Cambodia Logistics Market Size & Share Analysis - Growth Trends & Forecasts (2025 - 2030)

Cambodia Freight And Logistics Market Trends and Insights

Surging Garment and Footwear Exports to US and EU Driving Logistics Volumes

Exports of textiles and apparel climbed to USD 13.92 billion in 2024, up 23% year on year, reinforcing a steady uptick in containerized volumes moving to North America and Europe. Just-in-time models push shippers toward faster modes, and factory clusters inside SEZs negotiate fixed-rate contracts with major ocean carriers to secure capacity during peak seasons. The Regional Comprehensive Economic Partnership widens duty-free access to 15 economies, easing tariff pressure on Cambodian exporters and amplifying demand for third-party logistics providers equipped with digital freight platforms.

Government-Led Infrastructure Upgrades Driving Growth

The USD 1.9 billion Phnom Penh–Sihanoukville Expressway reduces door-to-port trucking costs, supporting the Cambodia freight and logistics market as heavy haul operators redeploy fleets to higher-density corridors. Sihanoukville Autonomous Port’s expansion dovetails with a USD 16 billion Bay of Lights plan that adds deeper berths and smart-yard automation. Techo International Airport, 90% complete, opens new perishables lanes for mango and banana exporters ready to pay air-freight premiums.

Belt and Road Rail Rehabilitation Enhancing Regional Connectivity

The 386 km Phnom Penh–Poipet rail upgrade restores a direct land bridge into Thailand for the first time in 45 years, trimming transit to Laem Chabang Port by 12 hours and promising a modal shift once service frequencies rise. Parallel feasibility studies on a Phnom Penh-Bavet link aim to capture Vietnam-bound electronics transit, and the Funan Techo Canal, designed for 3,000 dwt vessels, offers a seawater route that circumvents Mekong River draft limits^{[1]South China Morning Post Journalist, “Funan Techo Canal Project Launch,” scmp.com} .

Cold-Chain Demand from Aquaculture and Agro-Processing

The Asian Development Bank’s USD 41 million fisheries program is underpinning new hatcheries along Kampot and Kep coasts, spurring 8,000 m² of temperature-controlled warehouse projects led by private operators^{[2]Asian Development Bank, “Cambodia Sustainable Fisheries Project,” adb.org} . Seafood exporters eye same-day connections once Techo International Airport opens, while upstream feed suppliers contract reefer trucking lanes to maintain quality compliance with EU sanitary standards.

Underdeveloped Rail Network Limiting Multimodal Efficiency

Only 652 km of active track keeps rail’s share at 1.66% of load picked (tons) in 2024, forcing shippers to lean on costlier road moves and capping multimodal savings. Despite a USD 10 billion rail revamp plan, the northeastern hinterland remains unreachable by rail, prolonging dependence on high-emission trucking.

Logistics Costs Elevated by Informal Fees and Border Delays

World Bank diagnostics underline opaque facilitation payments at land checkpoints that lift door-to-door costs, particularly for small exporters lacking the scale to negotiate brokerage rates^{[3]World Bank Group, “Cambodia Logistics Performance Diagnostics,” openknowledge.worldbank.org} . Multi-leg transshipment via Vietnamese and Thai ports compounds charges, and a fragmented domestic trucking base dominated by family-run fleets limits the adoption of digital freight tools that could improve transparency.

Segment Analysis

By End User Industry: Retail Trade Leadership Challenged by Manufacturing Growth

Wholesale and retail trade held 33.95% of 2024 spending, underpinned by Cambodia’s rising middle-class consumption and omnichannel grocery chains scaling Phnom Penh warehousing. Manufacturing, at 28.53%, is the momentum segment, posting a 4.24% CAGR (2025-2030) as Chinese and South Korean investors inject USD 3.2 billion into SEZ green-field plants across textiles, e-bikes, and steel^{[4]Yuanta Securities Cambodia, “FDI Inflows into SEZs,” yuantacambodia.com.kh} .

Construction logistics remain linked to mega-projects such as the metro rail build, whereas agriculture, fishing, and forestry leverage new cold-chain solutions to widen export baskets beyond rice. Cambodia freight and logistics market share for the fledgling healthcare vertical grows as vaccine throughput rises.

Note: Segment shares of all individual segments available upon report purchase

By Logistics Function: Freight Transport Dominance Meets CEP Innovation

Freight transport held a 60.70% stake in 2024, as export-oriented factories continue to dispatch bulk volumes to Sihanoukville and principal ASEAN gateways. The segment is growing at 3.84% CAGR between 2025-2030, aided by duty-free access under RCEP and upgraded expressways that reduce road wear. CEP, though only 7.79% of 2024 revenue, expands at 4.90% CAGR (2025-2030) as domestic e-commerce users climb toward 2.9 million by 2029. Warehouse and Storage (12.61%) and Freight Forwarding (11.98%) both benefit from manufacturers outsourcing non-core activities, while value-added services rise at 4.76% CAGR (2025-2030) as multinationals demand pick-and-pack and labeling functions close to plant sites.

