The plant forms part of the port’s growing cluster of companies working with metals, one of three industry clusters around which the port’s industrial zone is developing.

“Vale is waiting for the gas allocation from the government. It is in final negotiations and we anticipate construction will start soon,” says Jamal Aziz, deputy chief executive officer of Sohar Industrial Port Company (SIPC). “The Vale project is very important for our steel cluster. The steel industry is now very important to us.”

To cater to growing demand for land near the port, SIPC is preparing to launch a special economic zone (SEZ) by the end of the year. This will triple the amount of land held by the company.

In December last year, Muscat agreed to expand SIPC’s concession area, granting it an additonal 4,000 hectares of land and extending its licence until 2043. Investment in SIPC’s initial 2,000 hectare concession area stands at $12bn. A total of 85 per cent of the land has been leased.

“We would like to be launching the SEZ by the end of this year,” says Aziz. “We are in discussions with a number of launching clients.” The SEZ will be connected to the port by a dedicated road link, and will be developed by the SEZ Authority. “The SEZ Authority is owned by the same shareholders as SIPC,” says Aziz. “But it will operate independently.”

The port’s metals cluster is major area of investment for SIPC. Vale’s 7.5 million tonne-a-year plant will provide feedstock for the neighbouring integrated steel complex being developed by Sohar-based Shadeed Iron & Steel.

Oman’s Sharq Sohar Steel Rolling Mills Company is building its second plant in the port’s industrial zone. India’s Larsen & Toubro is also developing a fabrication yard for structures used in off-shore oil and gas operations.

Other industry clusters being promoted by SIPC are centred around the downstream petrochemicals industry and logistics.

SIPC’s plans form part of a wider government-backed development strategy for the Sohar region, under 15,000 hectares of and will be developed developed as part of the Greater Sohar Industrial Zone.

“SIPC has masterplans for expansion,” says Aziz. “The region as a whole is witnessing very aggressive growth and we consider ourselves a part of that development.”

SIPC is a 50:50 joint venture between the government of Oman and the Port of Rotterdam.