After China surpassed the Republic of Korea as the most prominent foreign investor in Cambodia in 2013, the construction of a multi-billion-dollar railway line has been opened up for further planning.
Lu Bo, president of China Railway International Group, met with Cambodia's Minister of Commerce Sun Chanthol on Wednesday with a proposal to undertake a railway feasibility study in Cambodia.
The project was called "mysterious" by the "Phnom Penh Post" on Friday, as it was first announced by the Chinese company in Jan. 2013 and has been "shrouded in secrecy" ever since.
The goal, as articulated by China Railway International Group in 2013, was to build a line that connects the northern Cambodian province of Preah Vihear with the Koh Kong province in the south. Action on the rail initiative, expected to cover 400 kilometers, has not begun at the time of Wednesday's meeting.
Since the turn of the century, approximately $10 billion of Chinese money has landed in Cambodia, as the eastern Asian economic giant has sought to nurture its relationship with the neighboring country that is second-closest after Thailand. The official visit of China's State Council premier, Wen Jiabao, in 2006 was a turning point for the China-Cambodia economic surge that has defined recent years.
China's increasingly close relationship with Cambodia is highly valued by the former, while Cambodia is pleased with the beneficial impact upon its economic development. In terms of benefits for China, Cambodia's low-cost labor, which is some of the cheapest in the ASEAN economic community, in combination with its open investment environment, makes Cambodia a viable production base.
After Wednesday's meeting, the Cambodian Ministry of Commerce released a statement in support of Lu's proposal. The ministry is eager to receive a project proposal from the Chinese company that will be jointly considered by Cambodia's Ministry of Public Works and Transport and the Council for the Development of Cambodia.