Port of Salalah Expansion to 2 Million TEU: Key Implications for Investors and Businesses in Oman
Muscat: APM Terminals has announced a significant investment of USD 300 million in the Port of Salalah to enhance its capacity and infrastructure in line with the Gemini cooperation initiative. This investment involves upgrades to all six existing berths and an expansion of the terminal yard, increasing the port’s capacity from 4.5 million TEUs to 6.5 million. This upgrade solidifies the Port of Salalah’s status as a vital hub, facilitating access to the Middle East, the Indian Subcontinent, and East Africa.
Key components of the expansion include a new access road, an electrical power substation, and an enhanced electrical network, as well as the addition of 2,000 reefer plugs to support refrigerated cargo.
Steven Yoogalingam, CEO of Port of Salalah, emphasized the company’s commitment to Oman and the region, stating, “Our investment underscores our deep commitment to Oman and the region. The new capabilities ensure smoother operations from Port of Salalah and present opportunities for local and regional growth and job creation. We are thrilled to welcome the network from A.P. Moller – Maersk and Hapag-Lloyd as part of this hub system.”
The port’s expansion will also be bolstered by new equipment, including 10 new Ship-to-Shore (STS) cranes capable of handling ultra-large vessels that are 26 containers wide. Additionally, the fleet will see the introduction of 12 hybrid rubber-tired gantry (RTG) cranes, two reach stackers, six empty container handlers, and 30 terminal trucks and trailers.
Muhanna bin Moosa bin Baqer, Director General of Ports at the Ministry of Transport, Communications, and Information Technology, remarked, “This expansion underscores our commitment to advancing Oman’s economic objectives and supporting Oman Vision 2040. Strategic planning is continually underway to optimize the port’s location and infrastructure. The recent investment of $300 million in upgrading the container terminal aligns with our goal of staying ahead of rising maritime traffic to maintain a competitive advantage.”
For the third consecutive year, the Port of Salalah has been ranked as the second most efficient container port worldwide in the 2023 Container Ports Performance Index (CPPI). These upgrades, along with the adoption of Lean practices, are anticipated to further enhance efficiency and reduce port stay times.
Port of Salalah: A Central Hub in the Gemini Network
The Port of Salalah is an integral part of the Gemini network, serving as a primary hub to support the initiative’s infrastructure. Notably, on February 18, the first call by a vessel in the Gemini fleet will take place at Salalah.
Yoogalingam stated, “This port call heralds an exciting new chapter in the network’s operation, highlighting Salalah’s strategic importance in this global initiative. The port remains dedicated to maintaining world-class operations, continuously addressing challenges, and expanding our capabilities.”
By aligning with the Gemini network, the Port of Salalah plays a crucial role in enhancing global trade and connectivity. The planned enhancements are tailored to meet the evolving demands of this collaboration, positioning the port at the forefront of international shipping operations.
Special Analysis by Omanet | Navigate Oman’s Market
The $300 million investment in the Port of Salalah signifies a pivotal shift in Oman’s logistics landscape, enhancing its role as a key regional hub. Businesses can capitalize on improved efficiencies and capacity, while smart investors should consider opportunities in related sectors, such as logistics and tourism, driven by increased maritime traffic. However, potential risks may arise from global supply chain fluctuations, necessitating adaptive strategies to maintain competitive advantages.
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