An expansion to a terminal set up by an independent bulk liquid service provider at Sohar Industrial Port is nearing completion.

Oiltanking Odfjell Terminals & Co LLC (OOT) said the expansion which will accommodate 450,000 cu m of capacity to the existing terminal will be operational by the end of the first quarter.

The existing terminal which opened in March 2009 has a capacity of 915,000 cu m. With the addition, total capacity will soar to 1.36 million cu m.

A consortium of Indian Oiltanking Engineering & Construction Services LLC and Larsen & Toubro Electromech LLC was awarded the engineering, procurement and construction contract.

Thirty-five per cent of the existing terminal’s capacity is pipelinked and dedicated to Aromatics Oman, which has a plant at Sohar Industrial Port, while the remainder is dedicated to international traders and producers.

“The existing storage capacity is fully utilised, but we added some extra activities such as board to board and ship to ship,” said Zeger van Asch van Wijck, OOT’s chief executive.

Van Asch van Wijck said pipeline activities as well as throughputs attributed to international traders and producers had increased since 2009 while percentages dedicated to Aromatics Oman and to the other segment had remained the same.

“All major players in these markets are our customers,” he added.

With the new capacity, OOT expects a moderate increase in throughput and full occupation of all facilities.

“In mid-2011 we will have more than 1.3 million cu m of storage operational. We will also see an increase in trucking activities as it is better to store in Sohar and then truck to end users than truck all the way from other GCC countries. This makes it also safer with less long truck hauling. There’s more efficiency via Sohar,” said Zeger van Asch van Wijck.

More customers coming in
The official said the company had received more contracts for storage and expected to have more customers in the future. “When expanding the chemical storage we need extra jetty capacity. We are in discussions about that with Sohar Industrial Port Company at this moment,” he said in mid-January.

OOT operates six jetties and has long-term jetty management contracts with Oman Methanol Company and Oman Refineries and Petrochemicals Company. Van Asch van Wijck said that while no more jetty management contracts had been signed, throughputs had increased and would continue to rise.

Discussing prospects for the transformation of Sohar as an international hub for bulk liquid storage and handling, “Van Asch van Wijck said the potential was “very good.”

“Looking at the strategic location, easy access, ample room to expand and efficient operations at the terminals – (they have the makings of) a good international hub.” He also pointed out there was no demurrage at Sohar and there would be enough jetty capacity, making it interesting for shipping companies to use OOT as a hub with “spokes” in the form of smaller vessels going into crowded ports such as those in India. Doing it that way would save shipping companies a lot of demurrage costs.

Discussing OOT’s growth strategy for the next five years, Van Asch van Wijck said: “OOT has enough land available to expand. We are now working on expanding in the chemical market. We will have by mid-2012 another 18 tanks for chemicals available. This means also more trucking from here. Our plan is to expand even further in chemical storage. Besides that we are working on expanding in board to board activities, to grow together with the expected growths of the refinery and other Port of Sohar customers. As you can see, we are working on enough possibilities and opportunities.”