The Toll Group, one of the Asian region's leading providers of integrated logistics services, has signed an agreement with the Royal Government of Cambodia to operate the country's railways under a thirty year concession.
Under the concession agreement with the Cambodian Government, a joint venture between Toll, the majority partner (55%) and the Royal Group (45%), will become the operator of the Cambodian rail network and related freight logistics.
The Royal Group is a Cambodian conglomerate with successful operations in a range of businesses in Cambodia including banking, telecommunications and the media.
"This agreement complements Toll's existing presence in Cambodia through its oil and gas logistics operation. As the operator of the railways, we now have a strong strategic partnership with the Government of Cambodia that will see future benefits for Toll and the Cambodian people," said Paul Little, Managing Director of the Toll Group.
"The Cambodian Government has committed in our agreement to seeing more freight transported by rail. They have acknowledged that an efficient intermodal rail and integrated logistics operation will underpin Cambodia's economic development both locally and across the Asian region.
"Over time, the Cambodian railways are likely to become a vital part of the planned rail link between Singapore and China which will include Thailand, Malaysia, Cambodia and Vietnam. As the long term operator of the Cambodian railways through its involvement in the joint venture, the Toll Group will be excellently placed if the planned expansion occurs," said Mr Little.