The designated area is Kampong Chhnang, 90 kilometres to the north of Phnom Penh, the Cambodian capital. It is a former military facility with a 2.5 kilometre runway.
Two Malaysian companies appear to be playing a pivotal role in this highly ambitious project said to cost about US$3.4 billion.
Feedback Ventures, one of the two companies, is now assessing the project feasibility to support investment decisions. DragonGold, the other company, is to work closely with Cambodian authorities to promote the project.
DragonGold's joint venture company Transglobal has been given a 70-year franchise to build, own and operate the proposed international air cargo hub over a 12,500 hectare site.
In a statement, Feedback Ventures managing director Prakash Rao said the project, which he claimed would be the largest of its kind in the world and the largest single foreign investment in Cambodia, was timely.
According to Prakash, the airports at Singapore and Hong Kong could be operating at full capacity soon, therefore the Kampong Chhnang IACH, lying on one of the world's busiest air corridors, would provide a win-win alternative to courier, cargo, logistics and airline companies for their regional operations.
He added that the Cambodian government had declared the project as key to the overall economic development of Cambodia with the ultimate aim of putting the country eventually on par with regional economic powers.
The company would turn the former military facility and its 2.5 kilometre runway into what he called a state-of-the-art dedicated air cargo hub with all the relevant support activities.
The airport would also be upgraded into an all-weather, 24-hour operation. Its aim was also to become what he described as the catalyst and manager for the development of the FEZ with a whole range of manufacturing, residential, retail and other service-based and tourism-related facilities.
It would also promote the development of a network of air, railroad and riverine transportation services and other infrastructure centred on the Kampong Chhnang airport.
Transglobal would also establish recreational and tourist facilities to service the nearby Angkor Wat and Tonle Sap tourist area. Prakash said that besides global air cargo handlers and intercontinental and intra-regional flight operators, the end users of the IACH and FEZ would include logistics operators, aircraft service and maintenance repair operators and international wholesalers and fresh produce distributors.
The gestation period of the project was expected to be three to five years, he said, adding that once all the necessary landing systems had been installed, Transglobal would have to start marketing the IACH to airline companies.
Two major advantages for airlines using IACH would be the availability of fuel at a lower cost (due to its duty free status) and savings in refuelling time. He explained that for aircraft refuelling in Singapore it would be a cheaper and more time-effective alternative. Therefore, from a marketing angle, it would be a win-win situation for the airlines.
Prakash said he had been informed that a number of airline companies had shown interest and would be testing out the facilities. "Aggressive marketing has not yet been undertaken because the airport could not be made fully operational due to paucity of funds," he added. "Now with the funds expected, the IACH should start functioning in the next 12 months."