Logistics Services To Promote Cambodian Exports

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Logistics Services To Promote Cambodian Exports
Logistics Services To Promote Cambodian Exports
Includes Cold Chain, Storage, Transport and other Ancillary Services
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SectorMost major industry classification systems use sources of revenue as their basis for classifying companies into specific sectors, subsectors and industries. In order to group like companies based on their sustainability-related risks and opportunities, SASB created the Sustainable Industry Classification System® (SICS®) and the classification of sectors, subsectors and industries in the SDG Investor Platform is based on SICS.
Food and Beverage
Food and Beverage Retail
Business Model Description

Invest in B2B businesses or facilities engaged in building efficient logistic services and support infrastructure

Khmer Cold Chain Co. Ltd. (KCC), founded in 2020, is a project company of InfraCo Asia Development Pte Ltd (InfraCo Asia) (primary shareholder). It provides temperature controlled logistics, delivering international quality services to Cambodian and regional farmers, agribusiness, food processers, pharmaceutical companies, food retailers and hotels, restaurants and food-caterers.

In 2021, KCC partnered with Phnom Penh Autonomous Port (PPAP) to build a cross-docking facility with controlled temperature conditions (large-scale cold storage warehouse and distribution center) in eastern Kandal province’s Kien Svay district. (11)

Auskhmer Import Export Co., Ltd. (AIEC), founded in 2001, imports and distributes food products and beverages, and provides import/export brokerage services, which include sourcing/importing, stocking/warehousing, order generation, merchandising and promotion execution, distribution and delivery. In 2016, Worldbridge International (Cambodia) Ltd acquired 55% stake in AIEC. (12)

Expected Impact

Development of logistics to reduce spoilage and enable Cambodia to expand its export income, thereby contributing to growth of economy.

How is this information gathered?
Updated: 30 Aug, 2022 Date of Production: 31 Aug, 2022
Cambodia
Indicative ReturnDescribes the rate of growth an investment is expected to generate within the IOA. The indicative return is identified for the IOA by establishing its Internal Rate of Return (IRR), Return of Investment (ROI) or Gross Profit Margin (GPM).
15% - 20% (in IRR)
Investment TimeframeDescribes the time period in which the IOA will pay-back the invested resources. The estimate is based on asset expected lifetime as the IOA will start generating accumulated positive cash-flows.
Medium Term (5–10 years)
Market SizeDescribes the value of potential addressable market of the IOA. The market size is identified for the IOA by establishing the value in USD, identifying the Compound Annual Growth Rate (CAGR) or providing a numeric unit critical to the IOA.
USD 100 million - USD 1 billion
Average Ticket Size (USD)Describes the USD amount for a typical investment required in the IOA.
USD 1 million - USD 10 million
Direct ImpactDescribes the primary SDG(s) the IOA addresses.
Zero Hunger (SDG 2)
Indirect ImpactDescribes the secondary SDG(s) the IOA addresses.
Good health and well-being (SDG 3) Decent Work and Economic Growth (SDG 8) Sustainable Cities and Communities (SDG 11)

