Oman: APM Terminals CEO Visits Salalah Port
APM Terminals CEO Kim Fejfer and a senior delegation met with representatives of the Omani government this past week as the company’s partnership in Omani logistics infrastructure and economic development was the key topic of discussion in meetings with the Minister of Commerce and Industry Dr. Ali Sunaidi, and the Secretary General of the Supreme Council for Planning, Sultan Al Habsi.
“Under the leadership of His Majesty Sultan Qaboos bin Said, Oman is creating exciting new opportunities as a high-growth market at a key crossroads of global trade,” noted Mr. Fejfer, adding, “through our partnership at the Port of Salalah, we have been able to share our expertise in port development and operations and contribute to this period of transformation and economic progress for the people of Salalah and Oman.”
Located on the Gulf of Oman in the Arabian Sea, the Port of Salalah is astride the primary east-west shipping lane linking Europe and Asia and also holds a strategic position for shipping lines serving the upper Arabian Gulf, Indian sub-continent Red Sea and East African markets. Since the start of operations in November 1998 as a collaborative effort between the Omani Government and A.P. Moller-Maersk, container traffic at the port has grown by over 600% to 3.65 million TEUs in 2012.
One of the key topics on the agenda during Mr. Fejfer’s visit was plans for the addition of three million TEUs of capacity of the port, which currently has an annual throughput capacity of five million TEUs.
Primarily a transshipment port at present, the Port of Salalah is enhancing cargo linkages through air, road and rail networks, as over $3.5 billion USD has been invested by industries in the adjacent Free Zone to become a hub for the region’s general cargo trade and cruise traffic as well.
The Sultanate’s non-oil exports increased by over 16% in 2012 reflecting the increasing diversification of Oman’s economy.
General cargo traffic at the Port of Salalah had grown by over 660% since 1998, with volume reaching 7.2 million tons in 2012. With the port’s general cargo terminal tripling capacity for dry and liquid bulk shipments, the port is planning for even greater influence in Oman’s future in the global logistic chain. The Port of Salalah is investing in new technologies and operational enhancement as part of an ongoing Process Excellence program which has improved efficiency and reduced costs associated with delays and congestion.
Salalah also plans to initiate a government tender process for a permanent cruise terminal and a 6,000 square-meter “business incubator space”.
“We are committed to our vision of becoming the port of choice for the region, and to maximizing the stewardship of our assets and resources at all times,” stated Port of Salalah CEO Peter Ford.
APM Terminals holds a 30% share of the Port of Salalah, and manages the facility. The government of Oman holds a 20% share of the venture with 21% held by various institutional investors and 29% held by pension funds and private investors.
Press Release, April 8, 2013