TRADING PLACES
TBY talks to André Toet, CEO of Sohar Industrial Port Company, and Jamal T. Aziz, CEO of Sohar Free Zone & Deputy CEO of Sohar Industrial Port Company on increasing operational efficiency.
The GCC region is an importer of foods, and food security is vital not only for the GCC, but for Muscat and Oman in particular. How has Sohar Port prepared to accommodate agricultural products?
ANDRÉ TOET We built the Sohar Industrial Port in three clusters: petrochemical upstream; steel/metal upstream; and logistics. But in the logistics section, the agricultural part was still missing. Therefore, we decided to convert the former container terminal into an agricultural facility. The base to start from is the raw import of sugar, but also that Oman has decided to locate a large part of the strategic food reserves in Sohar Port, which means that we will also receive grain imports. The grain and sugar give us ample opportunities to go downstream with food in the Port entry zone. On the food distribution side, we rely heavily on the container terminal, because most food products are now containerized. Most grain and sugar arrives in bulk ships, but specifically the consumer part of food is now transported in containers. Shortly we will open a new container terminal: we foresee a massive increase in the shipping of perishables, such as vegetables and meat, not only for the Omani market, but also for the GCC market, the Gulf, and even Iran, India, the Indian Ocean, and the Pacific Rim.
What other types of investments besides food might be attracted to the free zone area? What is your focus?
JAMAL T. AZIZ The idea of the free zone is to expand our base of investments that started in the port into more downstream activities. This involves smaller sized industries, and is an expansion of our investment area by creating economies of scale in terms of our available port, energy, and other utility infrastructure. And of course increased downstream activity spells value-added logistics attached. So what I said about the food sector can apply to other commodities, like minerals for example. The distribution and consolidation of goods is one of the main value propositions of the free zone where commodities come from either our port, from local resources, or from around the world, and then you redistribute them as is, or with added value through some processing or manufacturing, for example assembly, packaging, and so forth.
You have recently signed an agreement with Phaeros to develop an advanced port management system. What will be the result of this collaboration?
AT We have signed a deal with Phaeros, an IT company from Belgium that had participated in an international tender. There are three things we want to achieve with the implementation. First comes savings on navigation: we are going to implement what we call a new harbor, where ships arrive for departure at the terminal. Secondly, we look forward to the added ease of doing business. Agents can directly access the system and place all their orders into it. Thirdly, our internal processes for all marine activities will be directly linked to our ERP software for internal efficiency and improved safety in the marine environment. We aim to provide a one-stop-shop for customers coming to Oman who are less than familiar with the procedures. We are a single contact for them that arranges all official requirements of the Ministry of Commerce, as well as the environment, labor, and manpower.
What will be the impact of Sohar Port for the local population in terms of job opportunities?
JTA In terms of job generation, the Port has created approximately 8,000 direct jobs, and in the Free Zone a further 2,000. When considering direct jobs and total job numbers, you can take a multiplier of three or four indirect jobs created in the local economy. These are services that you offer to support industry in Sohar, such as retail, hospitality, and other industries. Therefore, we expect SOHAR to not only be a Port or Free Zone, but an engine of economic growth for the country. It is to date the largest industrial area. Duqm will have to catch up in years to come, and we are about 10 years ahead in terms of development.
TRADING PLACES
TABLE OF CONTENTS
Interview
HE Yusuf Bin Alawi Bin Abdullah, Minister Responsible for Foreign Affairs, Sultanate of Oman
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His Royal Highness Prince Mohamed Bolkiah, Minister of Foreign Affairs and Trade, Brunei Darussalam
TBY talks to His Royal Highness Prince Mohamed Bolkiah, Minister of Foreign Affairs and Trade of Brunei Darussalam, on the close ties his nation has with the Sultanate of Oman, and the potential for joint investments.
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HE Seán Sherlock, Minister of State Development, Trade Promotion, & North-South Co-operation, Republic of Ireland
TBY talks to HE Seán Sherlock, Minister of State Development, Trade Promotion, & North-South Co-operation of Ireland, on bilateral agreements, investment opportunities, and relations between the two states.
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HE Dr. Mohammad Bin Al Zubair, Advisor to His Majesty Sultan Qaboos bin Said for Economic Planning Affairs, Sultanate of Oman
TBY talks to HE Dr. Mohammad Bin Al Zubair, Advisor to His Majesty Sultan Qaboos bin Said for Economic Planning Affairs, on economic diversification, Omanization, and SMEs.
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Hilal bin Hamad Al Hasani, CEO, Public Establishment for Industrial Estates (PEIE)
TBY talks to Hilal bin Hamad Al Hasani, CEO of the Public Establishment for Industrial Estates (PEIE), on attracting investment, supporting local development, and establishing new opportunities.
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HE Said bin Hamdoon bin Saif Al Harthy, Undersecretary, Ports and Maritime Affairs
TBY talks to HE Said bin Hamdoon bin Saif Al Harthy, Undersecretary of Ports and Maritime Affairs, on the important role that the Sultanate's maritime industry is playing in promoting trade and economic activity.
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HE Yahya Said Abdullah Al Jabri, Chairman, Special Economic Zone Authority at Duqm (SEZAD)
TBY talks to HE Yahya Said Abdullah Al Jabri, Chairman of the Special Economic Zone Authority at Duqm (SEZAD), on the rise of the Duqm area, and the opportunities on offer for investors and businesses.
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HE Didier Reynders, Deputy Prime Minister and Minister, Foreign Affairs, Foreign Trade, European Affairs
TBY talks to HE Didier Reynders, Deputy Prime Minister and Minister of Foreign Affairs, Foreign Trade, and European Affairs of Belgium, on bilateral relations and maritime cooperation between the two states.
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Dr. Fuad Jaffer Al Sajwani, Minister of Agriculture and Fisheries Wealth, Sultanate of Oman
TBY talks to Dr. Fuad Jaffer Al Sajwani, Minister of Agriculture and Fisheries Wealth, on the sector's role in diversification, encouraging international investment, and ensuring stable prices.
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HE Hamed Said Al-Oufi, Undersecretary of Fisheries Wealth, Ministry of Agriculture & Fisheries Wealth
TBY talks to HE Hamed Said Al-Oufi, Undersecretary of Fisheries Wealth at the Ministry of Agriculture & Fisheries Wealth, on the role fisheries wealth can play in diversification and boosting the sector through technology.
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HE Dr. Rashid Bin Salim Al-Masroori, Executive President, Public Authority for Stores and Food Reserve
TBY talks to HE Dr. Rashid Bin Salim Al-Masroori, Executive President of the Public Authority for Stores and Food Reserve (PASFR), on the drive to ensure food security and boost local production in key sectors.
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