Port user community ponders implications of decision to convert Port Sultan Qaboos into tourism hub
MUSCAT -- Cargo operations at Muscat's Port Sultan Qaboos are unlikely to be disrupted at least until the expiry of the current concession period on December 31, 2012, the Observer has learnt.
According to an official at the Ministry of Transport and Communications, Saturday's decision by the government to convert Port Sultan Qaboos (PSQ) into a tourism hub, does not signal an immediate scaling down of commercial operations at Muscat.
"It is clear from the announcement that the conversion of PSQ into a tourism port will take effect upon the termination of the existing concession agreement with Port Services Corporation (PSC), which operates and manages the facility. That agreement expires at the end of 2012, effectively meaning that cargo handling facilities at PSQ will still be available until then," an official explained.
The remarks will go some way in addressing concerns among the port user community about a looming shutdown of cargo operations at the capital city's premier commercial gateway.
At the same time, the official stressed that the announcement is designed to give shipping lines and port users ample time and opportunity to wind down their Muscat business and to relocate their operations to the industrial port at Sohar.
"There is an ample window here for the relocation from Muscat to Sohar. Having said that, we are also keen for Sohar Port and the user community there to build up enough capacity to handle these new volumes," the official stated.
Asked about a timeframe for the implementation of the port conversion plan, he said: "Specifics with regard to the phasing down of commercial operations at PSQ, the relocation of cargo activities to the Port of Sohar, and all associated timeframes, will be worked out jointly by the Ministry of Transport and Communications and the Ministry of Tourism in consultation with Port Services Corporation, and the wider port user community."
Yesterday, the port user community comprising shippers, shipping agents, shipping companies and their representatives, among other maritime services providers, were pondering the implications of the government's decision to convert PSQ into a tourism port. As part of the conversion, all commercial cargo activities at Muscat will be mandatorily scaled down and shifted to Sohar Port, some 230 kilometres north of the capital city.
The Ministry of Transport and Communications and Ministry of Tourism have been tasked with jointly overseeing PSQ's conversion into a tourism hub and the transfer of cargo operations to Sohar.
Together with the relevant government departments, the two ministries are also required to strategize, master-plan and design the makeover of PSQ into a tourism port -- a process that's expected to a couple of years at the very least. Until then, PSQ is expected to maintain a degree of commercial cargo operations, it is pointed out.
Cost implications aside, most port users foresee no major constraint in the eventual transfer of PSQ's container, general and project cargo to Sohar. But unclear is the fate of the port's flourishing dhow trade, which has long been an economical source of foodstuff and fresh produce imported from neighbouring countries. Also uncertain at this stage is the future of Oman Flour Mills' silo operations at the port, as well as the bagging facility of Raysut Cement.
Although Saturday's formal decision to convert PSQ into a tourism hub did catch many port users by surprise, the move, in fact, has been a long time coming. The decision is partly based on the findings of a study undertaken on the government's behalf by an international consultant.
That study weighed the feasibility of redeveloping Port Sultan Qaboos into a tourism facility serving not only the growing number of cruise ships visiting Muscat, but also exploiting the waterfront's natural and historical appeal. It also highlighted, among other things, the potential for developing upscale hotels and resorts, as well as promoting leisure-based activities along the harbour-front.
In fact, elements of a cruise tourism port are already in place at Port Sultan Qaboos. The Sultanate's first Passenger Cruise Terminal was formally opened at PSQ early last year, offering visiting cruise passengers a significantly superior stopover in Muscat. Set up with an investment of RO 2.7 million, the terminal features all of the amenities and comforts associated with international-class reception facilities for cruise passengers.
Muscat has also been witnessing a surge in cruise traffic in recent years. The port recorded a total of 62 ship calls during the first quarter of this year, up from 49 calls during the same period last year. Around 215,000 passengers arrived on these cruise vessels this year, from 197,000 during the same quarter last year. PSQ has also attracted some of the world's most prestigious passenger liners.
Muscat is also something of a home base for the expanding fleet of the state-owned National Ferries Company, which operates a high-speed ferry-based coastal transportation service.
© Oman Daily Observer 2011
