To promote the shifts in economic structure and to improve the national economic growth, the improvement of the logistics system is one of the key development objectives for Cambodia. To realize sustainable economic growth in Cambodia, it is necessary to increase the development potentials of the GMS Southern Economic Corridor, to promote domestic investments, and to revitalize the industrial locations along the corridor. In line with this situation, the RGC has formulated the “Industrial Development Policy (IDP)” to accelerate the transformation of the industrial structure from simple labor-intensive industries to high value-added and technology-driven industries, in order to sustain the mid- and long-term economic growth, and to prioritize the formulation of a logistics Master Plan for the improvement of the logistics system and the implementation of short-term projects that were identified in the Master Plan.

IDP also confirmed the need of MPWT to develop a comprehensive transport and logistics M/P. However, the study on Logistics System Improvement Master Plan in the Kingdom of Cambodia 2018-2025 prepared by JICA and World Bank did not include all Transport projects within their scope. In this regard, MPWT under the leadership of Senior Minister Sun Chanthol decided to formulate the National Transport and Logistics Master Plan (NTLMP) and submitted to the National Logistics Council consisting of five sections: Master Plan on Road Network, Master Plan on Railways, Master Plan on Waterways, Master Plan on Ports and Master Plan on Logistics. The National Logistics Council then revised the name (NTLMP) to the Interim Master Plan on Intermodal Transport Connectivity and Logistics System (ITCLS-MP) and officially approved it for internal usage on January 6, 2020.

The establishment of the Master Plan has been encouraged by the initiatives of the IDP, which strongly emphasizes the transformation of industrial structure from “labor-intensive” to “technology-driven” industries. To achieve this transformation, IDP mainly focuses on four key measures: (1) enhancing the connectivity with universal supply chains; (2) integrating the industrial network in the Mekong region; (3) establishing a group of industries which support the increases in competitiveness and productivity; and (4) developing the policies which mainly focus on the initiatives towards the technology/knowledge-driven industry.