Toll Group managing director Brian Kruger has said Royal Group will now hold 100% share of the railway concession, and will continue the operation and redevelopment in country’s railway sector.

Toll Royal Railway has been operating the Cambodian rail network since 2009.

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Kruger said that this decision to divest its share in the company was decided after generating lower-than-expected returns over a period of time.

"Setbacks and delays in track rehabilitation works by external contractors over the past two years have impeded the efficient operation and hence economic viability for Toll. "

He said: "Setbacks and delays in track rehabilitation works by external contractors over the past two years have, in our view, impeded the efficient operation and hence economic viability for Toll.

"Toll Royal Railway has prided itself on the professional approach it has taken to training staff, safety management, community education, operational excellence, and reducing road congestion.

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"The firm recognises the importance of the improvement of logistics services to support the growth and prosperity of Cambodia."

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During this period of partnership, the joint venture effort has brought better enhancements for the Cambodian railway, including the reopening of sections of the country’s rail network.

It includes the reopening of the 264km-long section between Phnom Penh and Sihanoukville, enabling the cartage of containers, fuel, coal, and cement on this southern line.

However, Toll Group will support the country’s railway sector by helping Royal Group during the handover of operations, and will also deliver logistics support as Royal Group’s preferred supplier for domestic land transport and warehousing services.