MUSCAT -- An upgrade of Port Sultan Qaboos (PSQ) is indispensable to ensuring that the nation's principal commercial gateway is able to continue catering to current and future volumes growth, according to Saud bin Ahmed al Nahari, CEO of Port Services Corporation (PSC), which operates and manages the facility in Muscat.
In a report highlighting PSC's performance during 2008, published in the corporation's latest Annual Report, Al Nahari stressed that the port's infrastructure should be augmented if the expectations of port users are to be met. Included in the improvements mooted by PSC are additional deepwater berths, enhanced storage space, and modernisation of the external road network, among other proposals.
A phenomenal increase in business volumes took cargo throughput at PSQ to record levels in 2008, said Al Nahari. A total of 13.910 million freight tonnes of cargo were handled in 2008, far in excess of the port's design capacity. "As a result of consistently high volumes of cargo handled at the port, existing resources in terms of infrastructure, superstructure and the workforce suffered the greatest stress during the year, especially during the second half of the year when the cargo influx was at unexpected volumes," the CEO said.
To cater to this upsurge in throughput, PSC introduced a number of remedial measures in 2008, he said. These measures included berthing window allocations for container vessels, partial berthing and double banking of vessels where possible, fast-track acquisition of additional cargo handling equipment, and some tariff adjustments to encourage speedy movement of cargo.
Additionally, PSC developed around 35,000 sq metres of new storage space in the Shutaify area within the port by levelling some hills. A further 22,300 sq m of paved area was developed in the Jibroo yard adjacent to PSC's headquarters. According to Al Nahari, the sudden and steep increase in cargo volumes was not a feature of PSQ alone, but a trend witnessed across the region. Consequently, many ports in the Gulf and the Indian sub-continent experienced acute congestion, resulting in lengthy waiting times for container vessels of over a week prior to berthing.
"Port Sultan Qaboos also experienced the cascading effect of congestion in the other ports, in addition to the unexpected high volume of cargo throughput resulting in accumulation of containers and general cargo in port yards. However, with appropriate interim measures, services have been provided to all vessels calling at Port Sultan Qaboos with an average waiting time for container vessels amounting to 9.2 hours and a peak of about 28 hours mainly due to the shipping lines not adhering to the berthing window allocation as a result of delays suffered by them in the other ports," he said.
Significantly, PSC is also gearing to meet growth in business volumes in 2009, projected to be 10-15 per cent higher than 2008 levels, the CEO said. However, these expectations, he explained, could be scaled down if the global downturn has any impact on economic and commercial activities in the Sultanate, beyond the developmental projects earmarked by the government for implementation this year. Further, any contraction in regional volumes as a result of the downturn could spark competition between ports locally and regionally, he warned. "Taking these factors into consideration, the Corporation has devised short term plans to ensure adequate business volumes are achieved," Al Nahari stated.
In his report, Al Nahari also stressed the urgent need for additional storage space within the port area to ensure the efficient and cost-effective handling of cargo. In this regard he cited the findings of a new study by Royal Haskoning UK, an international consultancy firm, which was commissioned by PSC to study the port's capacity.
Besides confirming the efficiency of port operations and the effective utilisation of resources, the study also emphasised the need for additional storage space within the port, said Al Nahari. These recommendations, key among which is a proposal for the creation of around 150,000-200,000 sq metres of new storage area through the levelling of some mountains near the port, have been submitted to the authorities for approval, he stated.
Enhanced port infrastructure, the CEO stressed, was necessary for PSQ to keep pace with the fast developing shipping and logistics sector in the region. "The shipping lines are deploying larger and more sophisticated vessels in the region in order to achieve the economies of scale and faster turnarounds. Most of the regional ports are embarking on ambitious expansions of their infrastructure with a view to preparing themselves to service the dynamic shipping industry," he said.
By Conrad Prabhu
© Oman Daily Observer 2009
