Japan has announced a grant of 1.14 billion yen ( US$7 million ) to Cambodia to strengthen customs functions at a new container terminal at the country’s sole deepwater port in Sihanoukville.

“Due to rapid economic development, freight demand is surging,” the Japanese foreign ministry says in a statement released on January 13. “Further increase in container cargo is expected after the completion of the new container terminal.”

“This project aims to strengthen customs functions at Sihanoukville Port through the procurement of X-ray equipment for Cambodia. This will contribute to the country's trade and logistics development plans,” the ministry adds.

Japan is also providing Cambodia with up to 1.70 billion yen ( US$11 million ) for mine clearance and assistance to landmine victims as part of the country’s efforts to be mine-free by 2030.

Atsushi Ueno, the Japanese ambassador to Cambodia, exchanged notes on the two projects at a signing ceremony with Cambodian foreign minister Prak Sokhonn in Phnom Penh on January 12, the statement says.

Under a 30-year loan to Cambodia for up to 41.1 billion yen ( US$260 million ) from the Japan International Cooperation Agency in 2022, the container terminal expansion is due to be completed by 2029 when the facilities are put into service.