OBG talks to Said bin Hamdoon Al Harthi, Undersecretary for Ports & Maritime Affairs, Ministry of Transport & Communications

Interview: Said bin Hamdoon Al Harthi

What synergies exist across Oman’s major industrial, light manufacturing, logistics and tourism ports?

SAID BIN HAMDOON​ AL HARTHI: The large industrial ports in Sohar, Salalah, and now Duqm, are all unique, but have no synergies. The Port of Sohar, as a result of its strategic location, has the potential to become an industrial centre for the GCC. With a petrochemicals refinery, Vale Oman Pelletising Company’s plant, Jindal-Shadeed’s steel operations and a free zone, it is a very attractive investment area. Duqm Port is unique in that it has a new dry dock for shipping repairs, while still catering to petrochemicals, fisheries and some bulk containers in the future. In the south, Salalah Port remains a predominantly container traffic hub, with some general cargo, and ranks among the top 30 ports worldwide. Finally, Port Sultan Qaboos is going through a transition from an industrial centre to a port city catering to the tourism industry. While there are similarities among these regional ports, it is important to recognise that each serves a unique role in the sultanate’s economic engine.

How are Oman’s port operators enhancing efficiency, improving docking facilities and positioning their offerings against increasing competition?

AL HARTHI: It is important that these ports do not compete, but instead provide quality services and efficiently facilitate business so that investors can choose which port best meets their needs. Each port has its own brand. Operators should look at improving how they showcase their strengths against global as well as regional peers, and focus on enhancing services and turnaround time at docking facilities. The fact that Salalah, Sohar and Duqm ports have free zones to complement them is a crucial marketing tool that will help each compete on an international scale. The ministry wants to ensure global standards, efficiencies and quality of service, and while there is stiff competition, we believe our partnerships with Maersk in Salalah, Port of Rotterdam in Sohar, and Port of Antwerp in Duqm will position Oman’s ports as global competitors.

How do you envision Oman’s future role in global supply chains and what is being done to create critical trade volumes at national ports?

AL HARTHI: As the economy grows, maritime shipping traffic increases, and a full multimodal transport system that includes rail and air is built to complement maritime port operations, Oman will become more important globally. The country is ideally positioned to cater to the markets of Asia, the Indian subcontinent, the Middle East and North African region, and even onwards to Europe. In terms of logistics, plans to integrate all transport functions across the sultanate and add rail will be a huge boon for trade and industry in the industrial and commercial regions of the country, and will connect Oman to a massive network. The future growth and viability of the country’s ports will be directly linked to their connectivity, and they each must integrate different forms of logistics in order to truly become a hub in the GCC and global supply chain player.

In what ways are public-private partnerships being implemented to expand domestic small and medium-sized enterprises (SMEs) and private sector participation in Oman’s maritime ports?

AL HARTHI: The ministry is doing its utmost to ensure the private sector plays a role in the development and operation of our national ports. Many projects at the ports have been, and continue to be, tendered, and we encourage local businesses from each region to become more involved in the development and running of these ports. For instance, in Shana a local private operator has taken over the servicing of the new jetty with regards to electricity and maintenance. While most of the large infrastructure projects are carried out by major international firms, there is no question that the future operation of our regional ports will be a balanced endeavour shared between large government operators and smaller private companies. The role of private SMEs will be to provide complementary services to Oman’s regional free zones and ports.