Cambodia’s upcoming Funan Techo Canal, a 180 km-long waterway connecting Phnom Penh Autonomous Port to Kep city and the Gulf of Thailand, is poised to significantly enhance the logistics industry in Thailand's eastern region. Scheduled to begin construction next month with a budget of $1.7 billion, the canal aims to reduce Cambodia’s dependence on Vietnamese ports and is expected to be operational by early 2028.

The Transport Ministry of Thailand has projected an increase in cargo traffic to Chonburi’s Laem Chabang Port, currently undergoing expansion to boost its capacity from 11 million to 18 million TEUs per year. This increased freight traffic is also anticipated to support Thailand’s proposed Land Bridge project in Chumphon and Ranong provinces, designed to alleviate shipping congestion in the Malacca Straits by providing a shorter transit route.

Despite these optimistic projections, the Thailand Development Research Institute (TDRI) suggests that it may take Cambodia up to a decade to fully develop a comprehensive logistic route, akin to Thailand’s 10-year development of Laem Chabang Port. Nevertheless, once fully operational, the Funan Techo Canal is expected to reduce Cambodia’s logistics costs by up to 30% and enhance regional trade connectivity.