Framework Agreement Signed Between Cambodia’s Ministry Of Public Works and Transport and Singapore’s YCH Group Pte Ltd to Develop Phnom Penh Logistics Complex Project
The Royal Government of Cambodia (“RGC”) has selected Singapore’s YCH Group Pte Ltd (“YCH”) to develop the Phnom Penh Logistics Complex (“PPLC”). The arrangement was cemented at a virtual signing ceremony on 04 March 2021 between YCH and the Cambodia’s Ministry of Public Works and Transport (“MPWT”)
1. The Royal Government of Cambodia (“RGC”) has selected Singapore’s YCH Group Pte Ltd (“YCH”) to develop the Phnom Penh Logistics Complex (“PPLC”). The arrangement was cemented at a virtual signing ceremony on 04 March 2021 between YCH and the Cambodia’s Ministry of Public Works and Transport (“MPWT”).
2. The Framework Agreement provides the basis for collaboration between MPWT, acting on behalf of the RGC, and YCH, who will design, develop, and operate the PPLC. The development is predicated on YCH’s “SuperPort Plus” concept. In addition to being a modern, world-class logistics complex, PPLC will also feature the use of logistics technology to improve resilience, visibility and logistics process flow, and a training academy to develop Cambodia’s local human capital in the logistics sector.
3. The PPLC will be part of the Smart Growth Connect initiative1, and the second project under the ASEAN Smart Logistics Network (ASLN)2, that supports the ASEAN Connectivity Master Plan 2025. It is expected to help strengthen Cambodia’s connectivity with the broader intra-regional trade flows, particularly among the Mekong countries (Cambodia, Laos, Myanmar, Thailand and Vietnam) and Southwestern China, and contribute towards Cambodia’s long-term economic growth.
4. The project has garnered significant interest from the international infrastructure financing ecosystem. Financial institutions like International Finance Corporation (IFC), a member of the World Bank Group, and Clifford Capital Pte Ltd, a specialist arranger and provider of project and structured finance solutions have expressed interest to fund the various aspects of the project. Infrastructure Asia (“InfraAsia”), who has facilitated the discussion between the RGC and YCH, will continue to onboard players in the logistics ecosystem, professional service providers and financiers to the project.
5. H.E. Sun Chanthol, Senior Minister and Minister of Public Works and Transport of Cambodia, said, “The RGC welcomes the partnership with YCH as Cambodia and Singapore celebrate 55 years of diplomatic ties. This partnership will support Cambodia to realise its vision to be a regional logistics hub as outlined in the Interim Master Plan on Intermodal Transport Connectivity and Logistics System. Logistics is a key sector for Cambodia to achieve our target of being an upper middle-income country by 2030 and high-income country by 2050. We look forward to working with YCH to incorporate international best practices into PPLC, to maximise its potential”.
6. Dr Robert Yap, Executive Chairman, YCH, said, “This Framework Agreement is significant on several levels. First, it reflects the spirit of collaboration between the RGC and YCH Group in this Cambodia-Singapore flagship logistics project. Under this collaboration, we will not only build a logistics complex, but also a comprehensive logistics ecosystem and a competent local logistics workforce. Second, the Agreement marks the start of a long-term, symbiotic partnership, in which YCH will work closely with the RGC to continue involving relevant Cambodian and international companies to ensure the success of this project and facilitate regional and sub regional trade integration.”
7. Mr Seth Tan, Executive Director, Infrastructure Asia, said, “The COVID-19 pandemic has shown the importance of resilient logistics and supply chains, and InfraAsia is pleased to have facilitated the discussions between the RGC and YCH. InfraAsia will continue to bring more international collaborators to support the RGC, not only in PPLC but also in other infrastructure projects.”
1 Smart Growth Connect (SGConnect) initiative is an ASEAN Business Advisory Council 2018 Fifth Legacy Project spearheaded by YCH. It aims to help growing cities alleviate their growing urbanisation pains by piloting Smart Growth Centres in each ASEAN member state, each with varying sophistication of technologies and human capital intensity but similar in resource productivity and efficiency. The PPLC project will be the second project launched under the SGConnect initiative.
2 Launched on 14 November 2020 during the 37th ASEAN Summit, the ASEAN Smart Logistics Network (ASLN) is a collaborative platform with a shared goal of smart and sustainable growth based on smart logistics infrastructure, aiming to support the ASEAN Connectivity Master Plan 2025. It aims to achieve a seamlessly and comprehensively connected and integrated ASEAN, in order to promote competitiveness and inclusiveness, as well as better position the region as an economic bloc.
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About Ministry of Public Works and Transport
The Ministry of Public Works and Transport (MPWT) is the government entity responsible for planning and executing infrastructure related projects in Cambodia. MPWT as chairs of Logistics Steering Committee has submitted to and received from NLC the approval of the Interim Master Plan on Intermodal Transport Connectivity and Logistics System (IMP-ITC-LS), which creates an ambitious multi-year strategy to improve roads, railways, ports and inland waterways, urban transport, trade and logistics. PPLC has been identified as one of hundreds of projects under IMP-ITC-LS and designed to develop an integrated multimodal transport network and improved logistics to support Cambodia to realize its vision to be a region logistics hub, enhance competitiveness and improve global supply chain. For more information, please visit https://www.mpwt.gov.kh
About YCH Group Pte Ltd
YCH Group is Singapore’s leading homegrown, end-to-end supply chain solutions partner to some of the world's largest companies and favourite brands across more than 100 cities in the Asia Pacific region. YCH focuses on boosting productivity and sustainability for its customers with its proprietary best-in-class suite of award-winning solutions across industries such as fast-moving consumer goods, electronics, chemical and healthcare, cold chain logistics, and e-Commerce. A strong proponent of innovation, YCH is recognised for its 7PL™ approach in seamlessly integrating supply chain strategy with execution. For more information, please visit https://www.ych.com/
About Infrastructure Asia
Infrastructure Asia aims to support Asia’s social and economic growth through infrastructure development. Infrastructure Asia was established by Enterprise Singapore and Monetary Authority of Singapore to support infrastructure financing and development in the region. It does so through early project scoping, best practice sharing and brokering, harnessing Singapore’s best-in-class infrastructure ecosystem (international developers, engineering and professional services, along with financial institutions and multilateral development entities). It also works with global players in the regional infrastructure ecosystem and leverages the collective capabilities and networks of various government agencies to catalyse more trade and investments into infrastructure in the region. For more information, please visit https://www.infrastructureasia.org/