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Duqm emerges as regional vehicle distribution hub

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MUSCAT, SEPT 5


The Port of Duqm is emerging as a major vehicle distribution hub for the GCC, with increasing numbers of Roll-on/Roll-off (Ro-Ro) vessels arriving with thousands of vehicles for onward distribution across the region.


One of the region’s youngest ports, Duqm is located within the Special Economic Zone at Duqm (SEZAD), the Middle East’s largest special economic zone. Its location on the Arabian Sea, outside the Strait of Hormuz, provides a strategic advantage for regional logistics and trade.


The port recently received the BYD Changsha, one of the world’s largest Ro-Ro vessels, carrying more than 1,200 vehicles.


Speaking to Observer on the occasion, Reggy Vermeulen, CEO of Port of Duqm, said the vessel’s arrival demonstrated the port’s ability to handle large car carriers and reflected growing confidence among shipping operators.


“As this is one of the largest roll-on/roll-off (Ro-Ro) vessels in the world, it demonstrates the capability of the port in handling large vessels. It is a testimony to our growth and the confidence carriers have in our capacity to handle these types of ships and operations,” he said.


He said Oman, and Duqm in particular, had the potential to become a key regional hub for vehicle distribution.


“Oman in general — and Duqm in particular — can serve as a highly suitable hub for future vehicle distribution across the broader region,” he added.


Vermeulen said the port was receiving Ro-Ro vessels approximately every two days, with some carrying up to 5,000 vehicles.


“If we receive 5,000 cars, they take around three days to unload; otherwise, it takes less than a day. In two days, another ship with 5,000 cars on board will arrive to deliver its cargo to the port,” he said.


To accommodate the growing volumes, the port is adding 25 hectares of vehicle parking space, which will increase its on-site capacity to around 30,000 vehicles.


The port currently works with BYD, as well as major carriers including COSCO and other global vehicle shipping operators.


“We are receiving vessels capable of carrying up to 5,000 vehicles at a time,” Vermeulen said.


Vermeulen said developing Ro-Ro handling capacity had always been part of the Port of Duqm’s master plan.


The port had previously handled smaller volumes of Ro-Ro vessels, alongside services supporting the oil, gas and construction sectors. The current expansion into the consumer market, particularly cars and buses, represents a significant development.


“The terminal was ready and the ground prepared; however, given the current surge in volume, we are continuing to scale up our capacity to receive and store vehicles at the port,” he said.


The port is currently serving markets in Saudi Arabia and the UAE, as well as Oman and the wider GCC.

Reggy Vermeulen, CEO, Port of Duqm
Reggy Vermeulen, CEO, Port of Duqm


To support the growing operations, more than 140 drivers have been employed, the majority of them Omanis. The drivers can unload around 1,000 vehicles in less than a day.


Vermeulen said all new drivers undergo a half-day safety induction and are required to wear specialised protective clothing and observe a maximum speed of 15 km/h while handling vehicles.


“It requires cautious, controlled driving, and they are fully trained for it,” he said.


Vermeulen said the port’s relationship with BYD was at an early stage but was developing rapidly.


“Our relationship with BYD is just beginning, and we are actively building on it,” he said, adding that the port was also in advanced discussions with other car carriers on long-term cooperation and structural agreements with major global players.


China remains an important economic partner for Oman and the wider GCC, he said, noting that the port maintains discussions with logistics providers to facilitate the movement of goods to and from the region efficiently.


Despite recent global developments, the Port of Duqm has recorded annual cargo growth of between 15 and 20 per cent, according to Vermeulen.


He said the port, together with the Asyad Group, was continuously investing in operating systems and automation to improve efficiency.


“We are constantly upgrading our systems to maximise efficiency,” he said.


The port has also increased its workforce and expanded its use of third-party equipment to handle rising cargo volumes.


As a relatively young port, Duqm continues to have significant capacity for expansion, Vermeulen said, adding that its infrastructure allows it to scale operations across inland, terminal and offshore activities.


Vermeulen said Oman Drydock and its ship-repair facilities were also expanding, creating potential synergies with the port.


“Increased cargo movement brings more ships that can utilise the drydock, which operates autonomously under its own strategy,” he said.


He added that connectivity at Duqm had improved significantly, with links to more ports, shipping routes and transport modes.


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