The move is in line with Port of Duqm Company’s (PDC) enlarged mandate that was formalised during the landmark visit of Princess Astrid of Belgium to the Sultanate in March. The expanded mandate confers upon Port of Duqm Company a key role in the development of industrial and warehousing clusters at the Special Economic Zone (SEZ) of Duqm, a senior official said.

“In addition to managing the Port of Duqm, PDC will also be investing in the development and management of large tracts of land for industrial and logistics related investment.  We will pursue an integrated approach to the development of Duqm driven by synergies between the maritime, logistics and industrial activities within the port area and the adjoining SEZ,” said Peter Broers , General Manager — Industrial Land, Port of Duqm.

According to the official, Port of Duqm Company has been allocated 2,000 hectares of land for petrochemical and medium and heavy industries to develop and manage as part of its concession agreement with the Omani government, as well as the Usufruct Agreement with SEZ Authority of Duqm (SEZAD).

“PDC’s strategy is to develop two zones each of 500 hectares within the SEZ reserved exclusively for medium industries, the other is earmarked for heavy industries, while the remaining 1000 hectares will serve the downstream petrochemical industries,” Broers said.
As a first step in the development of the industrial clusters, PDC has floated a subsidiary company that will invest in all of the basic infrastructure and utilities necessary for investors to set up their facilities with near ‘plug and play’ ease.

Duqm Industrial Land Company (DILC) is envisaged as a partnership of the Port of Duqm Company (51 per cent) and a number of shareholders comprising pension funds and other entities that together hold the remainder 49 per cent of the equity.

“A first investment to develop a first batch of 250 ha is estimated in the range of $55 million, which will be financed partly through equity contributions and the rest through bank loans,” said Broers.

Given the green-field nature of the Duqm SEZ, land development will be carried out in a phased manner, he explained.

“Our goal is to prepare as soon as possible 250 hectares for development of medium industries in phase 1, and ramp it up to 500 hectares in phase 2. The concept layouts have been formulated, the road system designed, and the utility corridors demarcated.”

While the Rural Areas Electricity Company (RAECO) have committed to laying medium voltage cables to the sites, telecom companies Omantel and Nawras will provide data connectivity. Utilities such as industrial water, industrial gases, waste handling, and so on, will be overseen by the Central Utilities Company, a joint venture of Takamul Investment Company and Sembcorp Utilities of Singapore.

In supporting Duqm’s industrial development, Port of Duqm Company aims to leverage the formidable expertise of its joint venture partner, Port of Antwerp. As one of the world’s largest ports, Antwerp anchors a mammoth petrochemical, industrial and logistics hub that generates massive volumes of cargo for the port, as well as huge added value for the country as a whole. Total freight handled by Port of Antwerp hit a new peak of around 190 million tonnes last year.