[271010.EN.LOG] Toll Open Phase I Of Cambodian Railway

Toll Royal Railway, the company awarded the contract to operate the Cambodia railway system, has officially opened the line between Phnom Penh and Touk Meas.

The joint venture between Toll Group and local company Royal Group will manage the operation of the railway.

Initially with limited operation on this section of the southern line, the volume of rail traffic will increase once all tests have been carried out. This section of the line will be extended to the Sihanoukville container port and is expected to be completed and fully functional by May 2011.

With the Cambodian rail network and associated rolling stock and infrastructure in need of rehabilitation to effectively compete with road freight, the Asian Development Bank (ADB) initially proposed to commit around US$75 million of loan funds to this project once a concession was signed and various other conditions satisfied. 

Following submissions made by Toll during concession negotiations, the ADB and other bodies

subsequently committed further funds of around US$75 million for additional works to accelerate development of intermodal rail operations.

The entire rehabilitation project covers the South Line from Phnom Penh to the Port of Sihanoukville, the North Line from Phnom Penh to Poipet and rebuilding the ‘Missing Link'. The rehabilitation project will be completed by 2012.

Work on the segment of track between Phnom Penh and Touk Meas will continue until around May 2011 to bring it up to the agreed standard of acceptance and for handover to the operator.

Toll then plans to gradually take over the operation of the remaining parts of the track over the following months as the rest of the track is restored and renewed. In line with the completion of Phase II, Toll expects to commence the Sihanoukville container and fuel services from May

2011, although final acceptance of the track may not occur until a later date.

Thereafter, the sections between Phnom Penh and Poipet are scheduled to be completed by February 2012, with the aim being to have operational trains running on the Northern Line from May 2012.

Toll Royal Railway also hopes to see the handover of Phnom Penh and Samrong land take place in December 2010.

Greater Mekong opportunity: Singapore to Kunming railway line

The projects underway will put Cambodia in a better position when the time comes to link the country up to the Greater Mekong Region. It is anticipated that Cambodia will be ready to join this network and link up with Thailand by 2012 and with Vietnam by 2015, enabling cross-border services throughout South East Asia.

Source : EFT, 22.10.10.