Cambodia's railway revenues drop by 25% over trade slump

PHNOM PENH, Jan. 7 (Xinhua) -- Cambodia's railway revenues dropped by 25 percent in 2008 as freight deliveries plummeted and trade with Thailand declined, English-language daily newspaper the Phnom Penh Post said on Wednesday.

"Last year's revenues from railway transportation services was 1.5 million U.S. dollars, one quarter down from 2007," said Sokhom Pheakacanmony, director general of the Royal Railway of Cambodia.

The kingdom's limited railway, which runs from Phnom Penh municipality to port province Sihanoukville, as well as to Battambang province and Sisophon city in Bantey Meanchey province, are heavily dependent on trade with Thailand, he said.

"The drop was because the border dispute with Thailand led to a decrease in freight for goods such as cement that are brought in through the Poipet checkpoint," he was quoted by the paper as saying.

The border was closed entirely to train transportation in October, he added.

Meanwhile, the national election in July and the real estate downturn also affected the decline, he said.

"Cambodian businesses stocked up goods prior to the election and reduced their orders afterwards," he added.

According to official report, Cambodian trains transported 233,000 tons of goods in 2008, over 310,000 tons in 2007.