Cambodia is pressing ahead with a costly canal project despite opposition from the United States and Vietnam.
The project, named Techo Funan Canal, aims to connect the capital Phnom Penh with the southeast seaport of Sihanoukville.
The canal stretches 180 kilometers and is expected to be completed in four years with a total investment of $1.7 billion, equivalent to 5.5% of Cambodia's GDP in 2023.
Geographically, Cambodia's second-largest port, Phnom Penh Port, is inland but connected to Vietnam's western coast and the sea via the Mekong River.
Despite the advantageous location of Phnom Penh Port, Cambodia has decided to build the canal.
Why?
Firstly, the canal will free inland ports like Phnom Penh from dependence on Vietnamese seaports. Currently, these inland ports either incur transit fees or must comply with Vietnamese regulations.
Once the Techo Funan Canal is completed, inland ports will gain the right to free navigation, reducing transit risks and enhancing national security.
Secondly, the canal's construction will drive the development of Cambodia's shipping industry and the cities and ports along the canal.
The provinces and cities the canal traverses include Preah Sihanouk, Kampot, Kandal, Takeo, and Phnom Penh. Once the canal is navigable, the economy of the surrounding areas will be boosted, creating more job opportunities.
Historically, many cities have flourished due to water transportation, such as Yangzhou and Suzhou in China, New York in the United States, St. Petersburg in Russia, and Panama City.
Lastly, water transport is considered the most economical and efficient mode of transportation.
Compared to air and land transport, water transport has significant advantages, including large capacity, low freight costs, low energy consumption, high labor productivity, and low maintenance costs.
Additionally, the lifespan of waterways is longer than that of roads and railways.
Overall, the Techo Funan Canal is a win-win project for Cambodia-China cooperation.
Cambodia urgently needs infrastructure development and economic growth, while China has abundant experience in infrastructure construction and financial strength, making this project possible.
The implementation of this project will bring significant economic benefits and strategic advantages to Cambodia.
It will not only increase the efficiency and capacity of cargo transportation but also drive the development of cities along the route, increase employment, and promote economic diversification.
At the same time, for China, participating in such infrastructure projects will enhance its influence and geopolitical status in the region.
However, it's worth noting that the project also faces some challenges and risks. For example, it may face pressure and controversy in terms of environmental protection, ecological balance, and political and economic relations with neighboring countries.
Therefore, close cooperation among all parties is needed during the project implementation process to address challenges and ensure the smooth progress of the project, achieving its expected economic and strategic goals to the fullest extent possible.
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