MARITIME, PORTS, SHIPPING AND INLAND WATERWAYS

1. Develop maritime transport and port laws and regulations following all relevant international conventions and rules

2. Consider opportunities for public-private sector partnerships or private sector participation in port operations

3. Promote the establishment of special economic zones at Sihanoukville and Phnom Penh ports

4. Introduce more efficient custom clearance procedures and systems

5. Support the enacting of the protocol reflecting the bilateral agreement reached with Vietnam to facilitate river navigation

6. Develop new port infrastructures in Phnom Penh, Sihanoukville, Kampong Cham and Chhong Kneas

7. Plan and develop new wharf infrastructures and accesses at important river crossings

8. Devise river dredging self financed mechanisms using private sector participation and improving navigation aids

9. Update and amend waterways transport regulations to ensure safety, security and environmental protection

10. Implement organizational reforms and develop capacity building programme for all involved in water transport

Sharing of Water Transport Responsibilities

Main responsibilities in water transport are shared between the MPWT, the Phnom Penh port, the Sihanoukville port, the Cambodia National Mekong Committee and the MRD for rural waterways.

Background

There are two major international ports in Cambodia, Sihanoukville and Phnom Penh. Sihanoukville is the only seaport with a current throughput of approximately 5 million tonnes. This throughput is expanding. Throughput in Phnom Penh is approximately 1 million tonnes and is stagnant.

Traffic in the two ports is specialized and concentrated in a few commodities: containers, cement and fuel for Sihanoukville and container, fuel and general cargo for Phnom Penh. Currently Sihanoukville and Phnom Penh Port are autonomous ports under the technical jurisdiction of the MPWT: they have freedom in their day to day operations, and their port charges are established by their respective management Boards. With this arrangement there is no clear separation of regulatory and operational responsibilities, since the MPWT is represented on the Boards of both Ports. Expansion of Phnom Penh port is limited by severe constraints: draft limitations on the Mekong, custom clearance problems, bilateral agreements with Vietnam, and location of the port within the core of the City of Phnom Penh.

Inland waterway transportation has been a traditional mean of moving goods and people in Cambodia, especially during the rainy season. This mode of transportation has only ever received limited support and faces severe constraints in terms of draught restrictions, poor navigation aids, and the absence of wharf infrastructures for important river crossings.

Policy Statements notes:

1) Maritime transport and ports legal framework

The Royal Government of Cambodia is committed to develop maritime transport and port laws and regulations as well as monitoring and enforcement mechanisms following all relevant international conventions and rules. To that effect, existing regulations are being updated and augmented to comply with international maritime conventions to which Cambodia is a party, and a Maritime law will be enacted and mechanisms set in place to ensure its implementation. Port policy and port laws will be developed as well as a legal framework for private ports operations. Systems of ship registration in Cambodia will also be reviewed and updated to improve monitoring of the national fleet and help to promote the national flag and maritime safety systems will be improved.

2) Two Entry Port System, Private sector participation and Competitiveness

The Royal Government of Cambodia recognizes the importance of maintaining both Sihanoukville and Phnom Penh as the two major ports and is committed to provide opportunities for future public-private sector partnerships or private sector participation in port operations. There is currently some competition between Sihanoukville and Phnom Penh port. This competition is good for both ports and is beneficial to the Cambodian consumers. Therefore, the Royal Government of Cambodia supports their continued operation, and possible future expansion. The two major ports, via their Management Boards, will continue to be fully responsible and accountable to the Royal Government of Cambodia for their management and for the level of charges they impose. As they are being managed as state-owned-enterprises, the port authorities will be encouraged to realize benefits from increased private sector participation; for example, in the operation of container terminals. In the future as alternative transport modes are improved in the ASEAN region, the two major Cambodian ports will face increased competition - both internally and externally. In order to enhance their competitiveness and viability, further public-private sector partnerships or private sector participation in their operation and management will be encouraged. Opportunities for increased private sector participation will also be developed throughout Cambodia, including shipyards, dry-docks, maritime search and rescue operations, maritime schools, shipbrokers, ship insurance, shipping agents and other related services.

3) Industrial Development in Phnom Penh and Sihanoukville ports

The Royal Government of Cambodia will promote the establishment of special economic zones for exports in Phnom Penh and Sihanoukville. In the context of regional development and in cooperation with neighbouring countries, the Royal Government of Cambodia will promote and regulate the establishment of Special Economic Zones in the ports vicinity for foreign owned “footloose” industries in textile, footwear and even electronics. These industrial zones will operate as a “free trade” or “duty free” zone where inputs will be exempted of duties provided that production is fully exported.

4) Custom Clearance

The Royal Government of Cambodia will introduce innovative customs clearance procedures and systems for port traffic to improve efficiency and throughput of freight. To that effect, innovative methods of customs inspection will be investigated for introduction so as to reduce dwell time for containers, increase port handling efficiency, and reduce transport time losses/increased costs, including inspection of sealed container shipments at dry ports.

5) Bilateral Agreement with Vietnam

The Royal Government of Cambodia is committed to enact the protocol reflecting the bilateral agreement reached with Vietnam in order to facilitate river navigation between the two countries. An important bilateral agreement has been negotiated between Cambodia and Vietnam regarding border crossings. It still needs to be fully ratified and a protocol is now required to facilitate authorization for international ships going to Phnom Penh Port to use the Bassac route as well as the Mekong route, abolition of transit charges to international ships entering Vietnam for destinations in Cambodia, simplification of custom formalities for entering vessels and removal of the requirement for vessels to come to a complete stop to allow pilots, custom and immigration officers to board.

6) New port infrastructures

The Royal Government of Cambodia will develop new port infrastructures in Phnom Penh, Sihanoukville, Kampong Cham and Chhong Kneas. In order to facilitate Port and City traffic growth, to improve port access and egress, and to reduce the environmental and safety risks, the Port of Phnom Penh will be expanded by constructing a new international container terminal downstream of Phnom Penh directly connected to the ring road. A new seaport will be built in Sihanoukville to accommodate the increase in trade. New port infrastructures are also planned in Chhong Kneas, to support tourism growth and in Kampong Cham to provide container throughput and multimodal links to the North-South river corridor.