20 July 2011
MUSCAT -- The Port of Sohar has commenced negotiations with its choice of preferred bidder for a concession to operate a new Dry Bulk Terminal under construction at the industrial port.
The selected bidder will be awarded a common operatorship licence to manage the Sultanate's first dedicated dry bulk terminal devoted to the exclusive handling of a wide range of mineral-based commodities, including aggregates, coal, assorted ores, and related cargo.
When operational next year, the project has the potential to accelerate the growth of the country's fledgling, but hugely promising, mining and mineral processing industry. Furthermore, it is also set to position Oman as a major supplier of construction material for Gulf states whose sandy desert strata is devoid of construction-grade aggregate material necessary for civil projects.
Bidding interest in the common operator licence has been strong from the outset. From around seven international firms that had submitted firm offers for the licence, the Port of Sohar shortlisted the bidding line-up down to three contenders. Negotiations have since commenced with the frontrunner among the three preferentially-ranked bidders. A final award is likely to be announced at the start of the fourth quarter of this year, it is learnt.
The Dry Bulk Terminal is being built as a separate extension of the massive deepwater jetty currently under construction at the Port of Sohar. Sohar Industrial Port Company (SIPC) is investing around $250 million in the construction of the deepwater jetty primarily to support the bulk shipping needs of Brazilian mining conglomerate Vale Oman, whose iron ore pelletising and distribution centre at the industrial port was recently brought into operation.
A 220-metre length of the 1,380-metre-long deepwater jetty is being developed into a Dry Bulk Terminal. Work on this extension is around 75 per cent complete. Designed to serve both import and export cargoes, the terminal will have a capacity to handle 6 -- 10 million tonnes of aggregates and dry bulk commodities per year.
While SIPC is investing in the jetty infrastructure, the superstructure along with the loaders and unloaders, as well as conveyors systems and utilities, will be provided for by the selected Common Operator.
In addition, the operator will secure a lease for a 32-hectare stockyard within the industrial port for use as a storage site for all kinds of mineral ores, aggregates and dry bulk commodities. The site, located just behind the plot of L&T Heavy Engineering, will be connected to the Dry Bulk Terminal by means of a conveyor system. The stockyard can also be utilised for blending, processing and other value addition investments.
Sohar Port sees the Dry Bulk Terminal project as a powerful catalyst with the potential to open up the vast hinterland of the Batinah region to mining, quarrying and mineral-based investment. Already, the hinterland is a prodigious source of copper concentrate, chromite and marble, and construction-grade aggregate, much of which is shipped out via Sohar Port.
Authorities also see great potential in positioning the Sultanate as the supplier of choice of construction materials for offshore marine structures and big ticket ventures such as The Palm Jumeirah, The World, and so on.
Aggregate exporters in the Sultanate have also set their sights on the 2022 World Cup Soccer championship in Qatar where the government plans to spend a staggering $100 billion in stadiums and schemes linked to this prestigious event - projects that will require huge volumes of construction materials. Omani firms hope to capitalise on Sohar's proximity and world-class infrastructure to bag lucrative supply contracts linked to the World Cup event.
MUSCAT -- The Port of Sohar has commenced negotiations with its choice of preferred bidder for a concession to operate a new Dry Bulk Terminal under construction at the industrial port.
The selected bidder will be awarded a common operatorship licence to manage the Sultanate's first dedicated dry bulk terminal devoted to the exclusive handling of a wide range of mineral-based commodities, including aggregates, coal, assorted ores, and related cargo.
When operational next year, the project has the potential to accelerate the growth of the country's fledgling, but hugely promising, mining and mineral processing industry. Furthermore, it is also set to position Oman as a major supplier of construction material for Gulf states whose sandy desert strata is devoid of construction-grade aggregate material necessary for civil projects.
Bidding interest in the common operator licence has been strong from the outset. From around seven international firms that had submitted firm offers for the licence, the Port of Sohar shortlisted the bidding line-up down to three contenders. Negotiations have since commenced with the frontrunner among the three preferentially-ranked bidders. A final award is likely to be announced at the start of the fourth quarter of this year, it is learnt.
The Dry Bulk Terminal is being built as a separate extension of the massive deepwater jetty currently under construction at the Port of Sohar. Sohar Industrial Port Company (SIPC) is investing around $250 million in the construction of the deepwater jetty primarily to support the bulk shipping needs of Brazilian mining conglomerate Vale Oman, whose iron ore pelletising and distribution centre at the industrial port was recently brought into operation.
A 220-metre length of the 1,380-metre-long deepwater jetty is being developed into a Dry Bulk Terminal. Work on this extension is around 75 per cent complete. Designed to serve both import and export cargoes, the terminal will have a capacity to handle 6 -- 10 million tonnes of aggregates and dry bulk commodities per year.
While SIPC is investing in the jetty infrastructure, the superstructure along with the loaders and unloaders, as well as conveyors systems and utilities, will be provided for by the selected Common Operator.
In addition, the operator will secure a lease for a 32-hectare stockyard within the industrial port for use as a storage site for all kinds of mineral ores, aggregates and dry bulk commodities. The site, located just behind the plot of L&T Heavy Engineering, will be connected to the Dry Bulk Terminal by means of a conveyor system. The stockyard can also be utilised for blending, processing and other value addition investments.
Sohar Port sees the Dry Bulk Terminal project as a powerful catalyst with the potential to open up the vast hinterland of the Batinah region to mining, quarrying and mineral-based investment. Already, the hinterland is a prodigious source of copper concentrate, chromite and marble, and construction-grade aggregate, much of which is shipped out via Sohar Port.
Authorities also see great potential in positioning the Sultanate as the supplier of choice of construction materials for offshore marine structures and big ticket ventures such as The Palm Jumeirah, The World, and so on.
Aggregate exporters in the Sultanate have also set their sights on the 2022 World Cup Soccer championship in Qatar where the government plans to spend a staggering $100 billion in stadiums and schemes linked to this prestigious event - projects that will require huge volumes of construction materials. Omani firms hope to capitalise on Sohar's proximity and world-class infrastructure to bag lucrative supply contracts linked to the World Cup event.
© Oman Daily Observer 2011
