Panalpina Comes to Cambodia

Khmer Times
Sok Chan

With Panalpina in Cambodia, freight forwarding charges could become more competitive. Reuters

Switzerland-based Panalpina Group, the world’s leading provider of forwarding and logistics services, specializing in intercontinental air and ocean freight and associated supply chain management solutions, officially opened its own office in Cambodia yesterday.

Sven Marcus Raudszus, CEO of Panalpina Asia Pacific Management Pte. Ltd. and Panalpina World Transport (Cambodia) Co., Ltd., said the company’s presence in Cambodia is an important milestone to strengthen and develop its presence in Asia. Panalpina operates a network of some 500 branches in more than 80 countries.

“Drawing on in-depth industry know-how and customized IT systems, Panalpina manages the needs of its customers' supply chains, no matter how demanding they might be,” said Mr. Raudszus.

He pointed out that the manufacturing sector in Cambodia was expanding rapidly and there was a burgeoning demand for logistics services across the Cambodia-Thailand and Cambodia-Vietnam borders, with the Kingdom as a production base.

“This is a strong potential market for us and we can provide value-added services,” added Mr. Raudszus.

Mey Kalyan, senior adviser to the Supreme National Economic Council, welcomed the freight forwarding and supply chain group to Cambodia.

“It is good for Cambodia to have a good reputation with a world renowned logistics and freight forwarder group. They saw the demand for freight forwarding in a market that’s growing rapidly,” said Mr. Kalyan.

“With Panalpina here, freight forwarding charges will become more competitive,” he added.

While there is an increasing number of local-owned and foreign logistics and freight forwarding companies in Cambodia, transport costs remain high compared to Vietnam and Thailand.

According to a report from the Japan International Cooperation Agency, freight forwarding costs in Cambodia were about $540 per twenty foot equivalent unit (TEU) compared to $200 per TEU in Thailand and $250 per TEU in Vietnam. The 20-foot container, referred to as the TEU, is the industry standard for cargo volume.

Mr. Kalyan, agreed that freight forwarding costs in Cambodia were exorbitant and said something needed to be done to bring them down to “prevent freight forwarders from killing Cambodia’s manufacturing sector.”

“They [governments and relevant stakeholders] must carry out an investigation on corruption and unofficial fees for the transportation of goods and forwarding of cargo. If left unaddressed, it will weaken Cambodia’s competitiveness,” said Mr. Kalyan.

According to a report from Cambodia Airports, air cargo tonnage increased by 17.8 percent to 20,588 tons due to increased operations by regular and charter freighters from January to June this year. In the first half of this year, cargo tonnage in Phnom Penh Airport Cargo Terminal grew by 14 percent while Siem Reap Airport Cargo Terminal saw 24.9 percent more cargo compared to the same period last year.