Toll Group has divested its 55% share in the Toll Royal Railway concession in Cambodia to Cambodia’s Royal Group.
Toll Royal Railway began operations in October 2009 as a joint venture between Toll Group and Cambodia’s Royal Group. Since its launch, sections of Cambodia’s rail network have been reopened, such as the 264 km section between Phnom Penh and Sihanoukville, enabling the cartage of containers, fuel, coal, and cement on this southern line.
Toll Group Managing Director, Brian Kruger, explained the Royal Group, as 100% owner of the railway concession, will continue the operation and redevelopment of the railway. He continued, “The decision to divest our interest in the concession was not taken lightly, but it was decided after generating lower-than-expected returns over a period of time. In addition, setbacks and delays in track rehabilitation works by external contractors over the past two years have in our view also impeded the efficient operation, and hence economic viability for Toll.”
Kruger concluded, Toll will continue to be involved with the railway by assisting the Royal Group during the handover of operations as well as providing logistics support as Royal Group’s preferred supplier for domestic land transport and warehousing services.
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