Salalah Port aims to become liquid trading hub
MUSCAT, MAY 9
Having already established itself as a major player in the handling of container and dry bulk commodities, Oman's Port of Salalah — one of the busiest maritime gateways in the Middle East — is now eyeing the potential to serve as a prominent liquid hub as well.
Fuelling this potential is the growth of an expanding petrochemicals industry in and around Salalah, with significantly volumes of methanol, LPG and fuel products currently being handled at the maritime port overlooking the Arabian Sea and Indian Ocean beyond. A sizable increase in wet bulk volumes is also anticipated when a major new cluster of petrochemical plants materialises at the adjoining Salalah Free Zone in the coming years.
Commenting on the outlook for the growth of a liquid hub at Salalah Port, Braik Musallam al Amri, Chairman of Board of Directors, Salalah Port Services Co SAOG, said: 'Interest in wet bulk is encouraging and Salalah's potential as a hub for liquid trading and handling is becoming more solid. This is driven by the well-developed infrastructure in place and the established know-how that the port built over the years. The company is working with prospective customers on opportunities to develop new business in the Port.' Currently, all of the volumes of methanol and LPG exported through Salalah Port are generated by OQ Base Industries (OQBI), the majority Omani state-owned integrated petrochemicals complex operating in the free zone. Output of methanol and LPG from the plant hit record levels last year.
Seeking to capitalise on the presence of ammonia, methanol and LPG as feedstock in Salalah, Al Baleed Petrochemical Company — an Oman-based firm — is currently in the early stages of developing a petrochemicals park in the free zone. The cluster is envisaged as an integrated petrochemicals complex that will process these commodities into an array of high-demand chemical products.
The park is proposed to host modularised units focused on, among other commodities, propane dehydrogenation (PDH); maleic anhydride — a key intermediate in the production of biodegradable plastics; Formic Acid (85 per cent concentration), Acetic Acid and Hydrogen Peroxide (35 per cent and 50 per cent concentrations).
On the dry bulk front, however, Salalah Port continued to post strong gains, bolstered by its growing importance as a hub for locally mined minerals like gypsum and limestone. General cargo throughput climbed 11 per cent to 6.4 million tonnes during Q1 2025, up from 5.8 million tonnes in Q1 2024. The increase was driven by an uptick in the demand for gypsum and limestone for export.
'Dry Bulk (limestone and gypsum) demand is strong and traders are exploring new markets, which will strengthen our forecasts once confirmed. With port equipment capacity reinstated, customers are now more confident to book larger parcels, which puts the port on track to meet volume forecasts for this year,' said Al Amri in the Director's Report for Q1 2025.
However, container volumes declined 6 per cent to 823K TEUs in the first quarter of this year, compared to 878K TEUs a year ago — a dip attributable primarily to ongoing disruptions in the Red Sea.
'The Red Sea situation remains unchanged and uncertainty extended well into Q2 2025. However, the longer term outlook remains positive given ramping up of the Gemini network and the interest from Hapag Lloyd to divert business to Salalah. This is seen on both the transshipment and import/export fronts,' the Chairman added.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Times of Oman
4 hours ago
- Times of Oman
Nizwa: sustainable development bridging heritage and investment horizons
Nizwa — The Wilayat of Nizwa in the Governorate of A'Dakhiliyah stands as one of Oman's most prominent cultural and touristic destinations, renowned for its rich historical legacy and archaeological landmarks that chronicle significant chapters of the nation's past. Its distinctive architectural and heritage sites beautifully encapsulate Oman's authentic cultural identity. The iconic Nizwa Fort dominates the historical landscape as a masterpiece of traditional Omani architecture and engineering. Adjacent to the fort, the vibrant Nizwa Souq (market) showcases exceptional local craftsmanship, from intricately forged daggers and handcrafted silverware to traditional markets selling livestock, fresh produce, and artisanal goods. Falaj Daris, recognized on UNESCO's World Heritage list as one of Oman's largest aflaj irrigation systems, represents another jewel in Nizwa's heritage crown. This ancient water network sustains extensive agricultural lands while demonstrating centuries-old Omani ingenuity in sustainable water management. The recent development of a public garden within the falaj has further enhanced its ecological and touristic value. Nizwa's strategic geographical location, combined with its diverse topography of wadis (valleys), mountains, and verdant oases, has established it as a prime destination for cultural and eco-tourism. These natural assets, along with progressive development initiatives, have positioned the Wilayat of Nizwa as an attractive investment hub for tourism and infrastructure projects. Nizwa has achieved remarkable progress in sustainable development through Strategic initiatives have been launched in Nizwa in a bid to achieve remarkable progress in sustainable development. These initiatives have further enhanced urban infrastructure and quality of life. Significant development projects