Toll Group to Operate Cambodian Railways

The Toll Group 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 percent) and the Royal Group (45 percent), will become the operator of the Cambodian rail network and related freight logistics.

“This agreement complements our 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 us and the Cambodian people,” said Paul Little, MD of the Toll Group.

The agreement is conditional upon the final confirmation of investment by the international community of circa US$145 million. These funds will be used to upgrade the rail network and to develop a modern inter-modal facility on 98 hectares in Phnom Penh. Principal funding has been committed by the Asian Development Bank.

“The Toll Royal Railways joint venture will make the most of these physical upgrades to improve reliability, safety and efficiency across the rail network. “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,” said Little.

Toll Group, www.toll.com.au