed the commitment, promising quarterly follow-ups and inclusion of the recommendations in the National Development Plan 2026–2030.

As President Trump’s renewed “America First” agenda reshapes global supply chains, PAS emerges as a solid alternative hub within the Asia-Pacific region.