MUSCAT, APRIL 30
Sohar Port and Freezone, a key economic hub in the Sultanate of Oman, is currently contributing around RO 600 million per annum to the country's Gross Domestic Product (GDP), Jasper Hoes, Energy Transition Programme Manager of Sohar Port and Freezone, said.
In a webinar hosted by Asyad titled, ‘How can targeted investments in logistics unlock faster paths to net-zero?’, Hoes said “The cargo throughput at Sohar Port and Freezone last year reached 77 million tonnes, which is a double-digit growth compared to 2021 and is currently contributing RO 600 million to the Omani GDP.”
The port and freezone — a 50:50 joint venture between Asyad Group and Port of Rotterdam — has become one of the most successful ventures in Oman, providing a boost to the country's economy and creating numerous job opportunities.
The development of Sohar Port and Freezone began in 2002 in response to Oman's need for a modern and efficient port that could handle the country's growing trade and commerce needs. “Over the past 20 years, it generated a total investments of $27 billion in the total port industrial complex and is providing 25,000 direct and indirect jobs for the community in the North Al Batinah region,” he added.
Over the years, Sohar Port and Freezone has grown to become one of the largest port and freezone complexes in the Middle East, with world-class infrastructure and facilities that attract businesses from around the globe. It covers a total area 4,500 hectares and handles more than 3,129 vessels a year.
The port and freezone offer a range of services, including warehousing, logistics, and manufacturing facilities, making it a one-stop-shop for businesses looking to set up operations in Oman. It is currently serving 72 per cent of Oman’s import and export activities and has reached around 2.2 billion people by land, air or sea. In 2022, 52 countries are represented in the freezone.
In addition to its economic contribution, Sohar Port and Freezone has also been actively involved in social and environmental initiatives. The port and freezone have implemented numerous initiatives to reduce their carbon footprint and protect the environment.
“Due to the activities in Sohar Port and Freezone, we are responsible for, according to our assessment, 24% of greenhouse gas emissions in Oman due to the energy activities of the power plants which are natural gas-based and the industrial activities of the refinery, steel, methanol, ammonia and urea. So knowing the ambitions of the government of Oman to become net-zero at 2050, if Oman wants to become net-zero, SOHAR needs to be net-zero.”
Sohar Port and Freezone adopted a roadmap to carbon neutrality and energy transition which focuses on increasing energy efficiency on existing activities, getting connected to renewables, hydrogen, Carbon Capture, Usage and Storage (CCUS), heat and others.
With this, Sohar Port and Freezone pledges to commit to Oman’s goals of net-zero by 2050, develop decarbonisation roadmap together with its clients and seek for efficiencies, synergies and common measures for reducing emissions.
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