Transport: Cambodia's railway network is set for major expansion towards China

Cambodia is embarking on an ambitious project to expand its railway network, strengthening its economic and strategic ties with China through a series of agreements and large-scale infrastructure investments that promise to reshape the country's connectivity and regional influence.

The plan not only includes the modernisation of existing lines but also the construction of new lines that will eventually connect the Cambodian capital, Phnom Penh, to the Thai border and, most importantly, to China via Vietnam and Laos

Historic agreements consolidate China-Cambodia railway vision

During Chinese President Xi Jinping's recent state visit to Cambodia, the two countries signed 37 cooperation agreements as part of a ‘shared future’ vision, with infrastructure, particularly railways, at the heart of their partnership.

These agreements are part of the ‘Diamond Cooperation Framework’, which aims to modernise Cambodia's industrial base, boost agricultural productivity and, above all, improve the country's logistics and transport corridors.

Multi-billion dollar investments and strategic corridors

The China Railway Construction Corporation (CRCC) has committed more than $5.3 billion to Cambodian infrastructure, with the railway network as the central pillar. The plan includes not only the modernisation of existing lines, but also the construction of new lines that will eventually connect the Cambodian capital, Phnom Penh, to the Thai border and, above all, to China via Vietnam and Laos.

One of the flagship projects is the modernisation of the Phnom Penh-Poipet railway line, which will be converted into an electrified standard-gauge line capable of reaching speeds of up to 160 km/h. China has pledged to provide 300 million yuan (approximately $44 million) in funding, out of an estimated total cost of $4 billion. The Cambodian government has opted for a build-operate-transfer model, with the aim of repaying the investment through revenue generated by the railway.

Regional connectivity and economic impact

The expansion of the rail network is not just about national logistics. It is a strategic initiative to integrate Cambodia into a wider regional network, linking it to China's Belt and Road Initiative (BRI) and facilitating trade throughout Southeast Asia. The new and upgraded lines will connect major cities, ports and border crossings, streamlining the movement of goods and people and reducing transport costs, a key factor in strengthening Cambodia's competitiveness.

Cambodia's National Transport Master Plan for 2023-2033 includes eight major railway projects representing a total investment of over $10 billion, including the modernisation of the high-speed rail network and the construction of new lines to international airports and border points. These projects, many of which are being carried out in partnership with Chinese companies, are expected to boost economic growth by reducing production costs, easing road traffic and opening up new markets for Cambodian products.

Strategic and geopolitical implications

Cambodia's decision to align its rail future with China's, notably through a $26.6 billion agreement for a 1,000 km network, marks a significant geopolitical shift, favouring Beijing over competing offers from the United States. This partnership reflects Cambodia's strategic calculation to secure long-term economic growth, technological expertise and a powerful ally as China asserts its role as a global leader in infrastructure.

Outlook

As construction accelerates, Cambodia's railway ambitions are set to transform not only its economy but also the broader dynamics of trade and connectivity in the region. The eventual extension of the network into China will position Cambodia as a key link in Southeast Asia's transport and supply chain ecosystem, underscoring the ‘ironclad’ friendship between Phnom Penh and Beijing.