currently underway include A'Dakhiliyah Square launched earlier this year, an RO 7 million Integrated Public Transport Station, and restoration works in Haray Al Aqr where wall rehabilitation stands 65% complete with pathway paving 20% finished. The Public Garden Project has reached 40% completion, collectively aiming to elevate Nizwa's status as Oman's premier cultural-tourism destination while creating new economic opportunities. Harat Al Aqr (an old neighborhood renovated by the locals) has transformed into a flagship example of youth empowerment, hosting 78 entrepreneurial ventures that have generated over 300 jobs for young Omanis. This revitalization has turned the historical quarter into a dynamic center for innovation and traditional crafts, featuring heritage cafes, artisanal shops, private museums, restored guesthouses, and classic car exhibitions. The area's cultural renaissance has dramatically increased property values from RO 10 to RO 1,500 per square meter and now attracts over 20 official delegations annually. Sheikh Saleh Thiyab Al Rubaie, Wali of Nizwa, emphasized to Oman News Agency (ONA) that developmental projects are strategically designed to strengthen local economies while preserving cultural heritage. He noted Nizwa's unique historical assets perfectly position it to benefit from sustainable tourism and knowledge-based economic models. The Wali highlighted how historical neighborhood restoration forms a cornerstone of Nizwa's economic strategy, serving the dual purpose of safeguarding cultural identity through architectural conservation while creating employment via tourism and SME development. Nizwa Industrial City, under the Public Establishment for Industrial Estates (Madayn), represents another facet of Nizwa's growth with 186 operational projects across 7.2 million square meters of developed area, attracting RO 504 million in cumulative investments and generating 6,100 jobs with a 45% Omanization rate. Eng. Ishaq Ibrahim Al Kharousi, Acting Director General, revealed Madayn's upcoming RO 1.2 million Entrepreneurial Complex and ongoing studies for an integrated residential zone within the industrial city. On her turn, Ahlam Hamad Al Qasabi, Director of Heritage and Tourism, outlined the ministry's comprehensive SME support programs including streamlined licensing procedures, specialized training initiatives, and incentive packages for heritage hospitality ventures. She noted how the conversion of historical homes into heritage inns perfectly illustrates the purple economy approach, citing 600,000 visitors to Harat Al Aqr in the first quarter of 2023 as evidence of this model's success in merging cultural preservation with economic viability. The ministry continues to prioritize fortress restorations and historical documentation to enhance Oman's sustainable tourism offerings while safeguarding intangible cultural heritage. This comprehensive development approach positions Nizwa as a model for balanced sustainable growth, where cultural heritage preservation and modern economic development progress hand in hand, creating new opportunities while maintaining the unique identity. —— Ends/AH
13 hours ago
Barceló Mussanah Resort Advances Sustainability with Ecobia Bio-Digeste
Muscat – Barceló Mussanah Resort, Oman, continues to reinforce its commitment to sustainability and environmental stewardship. Since assuming management of the resort in 2021, marking Barceló's debut in the Sultanate, the company has rebranded and upgraded the property to align with international hospitality standards and Oman's national sustainability initiatives. As part of its dedication to environmental responsibility, Barceló Mussanah Resort has partnered with Ecobia Middle East, an Oman-based company offering innovative and cost-effective sustainability solutions, particularly in addressing the challenge of food waste management in the hospitality sector. Several months ago, Barceló Mussanah Resort and OMRAN signed an agreement with Ecobia Middle East to install a cutting-edge bio-digester on the hotel premises. This technology efficiently addresses the issue of food waste by eliminating smelly garbage bags, reducing the attraction of flies and pests, minimizing long-haul waste transport to landfill, and significantly cutting down methane and CO₂ emissions from landfill sites. The installation of the Ecobia Bio-Digester is a dual victory for the resort. Not only has it enhanced the hotel's Corporate Social Responsibility profile, but it also produces rich, 100% organic fertilizer that is now used across the resort's expansive 230,000+ square meters of lawns and landscaped gardens. This eliminates the need to purchase chemical fertilizers, resulting in substantial cost savings. Further benefits include lower waste disposal costs, the elimination of unpleasant odors from rotting food, and the production of free organic fertilizer following the initial return on investment. General Manager David Faull estimates that the bio-digester will achieve ROI within approximately 16 months. David Faull also praised the professionalism, advice, and ongoing support provided by Ecobia Middle East. The company has delivered comprehensive sustainability training to all staff members—from chefs to housekeeping—and conducted intensive training for selected team members on operating, maintaining, and managing the bio-digester. This partnership exemplifies Barceló Mussanah Resort's unwavering commitment to sustainability and its alignment with Oman's environmental goals.
Observer
13 hours ago
- Observer
Oman advances diverse energy portfolio: EDO
MUSCAT, JUNE 4 Oman is set to undergo a major transformation in its energy sector over the next decade, with plans for broad-based expansion across both hydrocarbons and renewable energy sources, according to a key executive of the Sultanate of Oman's pivotal energy industry. Mazin Rashid al Lamki, CEO of Energy Development Oman (EDO)—the wholly government-owned energy sector holding company—said the evolving strategy reflects global energy shifts while maintaining a strong commitment to domestic needs and export potential. In an interview featured in the latest Oman-focused edition of Oxford Business Group (OBG), Al Lamki noted that nationwide assessments of the country's energy resources, currently nearing completion, indicate a 'stronger-than-expected' potential in oil and gas. Together with assessments of Oman's solar and wind capacity, a picture is emerging of a balanced energy mix catering to both domestic demand and exports. 'Overall, we are moving toward a more diversified and integrated energy portfolio. Once it reaches commercial scale, you will see Oman expanding oil, gas, renewables, and green hydrogen. It is not a transition away from hydrocarbons, but a strategic broadening to meet domestic needs and seize export opportunities in an evolving global energy landscape,' Al Lamki stated. In line with this strategic direction, renewable resources are targeted to account for 30% of electricity production by 2030—a figure that could rise to 40–45%, according to current indicators. Hydrocarbon production is also expected to grow in response to sustained global demand, he noted. Al Lamki also emphasized the need for greater investment in the country's energy infrastructure to meet the ambitious renewable energy targets by 2030. 'Oman must expand its electricity infrastructure to meet the 2030 renewable energy target. Today's grid is designed for 11 GW of capacity, but by 2030 we expect that figure to rise to 35–40 GW. This requires investment in transmission and distribution infrastructure,' he said. One key area of focus, he added, is the development of common-use infrastructure to support both green hydrogen and renewable energy projects—a move that would help lower costs and maximize efficiency. 'Public-private partnerships (PPPs) will be key to this process. We are looking at PPP models to support grid expansion, particularly in the northern regions. Existing oil and gas transport infrastructure may be adapted to move hydrogen and desalinated water. Coordinated planning across electricity, water, and hydrogen infrastructure will be essential—and shared investment models will make that feasible,' he explained. When asked about potential sources of foreign direct investment (FDI) to support Oman's energy infrastructure, Al Lamki cited countries in Asia and Europe as particularly promising. 'These countries are seeking reliable, long-term supplies of both clean and conventional energy, and Oman stands out as an appealing partner due to its geopolitical stability, rich resource base, and clear commitment to energy diversification,' he said. Affiliated with the Ministry of Finance, EDO owns 60% of the Block 6 concession operated by Petroleum Development Oman (PDO), 100% of Block 6's non-associated gas concession, and 100% of Hydrogen Oman (Hydrom), the master planner of the Sultanate's green hydrogen industry.
