Hossein N. Fashkhami’s Post

With the first-quarter results in, the consensus among shipping lines is an expectation that the Red Sea blockade will continue. In response, the Port of Salalah, located in the Sultanate of Oman, has launched multi-modal service options that provide a viable alternative to the time-consuming and more costly re-routing around the Cape of Good Hope. Strategically positioned at the crossroads of trade between Asia and Europe, and servicing markets spanning East Africa, the Red Sea, the Indian Subcontinent, and the Arabian Gulf, the Port of Salalah is operated by APM Terminals as part of its global terminal network. It operates both a container terminal and a general cargo terminal. With an annual capacity of 5 million TEU and expansion currently in progress to add an additional 30% capacity, the Port of Salalah is ideally located on the main ocean routes connecting South and East Asia with Europe, North Africa, the Americas, and the upper Gulf with East Africa. No detour from East-West shipping routes Unlike other popular transshipment ports in the region, no detour from the main East-West shipping routes into the Gulf of Oman is required, saving a 4-5 day detour from the main east-west shipping routes. #bunkering #energy #shipping #marine #maritime #petroleum #shipowners #decarbonization #digitalization #energytransition #oilandgas #cleanenergy #carboncapture #ports #greenenergy #greenshipping #netzero #sustainability #bunkermarket #europe #usa #uk #canada #uae #netherlands #denmark #norway #sweden #finland #singapore #oman #portofsalalah #salalah #salalahport #apmterminals https://lnkd.in/dB6gj5pQ

In response to the continuing #RedSea blockade, the Port of Salalah, located in the Sultanate of #Oman, has launched #multimodal service options that provides a viable alternative to the time consuming and more costly re-routing of #cargo around the Cape of Good Hope. Unlike other popular #transshipment 3ports in the region, no detour from the main East-West #shipping routes into the #GulfofOman is required, saving a 4-5 day detour from main east-west shipping routes. #transport #logistics #supplychain #seacargo #seafreight #redseacrisis #globalshipping #intermodaltransport

Port of Salalah Steps Up as Vital Link Amid Red Sea Crisis Shipping Arabia, May 11, 2024 — The ongoing Red Sea blockade has prompted the Port of Salalah in Oman to become a crucial alternative for maritime routes, avoiding the lengthy Cape of Good Hope detour. Strategically located at a global crossroads, Salalah offers direct access to major East-West shipping lanes, providing seamless connectivity across Asia, Europe, North Africa, the Americas, and East Africa. With disruptions expected to persist, Salalah's first-quarter performance has cemented its role as a competitive transshipment hub. The port is expanding its capacity by 30% from 5 million TEU to cater to the increased demand for efficient route alternatives. Salalah's geographical advantage eliminates the usual 4-5 day deviation required by other regional ports, offering significant time and cost savings. The port has introduced multimodal solutions, including a sea/overland route to Jeddah, which reduces journey times to Europe and the US East Coast via the Suez Canal. For urgent shipments, a sea-air option through Salalah or Muscat Airports, or Jebel Ali, offers faster transit times and cost reductions compared to full air freight. The port's facilities support scalable warehousing and advanced Container Freight Facilities, enabling tailored intermodal solutions. Collaborations with industry leaders like Maersk and Oman Airports have led to successful sea-air freight operations. Salalah's efficiency ranks second globally in the World Bank’s Container Ports Performance Index. Sunil Joseph, Commercial Officer at Salalah Port, highlights the port’s capacity to manage increased traffic efficiently. Ongoing reforms in Oman enhance its role as a full-service logistics solution, offering speed, flexibility, and value-added services. As the maritime industry adapts to geopolitical changes, Salalah is well-positioned to facilitate efficient global trade, showcasing its ability to meet challenges with innovative responses. Source: APM Terminals #Salalah #APMTerminals #Transport #Logistics #Oman #RedSea

Salalah Port to join global vessel-sharing network MUSCAT: Port of Salalah – a major Omani logistics hub overlooking the Indian Ocean - is banking on the launch of the Gemini Network, a global vessel-sharing agreement between shipping giants Maersk and Hapag-Lloyd, to offset a downtrend in container throughput recorded at the Omani port over the past year. That decline is largely attributable to disruptions in maritime shipping in the Red Sea linked to the ongoing Gaza War. Container volumes slumped 13 per cent to 2.5 million TEUs (twenty-foot equivalent units) during the first nine months of 2024, down from 2.9 million TEUs a year earlier. Read more: https://lnkd.in/d-Xt3rAG Salalah freezone (SFZ) A.P. Moller - Maersk Hapag-Lloyd AG @OmanLogCenter Ministry of Transport, Communications and Information Technology - Oman #Salalah #Port #GeminiNetwork #RedSea #Crisis #Logistics #Shipping #Oman #OmanBiz

