Cambodia will cut the fees of its two ports as well as those of the national shipping agency Kamsab, official sources have confirmed.

The Sihanoukville Autonomous Port (PAS), Kampuchea Shipping Agency and Brokers (Kamsab) and the Phnom Penh Autonomous Port (PPAP) reduced their fees by 10%, 5% and 10%, respectively, as of May 1, the Ministry of Public Works and Transport (MPWT) said in a statement. The statement also said that trucking companies would reduced prices by US$10 and US$5 per 40-foot and 20-foot container.

Prime minister Hun Sen has pushed hard for cuts. He was  reportedly stung when, in a recent meeting with transport firms, complaints of high “informal expenses,” an apparent reference to bribes, were made.

“We must do it,” Hun Sen said in one local press report. “It is corruption ... which causes competitiveness to decrease.”

“The savings ... will allow for more containers to come to our ports at reduced costs. This way, the price of imported goods can decrease, and our exports can compete with others,” the report quoted Hun Sen as having said.

PAS is studying, along with Japan’s overseas aid agency, JICA, the feasibility of building a new container terminal 350 metres long with 14.5 meters draft, transport minister Sun Chanthol said through a ministry statement. Such length and depth would allow 93% of the vessels in the world to call at Sihanoukville, a significant boost for what is now a small regional port.

“The construction is planned to begin in early 2017 and to complete in 2021,” the statement added.

Underscoring the significance of this news is the recent reopening of the rail link between Phnom Penh and Sihanoukville. Initially, trains will only run weekends and carry passengers, but longer-term, they are expected to carry freight.

By Michael Mackey

Southeast Asia Correspondent | Bangkok