PHNOM PENH, April 1 (Xinhua) -- Cambodian Prime Minister Samdech Techo Hun Sen said on Monday that he has allowed tycoon Kith Meng's Royal Railway (Cambodia) to continue operating the country's railways until there is a new agreement.
"When a new agreement has not been made, tycoon Kith Meng's Royal Railway still continues managing the operation of the railways," he said in a speech during a university graduation ceremony here.
"Now, we are seeking other companies to invest in it so as to make the investment capital become bigger," the prime minister said.
He added that the Royal Railway is still one of the shareholders when there are new investors in the country's railway project.
"Our goal is to reform and to modernize our railway transport system," Hun Sen said.
The prime minister's remarks came after he announced on Friday to revoke the railway license from the Royal Railway, a subsidiary of local conglomerate Royal Group, citing the failure of sufficient expansion of the railway's potential.
In 2009, the government signed on a 30-year concessional agreement, allowing Toll Cambodia -- a joint venture between Australia-owned Toll Holding Limited and tycoon Kith Meng's Royal Group -- to operate the railway system in Cambodia.
Five years later, Toll Holding transferred all its shares to its local partner, making Royal Group the sole shareholder, and the firm was re-named Royal Railway (Cambodia).
The Southeast Asian nation has two lines of railroads. The 266-km southern line connects capital Phnom Penh to the international seaport province of Preah Sihanouk, and the 385-km northern line runs from Phnom Penh to Poipet city, which borders Thailand.
The two lines, which had been built between 1929 and 1969, were damaged during decades of civil war.
In 2016, the passenger train services between Phnom Penh and Preah Sihanouk province were resumed, as the train services between Phnom Penh and Poipet city remain in limbo.
