Upgrade of aviation infrastructure is under way

A major wave of airport building and expansion is taking place, which is set to transform Oman’s international air transport profile. This is also a key pillar of its plans to diversify the economy away from hydrocarbons, giving a lift to everything from tourism to trade.

Movers & Shakers

The key body behind the airport expansion drive is the state-owned Oman Airports Management Company (OAMC). It is responsible for the management and operation of civilian airports, including their physical infrastructure, procurement, human resources and overall readiness for business. Under the OAMC’s auspices are the country’s two main international airports – Muscat (formerly Seeb Airport) and Salalah. OAMC also has charge of the three regional airports in the sultanate: Duqm, Sohar and Ras Al Hadd, which are all undergoing development.

Meanwhile, a fourth regional destination, Adam Airport, is being rolled out under the auspices of the Ministry of Defence as an air force facility. Some $6.1bn has also been earmarked by the government for civil airport development over five years, with 92% of this budget going to Muscat and Salalah.

Looking To Muscat

Muscat International Airport is the country’s largest and oldest terminal, and lies some 30 km to the west of the capital’s downtown. Beginning life as Seeb International in 1973, it was renamed in 2008. According to OAMC, it handled around 8.31m passengers, 120,040 tonnes of cargo and 81,244 civilian aircraft movements in 2013. Passenger figures were up considerably over 2012, though cargo remained relatively stable. It had seen 6.6m passengers, 61,110 aircrafts and 92,334 tonnes of cargo by end-September 2014.

The airport is home to Oman Air, the national carrier, with the airline responsible for about 59% of the airport’s total capacity of weekly seats in 2013, according to figures from airline surveyors Innovata / Diio Mi, and 63% of its total number of weekly flights. Qatar Airways, Fly Dubai and Air India were the top-three, non-Omani users of the airport. A total of 27 airlines regularly serve Muscat International Airport, including the flag carrier. The top three routes from the airport are to Dubai, Salalah and Doha.

The airport terminal was, however, constructed with an intended capacity of some 2m passengers, a figure surpassed by actual arrivals more than a decade ago. This has created a highly congested terminal, despite periodic reorganisations of the existing space. A new terminal has long been seen as the answer, and work on this began in 2011.

By the end of stage 1, the airport’s capacity will have grown to 12m passengers per annum (ppa), with the design enabling phased future expansion to accommodate 24m, 36m and 48m ppa.

Stage 1 will see a floor area of 334,995 sq metres, 10 remote aircraft stands, hanger capacity for two wide-body and four narrow-body planes, and a 90-room hotel. A 4000-x-60-metre runway is also being laid, along with substantial warehousing and depot space for cargo and logistics companies.

The airport construction has, however, been hit with some delays. Originally intended to be operational by the end of 2014, no firm date has recently been set for completion, with 2016 widely considered a likely date. Work on the project had been conducted via a series of separately contracted packages, with delays in one affecting others, according to local press reports, causing the overall date to be pushed back.

When opened, the new Muscat International Airport will offer arrivals a different experience to that of today, with new road links also enhancing travel to and from the airport. The new facility is also having a profound effect on the city itself, as more businesses and residences spring up on the road out to the airport, away from the traditional downtown.

Heading South

Meanwhile, Salalah, which started operations as a domestic-only airport in 1977 and became an international facility in 2004, is also undergoing major expansion. In 2013 Salalah handled 746,994 passengers, 1417 tonnes of cargo and 7944 civilian aircraft movements. Again, this represented significant growth in passenger numbers – an increase from 629,305 in 2012 – and in aircraft movements, which were up from 6175 the previous year, while cargo remained stable. The year-to date September 2014 saw 643,119 passengers and 6696 aircrafts.

Salalah has become more of an international destination in recent years, with the popularity of the region growing particularly among Gulf residents. During the summer months Dhofar turns green thanks to the tail end of the Indian monsoon, with cool temperatures and rain major draws. Qatar Airways, for example, began direct Doha-Salalah flights in 2013.

