23 February 2017
Muscat - Despite uncertain global economic circumstances Port of Salalah’s container terminal handled 3.33mn TEUs (twenty foot equivalent units) in 2016 compared to 2.57mn TEUs in the previous year, posting a growth of 29 per cent.

The Port’s general cargo terminal handled 13.04mn tons during 2016, registering a moderate growth of four per cent compared to the previous year volumes, Salalah Port Services Co (SPSC) said in its yearly report submitted to the Muscat Securities Market on Wednesday.

Helped by higher volume growth, the consolidated net profit of SPSC rose 10.5 per cent to RO5.73mn for the year ended December 31, 2016 compared to RO5.18mn in the previous year. Total revenues of the company grew by 11 per cent to RO54.87mn from RO49.51mn in 2015.

SPSC board recommended to distribute a cash dividend of 20 per cent on the paid-up equity share capital of the company. This equates to 20bz per share, resulting in a total cash disbursal of RO3.6mn.

‘Through improved service levels and gains in productivity, the company has retained all its major customers while a major customer’s share of business increased by 49 per cent compared to previous year’, SPSC said.

Giving its outlook for the current year, SPSC anticipates that the shipping lines will increasingly push suppliers, and specifically terminals, for lower rates and higher operational productivity in order to reduce costs. It added that the ongoing developments of new terminals in the region ensure that available capacity will continue to far outpace the growth and demand and will result in sharp downward pressure on the rates.

For the Port of Salalah, SPSC said, the outlook remains cautiously optimistic as existing customers are capitalising on higher operational performance and long-term agreements. ‘Developing more gate cargo remains an essential priority to anchor new and additional business in the Port’.

The company said the Port of Salalah is also looking to emerging markets to achieve its growth targets. ‘While the Chinese economy continues to slow down, other markets in the Indian sub-continent, Middle East, Far East, Africa, amongst others, have become more dynamic and offer real opportunities for the Port of Salalah. Efforts are continued to capture new growth markets like Iran’.

SPSC also expects growth to pick up in the general cargo volumes led by increasing number of mining licenses issued for limestone and gypsum mining.

© Muscat Daily 2017