How do ports, roads and the planned Funan Techo canal shape Cambodia's trade? Cambodia is moving more goods than ever, and both state ports are growing fast. But moving goods here is costly, and many goods still leave through ports in Viet Nam. Cambodia is building new roads, a new port terminal and a canal. Questions remain about cost, timing, land and water.
What happened
From January to June 2026, Cambodia's goods trade reached about $36.9 billion (General Department of Customs and Excise, 2026). That is about $6 billion every month.
Most goods travel in containers, counted in TEU. One TEU is one standard 20-foot container.
Cambodia's only deep-sea port is at Sihanoukville, run by the state company PAS. In 2025, it handled about 1.35 million TEU, up almost a third on 2024 (PAS, via Phnom Penh Post, March 2026). The river port in Phnom Penh, run by PPAP, handled about 600,000 TEU, up about a quarter (PPAP, 2025). Some containers pass through both ports, so we never add the two together.
Growth was faster in early 2026. From January to March, compared with a year earlier, Sihanoukville grew 38% and Phnom Penh grew 34% (company filings, via Khmer Times).
The first expressway, Phnom Penh to Sihanoukville, is open. It runs about 187 kilometres and cost $2 billion. A second, about 135 kilometres from Phnom Penh to Bavet on the Viet Nam border, has an approved investment of $1.38 billion (Ministry of Economy and Finance). It is not yet open.
The Funan Techo canal would link the Mekong River near Phnom Penh to the sea at Kep. The latest official length is 172.6 kilometres (AKP, May 2026). Work began in August 2024. A longer second section began in April 2026.
Why it matters
Logistics means moving, storing and handling goods, plus paperwork. The World Bank estimated Cambodia's logistics costs at 26% of GDP, using 2020 data (World Bank, 2024 report). GDP is the total value of everything a country produces. So roughly one dollar in every four went on moving goods. In Viet Nam it was 20%, and in Thailand 14%.
The World Bank's Logistics Performance Index, or LPI, is a survey-based score out of 5. In the 2023 LPI, Cambodia scored 2.4, ranking 115th of 139 countries. Viet Nam scored 3.3 and Thailand 3.5. Cambodia's weakest area was infrastructure (World Bank, LPI 2023).
Many goods travel down the Mekong to Vietnamese ports, then out to the world. In 2024, the government estimated that about one third of Cambodia's cargo goes this way (Deputy Prime Minister Sun Chanthol, Reuters, 2024). Its target, after the canal, is about 10%.
Who is involved
Both state ports, PAS and PPAP, are listed on the Cambodia Securities Exchange.
Japan's aid agency JICA is helping to fund a new container terminal at Sihanoukville. By April 2026, phase one was 66.7% built. It should open in early 2027. The port could then handle 1.45 million TEU a year (AKP, May 2026). This is a plan, not a result.
China Road and Bridge Corporation, or CRBC, built and runs the first expressway. It is building the second. It is also the 49% partner in the canal. The other 51% is held by Cambodian shareholders, reported to be PPAP and PAS (CamboJA News, 2026).
In September 2026, the canal company signed a loan with China Exim Bank worth nearly $1 billion (AKP, September 2026). In 2024, the government put the canal's total cost at $1.7 billion (Reuters, May 2024). The second section alone is now costed at $1.17 billion (AKP, May 2026). All of these cost figures are estimates, not money spent.
Risks and open questions
- Port space. In our reading of the numbers, container traffic is growing fast, but the new terminal's extra space comes step by step: 2027, 2029 and 2030 (AKP, May 2026).
- Timing. Reporters saw little canal work between May 2025 and February 2026. Officials said digging would wait until land compensation was settled (CamboJA News, February 2026). The government says the canal remains on track for 2028, a forecast (Ministry of Economy and Finance, February 2026). AKP later reported a 36-month build for the second section, starting April 2026 (AKP, May 2026).
- People and land. An NGO study and government figures say about 2,305 households could be affected (CamboJA News, August 2026; Mongabay, February 2026). About $217 million has been set aside for land and compensation (CamboJA News, 2026). Some residents say payments are slow or incomplete. Officials say this work is ongoing.
- Water. Cambodia says the canal will use very little Mekong water. Viet Nam has asked for more data on effects in the Mekong Delta (Mekong River Commission, via Phnom Penh Post, May 2024).
What it means for you
Cheaper logistics can mean cheaper imports, and better prices for exporting farmers and factories. The Sihanoukville port chairman expects shipping to cost about $200 less per TEU once the new terminal opens. That is the port's own estimate (Phnom Penh Post, March 2026).
Better roads can cut travel time for workers and traders. But in the World Bank's 2024 report, 85% of national roads were paved. Only 38% of provincial roads and 10% of rural roads were paved (World Bank, 2024). Big corridors and village roads are two different stories.
For families on the canal route, it is about land, fair payment, fishing and farming.
Different views
- On value: Deputy Prime Minister Sun Chanthol calls the canal a "game changer" (Cambodianess, September 2026). Writers at the Lowy Institute note its economic modelling has not been made public. So, they write, "its financial viability is up for debate" (Lowy Institute, December 2024).
- On total cost: Some 2026 reports put the whole canal near $1.2 billion (CamboJA News, 2026). Others still use $1.7 billion (Cambodianess, September 2026).
- On water and land: Cambodia says the canal will use very little Mekong water, while Viet Nam asks for more data. Officials say compensation work is ongoing, while some residents say payments are slow or incomplete.
About the data
- Port figures are each company's own totals for 2025 and January to March 2026, shown separately and never added. Early-2026 growth is compared only with the same months of 2025.
- The 26% logistics cost is a World Bank estimate using 2020 data. The LPI is a 2023 survey-based score.
- All canal costs are estimates. Reports disagree on the total, so we show both figures, not a change over time.
- Port capacity, the 2028 canal date and the 10% cargo share are plans, forecasts or targets. "About one third" is a 2024 government estimate. The $200 saving is the port's own estimate. The port-space point is our own reading of the numbers.