Port of Salalah’s viable alternative to Red Sea route The consensus among shipping lines is an expectation that the Red Sea blockade will continue. In response, the Port of Salalah, located in the Sultanate of Oman, has launched multimodal service options that provide a viable alternative to the time-consuming and more costly re-routing around the Cape of Good Hope. With an annual capacity of 5 million TEU and expansion currently in progress to add an additional 30% capacity, the Port of Salalah is ideally located on the main ocean routes connecting South and East Asia with Europe, North Africa and the Americas, and the Upper Gulf with East Africa. No detour from east-west shipping routes Unlike other popular transhipment ports in the region, no detour from the main east-west shipping routes into the Gulf of Oman is required, saving a 4-5 day detour from main east-west shipping routes. The new multimodal solutions launched by the Port of Salalah offers Beneficial Cargo Owners (BCOs) and Shipping Lines cost-effective and fast alternatives between Asia the United States East Coast and European destinations. Sea/overland route offers comparable journey times From the Port of Salalah, an in transit overland route by truck connects to Jeddah located in the safer mid-point of the Red Sea in Saudi Arabia. The overland route takes approximately 4-5 days. From this point, the journey can continue by container vessel through the Suez Canal to Europe or the US East Coast, reducing the overall transit time under to current routing. Sea/air option for time-sensitive cargo A further sea-air option provides a faster alternative for more time-sensitive cargo into and out of Europe. Upon discharge in the Port of Salalah, cargo is transferred in transit to either Salalah or Muscat airports or even Jebel Ali depending on availability of airlift capacity and connections. Salalah Airport offers state-of-the-art airfreight infrastructure, the ability to handle both narrow-and widebody aircraft, and sufficient spare handling capacity. This option reduces the lead time compared to a full ocean leg and reduces cost compared to a full air freight option. The new multi-modal service reduces transit times by an estimated 20-40% compared to traditional east-west trade routes and could deliver a cost saving of 10-20% compared to a pure air-freight solution, highlighted a release. Source: Exim News Service: Salalah, May 9

Salalah Port Achieves Strong Cargo Handling Growth in Q1 Despite Challenges Shipping Arabia, May 13, 2024 — Salalah Port’s General Cargo Terminal has recorded a notable increase in cargo volume in the first quarter of 2024, handling 5.763 million tons, up 14% from 5.039 million tons in the same period last year. This growth, reported by Salalah Port Services, is driven primarily by rising export demands for bulk dry materials such as gypsum and limestone. Despite disruptions in the Red Sea and ongoing terminal upgrades impacting container operations, the port's total revenue reached 17.9 million Omani Rials. The General Cargo Terminal exhibited resilience, achieving substantial growth amidst rising insurance costs due to increased geopolitical risks in the region. This performance underscores the terminal’s crucial role in global supply chains, particularly to Asian markets, with expectations of continued robust performance through the year. However, the container terminal operations have been adversely affected, handling 878,000 TEUs, down from 1,056,000 TEUs in the previous year, a decline of 17%. The ongoing regional disturbances and necessary capacity restrictions during upgrades have contributed significantly to this downturn. The port has noted adjustments by some clients in their maritime routes, opting for longer journeys around the Cape of Good Hope or temporarily halting certain services. Looking ahead, Salalah Port anticipates a continued decline in container throughput by 20-25% for 2024, predominantly due to decreased transshipment volumes. The port is actively implementing strategies to mitigate these impacts and maintain its competitive edge in the global shipping market. As part of its strategic upgrades, the port received the first set of four new ship-to-shore (STS) cranes during the quarter, reinforcing its commitment to bolstering operational efficiency and technological advancements. These investments are crucial for minimizing operational risks and enhancing service delivery. Financially, the port reported a consolidated profit before interest, taxes, depreciation, and amortization of 3.6 million Omani Rials and a net profit of 846,000 Omani Rials for the quarter, reflecting a slight decrease from the previous year's 1.169 million Omani Rials. These figures highlight the ongoing challenges and the port's efforts to navigate through a complex global landscape while continuing to drive economic growth and maintain high operational standards. Source: Oman News #Oman #Ports #Maritime #Salalah #Transportation #Freight #ShipsandShipping

Omani Ports Record Increased Cargo Handling and Ship Dockings in 2023 Shipping Arabia, April 13, 2024 — Omani ports continued to demonstrate their vital role in regional maritime operations in 2023, handling over 93.2 million tons of cargo, a 1.5 percent increase from the previous year's 91.8 million tons. The ports, including Sultan Qaboos, Salalah, Sohar, Khasab, Shinas, and Suwaiq, maintained high operational and logistical performance, contributing significantly to Oman's economic development. In 2023, the ports also experienced a 4.3 percent increase in vessel dockings, with 11,005 ships arriving compared to 10,553 in 2022. This growth underscores the ports' enhanced capacity and strategic importance in the global shipping landscape. Cruise tourism at Sultan Qaboos, Salalah, and Khasab ports saw remarkable growth, aligning with governmental efforts to boost this sector. Throughout 2023, these ports welcomed 229 cruise ships carrying over 599,000 passengers, a significant rise from 87 ships and 205,000 tourists in 2022, marking an increase of more than 190 percent in passenger numbers. Several key developments in 2023 included the management, operation, and rehabilitation agreement for Shinas Port with Quadruple Systems and Solutions Marine Company, initiated in November. This partnership aims to enhance the port’s infrastructure and operational capabilities. Further initiatives to expand Oman's logistics network included the transition of Dalkut Fish Port and the issuance of a tender for a new mining jetty in Manji, reflecting the Ministry of Transport, Communications and Information Technology’s proactive approach to fostering commercial activities and attracting global investment. Salalah Port Services Company has embarked on an infrastructure upgrade for its container terminal, set to be completed by early 2025. This project will boost the terminal's capacity and adapt it to accommodate the latest generation of container ships, reinforcing Oman’s commitment to enhancing its maritime infrastructure. These developments are part of Oman’s strategic plans to sustainably enhance the logistics sector and improve the administrative and operational efficiency of its ports, thereby increasing the volume of exports and imports through its maritime outlets. Source: Oman News Agency, Ministry of Transport, Communications and Information Technology, Oman #OmaniPorts #MaritimeNews #Salalah #Sohar #CruiseTourism

