The Port of Duqm in Oman is making great progress in enhancing its infrastructure and adopting environmentally friendly practices to cater to the changing needs of the international energy markets.
Reggy Vermeulen, CEO of the Port of Duqm, discussed the port's strategy for investment in infrastructure amidst current challenges in the global market.
Vermeulen, speaking to Gulf Intelligence, pointed out the growing investments in port infrastructure in the Middle East, including projects in the UAE, the Red Sea, the Indian Ocean, and specifically the Duqm project. Situated at a strategic location between the Indian Ocean and the Red Sea, the port is confronted with challenges due to geopolitical instability impacting trade routes. Nevertheless, Vermeulen assured that the port is actively collaborating with key stakeholders to ensure resilient and efficient trade operations.
In terms of infrastructure expansion plans for 2024, Vermeulen stressed the importance of both optimizing existing facilities and developing new infrastructure to accommodate upcoming projects. The primary focus is on increasing capacity and improving logistical capabilities to serve a broader range of destinations. Additionally, with the growing popularity of sustainable energy sources, the port is actively involved in producing green hydrogen and attracting green steel industries to promote sustainable growth.
Looking forward, the Port of Duqm has a clear objective of serving markets in Africa, South Asia, and beyond, capitalizing on its advantageous location in the Indian Ocean region. Vermeulen emphasized the port's potential as a central hub for facilitating trade and manufacturing activities between various regions, including the Middle East, India, Africa, and the United States. He highlighted the port's crucial role as a stable political area for logistics and manufacturing, which is vital in meeting the increasing demand for trade in these regions.
Additionally, Oman's free trade agreement with the US positions the Port of Duqm as a vital link between different continents, providing opportunities to utilize raw materials from the region for manufacturing and exporting to promising markets such as the US.
Vermeulen stated that the port's vision aligns with the projected growth in trade and economic activities in regions like Africa and South Asia, emphasizing the necessity for strategic hubs like Duqm to support these developments.
In 2023, the Port of Duqm experienced significant progress, with a notable investment of $12.2 billion ushering in a new era of growth and expansion. A total of 933 vessel calls were recorded, with the Port of Duqm Container Terminal (PODC) handling 81% (756 calls) and the ASYAD Drydock Complex (ADC) accounting for the remaining 19% (177 calls). This bustling maritime activity facilitated the movement of 7.55 million tonnes of cargo through the port's diverse terminals. The port achieved an impressive Omanisation rate of 82%, with women representing 16% of the workforce.
In 2023, the port experienced 272 cargo vessel calls across various categories, including liquid bulk, naval, container, break bulk, and dry bulk shipments. The year also witnessed the signing of key agreements to enhance port operations and attract industry leaders.
Throughout the year, pivotal agreements were reached, such as the transfer of the UK Service Agreement to Emdad in January, marking a new phase of collaboration. The port strengthened its partnership with DEME through an agreement for a storage hub, which improved logistical capabilities. Additionally, agreements with renowned organizations like Mitsui Kobe, Al Ahli Bank, and Vale laid the groundwork for strategic alliances and fundraising efforts.
Noteworthy deals in 2023 included the land reservation agreement with Mitsui Kobe in April, setting the stage for future projects. Subsequent agreements with Al Ahli Bank for fundraising, Vale for land reservation, and Vulcan Green Steel for a license to occupy showcased the port's dedication to sustainability and innovation. The signing of a BOOT (Build, Own, Operate, Transfer) and sub-usufruct agreement with Vulcan Green Steel in October emphasized the port's commitment to fostering enduring partnerships.
Furthermore, the port delved into decarbonization initiatives by partnering with industry leaders like Shell and OPAZ. These collaborations aimed at reducing carbon emissions and exploring sustainable energy solutions in line with the port's vision for a greener and more environmentally conscious future.
