Burns
Fast-growing Salalah Port is looking at another expansion and is likely to have two additional berths, reveals director of marketing and sales WB Burns.
The official also says Phase I of the Salalah Port Free Trade Zone project will provide customers with approximately 510,000 sq m of container freight station and distribution, retail, residential and light manufacturing facilities. The phase is also expected to create over 3,000 direct jobs.
A "One-Stop-Shop" facility will be available on site and "on line" for tenants, customers and employers, in which numerous services will be offered including licensing.
The Salalah Free Zone will be able to accommodate virtually any type and size of facility and the owners will customise the standard building type to suit customer's needs, says Burns.
Below are Burns' observations on various issues including port investments and port marketing strategy, the Salalah Free Zone project and preparing for the future.
l On Shipping Lines using the Port
Presently our regular customers include Maersk-Sealand, Mediterranean Shipping Co and Orient Express Line. We do have other lines that call Salalah but this has been on an ad hoc basis. All of these companies are extremely satisfied with the high levels of productivity that are being achieved at the Port. To date we have not lost any customers, and our present customers continue to grow their business over Salalah.
l On port investments, equipment and projects
The investment in the port to date has been $130 m, which was provided by the Omani Government for the infrastructure, which included dredging, reclamation, etc. An investment of $128 m was provided by SPS (Salalah Port Services) for the superstructure which included all of the equipment, IT systems, etc.
We are currently evaluating a further extension of approximately 800 meters of quayside, which would be 2 x 400-metre berths with a depth alongside of 18 metres. This would include an extension to the present breakwater. No costs have been established, nor have any tenders been issued as yet.
l On prospects for the near future and marketing strategies
We would expect the port to run at or very close to capacity and this should be reached during the early part of 2002, hence the reason for evaluating the further extension. The port sits on the fastest-growing trade lane in the world, Asia-Europe, and in one of the highest growing regions that contains around 1.6 billion consumers. The regional growth continues to exceed the international average, so we feel the future prospects for the port are exceedingly bright.
The Port markets itself through various mediums, but most importantly through personal contact.
The marketing strategy is basically to be very customer-focused at all times and offer a service that makes us a leader not only in the region but also in the industry and sets us apart from other ports. We need to not only meet the customers' requirements but also exceed them to stay in the lead. I believe we have already demonstrated our capabilities and commitment that have led to our early successes and as we continually improve. These successes will speak for themselves.
l On the Salalah Port Free Trade Zone: objectives, incentives and projects
Designed to attract transportation, logistics and consumer product companies and their real estate related operations, the strategic location of the port of Salalah will allow these companies to achieve business and transportation-related efficiencies in regional and international markets. In addition, the business incentives available in the Salalah Free Zone will allow these businesses to add value to their products and achieve efficiencies in both operations and delivery times thus making their businesses more profitable.
The Salalah Free Zone is an approximately 2,400ha (6,000 acres) master-planned community, which will be developed in multiple phases. It will offer a mix of industrial, light-manufacturing, freight-station, distribution, research and development, commercial office, retail, resort, hotel, and housing products. Phase I will provide customers with approximately 510,000m2 (5.4 million ft2) of container freight station, distribution, retail, residential and light manufacturing facilities. It is anticipated that Phase I will create over 3,000 direct jobs.
Additionally, Salalah Free Zone will provide its customers with access to the finest and most complete communications and IT systems in the world. Broadband fiber optic infrastructure for voice, data and video will be provided throughout the project area.
The following incentives are in the process of being developed and will be provided in the Salalah Free Zone;
The Salalah Free Zone will offer customers the finest quality industrial and manufacturing facilities in a master planned community. Institutional quality design guidelines, including landscaping and signage programmes, will be instituted for all development within the project. These guidelines will ensure that the customer's commitment and investment is protected. International Building Standards will be used and all customers will be required to maintain strict adherence to International Hazardous Materials Guidelines.
The Salalah Free Zone can accommodate virtually any type and size of facility and the owners will customise the standard building type to suit customer's needs. Customers will be able to choose from:
The Salalah Free Zone has the ability to provide all necessary development, design and construction services and their respective permits and approvals, as well as logistics, communications, IT, furnishing and management services for its customers.
A 'One-Stop-Shop' facility will be available on site and 'on line' for tenants, customers and employers, in which numerous services will be offered including the following:
A list of services includes:
The Government approved the Business Plan on July 4, 2001 and will now finalise the legislation, which will be a Royal Decree and we expect this to be signed in August.
Within this year we shall start to realign approximately 2.2 km of roads and construct approx.50, 000 sq m. of property which will be phase 1-A of the development. Phase 1 will consist of development of over 200 hectares of property and this development will take place over the next 5-7 years. The 20-year plan will see a development of almost 2,500 hectares of property.
l On preparing for challenges to come
The port has an ambitious 20-year plan that we continually review and update.
Today we can already handle the next generation of container vessels of 10-12,000teu and we are currently studying the impact if Malacca-max vessels (18,000 TEU) were ever introduced, so we will continue to build for the future.
We have the opportunity to build many more berths and will continue to ensure that we meet all of our customer requirements, which include making sure we are capable of handling their volumes now and in the future.
We will however, build on requirements rather than speculatively to ensure we continue to give our shareholders value for money.
