EMIA backs Cambodia logistics provider

EMIA is investing via its ASEAN Frontier Markets Fund, which is targeting USD 100m for small to medium-sized enterprises in Cambodia and Laos. It is the successor vehicle to EMIA’s CLMDF fund, which raised USD 64m in 2017 for Cambodia, Laos, and Myanmar.

Established 1998, FWF is one of Cambodia’s oldest locally owned freight forwarders committed to international best practices. It claims to offer comprehensive intermodal transportation services as well as customs clearance for both inbound and outbound cargo.

The company aims to address Cambodia’s growing logistics requirements and a demand for cold storage capacity that is expected to grow about 80% over the near term. To this end, it plans to expand its portfolio of logistics infrastructure assets to leverage its experience in the industry and to support the government’s logistics master plan.

The fresh capital will be used to establish a modern dry port in Kampong Speu, located between Phnom Penh and Sihanoukville, Cambodia’s key deep-sea port for imports and exports. The dry port will provide additional customs clearance capacity and increase cargo flow between ships and major land transportation networks, improving the movement of goods and reducing congestion at the seaport.

The new facilities will also expand FWF’s existing cold-chain capabilities, which is considered an underdeveloped aspect of existing infrastructure in the country. FWF cold chain facilities and refrigerated transportation assets will support the agribusiness, food and import sectors of the economy, among others.

“EMIA’s expertise will prove invaluable to us as our company graduates to the next stage and transforms our family business into a more international standard corporation. We are also impressed by EMIA’s commitment to investees’ development journey in both commercial and ESG aspects,” Hor Poth Lim, founder and CEO of FWF, said in a statement.

“FWF will take substantial measures to address environmental and climate challenges, promote social inclusivity, gender equality, and human rights by implementing robust E&S management systems, stakeholder engagement plans, and formal grievance mechanisms, fostering transparency, ethical conduct, and the empowerment of employees and stakeholders.”

EMIA has invested in more than 20 companies across Cambodia, Laos, and Myanmar. AFMF achieved a first close of USD 50m last December, with LPs including Norway’s Norfund, Germany’s DEG, the Netherlands’ FMO, Sweden’s Swedfund, and the International Finance Corporation (IFC).

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• Topics
• Southeast Asia
• Expansion
• Industrials
• Support services
• Cambodia
• Emerging Markets
• Logistics