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Grain Terminal proposed at Sohar Port

By Conrad Prabhu MUSCAT - A major Grain and Dry Bulk Foods Terminal is planned at the Port of Sohar - the latest initiative in an ongoing strategy by the government and private sector to secure the nation's requirements of essential food commodities. Majority government-owned Oman Flour Mills is in discussion with the Port of Sohar in the establishment of the proposed facility at the industrial port, it is learnt. The terminal, whose scope and capacity is still the subject of evaluation, is likely to be built on a reclaimed plot designated as part of the Future Container Terminal in Sohar Port.

Plans for a Grain Terminal at Sohar were unveiled at a media briefing yesterday hosted by top officials of Sohar Free Zone LLC, which is developing a major special economic zone, branded as 'Freezone Sohar', adjacent to the industrial port. Maqbool bin Ali Sultan, Minister of Commerce and Industry, and Chairman of Sohar Industrial Port Company ( SIPC ), opened the briefing with an introductory address on Freezone Sohar.

Later in a presentation, Jamal T Aziz, Deputy Chief Executive Officer of SIPC and Chief Executive Officer of Sohar Free Zone LLC, outlined investment opportunities stemming from existing and planned industrial projects and logistics infrastructure at the nearby port. A proposed Grain Terminal at Sohar, conceived in line with the government's food security strategy, would also stimulate investments in food related industries at the free zone, said Jamal Aziz. Sohar Port's, and indeed the wider Batinah region's comprehensive logistics infrastructure will also augur well for the development of food-related activities, he stated, adding that Sohar Port would play a key role in supporting the national goal of enhancing food security.

According to Neelima Vyas, Chief Operating Officer - Freezone Sohar, the port will provide the jetty infrastructure for the proposed Grain Terminal, while Oman Flour Mills will invest in silos and the requisite landside infrastructure. Asked about terminal handling and storage capacities contemplated by the parties concerned, Neelima Vyas commented: "I think this matter is in an advanced stage of finalisation. At the moment, Oman Flour Mills is trying to see how to expand activities from purely wheat-based imports and storage, to exports as well.

Because grain is a perishable commodity, it can potentially go waste if it's not utilised. Oman Flour Mills is (reviewing) the process of how they want to go ahead with their plan for food security." The logistical advantage offered by Sohar also opens up opportunities for commodities trading with other countries, she added. Commenting on a likely timeline for the finalisation of the Grain Terminal plan, the Chief Operating Officer stated: "Discussions are ongoing, but I understand they're looking at a closure within 18 months."

Oman Flour Mills ' Chairperson Manal bint Mohammed al Abdwani warned in a report on the company's financial performance for the past six months that lower output and other factors would continue to impact international wheat prices. "Wheat prices continue to remain at high levels due to lower production and carryover stocks. The weakening of the US dollar has also had a negative impact on commodity prices and has resulted in higher freight," she stated.

Significantly, the proposed Grain Terminal will add to Sohar Port's growing logistics cluster, which already includes world-scale container, liquids and general cargo terminals. Construction of a deepwater bulk jetty for Brazilian mining conglomerate Vale's iron ore pelletisation plant is also well under way. Part of the jetty will be developed into a terminal for aggregates and bulk minerals.

© Oman Daily Observer 2011