Trucking Companies Plagued by High Costs, Informal Payments
Despite growing exports, freight companies say profits are being hit because most firms still use old, inefficient trucks and are often forced to pay custom officials informal fees at border checkpoints and ports. Transportation costs in Cambodia are already some of the highest in the region, but the lack of investment going into freight companies means that many firms do not have enough trucks to supply current levels of demand in the market. … There are currently about 100 trucking companies operating in Cambodia, many of which are small, family-owned businesses whose fleets consume large amounts of gasoline when compared to more modern fleets, said Sok Chheang, executive director of the Cambodia Trucking Association. As a result, Cambodia’s land transportation firms charge between $10 to $15 per ton for a 100-km journey, compared to just $4 per ton in Vietnam and $7.50 in Thailand, according to the Asian Development Bank (ADB). … According to trucking companies, any spelling or mechanical mistake on shipping receipts can result in a $30 to $100 cash payment to the customs department, while an error in container contents can result in a $200 to $300 cash charge.
