Japan Lends $119M for Sihanoukville Port Expansion, Boosting Cambodia's Logistics Hub

Japan has provided a concessional loan of approximately $119 million to the Kingdom for the expansion of phase two of the Container Terminal Development Project at the Sihanoukville Autonomous Port (PAS), a move expected to significantly boost Cambodia’s logistics infrastructure and economic development. An exchange of notes on the Japanese Yen Loan was signed on July 13 by Minister of Foreign Affairs and International Cooperation Prak Sokhonn and Ueno Atsushi, the outgoing ambassador of Japan to Cambodia. A foreign ministry statement explained that the project aims to improve the container cargo handling capacity of Sihanoukville port, the only international deep-sea port in Cambodia, as well as enhance Cambodia’s logistic efficacy by developing a new container terminal and its related infrastructure. The continued financial assistance from Japan demonstrates its firm commitment to promoting trade and socio-economic development in Cambodia, and further strengthening the Cambodia-Japan Comprehensive Strategic Partnership, the ministry added. Phase one of the project, which began in 2022 with over $300 million in loans, is slated to enable PAS to accommodate larger vessels and expand its container storage and transshipment capacity. Phase two will further enhance these capabilities. Speaking at the signing event, Ambassador Ueno noted that the ceremony marked “another important milestone in our bilateral relationship and reaffirms Japan’s unwavering commitment to supporting the further development of Sihanoukville Port.” He expressed confidence that the project will not only enhance the port’s capacity and operational efficiency but also strengthen Cambodia’s economic competitiveness and regional connectivity. Since assuming his post in January 2023, Ambassador Ueno has signed 29 exchanges of notes for Japanese Official Development Assistance (ODA) projects, 23 of which were with Minister Sokhonn. He explained that Japan’s support to Cambodia is not one-way traffic, but a mutually beneficial relationship where both countries benefit. For instance, improvements in Cambodia’s infrastructure and healthcare system have also benefited Japanese companies operating in Cambodia and Japanese nationals residing there. He also highlighted Cambodia’s consistent support for many of Japan’s promoted policies and initiatives in the international community, emphasizing that their relationship has always been one of mutual benefit – a truly win-win partnership. The ambassador praised the close ties between the two countries and their cooperation in addressing regional and global challenges, citing the training of Ukrainian deminers as an example. As Ambassador Ueno prepares to bid farewell to Cambodia, he and Minister Sokhonn discussed key areas of cooperation, including politics, investment, national security, education, and people-to-people exchanges. According to the foreign ministry, both sides agreed that the comprehensive strategic partnership between Cambodia and Japan must be further strengthened and expanded to new sectors that could bring mutual benefits to both countries and their people. Ambassador Ueno expressed his confidence that the friendship and cooperation between Japan and Cambodia will continue to flourish under his successor, even as he prepares to leave Phnom Penh next week.