Friday , 20 September 2019
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On November 14, 2007, the Government of the Sultanate of Oman represented by HE Ahmed bin Abdulnabi Macki, Minister of National Economy, HE Maqbool bin Ali bin Sultan, Minister of Commerce and Industry and chairman of Sohar Industrial Port Company (SIPC) signed an addendum to the existing concession agreement for the Port of Sohar with Hans Smits, CEO of Rotterdam Port Authority.

Sohar addendum

Since July 2002 the Port of Sohar, which is situated about 200 km from Muscat and Dubai, has been managed by SIPC, a 50/50 joint venture between the Government of the Sultanate of Oman and the Port of Rotterdam.

Besides extending the present SIPC concession area of 2,000 hectares to over 6,000 hectares, the addendum allows a further extension of the concession period to 2043, the facilitation of the joint development and management of future bulk facilities and the Sohar Special Economic Zone, and other pending projects.

According to HE Macki, “The signing of the addendum is a logical step in the further strengthening of the relations between the Government and the Port of Rotterdam. The development of the Port of Sohar as part of the diversification of the economy of the Sultanate has been a success. The know-how and experience of the Port of Rotterdam combined with the fast and non-bureaucratic decision making of the Government, has resulted in this unprecedented Industrial Port development.”

The addendum will make considerable further expansion possible, specifically in the field of downstream and logistic activities with a number of interested parties apparently having already informally approached SIPC for space in or near the port. The hope is that increased activity will also cause more shipping lines to call at Sohar which will help to lower the transportation costs for Omani businesses even further.