Oman and Asyad Group boost Al Suwaiq Port
The Ministry of Transport, Communications and Information Technology of the Sultanate of Oman will grant the Omani company, Asyad Group, the development, administration and management of the operations of the port of Al Suwaiq for the next 40 years. A decision by the Sultanate's authorities to alleviate the losses resulting from the continued diversion of container ship traffic from the Gulf of Oman to the Atlantic coast of Africa, which has led to a 17% decline in container traffic.
Oman Vision 2040
This project is in line with the government's Vision Oman 2040 plan. The documents were signed by Said bin Hamoud Al Mawali, Minister of Transport, Communications and Information Technology, and Abdul Salam bin Mohamed Al Murshidi, Chairman of the Oman Investment Authority (OIA).
The aim of the plan is to boost Omani ports, improve import and export operations, and attract new shipping lines to connect the Sultanate to international markets more efficiently
Oman's Minister of Transport, Al Mawali, said: ‘The agreement aims to strengthen infrastructure through public-private partnership, and to achieve the objectives of economic diversification and the Sultanate of Oman's ability to compete in international markets'.
In recent years, these aims have been truncated by the constant actions of the Houthis in the region of the Strait of Hormuz, the Red Sea and the Gulf of Oman. As a result, the Port of Salalah expects that the volume of containers will not increase for the rest of the year.
Expansion of the port
In addition to the long-term objectives, the Ministry and Asyad Group will build a loading dock and expand the area of the Suwaiq port. Khamis Mohammed Al Shamakhi, undersecretary of transport at the Ministry of Transport, Communications and Information Technology, said, ‘The agreement marks the beginning of a new phase in Al Suwaiq Port'.
The first project involves the development of a 500 metre long and 14 metre deep jetty. This project is designed to allow large vessels to handle and manoeuvre all types of cargo (containers, vehicles, rocks and minerals, grain and liquids, mainly liquefied natural gas). More efficient and operational handling systems and forklifts will be installed alongside the quay to facilitate storage capacities.
On the other hand, Asyad Group will extend the surface area of the port of Al Suwaiq to 36 hectares. This new expansion will enable the port to maintain its role as a new international logistics centre of reference, while meeting the needs of the local economy.
OIA Chairman Al Murshidi underlined that both reforms ‘will pave the way for attracting further investment’. ‘This long-term agreement will attract new investment to the port, build a better system in cooperation with Asyad Ports Company (the port operator) and connect the port to Al Batinah Coastal Road, Al Batinah Expressway and Khazaen Economic City,’ he added.
Finally, Murshidi pointed out that the port's importance is part of the high rates achieved thanks to the arrival of more than 4,700 ships and the handling of more than 4 million tonnes.