Sohar is planning an expansion of both the port and free zone, as the two are operating at full capacity, according to Mahdi al-Lawatia, assets development manager for Sohar Port & Freezone, speaking at MEED’s Oman Projects Forum on 27 October.

It joins the new Special Economic Zone Authority Duqm (Sezad), whose first phase will include a port, industrial area and frontier town.

Oman is also planning South al-Batinah Logistics Area (Sabla), to replace logistics operations after the move of commercial shipping operations from Sultan Qaboos Port in Muscat to Sohar Port. In 25 years it is planned to cover 96,000 square metres and include residential areas for 250,000 people.

The three areas are part of Oman’s strategy to become a transport and logistics hub between East Africa, the Middle East and Asia, as well as building up its manufacturing industry.

Planners are sure that the different business strategies and locations will mean that the ports will not compete too much with each other. They also think that the locations, outside the Strait of Hormuz and the Red Sea, close to oil fields and other resources, will allow them to compete with other port investments regionally.

“For Duqm, the strategic location is our best asset,” says Anwar Kahlan al-Battashi, urban planning manager for Sezad. “We are targeting transshipment between India, China and East Africa. From going to Jebel Ali, a boat could save $300,000-$400,000 on just fuel, depending on size.”

Completing transport links, including the Batinah Expressway and rail projects, will be an essential element to their expansion.

“We are struggling with the Riyadh connection,” says Al-Lawatia. “The border road on our side has just been completed, but the Saudis will complete their part in mid-2016. This is very important as Saudi Arabia is a huge consumer. The direct connection without going via the UAE is important… the rail project will give us the initiative to push further expansion.”

All the industrial areas are being developed by phases, to allow them to be expanded at a rate dictated by demand.

Upcoming projects and expansions: