The diversion of port calls from the Yemeni transhipment terminal of Aden to Salalah by APL, the fifth largest container shipping line in the world, has provided a sudden boost to the fortunes of the southern Omani port, which hitherto had been used by just Maersk Sealand and South Africa-based SAF Marine as a hub harbour.

APL's decision to relocate to Salalah followed a steep rise in insurance costs on liners operating in some areas of the Red Sea in the aftermath of an explosion on the French supertanker Limburg off Yemen blamed on terrorists.

Since October 10, APL mainline vessels have been making five calls per week at Salalah.

They operate on the key Europe-Asia and Asia Red Sea trade routes. Oman's Ministry of Transport and Communications said the shipping company was likely to reroute many of its port calls to Salalah in the foreseeable future, consequently helping to raise volumes at the tanshipment terminal.

In the last four years, Salalah port has been subjected to an ambitious development programme that has seen gross crane productivity levels figuring among the world's highest. It is also being prepared to serve as a pivot for a free trade zone planned in the vicinity.

APL Limited, a subsidiary of Singapore's Neptune Orient Lines (NOL), is one of the US' largest shipping companies and its oldest continuously operated line.

APL operates more than 80 container ships and deploys about 450,000 containers and chassis worldwide.

The company also operates an integrated system of ocean, rail, and truck transportation that links points in Asia, Europe, North and South America, the Mediterranean, and the Middle East. Within the Asia-Middle East Region, APL offers more than 50 weekly services and more than 260 weekly port calls, and serves more than 80 ports.

A steep 300 per cent increase in insurance premiums on all vessels entering parts of the Red Sea area has prompted some shipping companies to reroute their ships to neighbouring ports.

The surcharges translate into an additional expense of $150,000 to $200,000 per vessel. Omani ports have not been affected by the war risk insurance surcharge.

APL is still serving Aden from Europe through weekly 900teu (20-ft equivalent unit) feeder services out of Salalah.

Lloyds List quoted an APL spokesman as saying that it was not feasible for 5,000teu vessels from Europe to call at Aden because of the hike in insurance premiums.

New World Alliance partners APL, Hyundai and MOL adopted Aden as the hub for their weekly China Express and eastbound NEX services in 2001, deploying APL vessels. APL said the relocation decision would be reviewed, subject to developments in Yemen and the wider Middle East.

Aden Container Terminal (ACT), the Port of Singapore Authority Corporation's pioneer project in the Middle East, was launched in 1999. APL was one of Aden's most important customers. Salalah's consignments traffic has consisted almost entirely of Maersk cargo, with more than 1.2 million teu.

ACT, seeking to restore confidence among shipping companies, has cited additional security arrangements to safeguard shipping in the Yemen area, also declaring that APL's decision to pull out had not crippled the port.

Yemen's Minister of Transport told the Yemeni chamber of Shipping that Ministry of Defence helicopters and armed patrol boats would escort all oil tankers entering or leaving the county's oil ports.