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Logistics System Development Strategies for Cambodia 2015 Knowledge Sharing Program Construction and Infrastructure Policy Consultation Project

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Logistics System Development Strategies for Cambodia 2015 Knowledge Sharing Program Construction and Infrastructure Policy Consultation Project Logistics System Development Strategies for Cambodia 2015 Knowledge Sharing Program Construction and Infrastructure Policy Consultation Project Project Participants Execution of the Project (1) : Korea Research Institute for Human Resources Kim Jonghak(National Infrastructure Research Division, PM) Kim Jungi (National Infrastructure Research Division) Oh Sungho (National Infrastructure Research Division) Ko Yongseok (National Infrastructure Research Division) Park Jongil (National Infrastructure Research Division) Hong Kyoungsun (National Infrastructure Research Division) Park Bora(National Infrastructure Research Division) Execution of the Project (2) : External Expertise Lee Hangsook (Incheon University) Jeon Chanseok (PTOW consulting) Local Research Team in Cambodia Ministry of Public Work and Transportation ∣ Preface ∣ The Knowledge Sharing Program (KSP), launched to share the experiences and knowledge that Korea has acquired in the process of economic growth with developing countries around the world, has become a major part of Korea’s ODA projects. KSP was launched in 2004, and has opened the way for Korean companies looking for opportunities in overseas businesses. It has also discovered new growth potential in foreign markets, so there has been increasing demand for KSP projects. By providing policy consultation in construction and infrastructure areas where Korean companies show strength, KSP projects can be implemented more strategically and the follow-up projects can be planned and integrated more effectively. This year’s KSP project was launched based on the expertise of the Korea Research Institute for Human Settlements (KRIHS), and the policy consultation agenda will be developed to support the recipient country’s socioeconomic development; Relevant overseas projects will be planned to open up new doors to overseas markets for Korean companies. Since April 2015, KRIHS has devoted all of its resources and efforts to this “Logistics System Development Strategies for Cambodia KSP”, arranging discussions, an interim report, a policy authorities training program and a final report between the two countries. At the final report held in Cambodia, the final project plan, which was prepared through a number of discussions with the policy authorities in Cambodia, was announced. This report includes KRIHS’ policy consultation for Cambodia. KRIHS has examined the current state of logistics in Cambodia, shared Korea’s experience in logistics development policies, studied implications for Cambodia’s future logistics policies and provided policy suggestions for Cambodia. We would like to express our sincere gratitude to all the KRIHS researchers and external advisors who worked very hard to study and share Korea’s economic development model and all the affiliated organizations and local experts in Cambodia for their support and cooperation. We also thank the reviewers and advisors who gave valuable opinions and ideas as the report was developed. We would like to send out a very special thank you to the International Economic Affairs Bureau of the Ministry of Strategy and Finance and its officials for their efforts and valuable administrative support. Thank you once again to everyone for their hard work and dedication, and we promise all of you that we will do out best to advance our KSP project and to contribute to the national development and prosperity of Laos. Lastly, we would like to point out that the opinions included in this report are the opinions of the experts and advisors who have participated in the project and that they do not reflect the official opinion of the Korea Research Institute for Human Settlements (KRIHS). August 2016 Kim Dong-joo President of KRIHS Contents Implications and Expected Effects of Logistics System Development Strategies for Cambodia 1 Chapter 1. Introduction 3 Section 1. Background and Necessity of Study 3 Section 2. Study Objective and Content 6 Section 3. Study Scope and Method 8 1Chapter 2. Current Status of Social Economy & Logistics Infrastructure in Cambodia 11 Section 1. Review of Upper Plan 12 Section 2. Social Economic Status 16 Section 3. Current Status and Problems Related to Logistics Infrastructure 23 Section 4. Implications on Policies 75 Chapter 3. Institution and Operation of Logistics in Korea 77 Section 1. Legal Institutions 78 Section 2. Logistic Infrastructure 93 2Section 3. Logistic System 104 3Section 4. Implication of Policies 114 4 2015 Knowledge Sharing Program III Chapter 4. Logistics Development Strategy for Cambodia 119 Section 1. Basic Direction 120 Section 2. Improvement Strategies for Logistics