Sihanoukville Logistics Hub Business Case

Challenge

The International Finance Corporation (IFC) supported the Cambodian Ministry of Public Works and Transport in shaping a modern logistics complex in Sihanoukville under a Public-Private Partnership (PPP) model. Within the JICA-backed Special Economic Zone of the Sihanoukville Port Area, a 60-hectare site was identified for development. The complex is designed to deliver state-of-the-art, value-added logistics services to enhance Cambodia’s role in regional and international trade. IFC engaged HPC to prepare the PPP business case, laying the foundation for an efficient, investment-ready logistics hub.

Tasks Performed

• Desk review of relevant available documents about port and SEZ complex development and logistics situation
• Advice in support of IFC for discussions with transport and logistics players in Cambodia
• Assistance in the design and setting up of consultations with stakeholders
• Project site visit and assessment
• Market analysis
• Financial analysis incl. CAPEX, OPEX, identification of possible revenue sources, an estimate of the expected equity payback period and internal rate of return for the industry
• Risk assessment to identify the risks that may impede the successful roll-out of any of the project components
• Identification and description of the objectives and scope of the PPP

Benefit

HPC empowered the Cambodian Ministry of Public Works and Transport to advance a modern, investment-ready logistics hub—boosting trade efficiency and positioning Sihanoukville as a key gateway in regional logistics.