Cambodian biggest port sees China coveting Japanese dominant role
Nikkei reported that once a tranquil seaside enclave in southwestern Cambodia, Sihanoukville, or Kompong Som, has turned into a paradise for Chinese investors in recent years. Casinos, hotels, restaurants, massage parlors and supermarkets are festooned in signs in Chinese. More buildings are under construction, fueled by an incessant inflow of Chinese money and people.
Although the city, 220 km southwest of the capital Phnom Penh and named after the country’s late king, is becoming a Chinese outpost, the key feature that makes Sihanoukville shine — the only deep-water seaport in the country — remains out of Beijing’s reach.
The state-owned operator Sihanoukville Autonomous Port, or PAS in its French acronym, has been largely financed by the Japanese government for almost two decades. The port handles over 70% of Cambodia’s surface cargo, expanding hand-in-hand with the rapid growth of the Cambodian economy, while being the largest listed company on the local stock exchange. The port also symbolizes the rivalry between China and Japan in the country. Beijing is being frustrated by Tokyo’s renewed resolve to further tighten its ties with the port.
On June 25, the port opened its latest extension with the help of Japanese funds. A new multipurpose terminal has a pier with a depth of 13.5 meters, allowing larger cargo ships and bulk carriers to anchor. Another quay is reserved for the country’s first oil and gas exploration logistics base. An offshore oil and gas field, discovered in the Gulf of Thailand, is now being developed by KrisEnergy, a Singapore-listed unit of Keppel Corp., and is expected to begin operations by 2019.
Source : Nikkei