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34 Special Report
meters. The Nautical depth will be
increased to 18 meters. It will take until
October 2008 to finalise this phase. The
use of the extra berths is for containers,
bulk (like iron ore pellets and alumina),
steel as well as serving the Larsen &
Toubro construction yard. Further
expansion is under consideration, a
decision is to be taken in the second
quarter of 2007.
How is the business growing and what
is the port focusing on?
The base industries are only the start of
the industrial development in Sohar and
the Al Batinah region. The focus is now
shifting towards downstream industries.
Downstream industries make use of the
products of the base-industries which are
present in the Sohar Industrial Port.
Examples of their products are: plastics
and plastic items (such as packagings,
household items, and kitchen utensils),
carpets, electrical equipment, car
components, pharmaceuticals.
Elaboration of the logistics cluster, in a
Special Economic Zone, will give the
economic development additional
impetus. Distribution of fresh food is one of
the expected developments. Industries
provide business for service providers,
such as financial and legal service
providers, car rental companies, real
estate developers, cleaning services,
catering, and retail.
Sohar aims to be an export port, but also
has the potential to develop into a major
trade hub in the region. The container
handling capacity can, if the market
demand is there, be increased to some 6 or
even 7 million TEU per year.
What are the advantages of Port of Sohar
compared to other areas?
The competitive advantages of the Port of
Sohar are its geographical position, the
deep draft, the proximity to energy
resources, the state-of-the-art facilities,
and the availability of labour. With the
world’s shipping lanes close at hand, the
Port of Sohar is an excellent point of entry
to the countries of the Gulf Cooperation
Council (GCC). Ships do not have to pass
the Strait of Hormuz and enter the
Arabian Gulf, which saves the shipping
companies time and extra insurance
premiums. We strive to be a ‘paperless
port,’ allowing visiting ships to use a
web-based vessel notification system; this
obviously speeds up procedures.
Sohar aims to
be an export port,
but also has the
potential to
develop into a
major trade hub
in the region
“
”
Furthermore, the port is connected by
excellent roads to its hinterland, with
Dubai, Abu Dhabi, Al Ain and Muscat
within a circle of 240 km. Sohar is also
within close reach of the booming
economies of the Indian Subcontinent and
the eastern coast of Africa. Therefore,
Sohar potentially is an international
logistics hub. Because the port has its own
captive cargo base, this helps create a
balance between empty and loaded
containers in contrast with regional
container shipping trends, thus reducing
the price of transports to Sohar. The
awareness of these advantages is
growing. That’s why we were able to
Supply Chain & Logistics Group | www.sclgme.org