However, by 2008 the service between Phnom Penh and Battambang had been reduced from daily to weekly service due to the lack of funds to maintain the tracks and rolling stock.
Even the new diesel-electric locomotives from China could not run on the tracks due to the dilapidated condition.
Derailing of trains in operation was not infrequent.
As reported by the Phnom Penh Post in October 2008, the national railway earned merely $2 million per year; the annual freight amount stood at 350,000, and the passenger count at 500,000.

The last regular rail service in Cambodia between Phnom Penh and Battambang was suspended entirely in early 2009, however in June of that year Australian business Toll Holdings was awarded the contract to begin reconstruction of Cambodia's rail network and to operate it once complete.
It is envisioned that this line would reopen by mid-2013, together with the track further west to the Thai border, allowing for direct rail services into Cambodia from Bangkok for the first time in over 60 years.

In March 2012, Toll said that it would suspend its involvement in the railway project due to delays, caused by lack of equipment, 2011's flood rains, and the resettlement of thousands of Cambodians.
The line from Phnom Penh to the deep water port at Sihanoukville was also scheduled to be reopened in 2011.
However, the company came back in late July and said it will start transporting construction materials needed to build the southern line from 1 August.

The Australian government and the Asian Development Bank was said to spend $26 million to help rebuild Cambodia's rail system, the majority of the Northern and Southern lines in Cambodia.
The project, if all up, would cost $143 million, with the disruption exposed in a report by the international consortium funding the $143 million project – Australia's international aid agency AusAID and the Asian Development Bank.
641 kilometers of track will be rehabilitated with the aim of integrating Cambodia with the regional network such as Vietnam and Thailand; however,about 1,400 families who are living in shanty towns, have been affected and 1050 families have had to move.
The report which was prepared by AusAID and Asian Development Bank experts in April 2012 pointed out poor construction and botched surveys leading to evictions of families, infighting between contractors, delays and cost overruns.

In June 2012, Cambodia was discussing with the Chinese government on funding for a 250-kilometre stretch of rail line between Cambodia and Vietnam.
Var Sim Sorya, director general of Ministry of Public Works and Transportation said: "China doesn’t have so many conditions, but Chinese technicians are still well-studied," he said yesterday at a workshop on infrastructure, although he did not specify which conditions were undesirable.

The line between Phnom Penh and the South opened to travellers on April 9, 2016.

It was announced in March 2018 that the line from Poipet to Sisophon would begin operations on April 4, 2018.
Subsequently, operations were further extended to Battambang on 29 April, with plans to open the line to Pursat on 29 May. It was also reported that new railway routes were being studied by private companies.
However, by 2008 the service between Phnom Penh and Battambang had been reduced from daily to weekly service due to the lack of funds to maintain the tracks and rolling stock. Even the new diesel-electric locomotives from China could not run on the tracks due to the dilapidated condition. Derailing of trains in operation was not infrequent. As reported by the Phnom Penh Post in October 2008, the national railway earned merely $2 million per year; the annual freight amount stood at 350,000, and the passenger count at 500,000.
The last regular rail service in Cambodia between Phnom Penh and Battambang was suspended entirely in early 2009, however in June of that year Australian business Toll Holdings was awarded the contract to begin reconstruction of Cambodia's rail network and to operate it once complete. It is envisioned that this line would reopen by mid-2013, together with the track further west to the Thai border, allowing for direct rail services into Cambodia from Bangkok for the first time in over 60 years.
In March 2012, Toll said that it would suspend its involvement in the railway project due to delays, caused by lack of equipment, 2011's flood rains, and the resettlement of thousands of Cambodians. The line from Phnom Penh to the deep water port at Sihanoukville was also scheduled to be reopened in 2011. However, the company came back in late July and said it will start transporting construction materials needed to build the southern line from 1 August.
The Australian government and the Asian Development Bank was said to spend $26 million to help rebuild Cambodia's rail system, the majority of the Northern and Southern lines in Cambodia. The project, if all up, would cost $143 million, with the disruption exposed in a report by the international consortium funding the $143 million project – Australia's international aid agency AusAID and the Asian Development Bank. 641 kilometers of track will be rehabilitated with the aim of integrating Cambodia with the regional network such as Vietnam and Thailand; however,about 1,400 families who are living in shanty towns, have been affected and 1050 families have had to move. The report which was prepared by AusAID and Asian Development Bank experts in April 2012 pointed out poor construction and botched surveys leading to evictions of families, infighting between contractors, delays and cost overruns.
In June 2012, Cambodia was discussing with the Chinese government on funding for a 250-kilometre stretch of rail line between Cambodia and Vietnam. Var Sim Sorya, director general of Ministry of Public Works and Transportation said: "China doesn’t have so many conditions, but Chinese technicians are still well-studied," he said yesterday at a workshop on infrastructure, although he did not specify which conditions were undesirable.
The line between Phnom Penh and the South opened to travellers on April 9, 2016.
It was announced in March 2018 that the line from Poipet to Sisophon would begin operations on April 4, 2018. Subsequently, operations were further extended to Battambang on 29 April, with plans to open the line to Pursat on 29 May. It was also reported that new railway routes were being studied by private companies.
Rail transport in Cambodia