asianews

We are lucky in that we have a diverse portfolio of customers, including mining, oil and telecoms. We also have imports by land and air as well as exports, while So Nguon obviously had a strong focus on connecting with the export shipping lane in Sihanoukville. Our Asia Road Network, which we extended into Cambodia this year, is also really starting to see some success because the crisis is encouraging people to look for a cheaper option than air freight. And it’s much faster than moving goods by sea from Bangkok through Sihanoukville, which can take up to 15 days. We drive overnight, so there is a tremendous opportunity for customers to get their goods shipped quickly. The garment slowdown has affected us because we import accessories and fabrics and export documents and garment samples, but we have not been as adversely affected as the freight forwarders that focus on exports of ready-made garments to the US.

Consumer goods, especially consumer electronics and computers, are holding up as the middle class is rising and people have more spending power. There is also a lot of imports of baby stuff. The telecoms industry is very dynamic, and they are bringing in a lot of equipment to build towers. We are also seeing a pickup in garments, with many factories receiving new orders and showing interest in bringing in fabrics and accessories.

Cambodia is lagging behind in GMS development, which is unfortunate as building a strong economic corridor will not only stimulate the economy but also provide jobs in the transport sector and increase economic productivity near those roads. Some countries are picking it up faster than others. For example, Laos realised very quickly that as a landlocked country they had to do something, much like Switzerland did in Europe. They got proper funding to build a bridge across the Mekong and built some extremely good roads across the southern part of Laos. They also have incentives for companies to register trucks there. In Cambodia, the government doesn’t have special incentives for the transport industry, which is a pity.

What the industry most urgently needs is incentives to bring in proper equipment instead of having all these local companies with secondhand trucks that are 10, 15, 20 years old. If you import a truck now, you pay a 40 percent import tariff, including duty, special tax and VAT. We would like to become a showpiece for the transport industry, but at the moment its is expensive to bring in a good fleet.

ASYCUDA is only used at the port in Sihanoukville. They are still trying to roll it out at the international airport, but I have heard nothing about a rollout plan at land border crossings. But in general, we are embracing IT technology and like to exchange data with customs electronically. It will speed up our clearance processes as long as the government starts using electronic data interchange and applies risk management profiling to that data. For our express products, that’s important. Electronic data exchange also benefits our customers, and the bigger customers are definitely interested in that.