A simmering border dispute between Cambodia and Thailand has exploded into open conflict, threatening to derail ambitious infrastructure projects and disrupt shipping flows across Southeast Asia.
The armed clashes, which have already claimed civilian lives and sparked military air strikes, come at a precarious time for both nations just as they were poised to expand their roles in the global maritime economy.
Cambodia and Thailand have, in recent years, adopted markedly different approaches to positioning themselves as regional logistics players.
Cambodia, whose maritime trade is still in its developmental phase, has seen rapid growth at the Phnom Penh Autonomous Port. In just the first two months of 2025, PPAP recorded a more than 30% increase in cargo and container volume, a surge tied to strong domestic demand and improving infrastructure.
At the heart of Cambodia’s maritime ambitions lies the Funan Techo Canal, a $1.7 billion mega project designed to connect the Mekong River south of Phnom Penh directly to the country’s sea ports.
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