New Cold Chain Route Boosts Cambodia-China Trade Links

A groundbreaking “cold chain + general cargo” transport route linking Fangchenggang, China’s southernmost port, with Koh Kong Port in Cambodia was officially launched on 15 March, marking a significant step forward in enhancing the Kingdom’s export capabilities. Business leaders and Chinese officials have hailed the route as a game-changer for Cambodia’s agricultural sector, promising reduced shipping times, lower costs, and improved product quality through temperature-controlled logistics.

The new direct shipping line, which cuts transit time by more than 50% and logistical costs by over 20% compared to traditional transshipment methods, is expected to strengthen trade ties between Cambodia and China, already the Kingdom’s largest trading partner. With Cambodia’s agricultural exports reaching 11.7 million tonnes in 2024 – a 39% increase from the previous year – the route arrives at a critical juncture, offering a lifeline to farmers and exporters aiming to meet growing international demand.

A Boost for Agricultural Exports

Lor Vichet, vice-president of the Cambodia Chinese Commerce Association (CCCA), described the cold chain system as a vital innovation for preserving the quality of perishable goods during transit. “This ensures that agricultural products like rice, mangoes, and bananas maintain their freshness when they reach the Chinese market,” he told The Phnom Penh Post on 18 March. “Direct shipping from Fangchenggang to Koh Kong also eliminates the need for transshipment, slashing both time and costs.”

Vichet emphasised that the route’s benefits extend beyond logistics. By reducing production and transport expenses, Cambodian goods could become more competitive on the global stage, particularly in China, where demand for high-quality agricultural products continues to rise. He also pointed to potential growth in other sectors, such as pharmaceuticals, where cold chain transport could support future export expansion if production scales up.

The significance of the new route was echoed by Chinese Ambassador to Cambodia, Wang Wenbin, who celebrated the maiden voyage via social media on 16 March. “Congrats to the maiden voyage of the ‘cold chain + general cargo’ route from Fangchenggang Port in Southwest China to Koh Kong Port, Cambodia,” he wrote. Highlighting the efficiency gains, he noted that the seven-day direct line offers substantial savings in both time and money compared to older transit modes.

Deepening Diplomatic and Trade Ties

The launch of the Fangchenggang-Koh Kong route is not merely a commercial milestone but also a symbol of the strengthening relationship between Cambodia and China. Trade between the two nations reached $2.662 billion in the first two months of 2025, a 21.1% increase compared to the same period last year, according to the General Department of Customs and Excise (GDCE). China accounts for 28.18% of Cambodia’s total international trade, underscoring its pivotal role in the Kingdom’s economy.

While exports to China dipped slightly by 4.3% to $217.96 million in January-February 2025, imports surged by 24% to $2.44 billion, reflecting a trade imbalance that Cambodian officials hope initiatives like the new shipping route will help address. Agricultural products, which generated $4.8 billion in revenue in 2024, are seen as a key area for growth, particularly under free trade agreements with China, South Korea, and the Regional Comprehensive Economic Partnership (RCEP).

Lim Heng, vice-president of the Cambodia Chamber of Commerce, highlighted how the Kingdom’s agricultural sector has evolved to meet export market demands. “Our production of rice, corn, mangoes, and bananas is improving in quality year on year,” he said. “With agreements like RCEP in place, and now this direct shipping route, we have a real opportunity to expand our presence in international markets.”

Economic Implications and Regional Context

The introduction of the cold chain route aligns with broader regional trends in South East Asia, where countries are increasingly investing in logistics infrastructure to bolster trade. Cambodia’s strategic position within the Greater Mekong Subregion makes it a vital link in supply chains connecting China to ASEAN markets. Koh Kong Port, located in the south-western part of the country near the Gulf of Thailand, is poised to become a hub for such connectivity, especially for temperature-sensitive goods that require specialised handling.

Analysts suggest that the route could have ripple effects beyond agriculture. If Cambodia’s nascent pharmaceutical industry grows, as Vichet speculated, the demand for cold chain logistics would likely increase, potentially attracting further investment in port facilities and transport infrastructure. Moreover, shorter shipping times and lower costs could encourage small and medium-sized enterprises (SMEs) to enter the export market, diversifying the Kingdom’s economic base.

However, challenges remain. The trade imbalance with China, coupled with a reliance on imported Ascending imports, raises questions about long-term economic sustainability. While initiatives like the cold chain route may help boost exports, the benefits must be equitably distributed to ensure that rural farmers – who form the backbone of Cambodia’s agricultural sector – see tangible gains. There is also the risk that over-reliance on a single trading partner like China could expose Cambodia to geopolitical and economic vulnerabilities, particularly if global trade tensions escalate.

Broader Impacts and Future Prospects

Looking ahead, the Fangchenggang-Koh Kong route could serve as a model for similar initiatives across the region, where cold chain logistics are still underdeveloped compared to more advanced economies. For Cambodia, the route represents not just a practical solution to logistical challenges but also a statement of intent – a commitment to modernising its trade infrastructure and positioning itself as a competitive player in global markets.

The route’s success, however, will depend on several factors, including the reliability of port operations at Koh Kong, the scalability of cold chain facilities, and the ability to maintain cost savings over time. If these elements align, the initiative could pave the way for deeper integration into regional trade networks, potentially spurring job creation and economic growth in Cambodia’s southern coastal areas.

From a diplomatic perspective, the project underscores China’s growing influence in South East Asia through infrastructure and trade partnerships, often framed under the Belt and Road Initiative. While such collaborations bring economic opportunities, they also invite scrutiny over issues like debt sustainability and environmental impacts – concerns that have shadowed other Chinese-backed projects in the region. For now, though, the focus remains on the immediate benefits of the new shipping line and its capacity to transform Cambodia’s export landscape.

A Step Towards Economic Resilience

The launch of the “cold chain + general cargo” route between Fangchenggang and Koh Kong is a testament to Cambodia’s ambition to modernise its trade capabilities and deepen ties with China. By addressing longstanding challenges in agricultural exports – from product spoilage to high shipping costs – the initiative promises to enhance the Kingdom’s competitiveness on the global stage. At the same time, it highlights the complexities of balancing economic growth with strategic autonomy in an increasingly interconnected region.

As Cambodia continues to navigate its role within ASEAN and beyond, the success of this route could offer valuable lessons for other developing economies seeking to leverage trade infrastructure for sustainable growth. For now, the maiden voyage marks a hopeful beginning, carrying not just cargo but also the aspirations of a nation poised for progress.