Trains have started running on a stretch of Cambodia's once-defunct railway. The news marks the first time in years that trains have run commercially in the country, and moves the dream of a pan-Asian railway much closer.
Decades of conflict shattered Cambodia's infrastructure - its roads, ports and railways.
In recent years some of those assets have been rebuilt, and last Friday at Phnom Penh's railway station, the finance minister presided over a ceremony to mark the resumption of the rail service.
Rebuilding Cambodia's infrastructure
Cambodia's rail network has long been the missing link in the dream to connect Singapore by rail to Vietnam and China, and ultimately to Europe.
War and neglect meant that what remained of Cambodia's 600 kilometers of rail system was in such poor condition that the last rackety trains were reduced to crawling along buckled tracks at 5 kilometers an hour.
Rebuilding the network will cost $142 million, the bulk of that financed with a loan from the Asian Development Bank. Much of the rest is funded by the Australian government and Phnom Penh.
Putu Kamayana is the ADB's country head in Cambodia.
He predicts that Cambodia's decision to award a 30-year railway concession to an Australian company, Toll Holdings, will pay long-term dividends in more areas than just rail services.
"That's a very big step and a very bold step by the government, but certainly by also improving the transport infrastructure it will improve ultimately Cambodia's competitiveness in the global economy and promote foreign direct investment into Cambodia," Putu Kamayana said.
Last Wednesday, Toll's local subsidiary, Toll Royal Railway, took journalists on a refurbished passenger train from Phnom Penh to the town of Takeo, some 50 kilometers south of the capital.
Toll Royal Railway Chief Executive David Kerr was on the trip.
Currently most of Cambodia's freight moves by road. Kerr makes it clear the new rail service will aim to take freight off the roads and put it on the less polluting rail network.
"There's certainly a train a day in cement alone, so there's a significant amount of cement in Cambodia. And then linking in with the ship calls - the feeder services to China, America and via Singapore. And so we'll develop our strategies in cooperation with the shipping lines to develop that service," Kerr says, "There's large volumes of salt that move through Cambodia, as well as domestic and export rice, as well as sugar cane.
One benefit will be that the country's roads will likely become safer and last longer. And Kerr says the rail service has already cut road freight rates by one-fifth.
But since freight is where the money is, regular passenger services might not ever resume.
Upgrade to a passenger service
Toll's first step was to improve a 110-kilometer stretch of track that runs south of the capital to the town of Touk Meas. That is the stretch that opened last week. The next piece of track, running 140 kilometers from Touk Meas to Sihanoukville port, is slated for completion in May.
Once that is done, Toll will start to upgrade the 390 kilometers of line that runs west out of Phnom Penh via Battambang before entering Thailand. That is to be done in 2012.
After that the only gap on the pan-Asian railway will be the section between Phnom Penh and Ho Chi Minh City in southern Vietnam. The two governments have agreed to construct the link, but work has not yet started.
Any large infrastructure project generates winners and losers. Here the losers include the local entrepreneurs who run informal railway services on short stretches of the buckled line in western Cambodia.
Their machines are known as norries, or flying carpets, and are easily visualized - think of a large bamboo bed laid on top of two sets of steel wheels.
Passengers sit on this bamboo bed with their luggage. There are no seats and no sides, and the flying carpet, powered by a small engine, can scurry along the line at 40 kilometers an hour.
It takes only one minute to disassemble a flying carpet. That is just as well since when two of them meet on this single track, etiquette demands that the driver carrying the lighter load dismantle his flying carpet to let the heavier vehicle pass.
Prak Phea has worked this stretch outside Pursat town, about 200 kilometers northwest of Phnom Penh, for 16 years, and earns up to $50 a week. He knows about the rail upgrade, but has not yet decided what he will do next year for work.
The rules of the infrastructure upgrade mean that anyone affected must be compensated. An annoyed Prak Phea says most of the norrie drivers in other towns were paid $250 each, but just four of the 15 on his stretch of line got anything since they were not told when or how to register.
He says that when people came to register them, he was in Pursat. So he missed the chance and did not register, and that means he will not get compensated.
The ADB's Putu Kamayana promises the bank will take that up with the government.
For the next 12 months, however, Prak Phea can carry on earning a living on this battered stretch of line.
But as surely as the whistles of the freight trains leaving Phnom Penh signal the rebirth of a proper rail service for Cambodia, they also sound the death knell for two decades of flying carpets.