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Port Projects and Expansion in the Middle East STATE OF THE MARKET: PORT PROJECTS AND EXPANSION IN THE MIDDLE EAST Copyright © 2015 IQPC Middle East. All rights reserved. WWW.PORTDEVELOPMENTWEEK.COM STATE OF THE MARKET: PORT PROJECTS AND EXPANSION IN THE MIDDLE EAST 1 Produced by IQPC Middle East in association with the Port Development Week taking place in September 2015 in Doha, Qatar. The Middle East is undergoing SOHAR Industrial Port Company a period of intense economic (SIPC), an equal ownership joint development that is characterised venture between the Port of by the commitment of its countries’ Rotterdam and the Sultanate of respective governments to invest Oman. It is one of the fastest growing heavily in infrastructure that improves port and freezone developments transport and trade links both anywhere in the world, thanks to its domestically and internationally. enviable geographical location and Maritime commerce is becoming interconnectivity with Oman’s road, increasingly important to Middle air and rail transport infrastructure. Eastern nations with ports situated along the Gulf coast as they occupy The port is strategically located an enviably strategic position to outside the Strait of Hormuz in the accommodate growing shipping Gulf of Oman, approximately 200 traffic from both Europe and Asia. kilometres from Muscat and 160 kilometres from Dubai with extensive In order to maximise their potential, road system and rail connections the operators of these ports, often planned for the near future. This in partnership with government, places it directly in the centre transport and development of global trade routes between authorities, are conducting projects Europe and Asia, which has led to to expand and upgrade their facilities its explosive growth rate attracting on a vast scale. Billions of dollars more than $15 billion in investments are being invested in outfitting with a raft of new partnerships and existing ports with the latest in cargo expansions in the pipeline. These Maritime commerce is container processing and storage include a $60 million deal with a UK- becoming increasingly technology, as well as breaking led consortium that will see SOHAR important to Middle ground on expansive new container house the largest rare earth metal Eastern nations with terminals. plant of its kind outside of China. Automotive assembly, oil refinement ports situated along This is without mentioning the and dedicated agricultural storage the Gulf coast as they construction of entirely new ports are just some of the many industries occupy an enviably being built from the ground up looking to secure plots in the strategic position to as international shipping traffic freezone for their operations as well increases throughout the Middle accommodate growing as securing immediate access to the East’s coastal regions. The speed, port facilities.1 shipping traffic from both surety and scale of these mega-port Europe and Asia. development ventures underline the The Oman International Container importance of the Middle East’s role Terminal (OICT) is also located within in the future of maritime commerce. the port and it has quickly absorbed the shipping traffic from Muscat Oman: SOHAR Port and after that port recently closed its commercial shipping operations.2 Freezone As SOHAR attracts rapidly growing Current capacity: 800,000 TEUs cargo volumes from across Europe per annum and Asia, OICT’s capacity is being Projected total capacity: 6 million raised to handle the new influx. Fast TEUs per annum tracked development of Terminal C Projected completion date: along with the construction of the Various expansions underway, OICT’s Terminal D commencement due for 2018 Investment: $15 billion to date 1www.soharportandfreezone.com 2The Load Star, Gulf ports get ready for the big league as investment floods in to boost capacity, The SOHAR Port and Freezone is a 27/04/2015 deep-sea port and freezone in the Sultanate of Oman, managed by WWW.PORTDEVELOPMENTWEEK.COM STATE OF THE MARKET: PORT PROJECTS AND EXPANSION IN THE MIDDLE EAST 2 new Terminal D – due to begin its the Hamad Greenfield Port project initial construction phase in early is one of the Qatari Government’s 2018 – will eventually raise OICT’s many initiatives to diversify away annual capacity from 800,000 TEUs from oil and gas through the to an estimated 6 million.3 development of efficient and commercially viable mega-projects. HPH expects to invest a total of As Qatar is currently experiencing $303m by 2019, including the significant growth in the importation $183.5m already invested in OICT of raw materials and goods, a large- by the end of 2014. These sizeable scale, technologically advanced allocated funds aptly demonstrate commercial port facility strategically the range and scale