EMEA News
Sohar Bunkering Hub Plans Rest on Solid Foundations
The port of Sohar Port and Freezone (Sohar) in Oman in the Middle East Gulf has long haboured ambitions to become a significant player in the region's bunker market.
In an interview with Ship & Bunker, the port's management outlines how and why that ambition is to become a reality.
While it might in part be operating in the shadow of its mighty neighbour, Fujairah, Sohar believes that the demand for bunkers and oil products in the region will outstrip supply thereby creating space for a strong regional player to emerge.
"The predictions are that there will still be significant under capacity not only for bunkering, but also for oil storage as a whole in the Gulf," Sohar explained to Ship & Bunker.
And that is the background to the latest moves at the port which saw Singapore's Trescorp opting to build storage and bunkering capacity at Sohar Port South, which is a land reclamation project.
"The reclaimed area will provide additional deepwater berths, new land for industry, optimal connectivity and available energy. This is really only the beginning and as the market develops the share of the regional bunkering market in Sohar is destined for solid growth."
In addition to Trescorp, Sohar says that "advanced talks with two other potential bunker providers" are ongoing. Ahead of the new onshore storage capacity becoming operational, the port envisions that bunker providers would use floating storage.
Providing "a complete suite of port services at the highest standards" is Sohar's stated aim. To this end, it is looking at proposals to upgrade the bunker services.
"The tender [that was put out earlier this year] included the on-time provision of quality bunker fuel in a safe, competitive way. The provisions will include approved bunker vessels, floating storage facilities, lube barges and, in time, onshore storage."
In any event, the number of bunker barges will be determined by the assessment of demand by bunker companies operating in the port. Clearly, the throughput and scale at Fujairah makes for competitive pricing. How does the port see its own competitiveness evolving?
Bunker prices at Sohar would be the province of the bunker companies but having said that, the port is confident there is sufficient demand.
Sohar is "growing rapidly and ranks now as the largest bulk port in the Gulf and South Asia". More ships mean rising demand for a full range of marine services, including bunkering services, the port said.
The Trescorp project wll be phased with construction to start net year and the terminal operational by 2020 with 600,000 cubic meters of storage available.
