The Kompong Chhnang airport has long sat idle on a large open plain west of the provincial town, waiting for both money and business that could turn it into a leading cargo hub for the country. Now, with an influx of money from a large multi-national company, its potential could be realized, investors said recently.
DragonGold, parent company of TransGlobal Ltd, the company that has sought for years to revamp the massive provincial airport, plans to sell 70 percent of its shares to CFI, Inc. CFI, a real-estate consolidator in the US state of Georgia, plans to invest in the Kompong Chhnang airport, the company announced.
“This is a rare opportunity for CFI, since governments in Asia typically own and operate airports,” CEO John Lozo said in the statement. CFI and DragonGold have signed a letter of intent for the acquisition, according to the statement.
DragonGold President Ian Gray could not be reached for comment, but his assistant, Radene Sok, said an announcement from both companies could come as early as this month.
Currently, the airport is all but deserted, with the empty shells of a control tower, administrative and medical buildings, and barracks sitting next to a huge 2.5 km runway, built more than 20 years ago. The project was supervised by Chinese advisers.
The airport’s location makes it ideal for handling large cargo aircraft, Radene Sok said. But a lack of investment has made it difficult to finish the project, he said.
With CFI coming in to invest, though, the airport could be finished within the year, he said.
Others, however, are skeptical. One local businessman, who did not want to be named, said plans for the airport have come and gone, but that it is not yet economically viable.
Still CFI remains hopeful, wanting to cash in on a 70-year lease on the airport and to take advantage of a “duty free zone” regulation that allows for the sale of tax-free fuel “as well as other valuable goods and services,” according to the statement.
