The Toll Group has signed an agreement with the Royal Government of Cambodia to operate the country's railways under a thirty-year concession.
Under the concession agreement, the Cambodian rail network and related freight logistics will be operated by a joint venture between Toll, the majority partner (55%) and the Royal Group (45%).
"This agreement complements Toll's existing presence in Cambodia through its oil and gas logistics operation," said Toll Group managing director Paul Little.
He added that the Cambodian Government has committed in the agreement to seeing more freight transported by rail, and has acknowledged that an efficient intermodal rail and integrated logistics operation will underpin Cambodia's economic development - both locally and across the Asian region.
The agreement is conditional on final confirmation of investment by the international community of around US$145 million. These funds will be used to upgrade the rail network and develop a modern intermodal facility on 98 hectares in Phnom Penh. Principal funding has been committed by the Asian Development Bank.
"Over time, the Cambodian railways are likely to become a vital part of the planned rail link between Singapore and China which will include Thailand, Malaysia, Cambodia and Vietnam," said Little.
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