SOHAR
conducted its annual Business Reception at The Chedi Muscat on Tuesday, March
3. During the event, SOHAR also looked back over its achievements in the past
year while also shedding light on future plans that will take place in the
upcoming year. The event was conducted in the presence of a large number of
strategic partners and representatives of the companies working at SOHAR Port
and Freezone.
SOHAR
Port and Freezone witnessed considerable growth, seeing an average throughput
of over 1 million tonnes of cargo per week over the course of 2019 and bringing
in investments of OMR 10.4 billion (USD 27 billion) to-date. During 2019, dry
bulk was valued at over 36 million tonnes, liquid bulk at over 15 million tonnes
and break bulk over 1 million tonnes. Additionally, the number of vessels that
were called into the port reached nearly 3,200 vessels, 900 of which were in
the last quarter of the year. Aside from capacity growth, it
was announced that the Phase 1 expansion of SOHAR Port South was complete and saw
50 hectares of land added to Port’s present capacity. Work is currently
underway for Phase 2, which will see the addition of another 200 hectares to
the Port area of 2,000 hectares. There are also plans in the
pipeline for the expansion of SOHAR Freezone, which in turn, will increase its
capacity to bring in prospective investors.
Mark Geilenkirchen, CEO of
SOHAR Port said, “We have seen incredible growth in 2019, with SOHAR
successfully attracting a majority of international industries to set up shop at
the Port and Freezone. This, in turn, creates a positive impact by enhancing
our contribution towards the Sultanate’s GDP, supporting the Government of
Oman’s diversification objectives and simultaneously creating more job
opportunities for the local community. We look forward to 2020, which will also
see the completion of the SOHAR Port South expansion. The land area has already
been earmarked for global giants, such as Trescorp and Total, the latter of
which aims to establish an LNG bunkering supply station for vessels at the
Port, therefore attracting even more investments to SOHAR.”
Commenting on the growth in
the Freezone, Omar Mahmood Al Mahrizi, DCEO of SOHAR Port and Freezone - CEO of
the Freezone said, “Since its establishment, SOHAR has emerged as a global
logistics and industrial hub and employs a young, capable and efficient workforce,
while simultaneously investing in innovative solutions and developing
strategies to meet the Sultanate’s national objectives. We seek to continue our
commitment to align ourselves with Oman’s diversification and logistics
strategies and attract foreign direct investment to drive further growth. This
is also enriched by our unique offering of being the only port and free zone in
the region that managed under a single entity. Therefore, we are able to
provide potential customers with an array of integrated services under one
roof.”
“With
several new global investments, we are continuing to look for ways to develop a
myriad of downstream opportunities, wherein one industry`s waste can be used as
fuel for another industry. Other innovations include tapping into sustainable
and eco-friendly energy resources to attract even more investments and
industries into the region. Additionally, with our lower operating costs, energy-saving
systems, easy land lease options, as well as our strategic location to key
global markets, we host a distinctive competitive advantage. I look forward to
our continued expansion and efforts to reach out to important countries, which
will entice even more new businesses, resulting in significant growth in the
years to come,” Omar added
“SOHAR
Port and Freezone has a well-established
mission and vision to establish itself as an important sustainable logistics
hub in the region. Therefore, all our members are constantly focused on
delivering excellent business services to our clients while continuing to
enrich our relationship with the local community. We
continue to keep ourselves abreast with the latest technology and developments
to ensure maximum benefit not only to the organization and the surrounding
community but to also align ourselves with the Oman Vision 2040,” Mark
concluded.
Agreements
and signings over the course of 2019:
2019
saw the groundbreaking of RFX Parks, Shell and Sanvira, alongside further
expansions for Al Tamman Indsil, Matrix Prime and SV Pittie. New partnerships
were also forged in the Freezone with Gulf Alloys and Metals and Madhav
Surfaces.
In an
effort to tap into the Sultanate’s renewable energy potential, the partnership
with Shell Oman foresees 600 hectares of land being utilised for Solar
Photovoltaic (PV) projects. A pioneering project is expected to begin
operations in the current year, with the aim of delivering a power supply
capacity of 25 MW.
Gulf Alloys and Metals signed an agreement for the creation of a low
carbon ferrochrome alloy production facility, capable of manufacturing of
10,000 MT per annum and is a part of the efforts of SOHAR to bring in new
global investments.
The agreement with Madhav is
aimed at developing a quartz manufacturing plant to produce quartz slabs and other quartz products using chrome ore and
calcined lime from the local market, to be exported to the USA and Europe.
SOHAR
joins SEA-LNG to promote its investment in LNG bunkering facilities and
the use of liquefied natural gas (LNG) as a marine fuel. SEA-LNG is
the leading multi-sector
industry coalition, created to accelerate the widespread adoption of
LNG. MARSA LNG, a venture comprised of TOTAL S.A. and OQ, is developing a
state of the art LNG liquefaction plant and bunkering facility in SOHAR
Port.
Highlighting
the importance of the upcoming project, Mark Geilenkirchen, CEO of
SOHAR Port said; “This major LNG Bunkering project will generate
in-country value and job opportunities, and will support industry
diversification efforts by promoting shipping activities in Oman. The
establishment of this facility will make SOHAR one of the key LNG
bunkering facilities on the main shipping trade routes, alongside other
strategic ports, many of whom are already SEA-LNG Members, such as the
Port of Singapore. MARSA LNG will supply LNG sourced locally in the
Sultanate.”
The
the project will see the provision of LNG to the shipping lines calling at
SOHAR Port. The switch from traditional marine fuel oils to LNG has
accelerated following the implementation of new sulphur emission limits
by the International Maritime Organization (IMO) in January 2020 and the
IMO greenhouse gas emission targets set for 2030 and 2050.
Peter
Keller, Chairman of SEA-LNG said; “We are excited to welcome SOHAR to
the SEA-LNG coalition. SOHAR is our first Member from the Sultanate of
Oman and will provide an attractive global offering once the marine
bunkering project is completed. From our perspective, this is an
opportune time to develop LNG capabilities in Oman given the expansive
growth of marine activity within the region. We welcome SOHAR to our
cause of furthering the use of LNG as an important, environmentally
superior maritime fuel.”
Due
to its unique location outside the Strait of Hormuz and mid-way between
Europe and Asia, SOHAR is ideally positioned to become a major LNG
bunkering hub in the Middle East. In addition, SOHAR Port and Freezone
feature deep-water drafts capable of handling the largest vessels in the
world. The liquefaction plant and bunkering project will be able to
offer attractive business conditions, further enhanced by access to a
dedicated logistics chain as well as large domestic gas reserves.
Peter
Keller continues: “As well as providing a means to comply with recently
enforced sulphur limitations, LNG provides a clear pathway for the
shipping industry to decarbonise through the introduction of biomethane
and synthetic methane. Now is the time to move forward with LNG as an
important maritime fuel. Inaction is not a plan and we cannot afford to
wait decades for solutions that may never be realised. Investing in LNG
capable vessels now provides the shipping industry with a pathway to a
low carbon future as well as significant and immediate environmental and
health benefits.”