In volume terms, freight tonnage aligns with Cambodia freight and logistics market patterns where road retains 68.99% of load picked (tons), but CEP parcels post double-digit growth every quarter, driven by social-commerce sales to secondary cities. Cross-border CEP operators are piloting automated sorters near Bavet to streamline last-mile hand-offs into Vietnam.

By Courier, Express, and Parcel (CEP): Domestic CEP Strength Challenged by International Growth

Domestic CEP held 64.11% market share in 2024, feeding Phnom Penh and Siem Reap’s vibrant online-retail scene. International CEP, 35.89% revenue share in 2024, grows at a 5.08% CAGR (2025-2030) as cross-border parcels surge to and from China’s e-commerce hubs. J&T Express tops regional parcel volume, but DHL and FedEx enjoy premium yields on outbound express consignments to US buyers.

Technology is a differentiator: sortation robots are under pilot in three hubs, and AI-driven route optimization cuts delivery windows to under 24 hours on core city pairs. Cambodia's freight and logistics market competitiveness turns on whether local players can match these investments.

By Warehousing and Storage: Conventional Storage Dominance Meets Cold-Chain Innovation

Non-temperature controlled warehousing accounts for 91.57% of capacity, supporting garment exporters that seldom need climate control. The emerging 8.43% cold-chain slice grows 4.00% CAGR (2025-2030) as aquaculture output swells and modern grocery retailers demand fresh produce quality. Manufacturers represent 36.59% of temperature-controlled uptake in 2024, yet wholesale and retail claimed a significant share as omnichannel grocers build Phnom Penh cross-docks.

Automation remains nascent, only 5% of warehouses deploy conveyor picking, but land-constrained developers are platooning mezzanine racking to boost cubic yield. The Cambodia freight and logistics industry is increasingly piloting solar rooftops to trim utility bills.

By Freight Transport: Road Supremacy Faces Air Freight Disruption

Road freight transport hauled 69.60% of shipments in 2024, with the Phnom Penh ring-road upgrade easing city congestion. Yet air freight transport, with a 2.85% share in 2024, advances at 5.00% CAGR (2025-2030) on the strength of express e-commerce parcels and high-value electronics bound for Seoul and Los Angeles. Sea and inland waterways freight transport (25.6% in 2024) dominates ton-km, reflecting long-haul maritime legs, while the rail share languishes at 0.96% in 2024, pending full rehabilitation. Pipelines serve a niche fuel trade to the capital’s power plants.

Modal diversification aligns with policy; the Comprehensive Intermodal Transport and Logistics System blueprint targets sea-rail linkages so that Cambodia freight and logistics market efficiency rises alongside sustainability metrics.

Note: Segment shares of all individual segments available upon report purchase

By Freight Forwarding: Sea and Inland Waterways Lead, Air Forwarding Rises

Sea and inland waterways freight forwarding contributed 73.18% of 2024 forwarding income, capturing manufacturers’ preference for full-container-load economics to US and EU buyers. Cambodia freight and logistics market size for air freight forwarding will climb alongside the 4.47% CAGR (2025-2030) forecast as fashion, electronics, and pharma shippers exploit Techo International Airport’s on-airport cool-chain zone.

Digital visibility tools are diffusing; top ten forwarders now offer milestone APIs to Cambodian exporters seeking proof-of-delivery data for Western retailers. Sustainability enters bid criteria too, CMA CGM/CEVA and DHL are bundling bio-fuel surcharges, mirroring global mandates on emissions reporting.

Geography Analysis

Cambodia freight and logistics market activity clusters around Phnom Penh, Sihanoukville, and border towns that straddle ASEAN corridors. The capital region anchors value-added logistics with 3PL campuses near the Outer Ring Road, leveraging proximity to Techo International Airport, which targets 15 million passengers and substantial belly-hold capacity once operational in July 2025. Express shuttles are already trial midnight truck-air transfers to synchronize with early-morning flights.

Border geographies thrive. Bavet’s SEZs lie 170 km from Ho Chi Minh City, benefitting from through-billed feeder services that shorten port dwell times. Poipet leverages the railway reconnect to Thailand to court rubber and bicycle manufacturers seeking cheaper land. In Cambodia’s landlocked north, road corridors carry bulk crops to southern ports, but the upcoming Funan Techo Canal provides new hope for waterborne routes that bypass Vietnamese transshipment and pare logistics costs by 30%. Coastal Kep gains prominence through aquaculture clusters, catalyzing cold-chain warehouse demand underwritten by Asian Development Bank funding.