Building Capacity

The OAMC’s Salalah airport expansion will see a new terminal with a 1m-ppa capacity come on-stream at the end of its first stage, with future expansions to 2m, 4m and 6m ppa planned for the years ahead. The new airport will have an annual cargo-handling capacity of 100,000 tonnes and hanger capacity for one wide-body aircraft. The new terminal’s total floor area will be 65,638 sq metres, with 10 contact stands and boarding bridges and a 4000-x-60-metre runway. Principle consultants on the expansion are COWI, a joint venture between OAMC, Larsen Architects and Copenhagen Airports. Project management consultants are Aéroports de Paris Ingénierie.

The project is a key part of a major new strategy for the development of Salalah and the Dhofar region in which it is located, leveraging on the area’s tourism potential. New roads and interchanges are therefore also being constructed to link the airport to expanded local infrastructure, which includes a major new hotel, and commercial and residential complexes.

Going Local

Part of the sultanate’s airport strategy is also tied to its plans for regional development (see Regions chapter). This aims to increase social and economic equity by further improving transportation infrastructure in rural areas, as well as urban ones. The development of an entirely new port and city at Duqm, located halfway between Muscat and Salalah, is also being provisioned for with the construction of a new airport in the city.

The new terminal at Duqm will have a 250,000-ppa capacity on completion, with a total passenger floor area of 6000 sq metres. As of September 2014, the new, 4000-x-60-metre runway had been completed and was receiving planes, although the terminal building was still under construction, and passengers were being processed in a temporary facility. Larsen &Toubro (L&T Oman) had won the $94.2m contract to build the new terminal building in July 2014. Duqm will be able to process 50,000 tonnes of cargo per year on completion, with four aircraft stands.

Sohar, meanwhile, lies some 220 km north-west of the capital and is fast becoming the main port for the Muscat region, as well as a major industrial and commercial centre. The first two packages of work – rainwater protection, the civil and infrastructure work, the 4000-x-60-metre runway and 30 km of service roads – were completed in September 2014, when L&T Oman also registered the lowest bid for the airport terminal building. The airport commenced operations in November 2014, with the terminal building yet to be completed. Once the terminal is ready, the airport will have a 500,000-ppa capacity, along with the ability to handle 50,000 tonnes of cargo per year. The airport will also have two aircraft stands.

The final regional airport, Ras Al Hadd, is located close to Sur, in the Sharqiyah region, south-east of Muscat. This region has been earmarked for tourism development, capitalising on its many fine beaches and unique ecosystem. The airport will have six aircraft stands and a 250,000-ppa capacity. There have been delays in the building of Ras Al Hadd, with a major terminal building construction tender package cancelled at the end of 2013. Phase 2 airside infrastructure works for the 4000-metre runway and the overall airport construction package are under way, however.

Room For Growth

The expansion of Oman’s air capacity should allow the country’s aviation infrastructure to catch up with the already over-capacity passenger numbers being recorded at Muscat and Salalah airports, while also building in room for future expansion. This ties in well with Oman Air’s growth – in late September 2014, the carrier announced plans to grow its fleet from 31 to 50 aircraft by 2017 – as well as with the overall development strategy for the sultanate’s economy, Vision 2040.

Duqm and Sohar clearly provide vital air bridges for local and international traffic for what will likely be Oman’s two most important domestic ports. Ras Al Hadd, meanwhile, may have more of a challenge, as it will have to place itself more visibly on the global tourism map, pulling in visitors first through charter flights, eventually followed by scheduled routes. At the same time, the expansion is providing Oman with experience in project management, with Omanisation rates particularly impressive at outfits such as OAMC. While there may have been some bumps in the road towards the completion of these major projects, the lessons being learned will stand the sultanate in good stead.

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The Report: Oman 2015

Transport & Logistics chapter from The Report: Oman 2015

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