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SOHAR Port and Freezone to exhibit business benefits at world's largest food show
Location, connectivity, and rates are key to reducing cost of putting food on GCC tables
Free Trade Agreements have potential to create East-West transhipment hub for food
CEO Andre Toet has said that SOHAR Port and Freezone can become an important conduit through which food manufacturers can reach booming Middle East markets at a fraction of the current cost. His remarks were made as SOHAR prepares to exhibit the benefits of its unique position outside of the Strait of Hormuz at Gulfood 2015, and follows a deal with Sohar Flour Mills to construct a new flour mill at the Omani port.
"Growing populations and a 90 percent dependence on food imports is a perfect recipe for growth; the value of regional food markets will hit US$53 billion in 2020. This offers great returns for the industry, but it is also increasing the region's food bill. Part of the challenge is operating costs in big cities, and our aim is to harness our location, connectivity, and rates to cut the cost of putting food on tables," explained Mr Toet.
"On top of not having to pay the additional costs of passing through the Strait of Hormuz, land and energy rates at SOHAR are very competitive when compared with other ports and distribution centres across the region. Oman's Free Trade Agreements with the US and Singapore also offer potential costs savings that are not so readily available in some other parts of the region, especially its FTA with the US," he continued.
According to the U.S. Department of Agriculture, food exports were expected to account for US$150 billion and supported 1 million jobs in 2014. Like the Middle East, Singapore is heavily dependent on food imports, and Mr Toet added that in addition to creating supply chains, revenue, and jobs serving regional markets, there is a very real possibility of creating a transhipment hub for food transiting between East and West.
"Our first ambition is to serve the GCC, but where the chance to align FTA agreements and food markets to present itself, we would certainly consider any proposal to expand our remit and services," said Mr Toet.
Together with new road, air, and planned rail links, ground handling equipment at SOHAR is already able to accommodate food imports and the Port will soon be home to Oman's first dedicated terminal for handling agricultural products. Work is set to begin on grain storage facilities, sugar refinery, flour mill, and two manufacturing plants that will produce millions of tonnes of environmentally-friendly packaging materials.
Established 25 years ago, Gulfood has developed a reputation among exporters for delivering spectacular returns on investment. For the exporter seeking new sales from the Middle East, Africa and Asia, Gulfood provides an unequalled sourcing platform, where international flavours find world-class business. It is the world's biggest annual food and hospitality show, and in making its debut at the event, SOHAR will join the world's biggest companies. Gulfood 2015 will be held at Dubai World Trade Centre on 8-12 February 2015.
Visit SOHAR at stand D-116 in the Zabeel Pavilion.
SOHAR Port and Freezone
SOHAR Port and Freezone is a deep sea port and free zone in the Middle East, situated in the Sultanate of Oman around 200 kilometres northwest of its capital Muscat. With current investments exceeding $15 billion, it is one of the world's largest port and free zone developments and lies at the centre of global trade routes between Europe and Asia. SOHAR provides unequalled access to booming Gulf economies while avoiding the additional costs of passing through the Strait of Hormuz. The existing road network and airport and the future rail system provide direct connectivity to the UAE and Saudi Arabia, as well as to the rest of the world. Equipped with deep-water jetties capable of handling the world's largest ships, SOHAR has leading global partners that operate its container, dry bulk, liquid and gas terminals including Hutchison Whampoa, C. Steinweg Oman, Oiltanking Odfjell and Svitzer. SOHAR Port and Freezone is managed by Sohar Industrial Port Company (SIPC), a joint venture between the Port of Rotterdam and the Sultanate of Oman.
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© Press Release 2015
