Kandal Cold Storage Project
Cambodia has an underdeveloped cold chain. This means there are inefficiencies in the overall value chain for imports and exports. Most large users in Cambodia have their own cold storage facility requiring significant investments in non-core business activities, as there are few dedicated and reliable cold storage suppliers. Where available, cold logistics services are expensive, up to double the price of neighboring countries.
Country and Sectoral Background
Cambodia has an underdeveloped cold chain. This means there are huge wastage and inefficiencies in the overall value chain for imports and exports. Most large users in Cambodia have their own cold storage requiring significant investments in non-core business activities, as there are few dedicated and reliable cold storage suppliers. Where available, cold logistics services are expensive, up to double the price of neighboring countries. In addition to cost optimization, some users have internalized cold storage for quality control reasons, where a food safety incident could have major negative consequences.
For some importers, ‘informal’ methods are being used that can compromise food safety, without the end user’s knowledge. Transporters borrow, rent or buy outdated refrigerated containers that are past their useful life. Perishable fruit is trucked unprotected from temperature abuse that leads to damage and wastage. Seafood is sometimes imported ‘on-ice’ via commercial bus service or trucks rather than with controlled and traceable chilled transportation. These practices undermine food safety standards.
The Project
The Project will develop a Public Refrigerated Warehouse facility (cold storage) in Cambodia. The project consists of two facilities – a cross-docking facility adjacent to the Phnom Penh Autonomous Port (PPAP), which connects to the Mekong River and a distribution facility located closer to the center of Phnom Penh.
The cross-docking facility will be located at the LM17 container port on the Mekong River, allowing easy access to highways, rail and river barge routes to Ho Chi Minh port and the South China Sea. This makes it strategically attractive and in a prime position to be highly utilized. The Project objectives are to improve the cold chain, allow for better use of capital and contribute to more economic development in Cambodia.
Overview
Company: Khmer Cold Chain Company
Country: Cambodia
Location: Kandal Province
Sector: Logistics and Transport Infrastructure
Size: 36,205 cbm
Status: In development
Expected COD: Q1 2022
Expected Exit: Q4 2022
Capex: US$ 5.91M
Other Shareholder(s): InfraCo Cambodia Cold Chain Pte.Ltd.
Development Impact:
• Approximately 32,000 people will have improved access to infrastructure services
• Nearly 100 short-term jobs will be created during the construction
• More than 40 long-term jobs will be created during the operation