Sugar Refinery in Sohar

An agro-bulk terminal, sugar refinery, and petrochemical complex are among a host of major projects lined up for implementation starting from this year, according to the head of SOHAR Port and Freezone. Andre Toet, Chief Executive Officer of the newly rebranded port and free zone development, said the projects will fuel a new phase of growth at the hub, as well as broaden its investment appeal. Speaking at the annual reception of tenants, service providers and port users, held at The Chedi Muscat on Sunday, he said the new projects will help deliver another year of solid growth at SOHAR Port on the back of a successful year gone by.

“2013 was another good year for the port,” said Toet. “We managed to handle over 45 million tonnes of cargo, comprising 26 million tonnes of dry bulk, 16.8 million tonnes of liquid bulk, 800,000 tonnes of project cargo and break bulk, and 205,000 TEU of containers. SOHAR Port is on the right track for further expansion both on the port and freezone fronts.” A key development that will drive growth at the hub is the upcoming closure of Muscat’s Port Sultan Qaboos to commercial traffic and the relocation of all cargoes to SOHAR Port, said the CEO. In this regard, he called on the port user community to work together with the port to help deliver a smooth and successful transition of commercial activities from Muscat to Sohar.

Jamal Aziz, CEO of Freezone Sohar, described the industrial port and adjoining special economic zone as the fastest growing developments of their kind in the world. Investments totalling $8 billion in 2008 have since surged to $15 billion by the end of 2013, he said. These investments have resulted in an uptake of 85 per cent of the total land available within the industrial port and around 80 per cent of Phase 1 of the free zone, thus making SOHAR Port and Freezone the fastest growing development globally, he stated.

“In 2014, we expect SOHAR Port and Freezone to market itself as a new, international brand. SOHAR has proven itself as a gateway port and economic zone to the GCC, Middle East and Indian subcontinent. With a container port, bulk port, general cargo port and RO-RO port, as well as the airport and railroad in the pipeline, we believe SOHAR will have a great future with all of this connectivity to be a formidable economic zone in the region,” Jamal Aziz added. Edwin Lammers, Executive Commercial Manager, SOHAR Port and Freezone, also addressed the gathering.

Among the major projects envisaged for implementation in 2014 is a full-fledged Agro Bulk Terminal designed not only for the handling of wheat and grain shipments on behalf of the government, but also feedstock for the Sultanate’s first sugar refinery project. At the heart of this project is a proposed Strategic Food Reserves facility that will be developed on behalf of the Public Authority for Strategic Food Reserves (PASFR), which has been tasked with securing the country’s requirements of essential food commodities. Envisaged is a complex of silos for the storage of a variety of grain commodities, including wheat, rice, barley and other types of grain.

During the third quarter of this year, Oman Sugar Refinery Company LLC (OSRC) is expected to kick off work on its sugar refinery complex. Output of refined sugar is initially envisaged at 700,000 tonnes in the first phase, and ramped up to 1 million tonnes within three years thereafter. The industrial port will also witness a period of frenetic construction activity this year as work commences in earnest on the Sohar Refinery Improvement Project, a $2.1 billion initiative by Orpic to expand and modernise the country’s flagship refinery. Oman Oil Company, the wholly government owned strategic investment vehicle, is also expected to kickstart development of its $800 million PTA/PET petrochemicals plant within the port. Importantly, all of these investments are expected to provide strong new impetus to the growth of downstream ventures at the adjoining special economic zone.