29 March 2008
MUSCAT -- A floating cement terminal, chartered by Raysut Cement Company (RCC), commenced operations at its new base in the Port of Sohar last week, in the latest initiative by the Salalah- based company to support the country's rapidly escalating domestic demand for cement. MV Eastmed Carrier, a specialised vessel equipped for bagged and bulk cement storage and discharging facilities, is currently producing around 20,000-22,000 bags of cement for consumers in and around the Batinah region.
In addition, the terminal is also providing around 800-900 tonnes per day of loose cement to readymix concrete suppliers. Operating at full capacity, each 12-hour shift helps make available around 2,000-2,500 tonnes of cement to the construction industry, according to a top official of Raysut Cement. "We have responded rapidly to the government's call to the cement industry to take all necessary steps to meet the demand shortfall," commented Mohammed al Dheeb, CEO, Raysut Cement. "Through the charter of this floating cement terminal, Raysut Cement is supplementing its growing operations in Salalah and Port Sultan Qaboos to support the country's continuing modernisation and infrastructure development."
The Panamanian-registered 'floating silo' had earlier operated from Port Sultan Qaboos in Muscat, as well as Sohar Port, from last August to February this year. Following an arrangement agreed with the Ministry of Commerce and Industry, Raysut Cement decided to renew its charter agreement with the owners of MV Eastmed Carrier. The vessel has since docked at the Steinweg general cargo terminal at the Port of Sohar, which will be its temporary home for the next 6-12 months or so.
Raysut Cement has deployed a total of three vessels to transport bulk cement from its Salalah plant to its existing shore-based terminal in Muscat. Additional cement needs for the floating terminal will be sourced from reputable overseas suppliers in the amount of 40,000-50,000 tonnes a month. Raysut Cement, already the largest producer of cement for the domestic market, has witnessed robust growth in cement sales from its Muscat facility. Built to handle 250,000-300,000 metric tonnes of cement per annum, the terminal churned out more than 750,000 tonnes during 2007.
The company has now announced ambitious plans to boost this tonnage to 1000,000-1200,000 metric tonnes during 2008, entailing an increase of 60 per cent. "These initiatives are designed to provide security and comfort to our customers that their requirements will be met," commented Al Dheeb. While the bagging capacity of the Muscat terminal is limited to 200,000 bags per month, a substantial part of its output goes to meeting the requirements of bulk consumers, such as readymix companies, concrete suppliers, and block-making factories.
In this regard, the company is increasing its storage capacity in Muscat by setting up a fifth storage silo to cater to the northern market. It is envisaged that this facility will be commissioned in the fourth quarter of 2008. To help meet the growing national demand for cement, Raysut Cement recently increased its production capacity from 2.2 million tonnes to 3 million tonnes through the addition of a fourth production line. The company's Salalah plant has been operating round-the-clock, Al Dheeb said.
According to the CEO, Raysut Cement is poised to achieve another year of solid growth on the back of rising cement demand, an improvement in prices in the export segment, as well as expanding demand for special types of cement. Production and sales volumes were up 36 per cent in 2007 as a result. Domestic demand is projected to grow to 3.7-4 million tonnes during 2008, compared to 3.2 million tonnes in 2007, an increase of 15-25 per cent.
MUSCAT -- A floating cement terminal, chartered by Raysut Cement Company (RCC), commenced operations at its new base in the Port of Sohar last week, in the latest initiative by the Salalah- based company to support the country's rapidly escalating domestic demand for cement. MV Eastmed Carrier, a specialised vessel equipped for bagged and bulk cement storage and discharging facilities, is currently producing around 20,000-22,000 bags of cement for consumers in and around the Batinah region.
In addition, the terminal is also providing around 800-900 tonnes per day of loose cement to readymix concrete suppliers. Operating at full capacity, each 12-hour shift helps make available around 2,000-2,500 tonnes of cement to the construction industry, according to a top official of Raysut Cement. "We have responded rapidly to the government's call to the cement industry to take all necessary steps to meet the demand shortfall," commented Mohammed al Dheeb, CEO, Raysut Cement. "Through the charter of this floating cement terminal, Raysut Cement is supplementing its growing operations in Salalah and Port Sultan Qaboos to support the country's continuing modernisation and infrastructure development."
The Panamanian-registered 'floating silo' had earlier operated from Port Sultan Qaboos in Muscat, as well as Sohar Port, from last August to February this year. Following an arrangement agreed with the Ministry of Commerce and Industry, Raysut Cement decided to renew its charter agreement with the owners of MV Eastmed Carrier. The vessel has since docked at the Steinweg general cargo terminal at the Port of Sohar, which will be its temporary home for the next 6-12 months or so.
Raysut Cement has deployed a total of three vessels to transport bulk cement from its Salalah plant to its existing shore-based terminal in Muscat. Additional cement needs for the floating terminal will be sourced from reputable overseas suppliers in the amount of 40,000-50,000 tonnes a month. Raysut Cement, already the largest producer of cement for the domestic market, has witnessed robust growth in cement sales from its Muscat facility. Built to handle 250,000-300,000 metric tonnes of cement per annum, the terminal churned out more than 750,000 tonnes during 2007.
The company has now announced ambitious plans to boost this tonnage to 1000,000-1200,000 metric tonnes during 2008, entailing an increase of 60 per cent. "These initiatives are designed to provide security and comfort to our customers that their requirements will be met," commented Al Dheeb. While the bagging capacity of the Muscat terminal is limited to 200,000 bags per month, a substantial part of its output goes to meeting the requirements of bulk consumers, such as readymix companies, concrete suppliers, and block-making factories.
In this regard, the company is increasing its storage capacity in Muscat by setting up a fifth storage silo to cater to the northern market. It is envisaged that this facility will be commissioned in the fourth quarter of 2008. To help meet the growing national demand for cement, Raysut Cement recently increased its production capacity from 2.2 million tonnes to 3 million tonnes through the addition of a fourth production line. The company's Salalah plant has been operating round-the-clock, Al Dheeb said.
According to the CEO, Raysut Cement is poised to achieve another year of solid growth on the back of rising cement demand, an improvement in prices in the export segment, as well as expanding demand for special types of cement. Production and sales volumes were up 36 per cent in 2007 as a result. Domestic demand is projected to grow to 3.7-4 million tonnes during 2008, compared to 3.2 million tonnes in 2007, an increase of 15-25 per cent.
By Conrad Prabhu
© Oman Daily Observer 2008
