Nippon Express (Cambodia) Co., Ltd., a local subsidiary of Nippon Express Co., Ltd., recently held a groundbreaking ceremony to mark the start of construction on a new warehouse in the Phnom Penh Special Economic Zone (SEZ) in the Kingdom of Cambodia.
Cambodia’s economy has grown at an annual rate of around 7% in recent years, and it is expected to continue enjoying a high growth rate into the future. Personal consumption in Cambodia has risen as national income has improved, and this is likely to drive greater demand for the import of consumption goods and for domestic logistics/warehouse storage.
The Phnom Penh SEZ offers a very convenient location as a logistics site, being 18km from the capital Phnom Penh and 8km from Phnom Penh International Airport and situated along National Road No. 4 connecting to Sihanoukville Autonomous Port, the country’s key deep-sea port; about 90 Japanese and other companies currently operate in this SEZ. The SEZ also sits in the Greater Mekong Sub-region Southern Economic Corridor, making it a strategic hub for logistics linking up Bangkok, Thailand and Ho Chi Minh City, Vietnam, and expectations are high for still further growth in logistics demand.
Nippon Express Cambodia decided to construct this new business location to serve the full range of its customers’ logistics needs, including air/ocean cargo forwarding, domestic sales logistics, manufacturing logistics (just-in-time delivery), cross-border truck transport, and storage/distribution using air-conditioned facilities.
With further growth anticipated in both Cambodia and Southeast Asia as a whole, Nippon Express is striving to bolster its logistics functions in the area and expand its global logistics business by satisfying the full scope of customer needs.