International firms eye Salalah Port general cargo and liquid terminals' contract

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MUSCAT -- More than 40 international and local construction firms are preparing to bid for a contract to build a major General Cargo and Liquid Terminal at the Port of Salalah. Bids for the prestigious contract, estimated to cost RO 75 million, close on August 23, 2010.

When completed in the year 2012, Salalah Port will boast a world-class General Cargo Terminal, complementing its hugely successful Container Terminal. Also as part of the project, a dedicated Liquid Terminal will be built to handle petrochemicals and other liquid products shipped into and out of the Salalah Free ZoneSalalah Free Zone located next door.

Burgeoning exports of limestone, gypsum, cement, plastics, resin, wheat and other bulk commodities, coupled with the rising transshipment of humanitarian relief cargo and other goods, have made the expansion of the General Cargo Terminal imperative to the goal of keeping the Port of Salalah competitive and attractive to international shippers.

The terminal also handles break bulk cargo, steel pipes, crated and palletised shipments, and even livestock. Cruise liners calling Salalah routinely dock at the General Cargo Terminal.

What was once referred 'Mina Raysut, the General Cargo Terminal currently has 12 berths ranging from 115 to 600 metres in length, with drafts of up to 16 metres. Over the past seven years, the terminal has recorded double digit growth, reaching 2.7 million tonnes in 2007. Volumes soared to 3.469 million tonnes in 2008, climbing a further 7 per cent to 3.722 million tonnes last year.

Volumes are projected to rise sharply in the coming years as new industrial investments at the Salalah Free ZoneSalalah Free Zone, as well as the wider Dhofar region, come into operation.

Plans drawn up by the Ministry of Transport and Communications envisage a dedicated General Cargo Terminal, which involves the construction of 1,266 metres of new quay wall built with concrete precast blocks.

In addition, the harbour basin in front of the General Cargo Terminal will be dredged to a depth of 18 metres, allowing for even large-sized cargo ships to dock at Salalah.

Dredging will constitute a key component of the overall project, with an estimated half a million cubic metres of silt expected to be dredged from the basin floor.

While half of this material will be used to reclaim land for the terminal yard, the rest will be disposed off at a designated site at sea. The terminal will be reclaimed with over one million cubic metres of imported fill material, in addition to around 270,000 cubic metres of stones. Protection for the revetments will be provided by more than half a million cubic metres of rocks and crushed stones.

In addition to installing berthing, mooring and navigation aids, the selected contractor will also put in place nearly two kilometres of railing for cranes along the quay wall. The contract also calls for the provision of utility services, such as potable water supply, fire protection, sewerage and drain systems and electrical supply, besides administrative buildings.

Importantly, the new General Cargo Terminal will also incorporate a liquid jetty suitably equipped to handle product tankers and other carriers that service the petrochemical projects either in operation or planned in the future at the nearby Salalah Free ZoneSalalah Free Zone.

In the initial years, the liquid terminal will primarily serve the $900 million methanol scheme of Salalah Methanol CompanySalalah Methanol Company, which came into operation recently. Other industrial investments that produce liquids or depend on liquid feedstock imports for their operations are also slated to come on stream at the free zone in the coming years.

Interest in the General Cargo and Liquid Terminal project has been significant with over 40 companies lining up to bid for the contract. Construction firms looking to participate in the tender include BAM International, Afcons, Desert Line, GalfarGalfar, CCC, Daewoo, Sarooj Construction, Ballast Nedam, Douglas OHI, Archirodon, Van Oord, Hindustan Construction, Jan De Nul, Sambu Construction, Essar Projects, Muhibbah (Malaysia), Strabag, TML INSAAT, National United Engineering, Carillion AlawiCarillion Alawi, FIDENS, Samwhan Corp, Middle East Dredging, 115 Construction, Great Lakes Dredge & Dock, Simplex Infrastructures, Gammon India, Hyundai, China Harbour, Boskalis Westminster, RDS Projects, Erenport, STFA, Impresa, Group Five, STX, Six Construction, and GS Engineering.

A contract for the project is due to be awarded in the fourth quarter of this year, with a 16-month timeframe stipulated for its completion.

By Conrad Prabhu

© Oman Daily Observer 2010