Recently, the thunderous sound of the full construction of the second phase of the Dechong Funan Canal project announced that this strategic waterway with a total length of about 180 kilometers has entered the fast lane of construction. For Cambodia, this is not only the excavation of a canal, but also a historical moment where a century old dream of going out to sea shines into reality.

The 180 kilometer canal connects the lifeline to the sea

The Dechong Funan Canal starts from Phnom Penh Autonomous Port in the north, passes through the provinces of Ganla, Chajiao, and Gongbu, and finally reaches the Gulf of Thailand in Baima Province. It is approximately 172.6 kilometers long, designed to be 100 meters wide and 5.4 meters deep, and can accommodate ships of 3000 deadweight tons. The total investment of the project is about 1.7 billion US dollars, developed using BOT mode, with local Cambodian enterprises holding 51% and China Road and Bridge Corporation holding 49%. Previously, over 30% of Cambodia's foreign trade goods had to be shipped through Vietnamese ports, and the logistics cost per container was twice that of neighboring countries. Export clearance fees were also 4 to 5 times higher than those of neighboring countries. After the completion of the canal, the journey from Phnom Penh to the Gulf of Thailand will be shortened by nearly half, and goods can be transported directly to the world.

23 logistics projects are being rolled out simultaneously

There are also 23 special projects for inland transportation and logistics that are being promoted in conjunction with the canal, with a total investment of approximately 3.3 billion US dollars, all of which will be included in the overall plan for the comprehensive multimodal transport logistics system from 2023 to 2033. Among them, 16 short-term and medium-term projects with an investment of 2.56 billion US dollars are planned to be concentrated and implemented before 2027; Nine long-term projects with an investment of 690 million US dollars, aiming for a vision of 2033. The Phnom Penh to Bayu Expressway is rushing to open by the end of 2026, the first phase of the new container terminal at Sihanouk Port will be put into operation within the year, and the preliminary preparations for the Phnom Penh to Siem Reap railway will be launched simultaneously. In 2026, Cambodia's total fiscal expenditure will reach 10.2 billion US dollars, of which about one-third will be invested in the infrastructure sector, driven by both policy and funding. Keywords: Infrastructure Engineering News Network, Canal, Logistics

Redrawn logistics map of the Indochinese Peninsula

The Dechong Funan Canal will be seamlessly linked with the China Laos Railway and the China Thailand Railway to form a land sea intermodal transport corridor from southwest China to Cambodia via Laos and Thailand. Once the canal is connected, goods from the upper reaches of the Mekong River can be directly transported out of the Gulf of Thailand through the Cambodian water transport system, greatly reducing dependence on Vietnamese ports. Cambodia will transform from a landlocked country long constrained by transit transportation to a regional logistics hub connecting the Lancang Mekong countries with ASEAN. The distribution of goods flow, logistics costs, and even regional supply chain layout in the entire Indochina Peninsula will be reshuffled due to the emergence of this canal.Editor/Gao Xue