Agreement Signed for New Container Terminal at Port of Sohar, Oman

Hong Kong based Hutchison Whampoa has signed an agreement with the Port of Sohar in Oman for the construction of a new 70 hectare container terminal at the Port. The $130m (OMR 50m) contract will double capacity to 1.5 m TEU (20 ft equivalent). Hutchison Whampoa will also manage the terminal after its completion.

Oman is undertaking strategic development to exploit the Port’s position at the crossroads between east and west, near the Strait of Hormuz.

Massive investment in infrastructure in the region is being supported by the Gulf Cooperation Council, which is investing $25 bn in creating a rail network which will ultimately extend to 2,000 km and is expected to be operational by 2018. A National Railway Company has been set up to supervise planning, tendering design and construction. The new rail network is expected to revolutionise transport in the region, linking Oman to other Gulf States, including Abu Dhabi and United Arab Emirates, and will improve transport links to Europe and Asia. Cargoes will be able to be unloaded at Sohar for transportation by rail to the northern Gulf and Saudi Arabia, contributing to reduced environmental impact by reducing truck transport.