Wednesday, May 2, 2012

Cambodia’s rail revamp off the tracks?

Problems and delays hound the Kingdom’s railway project

Efforts to get Cambodia’s train system rolling and improving the country’s transport infrastructure have hit repeated problems and some wonder if the US$142 million project might end up derailing completely.

In March, Australia logistics firm Toll Group and the Royal Group of Cambodia decided to suspend all train operations in Cambodia for one year beginning in April, according to a statement by the Asian Development Bank (ADB). The two companies are part of a joint-venture called Toll Royal Railway, which won a 30-year concession to run the Cambodian Railway Network.


But construction delays due to last year’s heavy flooding, as well as land acquisition problems, resettlement questions and cost overruns have plagued the project. Toll Holdings told the Cambodian Finance Ministry in a letter in March that it would suspend its work because the sub-contracted firms that are building the railway network were taking too long, and the project is now not profitable.

To be continued...

Source: Economics Today, Issue 114, April 02-08
Link: http://www.etmcambodia.com/blog.php?article=336

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