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Port of Duqm has Unmatched Benefits: Reggy Vermeulen, CEO-Port of Duqm Company
Port of Duqm enjoys a guaranteed 18 meter deep draft which makes it possible to handle large size vessels for all industries it plans to attract to support its container, break bulk, dry bulk and liquid bulk activities, says Reggy Vermeulen, CEO of Port of Duqm Company. Excerpts of the interview with him:
What makes Port of Duqm unique compared to other competing ports?
The Port of Duqm is part of the 2,000 square kilometres fully integrated Special Economic Zone of Duqm (SEZAD), which apart from the Port, also covers residential, touristic, industrial, airport and logistic areas. Special trade and investment friendly rules and regulations are valid for the whole zone as from the time goods enter the port till it exits the port via land, sea or air. The Port has been developed as a fully greenfield project which has the major advantage that a sophisticated master plan has been worked out to prepare the Port to meet all future traffic flows, without facing any major bottlenecks in the next few decades, making sure it can redeem all the ambitious goals it has set. A state of art road network connecting the Port with the rest of the Zone as well as its hinterland is obviously a major asset.
On top of that, Port of Duqm is also preparing for a full integration of the future rail line, which will connect Duqm with other important areas in Oman and its surrounding countries. The Port enjoys a guaranteed 18 meter deep draft which makes it possible to handle large size vessels for all industries it plans to attract to support its container, break bulk, dry bulk and liquid bulk activities.
All this is meant to take full advantage of the Port’s advantageous location vis-à-vis its overseas markets, such as India, China and the Gulf region and lies in the vicinity of the major shipping lanes. Due to this unique location, the Port can fully develop its function as transshipment hub for cargo being moved between east and west and vice versa. Port of Duqm is the only port in Oman, which can handle ultra-heavy lift cargoes and guaranteed smooth inland transportation which means it finally is independent from other ports in the region to import such sensitive cargo.
What are your plans to take the Port forward in 2016?
The Port just realized its first export of dry bulk cargo (dolomite), and expectation is that this will become a continuous activity for the Port from now on. There are major mineral mines in the vicinity of Duqm, which will facilitate the development of mineral processing and export activities from the Port. Apart from that, the Port is preparing for the start-up of its early container terminal operations, in order to handle a regular feeder line service which is planning to start up very soon from now, which will connect Duqm with other ports in the region allowing regular container traffic to be moved in and out of the Port. The Port has been handling break bulk cargo since 2012, however the level of break bulk activity is expected to be the highest in 2016 since the start of its operations, mainly due to major oil and gas projects in the heart of Oman moving forward.
The Port is planning the start of major development works in 2016, which will transform the complete Port area into a fully finished and operational entity in four years from now. This includes the dredging works in the ‘liquid bulk’ area of the Port, as well as the full development of the commercial quay, the government quay and the administration and security zones of the Port. Apart from that, also the road and utility infrastructure in the logistic and industrial areas of the Port will be developed.
How has been the response to the Port from the clients’ side so far?
The Port has been recognized as a ‘top class’ new player in the various industries it has been active so far. The Port’s break bulk capabilities have been very positively rated, and as such we foresee a major expansion of such ‘project and general cargo’ handling throughout 2016 and beyond. The loading of the first dry bulk vessel has been confirmed to be a great success. Although still in its early days, the Port is rapidly building up an extremely positive image amongst its main clientele.
Tell us about how the oil & gas sector is using the Port and some of the upcoming opportunities for them.
The oil & gas sector is obviously still determining the majority of the Port’s activity level and therefore deserves its major attention. The Port has been declared to be the preferred import location within Oman to reach most of the major oil and gas developments in the country. This includes the more mature fields, as well as three new major projects, which are due to become operational in 2017 and 2018. Again, the Port’s major assets are its expanded heavy lift capabilities, its non-congested status as well as its easy access towards the most important oil and gas projects of which the Government of Oman is seeking to take full advantage. The Port is not only facilitating the on shore, but also the off shore exploration project which are being developed just off coast Duqm, near Masirah Island.
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