of opportunities located outside the capital city of afforded to SOHAR due to the Doha will quickly become a vital benefits offered by its commitment to component of Qatar’s economic adopting the best technological and infrastructure. managerial approaches to modern maritime commerce.4 The port will be developed in multiple phases to cover an area of 26.5km, HPH chief executive, Eric Ip was in featuring three container terminals Oman in late April 2015 to deliver the with a combined capacity to process keynote speech at a logistics and 6 million TEU every year. These “We are committed to supply chain conference, where he terminals will be multi-purpose SOHAR Port and to enthusiastically emphasised OICT’s facilities with the capacity to store the Sultanate of Oman. commitment to its slogan of being: over 1 million tonnes of bulk grain “Ready Now. Built for the Future”: We will continue the cargo, 500,000 vehicles and 37,000 development of facilities livestock per year.5 The first container “OICT is the gateway to Oman and terminal will bring 2m TEU capacity at the port to capture the HPH has achieved its mission to on line when it opens in December growing trade activities consolidate Muscat and SOHAR 2016, and will be supported by an cargo and to develop SOHAR Port in the Middle East and adjacent logistics zone for light into a modern and efficient gateway the potential to serve the manufacturing and supply chain port for the North Batinah region and latest class of 20,000 TEU management. the SOHAR Freezone. mega-vessels. We are The port will also incorporate a base “We are committed to SOHAR Port building for the future.” for the Qatar Emiri Naval Forces and to the Sultanate of Oman. We Eric Ip providing berthing for Qatar’s will continue the development of Chief executive, HPH Navy and visiting naval vessels facilities at the port to capture the from around the world as well as growing trade activities in the Middle technical support, comprehensive East and the potential to serve the logistic facilities, material support latest class of 20,000 TEU mega- accommodation and recreational vessels. We are building for the services for almost 4,000 Qatari future.” servicemen. Qatar: Hamad When first announcing this $7.4 Greenfield Port project billion mega-port project as part of Current capacity: Under Emiri Decree No. 37 in 2007, His construction Highness Sheikh Hamad Bin Khalifa Projected total capacity: 6 million Al Thani, Emir of the State of Qatar, TEU per annum emphasised that the commercial Projected completion date: December 2016 Terminal 1 3 Investment: $7.4 billion www.oict.com.om/future plans 4Hellenic Shipping News, New container service linking India, GCC to start on May 9,04/05/2015 Representing one of the largest 5Arabian Supply Chain, Hamad Port centrepiece of first day at Project Qatar, 06/05/2015 infrastructure projects in the country, WWW.PORTDEVELOPMENTWEEK.COM STATE OF THE MARKET: PORT PROJECTS AND EXPANSION IN THE MIDDLE EAST 3 needs of Qatar had to be balanced “In line with His Highness Sheikh with the need to protect of the Mohammed Bin Rashid Al Maktoum, environment. Therefore, multiple Vice President and Prime Minister in-depth environmental sustainability of the UAE and Ruler of Dubai’s studies have been carried out and vision of transforming the city with their guidelines followed during each smart systems using technology, stage of the construction process Terminal 3 will be the world’s in order to make environmental largest semi-automated terminal, “In line with His Highness preservation a key factor of the providing operational efficiencies Sheikh Mohammed Bin port’s development and subsequent for customers, comfortable and operations.6 safe working conditions for our Rashid Al Maktoum, Vice people and environmental benefits President and Prime Dubai: Container Terminal by reducing our carbon footprint. Minister of the UAE and Terminal 3 will be 30% more carbon 3 at Jebel Ali Port efficient than a traditional terminal.”8 Ruler of Dubai’s vision Current capacity: 15 million TEUs of transforming the city per annum Once Terminal 3 becomes fully with smart systems using Projected total capacity: 19 million operational this year it is expected to technology, Terminal 3 TEUs per annum increase the annual capacity of Jebel will be the world’s largest Projected completion date: late Ali by 4 million TEUs and further 2015 decrease congestion and load times. semi-automated terminal, Investment: $850 million providing operational Saudi Arabia: Saudi Dubai’s Jebel Ali Port opened its third efficiencies for Global Ports (SGP) customers, comfortable container terminal in October 2014 and safe working when it became partially operational. Container Terminal at After six months of trial operations, conditions for our people
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