Infrastructure 124 Section 3. Software Improvement Strategies 157 4Section 4. Comprehensive Action Strategies 166 Chapter 5. Conclusion 169 Section 1. Comprehensive Suggestions on Policies 169 Section 2. Project Achievement 174 Section 3. Financing Plans 176 Reference 181 5Appendix. Logistic Function and System 183 <Table 1-1> Map and Overall Conditions of Cambodia ······················································· 4 <Table 2-1> Economic Index of Cambodia ········································································ 16 <Table 2-2> Comparison of Cambodia and Adjacent Countries ········································ 21 <Table 2-3> Cambodian Government Bodies and Names ·················································· 28 <Table 2-4> Road Density Compared to Adjacent Southeast Asian Countries ················· 29 <Table 2-5> International Road Network in Cambodia (based on 2011) ··························· 35 <Table 2-6> 1-Digit, 2-Digit Road Enhancement Project in Cambodia ····························· 37 <Table 2-7> China’s Road Network Plan Details ······························································· 40 <Table 2-8> Japan’s Cambodian Road Network Plan Details ············································ 41 <Table 2-9> Railroad Stations of Northen Route ······························································· 43 <Table 2-10> Railroad History of South Route ·································································· 45 <Table 2-11> Overview of Routes in the Railroad Development Plan ······························ 48 <Table 2-12> Maximum Ship Capacity of Mekong River ················································· 50 <Table 2-13> Size of Phnom Penh Port ·············································································· 52 <Table 2-14> Sihanoukville Port Facilities ········································································ 56 <Table 2-15> Overview of Storage Facilities ····································································· 56 <Table 2-16> Number of Ships at Sihanoukville Port ························································ 57 <Table 2-17> Amount of Cargo Imported and Exported at Sihanoukville Port ················· 57 <Table 2-18> Amount of Cargo Processed at Sihanoukville Port ······································ 58 <Table 2-19> Number of Passenger Traffic at Sihanoukville Port ····································· 58 <Table 2-20> Development Plans of Sihanoukville Port ···················································· 58 <Table 2-21> Special Economic Zone of Sihanoukville Port (SEZ) ·································· 59 <Table 2-22> Summary of Other Small Sea Ports ······························································ 60 <Table 2-23> Other Sea Ports in Cambodia ······································································· 60 <Table 2-24> Overview of Main International Dry Ports ··················································· 61 <Table 2-25> Facility Sizes of Cambodia Airports ···························································· 63 <Table 2-26>Overview of Operated Routes at Phnom Penh International Airport ············ 64 <Table 2-27> Annual Overview of Passengers at Phnom Penh International Airport ············· 64 <Table 2-28> Annual Overview of Handled Cargo at Phnom Penh International ············· 65 <Table 2-29> Overview of the Operated Routes at Siem Reap International Airport ················ 66 <Table 2-30> Annual Overview of Passengers at Siem Reap International Airport ··········· 66 <Table 2-31> Annual Overview of Handled Cargo at Siem Reap International Airport ············· 66 <Table2-32> Overview of the Operated Routes at Sihanoukville International Airport ············· 67 <Table2-33> Annual Overview of Passengers at Sihanoukville International Airport ········ 67 <Table2-34> Annual Overview of Handled Cargo at Sihanoukville International Airport ············· 67 <Table 3-1> Comparison among the National Basic Plans on Logistics ···························· 84 <Table 3-2> Logistics-related Laws in Korea ···································································· 87 <Table 3-3> Logistics Surveys in Korea ············································································· 89 <Table 3-4> Agency Responsibilities ················································································· 91 <Table 3-5> Current Condition of Logistics Facilities Per Region ·································· 102 6 2015 Knowledge Sharing Program III <Table 3-6> Current Conditions of Logistics Facilities in Korea ····································· 103 <Table 3-7> Staged Plans to Establish Comprehensive Logistic Network ······················ 108 <Table 3-8> Major Services and Staged Establishment Plans ·········································· 110 <Table 3-9> Specification of Pallet ··················································································
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