Driving growth DRIVING GROWTH: New hinterland opportunities into Yemen will boost gate volumes, says logistics hub -
MUSCAT, FEB 25
Salalah Port, the nation’s principal transshipment and logistics hub overlooking the Indian Ocean, is looking to capitalise on improving trade facilitation and customs clearance facilities at Al Mazyouna Free Zone to help ramp up cargo flows between the two gateways.
The move is part of a wider push by Salalah Port to support the development of commercial and logistics activities in the hinterland of the port, designed to generate new cargo streams, as well as bolster existing traffic volumes, in and out of the hub. In particular, the free zone at Al Mazyouna, straddling the international border between Oman
and Yemen in Dhofar Governorate, is seen as particularly promising to this objective.
“New hinterland opportunities into Yemen, if fully realised, will provide a further positive trend in gate volumes. Increasing gate volumes is a commercial imperative because it increases the overall attractiveness of the port of Salalah to our existing customers as well as prospective shipping lines,” stated Ahmed bin Nasser al Mehrzi, a Chairman of Board of Directors, Salalah Port Services Co SAOG, in the Directors’ Report for the fiscal year ended December 31, 2017.
According to Andrew Dawes, Chief Executive Officer, Salalah Port is also exploring the potential for enhancing container traffic linkages between the maritime gateway and Al Mazyouna.
“With the ease of customs procedures for the movement of containers from Salalah to Yemen via Mazyouna by the Oman Government, Salalah port is focusing on developing this commercial opportunity,” he noted in the Management Discussion and Analysis (MDA), accompanying the Directors Report.
The port, the CEO further noted, has been focusing on developing hinterland volumes and will continue to develop the value added services it offers to customers, enabling them to make the most of the opportunities available and to boost the port’s revenue. Burgeoning hinterland volumes have contributed to a 4 per cent uptick in General Cargo throughput, which climbed to 13.587 million tons during 2017 versus corresponding figures for 2016. Volumes handled at the General Cargo Terminal (GCT) continue to grow, although at a slower pace when compared to corresponding figures for the previous years, buoyed by a surge in the aggregates business, according to the Chairman.
Locally mined limestone and gypsum account for the bulk of general cargo volumes exported out of the port, supplemented by exports of methanol, fuel and bagged materials, chiefly cement. To help cater to this growth, Salalah Port is investing in a new mobile ship loader while replacing old equipment as well — initiatives that are due to be completed during the course of 2018.
“The increased volumes do mean that we will have to look at improving productivity and potentially new methods of handling in order to cope with the steady increases of exports,” Ahmed al Mehrzi, Chairman, added.
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