Oman's Ascending Role in Regional Logistics: A Year of Positive Growth 🚢 🔗 As a key maritime hub in the Arabian Sea and Indian Ocean, Oman's ports have shown remarkable progress throughout 2023. With a 1.5% increase in cargo handling and significant growth in vessel dockings and cruise tourism, Oman demonstrates robust operational capabilities and a strategic commitment to maritime infrastructure development—crucial for enhancing its role as a regional logistics hub. 👉 Dive deeper into Oman’s maritime advancements and their impact on the region in our latest article. 📲 For ongoing updates on Middle East maritime developments, make sure to follow Shipping Arabia. #OmanPorts #EconomicGrowth #MaritimeIndustry #Ports #Salalah #Sohar

Salalah Port Services Posts Revenue Growth in First Quarter Shipping Arabia, April 16, 2024 — Salalah Port Services has reported a modest increase in its financial revenues for the first quarter of 2024, with total revenues rising 1.2% to 18.446 million Omani Rials, up from 18.222 million Omani Rials in the same period last year, according to Oman Newspaper. The revenue from operations by the end of March 2024 reached 17.929 million Omani Rials, while other non-operational revenues rose by 83% to 517,000 Omani Rials. Despite these gains, the net profit after loss saw a decrease of 28%, amounting to 846,000 Omani Rials compared to 1.170 million Omani Rials in the previous year. The decline in container terminal productivity was attributed to the challenging situation in the Red Sea and capacity restrictions during ongoing upgrades. Conversely, the general cargo terminal enjoyed a 14% increase in handling volumes, largely due to a rise in dry bulk goods, totaling 5.763 million Omani Rials by the end of March 2024. However, container handling experienced a 17% decline, with revenues falling to 878,000 Omani Rials. Increased costs in the first quarter were linked to an advanced maintenance program and accelerated depreciation of two quayside cranes decommissioned as part of the port's upgrade efforts. Salalah Port, renowned for its strategic position on global shipping routes, continues to enhance its facilities to accommodate the largest container ships, featuring advanced technologies for efficient operations. It was ranked as the second most efficient container port globally according to the 2022 Container Port Performance Index by the World Bank and Standard & Poor’s and stood first in the region of West, Central, and South Asia. The port's ongoing developments include significant infrastructure upgrades aimed at boosting its capacity and efficiency. Oman's broader strategy aims to increase cargo movement by at least 7% annually and container movement by 5%, improving its standing in the Logistics Performance Index and Port Services Efficiency Index globally. With continuous investments in modernizing its infrastructure, Oman is committed to strengthening its ports as pivotal hubs in the maritime and logistics sectors, driving economic growth and enhancing regional connectivity. Source: Oman Newspaper #SalalahPort #Oman #MaritimeNews #GlobalShipping #PortDevelopment

Port of Salalah, the leading transshipment hub of the Sultanate of Oman, has warned that ongoing disruptions to commercial shipping in the Red Sea is anticipated to negatively impact container volumes at the maritime gateway during Q1 2024 as well. The port, along with impacted customers and shipping lines, are now exploring “alternative solutions”, including multimodal options to transport containers by road from Salalah to destinations further into the Gulf and the Middle East, a top official said.   Port of Salalah, coincidentally the first major port of call for ships emerging from the Gulf of Aden and sailing into the Indian Ocean and Arabian Gulf, has witnessed its share of impacts as well, according to Braik Musallam al Amri, Chairman of the Board of Directors, Salalah Port Services Co SAOG.   “Notably, in December '23, the situation in the Red Sea prompted vessel diversions and network disturbances, profoundly impacting business performance and operational efficiency. Despite ongoing uncertainties surrounding liner services, both carriers and customers are actively seeking alternative solutions,” he stated in the company’s financial report for fiscal 2023.   On the other hand, these challenges can be converted into opportunities for Salalah Port, Al Amri pointed out. “Cargo can now be offloaded in Salalah and transported via road to final destinations within the GCC. Customers in Jordan are also exploring these alternative options, indicating a shift towards more flexible and adaptable transportation solutions,” he stated.   #Oman #PortofSalalah #Shipping #Logistics #Challenges #RedSea