Sohar Port and Freezone reports strong results for 2022 third quarter

Business Saturday 03/December/2022 15:50 PM
By: Times News Service
Sohar Port and Freezone reports strong results for 2022 third quarter
Photo: ONA

Muscat: Sohar Port and Freezone has announced strong results for the third quarter of 2022 as the Port throughput (export & import) reported an increase of 32 per cent over the same period last year.

As the rapidly growing complex continues to transform the Sultanate’s burgeoning maritime and logistics industries, dry bulk volume grew by 38 per cent to almost 11.8 million tonnes, and liquid bulk increased by 28 per cent to just over 5 million tonnes.

The number of handled containers increased by 4 per cent to 188,604 TEU. In addition, the Port also recorded robust growth of a 60 per cent increase in Ship-to-Ship (STS) cargo given its strategic location and its reputation for delivering unmatched quality of service with quick turnaround times with the port’s ever-growing STS Customer base.

Emile Hoogsteden, Chief Executive Officer of Sohar Port said, “The year 2022 has been tumultuous when it comes to higher energy costs and soaring consumer food prices globally, which have led to higher marine bunker prices and an increase in shipping costs for all sectors. With that said, we have been pleased with our performance, as well as seeing throughput grow quarter on quarter, year versus year.”

He added, “As we embark on 2023, we are optimistic about what the year holds for us. With the continuous support of our shareholders at Asyad Group and the Port of Rotterdam, we are confident that Sohar Port and Freezone will continue to grow and place Oman on the global trade and logistics map. We are also excited about the prospects of investments in the realm of green hydrogen, supported by the recently signed agreement between Oman and the Netherlands at COP 27, which will contribute to building the global green hydrogen value chain, as well as boost port development opportunities.”

Meanwhile, the Sohar Freezone’s performance has been unrelenting in Q3 2022 with an 11.2 per cent increase in exports, and a 4.2 per cent increase in land occupancy compared with the same period last year. With a bespoke regulatory and incentive scheme program to attract foreign direct investment, phase one of the freezone is now occupied at over 75 per cent capacity.

Omar Al Mahrizi, Chief Executive Officer of Sohar Freezone and Deputy Chief Executive Officer of Sohar Port said, added, “The growth we have achieved in 2022 to date provides a solid platform for even better results during 2023. Further expansion is planned as we continue to reach out to overseas investors about the potential of Sohar Port and Freezone to meet their logistical needs in the region.”

He added, “In line with the aims of Oman Vision 2040 and considering the financial and economic measures the government is taking, the national economy is expected to grow by 5.7 per cent next year. As a key enabler of growth, we look forward to more successes and achievements as Sohar Freezone continue to attract Foreign Direct Investments and be the home of mega-projects in the fields of manufacturing consumer goods, food and industrial supplies while offering competitive incentives and benefits.”

“In addition, and in line with its in-country-value strategy, Sohar Port and Freezone local awarded outsourcing contracts increased by 114 per cent,” Omar concluded.

Sohar Port and Freezone has attracted $27 billion in total investment as part of a long-term commitment to developing Oman’s economy in line with the objectives of Vision 2040. Open 24 hours a day, seven days a week, Sohar is one of the world’s fastest-growing complexes of its kind and significant developments within its industrial and food clusters are currently underway. The company is also exploring investment in green and renewable energy to make the port and free zone more efficient and environmentally conscious for the benefit of tenants, clients, the community, and the environment.