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| Oman's new port must diversify and drop transshipment focus: Drewry |
| Jun.08--DREWRY Maritime Research has raised the issue of whether Oman needs another big container terminal, which is being developed at the port of Duqm, maintaining that the last thing the Middle East needs at present is another transshipment base. The Omani government is projecting the port of Duqm as the future business hub of the country, despite the port of Salalah in the southern Omani province of Dhofar being already up and running, and still expanding, the Drewry report said. The goal is for the port of to double up as a gateway into Oman's rich oilfields, and not just specialise in container traffic. The Omani government wants to achieve the necessary economies of scale for Duqm through such diversification. For example, technical and logistical problems are said to have made it difficult for heavy project cargo to be shipped via Sohar and Salalah, so Duqm's port and inland infrastructure is being strengthened accordingly. Such diversification will also make it much easier for the port to establish a Special Economic Zone (SEZ), similar to that available in Dubai, said the report. Plans for the development of a major Liquid Terminal at the Port of Duqm, designed to cater to the needs of a world-scale oil refinery, as well as a future hydrocarbon-based industry in the Special Economic Zone (SEZ), are due to commence shortly. Duqm's operations were launched softly in March 2013. A 50:50 joint venture between Consortium Antwerp Port (CAP) and the Port of Duqm Company SAOC was set up in 2010 to develop the new maritime gateway via a 28-year concession. The first phase of its container handling facility will have a 1,600-metre long quay and 18 metres alongside, and have a handling capacity of 3.5 million TEU per annum. The Omani Government sees Duqm as a major business centre of the region, with the potential to also act as an alternate business hub to Dubai, noted the Drewry analysts. Moreover, the location of Duqm involves minimal deviation from the Asia-Europe trade lane. Dubai is located 1,300 miles from the route between Suez and Singapore, whereas Salalah and Duqm are only 130 miles and 400 miles away, respectively, added to which Duqm is much closer to the Middle East Gulf, enabling it to better double up as a gateway port and transshipment hub. On the other hand, the success of Duqm's Special Economic Zone will partly depend on the development of good hinterland links with commercial centres located beyond Oman's borders. Connecting the port with growth/business centres in Saudi Arabia and UAE will greatly decide the fate of the project, the report said. There are plans to connect Duqm with UAE and Saudi Arabia and other countries of Gulf Cooperation Council (GCC) by road and rail. A road network project is underway, which will not only link the port of Duqm with all the major cities within the country, but also with UAE and Saudi Arabia. In conclusion, the Drewry researchers anticipate Duqm port will eventually succeed as a viable gateway port into Oman, as well as a transshipment hub for the Middle East region, yet the fate of its international Special Economic Zone is less clear. (Source:shippingazette) |
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