Introduction
The Phnom Penh-Sihanoukville Expressway is a 187.05 km-long two-lane road expressway connecting the capital city of Phnom Penh and the coastal city of Sihanoukville. It was developed as part of China’s Belt and Road Initiative (BRI) and is seen as one of the key projects that strengthened the existing ties between China and Cambodia. 

Cambodian Prime Minister Hun Manet said, “Roads are like blood vessels to feed the organs wherever it goes … soon we will have the ability not only to just possess (material things) but also for Cambodians to build by themselves infrastructural marvels such as bridges, highways, and subways.”

The project is seen as a game-changer in promoting tourism and economic growth in Cambodia as it reduces the travel time to two hours instead of five hours. The expressway connects Phnom Penh with the international deep-water seaport of Sihanoukville, thereby enhancing the country’s logistics network.

A brief background to the project
Construction of the Phnom Penh-Sihanoukville expressway was initiated with the ground-breaking ceremony held in March 2019. The expressway is being constructed under the build-operate-transfer (BOT) model. China Road and Bridge Corporation (CRBC) was selected by the Cambodian Ministry of Public Works and Transport (MPWT) to construct the Phnom Penh-Sihanoukville expressway. The expressway was opened to public use in March 2023.

The project cost around USD two billion and was fully funded with loans by CRBC and many other Chinese development banks. Around 200,000 vehicles drove between the two cities within less than one year of operations. The tourism levels grew by 140,000, with 80 per cent comprising domestic tourists. Also, with the Sihanoukville port handling 70 per cent of Cambodia’s trade, the expressway will create a spillover effect in the country’s overall trade and commerce. 

What are China’s objectives?
First, Port connectivity. China will directly access the Sihanoukville port through the Phnom Penh-Sihanoukville expressway. It is Cambodia's major port with deep sea water access, allowing large container ships to dock their ships. For China, the South China Sea is a critical zone for its maritime commerce, which, according to Beijing, is being threatened by the presence of the US and its allies like Japan, Australia, and the Philippines. Through access via the expressway, the Sihanoukville port will enable China to divert its trade through Cambodia in case of any potential geopolitical turbulence to ensure its maritime security. 

Second, political support. China’s BRI infrastructure projects are seen as a way to push China’s political interests. With its decades-long diplomatic ties, it has been able to force Cambodia to the deportation of Uyghurs from China and the delay in the joint ASEAN communique in 2012 for not criticizing China. It also refused to display the Taiwan flag in 2017 and stood behind China’s One China principle. Cambodia also issued a strong official statement in support of China in 2019 regarding the Hing Kong political crisis and the controversial national security law. 

Third, strategic interests. China has a clear geopolitical agenda to seek regional hegemony and supremacy in Southeast Asia, which it considers its backyard. The use of soft power, extending the application of the economy (trade, aid, and investment), is preferred by China to achieve geopolitical goals. China is one of Cambodia's most prominent investors and development partners, facing competition from countries such as South Korea, Singapore, and Japan. 

How does Cambodia benefit?
First, tourism. The Phnom Penh-Sihanoukville expressway has reduced the travel time between the capital city of Phnom Penh and the southern city of Sihanoukville. This has resulted in the rise of 13 million tourists in 2023, a 16 per cent increase compared to 11.9 million in 2022. The post-COVID restrictions have seen a rapid surge in the arrival of tourists in the country, thus benefitting the Cambodian economy as the industry contributes 10 per cent of the country’s total economy.

Second, economic development. The construction of the expressway has resulted in a rapid rise in high-rise buildings and other small-scale industries, particularly in the garment industry. The construction led to the creation of 10,000 direct jobs and 25,000 indirect jobs, with skill assistance given to local unskilled labourers.

What are the challenges?
First, Environmental. The construction of the expressway has decreased the grasslands and cultivated land suited for agriculture. The study conducted by Zhang et al. showed that the construction of the expressway had impacted the cultivated land share by 20 per cent and reduced the water bodies by 16 per cent. The study also indicated that Cambodia is a highly sensitive and fragile ecological zone, and heavy engineering construction like the expressway will lead to stronger ecological risks like landslides, flooding, etc. 

Second, Economic. The project has benefitted the tourism industry but missed the logistics. This is due to high logistics costs, as the expressway charges USD 60 one way, which is huge for the logistics sector. Also, the towing fees for broken vehicles are higher. This high-cost results from the build-operate-transfer model, which gives Chinese operator CRBC the control and management of the operations for the next 50 years. The high costs have turned away most of the trucks to other routes, thereby limiting the economic potential of the expressway. The expressway led to the construction of white elephant projects along the expressway, like Sihanoukville city, which is modelled similarly to Shenzhen in China. The excess unfinished buildings have created concerns in Cambodia about the overall economic benefits of the expressway and its auxiliary infrastructure.  

Third, Social, the construction of the expressway has created concerns for local businesses as they face tough competition from Chinese entrepreneurs. Also, they face criminal activities that originated from Chinese-linked businessmen operating in cities such as Sihanoukville. The Chinese businesses engaged in online gambling, human trafficking, and drug trade, which tarnished the image of Cambodia and China. Despite the ban on gambling in 2019, illegal activities continue to operate in the country. Furthermore, the construction has led to large-scale displacement and forced resettlement of locals. 

References
“Chinese-invested expressway in Cambodia becomes new economic artery: PM,” Xinhua, 07 November 2023
Mom Mit, “China’s continuing influence over Cambodia’s economy,” East Asia Forum, 01 May 2024
Chanrith Ngin, “Easy Highway, Troubled City: How China Wins and Loses Cambodians’ Hearts,” Fulcrum, 08 November 2022
“Phnom Penh-Sihanoukville Expressway,” General Department of Public-Private Partnerships, Ministry of Economy And Finance
Sigfrido Burgos and Sophal Ear, “China's Strategic Interests in Cambodia: Influence and Resources,” Asian Survey, June 2010, Vol. 50, No.3 pp. 615-639
Chanrith Ngin, “Why Cambodia has mixed feelings about China-built Phnom Penh-Sihanoukville road,” South China Morning Post, 12 November 2022
Jingxiao Zhang, Ruizhi Hu, et.al., “Assessing the landscape ecological risk of road construction: The case of the Phnom Penh-Sihanoukville Expressway in Cambodia,” Elsevier, October 2023, vol 154