Cambodia is one of the ten nations of Southeast Asia and part of mainland Southeast Asia. It is bordered on the north by Laos and Thailand, on the west by Thailand, and on the east by Vietnam. Its geographic area is 181,035 square kilometers (69,900 square miles), surrounding by 2,572 kilometers (1,598 miles) land boundaries and it has a coastline on the Gulf of Thailand of 443 kilometers (275 miles). Situated along the Mekong region, the Mekong River flows directly through the country from north to south, eventually flowing into the Mekong Delta of Vietnam and cross Laos, Thailand, Myanmar and China. Cambodia largest city and capital is Phnom Penh and the other major cities are Battambang, Siem Reap (the gateway to Angkor Wat), and Kampong Saom (Sihanoukville).
Cambodia’s population was 13,388,910 according to census in 2008. The current population growth rate is a relatively high 2.25 percent. If this population growth rate were to continue at this pace, the country’s population would double to approximately 25 million by the year 2033.
Since Cambodia joined the WTO in 2004, which required the implementation of a wide range of commercial laws Foreign Direct Investment (FDI) intended to concentrate in garment manufacturing, services, construction, and tourism. Growth in industry is projected at 10.8% in 2011, under a relaxation of EU rules of origin on preferential tariffs for certain developing-country exports, from January 2011, Cambodian garments get duty-free access to the EU regardless of the origin of the fabric. Cambodian milled rice also received preferential access to the EU and as a consequence, milled rice exports to that market rose by 228% to 10,495 tons in the first 2 months of 2011 from the prior-year period. Tourist arrivals rose by 18% in January 2011 from the prior-year period, while trade and transport and communications are likely to continue expanding, as domestic consumption and the business outlook improve. Due to increasing of the industry section in Cambodia that puss import and export increase by 16% in the first six months of 2010, compared to last year. Gross Domestics Product (GDP) growth is projected to achieve a 6.5% in 2012 by World Bank. Japanese investment is growing in Cambodia, with nine companies starting businesses in the country in the first five months of 2011, according to investment statistics provided by the Japan International Cooperation Agency (JICA). The nine Japanese companies, mostly manufacturers, will invest $142 million and another 14 other companies are applying for the Cambodian government approvals.
There are two main ports for logistic service in Cambodia, seaport and airport. Seaport have two international port, Sihanoukville port, the biggest container port in Cambodia in terms of annual throughput 224,131 TEUs in 2010 and capable of simultaneously receiving six vessels with ship of 100-150LOA. It located in the outside city area that convenient for trucks in and out. Phnom Penh port can transit only via Ho Chi Minh due to this port have limit facility as it is small but recently it plan to build new port with standard equipment in order to meet market demand . Recently, Vietnam have built new port “Cai Mep” the most of global carrier export which allow connection from Phnom Penh for faster transit time and cost saving compare to transit at Singapore. It is handle 62,386 TEUs in 2010. In logistic service, some companies in Cambodia need ICDs to store their goods before trucking to seaports and also the place for customs clearance; provide trucking service; container depot service. There are 6 registered and reliable ICDs in Cambodia such as So Ngoun, O Lair, Tech Srun, Teng Lay, CWT and KPM.
On the other hand, Cambodia has adapted a wide range of free market policies, with a business-friendly and proactive government seeking to encourage investment and manufacturing in the country. The Royal Government has since approved a total of 22 Special Economic Zones (SEZs) located along the border with Thailand and Vietnam (Koh Kong, Poipet, Savet, Phnom Den), at Sihanoukville and Phnom Penh. Businesses within the SEZs benefit including income tax, customs, and VAT benefits and incentives such as:
- Up to 9 years tax holiday;
- 0% VAT and full import duty exemption for raw materials;
- no export tax;
- employment of expat workers allowed up to 10% of total workforce;
- permanent visa for families of investors;
- up to 99-year land lease;
- and free repatriation of profit.
Macoline-ITI is established from a join-venture between Mac-Nels and ITI logistics (Cambodia) Ltd in 2009 with international freight forwarding and consolidation service as its core businesses. The company also provides logistical services such as local transportation, customs clearance, warehouse, cargo packing, personal effect removal and logistics related consultation services. At all time, Macoline-ITI is committed to provide convenience and shorter lead time to its overseas partners and clients by performing its inbound deconsolidation operation Sihanoukville CFS. Export consolidation is done in So Ngoun Dry Port which located near to various industrial zones with convenience to exporters to launch in their cargoes for processing customs clearance. Macoline-ITI has been growing rapidly through good cooperation between its stakeholders and by providing competitive rates, transit time and personnel service to its clients and partners. With our know-how, technology, extensive worldwide network, professional knowledge and people in freight and logistics, we believed that our establishment will create competitive advantage to our clients and the freight forwarding industry in Cambodia.