Salalah denies shelving expansion plans

Reports that the Oman Port of Salalah had shelved plans to expand its container terminal, managed by APM Terminals, with three new quays totalling 1,350 metres, have been discounted by a senior official.

“Expansion at Port of Salalah will continue,” he told CM, “although due to the global effect on cargo the recession has brought about, we will adjust our time frames accordingly. Our immediate focus will be general cargo as new customer business comes on line from the Free Zone.”

This supports reports that the port is to invest in expanding its multipurpose activities.

In addition, the official stated that the planned 700-metre box facility involving APL Terminals, an NOL branch not to be confused with the A.P. Møller-Maersk stevedoring subsidiary, “remains firmly in place” and whilst the recession has again affected timings, both parties remain committed to the agreement.

“Last year (2009) was a challenging year for our industry and whilst many ports will be witnessing volume drops of varying degrees, we will record growth of around 12%, accordingly to my financial colleagues, which in the current economic climate is a good indication that we are performing well in meeting the challenges of the period,” said our source.

The Salalah Port project is the largest privatisation venture in Oman and has been hailed as a role model for achieving the Sultanate's strategic direction of diversification, Omanisation and privatisation.

As a common-user multi-purpose port, with facilities to handle bulk cargo, containers, general and liquid cargoes, the majority of business comes from the container terminal.

(Source: Container Managerment)