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Sector Sources
  • (1) World Bank. (2020). Cambodia in the Time of COVID-19. https://pubdocs.worldbank.org/en/357291590674539831/CEU-Report-May2020-Final.pdf (2) Royal Government of Cambodia. (2018). Cambodian Sustainable Development Goals (CSDGs) Framework (2016-2030). https://data.opendevelopmentmekong.net/dataset/3aacd312-3b1e-429c-ac1e-33b90949607d/resource/d340c835-e705-40a4-8fb3-66f957670072/download/csdg_framework_2016-2030_english_last_final-1.pdf (3) World Food Programme. (2019). Cambodia Country Strategic Plan (2019-2023). https://docs.wfp.org/api/documents/WFP-0000112436/download/?_ga=2.241923010.1595998384.1580922941-1577799135.1580922941 (4) Trading Economics. (2022). Cambodia--Employees, Agriculture, Female (% of Female Employment). https://tradingeconomics.com/cambodia/employees-agriculture-female-percent-of-female-employment-wb-data.html#:~:text=Employment%20in%20agriculture%2C%20female%20(%25,compiled%20from%20officially%20recognized%20sources. (5) Asian Development Bank. (2021). Cambodia Agriculture, Natural Resoures, and Rural Development Sector Assessment, Strategy, and Road Map. Cambodia Agriculture Rural Development Map https://www.adb.org/sites/default/files/publication/718806/cambodia-agriculture-rural-development-road-map.pdf (6) Asian Development Bank. (2021). Cambodia Agriculture, Natural Resoures, and Rural Development Sector Assessment, Strategy, and Road Map. Cambodia Agriculture Rural Development Map https://www.adb.org/sites/default/files/publication/718806/cambodia-agriculture-rural-development-road-map.pdf (7) USAID. (2022). Agriculture and Food Security. https://www.usaid.gov/cambodia/agriculture-and-food-security (8) Nguyen, M. (2021). Cambodia Exporter Guide. https://apps.fas.usda.gov/newgainapi/api/Report/DownloadReportByFileName?fileName=Cambodia%20Exporter%20Guide_Ho%20Chi%20Minh%20City_Cambodia_05-03-2021.pdf (9) Chinda, T. & Thay, S. (2022). Long-term Food Waste Management in Phnom Penh Utilizing a System Dynamics Modeling Approach. https://www.eeer.org/upload/eer-2020-603.pdf (10) Royal Government of Cambodia. (2018). Rectangular Strategy for Growth, Employment, Equity and Efficiency: Building the Foundation toward Realizing the Cambodia Vision 2050 Phase IV. http://cnv.org.kh/wp-content/uploads/2012/10/Rectangular-Strategy-Phase-IV-of-the-Royal-Government-of-Cambodia-of-the-Sixth-Legislature-of-the-National-Assembly-2018-2023.pdf (11) May, K. (2021). Cold Storage Logistics Centre Set for Kandal. The Phnom Penh Post. https://www.phnompenhpost.com/business/cold-storage-logistics-centre-set-kandal
IOA Sources
  • (12) Kotoski, K. (2016). Logistics Firm Takes Shape. The Phnom Penh Post. https://www.phnompenhpost.com/business/logistics-firm-takes-shape (13) Fresh Plaza. (2022). Cambodia Cold Chian Infrastructure to Get $2 Million Boost. https://www.freshplaza.com/article/9404006/cambodian-cold-chain-infrastructure-to-get-2-million-boost/ (14) Thou, V. (2021). Supply Chain Woes Stunt Economy. The Phnom Penh Post. https://www.phnompenhpost.com/business/supply-chain-woes-stunt-economy (15) Shell Foundation. (2019). The 'Cold Chain' Opportunity: Reducing Posthavest Losses and Increasing Market Access for Rural Farmers. https://shellfoundation.org/feature_posts/the-cold-chain-opportunity/ (16) USAID. (2022). USAID Announces Partnership to Propel Economic Growth in Cambodia. https://www.usaid.gov/cambodia/press-releases/feb-22-2022-usaid-announces-partnerships-propel-economic-growth (17) Firn, M. (2021) Investment in Food Startup Azaylla to Source More Local Produce. Khmer Times. https://www.khmertimeskh.com/50945155/investment-in-food-startup-azaylla-to-source-more-local-produce/ (18) Royal Government of Cambodia. (2018). Cambodian Sustainable Development Goals (CSDGs) Framework (2016-2030). https://data.opendevelopmentmekong.net/dataset/3aacd312-3b1e-429c-ac1e-33b90949607d/resource/d340c835-e705-40a4-8fb3-66f957670072/download/csdg_framework_2016-2030_english_last_final-1.pdf (19) Ministry of Agriculture, Forestry and Fisheries. (2020). Agricultural Sector Master Plan 2030. Agricultural Sector Master Plan 2030 https://web.maff.gov.kh/documents/gQMqjQBOBX?lang=en (20) Royal Government of Cambodia. (2015). Industrial Development Policy 2015-2025. https://cdc.gov.kh/industrial-development-policy/ (21) ASEAN. (2017). Master Plan on ASEAN Connectivity 2025. https://asean.org/wp-content/uploads/2018/01/47.-December-2017-MPAC2025-2nd-Reprint-.pdf (22) Food and Agriculture Organization. (2003). Sub-Decree No. 47 on Food Hygience for Humans. https://www.informea.org/en/legislation/sub-decree-no-47-food-hygiene-humans (23) Council for the Development of Cambodia. (2021). Law on Investment. https://www.cambodiainvestment.gov.kh/en/law-on-investment-2021.html (24) USAID. (2008). Kandal province investment profile. https://pdf.usaid.gov/pdf_docs/PA00HV46.pdf (25) USAID. (2010). Pursat province investment profile. https://pdf.usaid.gov/pdf_docs/PA00HV4B.pdf