07 March 2012
MUSCAT -- Port Services Corporation (PSC), which operates Port Sultan Qaboos (PSQ) in Muscat, plans to offer its expertise in the management of the facility post its planned conversion into a tourism hub, among other seaports and logistics terminals within and outside Oman.
Mohammed Jawad bin Hassan bin Suleiman, Chairman of the Board of Directors, said the move is a key part of the Corporation's strategy to look for opportunities beyond its current mandate as the operator of the soon-to-be converted PSQ.
"This strategy will enable the Corporation to enter into other new activities such as the management of the converted PSQ tourist port, the management of other seaports and container terminals in Oman and abroad, the management of logistic distribution centres, investment and management of real state," he stated in the Director's Report for the financial year ended December 31, 2011.
Among the opportunities being keenly explored by PSC is the operation of Port Khasab, which is tipped to be upgraded. A previous bid by the Corporation to offer its services in the management of Port Khasab did not come to fruition. Of late, however, that move has been revived, with the authorities having recently approached the Corporation for a fresh proposal in this regard.
Also as part of its strategy to diversify its focus beyond PSQ, the Corporation is mulling a strategic partnership with a reputable investor in support of its bid for new Operation & Management (O&M) opportunities, the Observer has learnt.
Significantly, the management's strategy for pursuing O&M opportunities has been approved by the Board, Mohammed Jawad bin Hassan bin Suleiman stated. This follows a media statement issued by the Minister of Transport and Communications, pointing to a role for the Corporation in the management of the tourism port, as well as other seaports, the Chairman added.
Mohammed Jawad also announced the setting up of an ad-hoc committee to coordinate with various working groups set up by the government to oversee PSQ's transition to a tourism port, and the relocation of cargo operations to Sohar Port. The working groups, he said, are in the process of formulating plans as well as setting out a time-frame for the transition.
Industry analysts say it is unlikely that a transition will happen before the end of PSC's current concession agreement for the operation of PSQ, which expires on December 31, 2012. Given the government's ambition to develop a unique maritime heritage and tourism hub complete with hotels, leisure centres and other amenities, an eventual transition and conversion is expected to take a couple of years at the very least, it is pointed out.
On expiry of the agreement, the land located within the concession area shall be transferred to the government at nil consideration and free of any obligations or mortgages. The land and installations outside the concession area built by the Corporation, equipment, installations and machinery used in the management and operation of the port shall be transferred to the government in line with the terms of the concession agreement.
Despite the anticipated conversion of PSQ, total cargo throughput during 2011 climbed 2.5 per cent to 10.910 million freight registered tonnes (FRT), compared with 10.643 million FRT a year earlier. Imports were up 2.2 per cent, while exports also inched higher by 4 per cent last year. Vessel calls however dropped 22.8 per cent to 1,435 ships.
Cruise traffic was markedly higher at 115 calls during 2011, compared with 109 calls in 2010. Passenger numbers totalling 169,355 in 2011 were largely in trend with the previous year's tally of 169,295 tourists.
MUSCAT -- Port Services Corporation (PSC), which operates Port Sultan Qaboos (PSQ) in Muscat, plans to offer its expertise in the management of the facility post its planned conversion into a tourism hub, among other seaports and logistics terminals within and outside Oman.
Mohammed Jawad bin Hassan bin Suleiman, Chairman of the Board of Directors, said the move is a key part of the Corporation's strategy to look for opportunities beyond its current mandate as the operator of the soon-to-be converted PSQ.
"This strategy will enable the Corporation to enter into other new activities such as the management of the converted PSQ tourist port, the management of other seaports and container terminals in Oman and abroad, the management of logistic distribution centres, investment and management of real state," he stated in the Director's Report for the financial year ended December 31, 2011.
Among the opportunities being keenly explored by PSC is the operation of Port Khasab, which is tipped to be upgraded. A previous bid by the Corporation to offer its services in the management of Port Khasab did not come to fruition. Of late, however, that move has been revived, with the authorities having recently approached the Corporation for a fresh proposal in this regard.
Also as part of its strategy to diversify its focus beyond PSQ, the Corporation is mulling a strategic partnership with a reputable investor in support of its bid for new Operation & Management (O&M) opportunities, the Observer has learnt.
Significantly, the management's strategy for pursuing O&M opportunities has been approved by the Board, Mohammed Jawad bin Hassan bin Suleiman stated. This follows a media statement issued by the Minister of Transport and Communications, pointing to a role for the Corporation in the management of the tourism port, as well as other seaports, the Chairman added.
Mohammed Jawad also announced the setting up of an ad-hoc committee to coordinate with various working groups set up by the government to oversee PSQ's transition to a tourism port, and the relocation of cargo operations to Sohar Port. The working groups, he said, are in the process of formulating plans as well as setting out a time-frame for the transition.
Industry analysts say it is unlikely that a transition will happen before the end of PSC's current concession agreement for the operation of PSQ, which expires on December 31, 2012. Given the government's ambition to develop a unique maritime heritage and tourism hub complete with hotels, leisure centres and other amenities, an eventual transition and conversion is expected to take a couple of years at the very least, it is pointed out.
On expiry of the agreement, the land located within the concession area shall be transferred to the government at nil consideration and free of any obligations or mortgages. The land and installations outside the concession area built by the Corporation, equipment, installations and machinery used in the management and operation of the port shall be transferred to the government in line with the terms of the concession agreement.
Despite the anticipated conversion of PSQ, total cargo throughput during 2011 climbed 2.5 per cent to 10.910 million freight registered tonnes (FRT), compared with 10.643 million FRT a year earlier. Imports were up 2.2 per cent, while exports also inched higher by 4 per cent last year. Vessel calls however dropped 22.8 per cent to 1,435 ships.
Cruise traffic was markedly higher at 115 calls during 2011, compared with 109 calls in 2010. Passenger numbers totalling 169,355 in 2011 were largely in trend with the previous year's tally of 169,295 tourists.
© Oman Daily Observer 2012
