From commercial gateway and trans-shipment terminal to industrial port and future
ship repair hub, Oman's port sector has grown by leaps and bounds in the past decade
Oman is reclaiming its past maritime glory at a breathtaking pace as is evident from the rapid scale of development of its port and maritime infrastructure. In less than a decade, this sector has burgeoned from a mere commercial gateway to encompass a bustling trans-shipment terminal and a world-class industrial port. Also taking shape is a huge ship repair yard, while a national ocean-going shipping fleet is expanding inexorably as well. This impressive growth bodes well for the Sultanate as it pursues a path of economic diversification to secure the country's future economic prosperity.
By far the most significant development is Port of Sohar on the Batinah coast, which is rapidly shaping up as a world-class industrial port. Since the commencement of construction in 2002, the project has attracted more than $12 billion in investments in infrastructure, utilities and mega industrial ventures -- making it one of the biggest industrial port developments in the world. Given the ambitious scale of the project, the government decided to partner with the Port of Rotterdam of The Netherlands -- Europe's biggest industrial port -- in the development of the project.
The Port of Sohar forms the centrepiece of a much larger development, designated the Greater Sohar Industrial Port Area. Already operational within this area is the 220-hectare Sohar Industrial Estate, which houses a number of small and medium-scale industrial units. Also envisaged within the Greater Sohar Industrial Port Area is a Special Economic Zone, which will host value-added parks, downstream industries, food processing clusters and other commercial activities.
Sohar's robust investment appeal is evident from the impressive array of world-class companies that have converged on the industrial port. The line-up of investors include Alcan, Dow Chemicals, Suez, Steinweg, Odfjell-Oiltanking, MAN Ferrostaal, LG, Hutchison Port Holdings, Al Ghaith Group, CVRD, Larsen & Toubro and Air Liquide, among others.
World-scale ship repair yard
Attention is now riveted on one of the most exciting developments in Oman's infrastructure modernisation -- the Duqm Port and Dry Dock Complex. The $1.1 billion facility will be more than just a maritime gateway -- it will also host a major ship repair yard, which will rank among the largest in the world and equipped to accommodate some of the biggest vessels in operation today, including ultra-large crude carriers (ULCCs).
Already, construction work on the Duqm Port and Dry Dock Complex has commenced. In April this year, an Omani-Turkish consortium was awarded the contract to develop the marine infrastructure for the complex at a cost of RO 186.892 million. Consolidated Contractors Company (Oman) and Sezai Turkes -- Feyzi Akkaya Ltd (STFA) of Turkey) is executing the project in joint venture with Belgian-based international dredging giant Jan De Nul Dredging Ltd.
Phase 1 -- or the maritime works package -- covers the construction of breakwaters and quay walls, as well as dredging and reclamation works. Two breakwaters of a total length of around five kilometres. A pair of quays will also be constructed -- a 700 metre-long quay for container, general cargo and dry bulk vessels, and a 330 metre quay for government vessels. Berths for tug and pilot boats and other craft will be built as well.
Five major contractors are also bidding for a tender to construct the ship repair yard at an estimated cost of RO 250 million. It involves the construction of two dry docks: one of 410 metre length and 95 metre width, and the other of 410 metre length and 80 metre width. The selected contractor will also build other marine structures, including a 2.8 km of outfitting quays, cofferdam, crane foundations and other facilities. South Korea's Daewoo Shipbuilding and Marine Engineering Company (DSME), the second largest shipbuilder in the world, is overseeing the construction of the ship repair yard on behalf of the Oman Dry-Dock Company (ODC), set up by the Ministry of National Economy.
Significantly, the ship repair yard will be large enough to accommodate the largest vessels in operation today. ODC will have a capacity to repair over 200 ships per year, including vessels as large as Ultra-Large Crude Carriers (ULCCs). DSME is confident of achieving these numbers because of Duqm's proximity to major international and region shipping lanes.
Underscoring the socio-economic potential of the project, ODC will provide direct employment to around 1,500 people when it commences operations in 2010. The workforce is projected to rise to 3,000 employees by the year 2018 if a proposed shipbuilding yard is added to the complex. And taken together with the thousands of indirect jobs created by a plethora of support services and auxiliary businesses, the dry-dock project promises to be a huge employment generator. The facility will be operational by April 2010.
Terminal success
In the south of Oman, Port of Salalah continues to be the success story that it has been since it was opened in 1998. The trans-shipment terminal has been operating at close to its design capacity for the past couple of years, and is now the target of a major expansion drive. Last year the port handled about 2.4 million TEU in 2006, and the numbers so far show that it is on track for further solid growth during this year. As part of a strategy to augment capacity, the port's new Berth 5 with a 520 metre quay was opened in May this year. Berth 6 will be operational early next year, adding a further 450 metres of quay. This will take the port's capacity to about 4.5 million TEU once additional handling equipment arrives.
In another significant achievement, cargo volumes handled at the General Cargo Terminal (GCT) have reached record highs in recent years. Bulk cargo volumes have grown from 1.5 million tonnes in 2004 to 2.3 million tonnes in 2006. The GCT's success is attributable to a number of initiatives taken by the port: the appointment of a dedicated management team for the terminal, the completion of work on two deepwater berths, and the acquisition of new multipurpose cranes. In addition, the terminal has also attracted some of the world's most impressive cruise liners, including the QE2, he noted. But with the GCT also operating at close to capacity, the port is now planning a further substantial development that will add another around 500 metres of deepwater berth to the terminal. These improvements will cater for the business generated by Salalah Free Zone.
Greenfield options
Port Sultan Qaboos in Muscat, which has been facing capacity and infrastructure constraints, is also targeted for a major expansion. An alternative site for the expansion of Oman's principal commercial gateway is one of a number of options that will be the subject of a detailed consultancy study to be commissioned by the Port Services Corporation (PSC) soon. In exploring the option of a greenfield site, the consultant will carry out a detailed technical feasibility and economic viability study. This will cover all aspects related to developing new port facilities: site options, road connectivity, navigational aspects, layout, logistics support, interlinking of the new port to the existing facility, and construction costs.
As the country's port infrastructure burgeons, so does the national shipping fleet. Oman Shipping Company (OSC) embodies the government's goal to establish a national ocean-going shipping industry focusing on transport of exported resources and energy. State-owned OSC currently owns and charters 20 vessels which transport LNG, crude oil, refined petroleum products and petrochemicals.
By Conrad Prabhu
© Oman Daily Observer 2007
