In a landmark achievement for Cambodia’s maritime industry, the Sihanoukville Autonomous Port (PAS) has officially surpassed the 1 million TEU (Twenty-foot Equivalent Units) milestone in annual container throughput.
This accomplishment, marked by a 29% year-on-year increase, signals the growing importance of Cambodia’s sole deep-sea port as a key player in regional and global trade.
Prime Minister Hun Manet took to social media on December 21 to celebrate the achievement, emphasising the pivotal role the port plays in the nation’s economic growth.
“This morning at 8 am, Sihanoukville Port recorded an unprecedented increase in container volume, reaching 1 million TEUs,” he wrote.
The milestone underscores the port’s ongoing growth and its expanding capacity to handle ever-larger volumes of goods, particularly as Cambodia’s role in global supply chains continues to evolve.
The port, located on the Bay of Kampong Saom, is Cambodia’s primary deep-sea port and one of the nation’s most crucial infrastructural assets.
Established in 1956, the port has been central to Cambodia’s economic development, serving as a vital link in global maritime trade.
The port benefits from natural geographical advantages, including deep waters and protection from heavy seas, making it an ideal location for container shipping.
The port has undergone continuous expansion over the decades to meet the growing demands of global commerce.
In 1998, the Sihanoukville Port was officially recognised as an autonomous institution, which allowed for more efficient management and financial operations.
Since its inception, PAS has been instrumental in facilitating Cambodia’s trade, with container traffic growing steadily. By 2015, the port had processed 391,000 TEUs, and the volume has only increased since.
“Today, the Sihanoukville Port operates eight berths and has modern cargo-handling equipment that supports a diverse range of services, from container shipping to oil logistics and cruise operations,” explained the port management authorities.
It is currently capable of accommodating vessels with up to 20,000 DWT (Deadweight Tonnage), but this is set to grow.
Growth and expansion plans
While the million TEU milestone is a historic achievement, it is just one step in the port’s broader vision.
With Cambodia aiming to increase its regional and global competitiveness, PAS is undergoing a major expansion.
The port’s capacity is expected to increase dramatically in the coming years, with plans to reach 2.64 million TEUs by 2030.
According to Ty Sakun, deputy director-general of the facility, the port’s container throughput is projected to increase exponentially in the coming years.
“In 2027, we expect to handle 1.5 million TEUs, and by 2030, our target is to reach 1.8 million. By 2035, the port will be capable of processing around 2.4 million,” Sakun explained, during a recent Investment Summit Forum in Preah Sihanouk Province.
This ambitious growth trajectory is supported by a phased expansion plan, with total investments amounting to over $1.3 billion.
The first phase of the expansion began with a December 2023 groundbreaking ceremony officiated by Cambodian Prime Minister Hun Manet and Japan’s Parliamentary Vice-Minister Ishibashi Rintaro.
With a budget of $203 million, funded by JICA loans, Phase 1 will include a 350-metre terminal with a depth of 14.5 metres, adding a capacity of 450,000 TEUs annually.
“The terminal is expected to be operational by 2027, bringing the port’s total capacity to 1,450,000 TEUs, enabling the facility to better handle cargo from the rapidly growing intra-Asia shipping market” said Sakun.
He added that this is an estimated increase and will be gradually verified as container transit data is received.
The second phase of the expansion, planned for completion by 2029, includes the construction of a 400-metre terminal with a depth of 16.5 metres. It is expected to add 570,000 TEUs to the port’s annual capacity.
By this stage, the port will be able to handle 2 million TEUs, ensuring that Sihanoukville remains competitive with other regional ports, such as those in Singapore and Hong Kong.
“This $547 million project – (combined funding for Phases 2 and 3) from JICA loans – will bring the port’s total handling capacity to 2,020,000 TEUs by 2029, ensuring Cambodia remains competitive in regional shipping,” explained Sakun.
The port targets container ships from the Indo-Pacific region, offering competitive freight costs and improving regional integration.
It establishes the port as a critical node in regional shipping, efficiently handling increased trade volumes.
The final phase, set for completion by 2030, will include a 430-metre terminal with a depth of 17.5 metres, enabling the port to accommodate the largest container ships operating in the region.
This phase will increase the port’s capacity by an additional 617,000 TEUs, bringing the total capacity to 2.64 million TEUs per year.
“These developments will allow Sihanoukville Port to position itself as a global gateway, directly attracting larger vessels and reducing the need for costly transshipment at other regional ports,” said Sakun.
Regional and global impact
The ongoing expansion efforts at Sihanoukville Port will not only solidify its role as Cambodia’s economic backbone but will also enhance the nation’s integration into the global supply chain.
Currently, a significant portion of the port’s import cargo traffic comes from China, with exports primarily destined for the US.
The expansion will offer significant advantages to the global shipping industry. By 2030, larger container ships will be able to dock directly, bypassing transshipment hubs like Singapore, reducing lead times for global freight.
“For example, ships typically need to transfer goods at regional ports, adding up to 72 hours to their journey,” said Sakun.
“With direct access to Sihanoukville, vessels will cut these delays, making the port a more attractive option for international shipping lines,” he added,
Hean Sahib, secretary of state at the Ministry of Economy and Finance and chairman of the Investment Promotion Working Group for Preah Sihanouk, noted that PAS is part of five key sectors to economic growth and attract investors.
“These include manufacturing, tourism and hospitality, logistics and transportation, finance and real estate, as well as agriculture and food processing,” said Sahib.
Provincial governor Mang Sineth said the deep-water port will position Preah Sihanouk as a critical logistics hub, not only for Cambodia but for the broader ASEAN region, especially as global trade continues to expand.
Japan has long supported the development of the port, with the Embassy of Japan congratulating the port on its achievement of 1 million TEUs.
“Japan has supported the development of Sihanoukville Port since 1999. We look forward to continuing our journey with Cambodia toward an even brighter future,” the embassy posted on Facebook.