freight ship docks at the Phnom Penh Port awaiting a consignment of
cargo in this file photo. A global slowdown in trade has hit heavily
Cambodia's two main shipping terminals. (Photo: Bloomberg)
Thursday, 05 March 2009
Written by May Kunmakara and George Mcleod
The Phnom Penh Post
30% drop in throughput at Phnom Penh Port
Cambodia's second largest container port has been affected more
heavily than Sihanoukville by the global economic crisis during the
first two months of this year
Global downturn hits trade, with flagging construction imports
accounting for the bulk of the losses since January
CARGO shipments at Cambodia's second-largest port have declined sharply
in the first two months of the year as global trade slows, say port
authorities, adding that hundreds of jobs have also been axed in the
downturn.
The Phnom Penh International Autonomous Sea Port reports a 30 percent
drop in throughput, largely due to falling imports of construction
materials, officials told the Post Wednesday.
"The decline is caused by the global financial storm that started to hit
at the end of last year. This affected not only our ports, but also
others in the region," said Hei Bavy, director general of the Phnom Penh
port.
He said that about 90 percent of goods crossing through the docks are
construction materials. With many of the country's construction projects
stopping or on hold, the port says shipments are in free fall.
"Developers are suspending their imports because they face the credit
crunch," he said, adding that staff had been cut from 700 to 400.
"I do plan to cut more staff, but I have reduced salaries to prevent
more layoffs," Hei Bavy said.
He added that the company is also instituting across-the-board cost cuts
to prevent further job losses.
"This affected not only our ports, but also others in the region"
Port traffic is falling globally, with Asia bearing the brunt of the
international trade slowdown. Singapore, the world's largest container
port, said container traffic was down 20 percent, and Shanghai, the
world's second biggest, down 19 percent, according to Bloomberg.
Cambodia's ports are reporting similar troubles, with officials blaming
not only a slowdown in the construction sector, but flagging overseas
garment sales as well.
The Finance Ministry in February reported a two-percent drop in garment
exports at the beginning of the year.
Lou Kim Chhun, director general of Sihanoukville International
Autonomous Port, told the Post Wednesday that he is waiting on figures
for February, but that container shipments were down 20 percent due to
the economic slowdown.
"The crisis has impacted our port revenue, which will hurt the
government's tariff and tax income," Lou Kim Chhun earlier told Rasmey
Kampuchea.
Hei Bavy said that the export of agricultural goods have been one bright
spot for the Phnom Penh Port.
"Agricultural exports have been stable, but I expect the crisis to
affect us for a long time," he said, adding that Cambodians should rely
more on domestically produced goods.
"If our people stop using imported products, it will support local
businesses. The crisis could drain our national wealth if people keep
buying foreign goods."
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