Australia’s Toll Group has divested its 55% share in the Toll Royal Railway concession in Cambodia to its joint venture partner, Cambodia’s Royal Group, effective December 19.

Toll Royal Railway has operated the Cambodian railway since October 2009. In that time, sections of Cambodia’s rail network have been reopened, such as the 264 km section between Phnom Penh and Sihanoukville, enabling the cartage of containers, fuel, coal, and cement on this southern line.

“The decision to divest our interest in the concession was not taken lightly, but it was decided after generating lower-than-expected returns over a period of time,” said Brian Kruger, managing director of Toll Group. “In addition, setbacks and delays in track rehabilitation works by external contractors over the past two years have in our view also impeded the efficient operation, and hence economic viability for Toll.”

Kruger said Toll will continue to be involved with the railway by assisting the Royal Group during the handover of operations as well as providing logistics support as Royal Group’s preferred supplier for domestic land transport and warehousing services.

– Asia Cargo News