Major Fuel Storage Depot at Salalah to be Ready by November 2015
04.15.2015 - NEWS

April 15, 2015 [Oman Daily Observer] - The Salalah Port is all set to receive yet another boost with the completion of a major fuel storage depot by November this year. The multi-million dollar facility is being developed by Mina Petroleum, which specialises in commodity trading and full-cycle logistics for delivery of petroleum products.


“The construction work of the depot is well under way and is nearing completion”, said Kutaiba al Hatmi, Country Head, Mina Group.

Talking to Observer, Al Hatmi said the project plans envisage the construction of nine large fuel storage tanks that are connected to the Salalah Port’s new liquid jetty via a pipeline network and a series of pump stations.

“Initially, the depot will serve to visiting naval ships and later be expanded to commercial vessels”, Al Hatmi said.
The Dubai-based group is investing in the construction of the 230,000 cubic metre storage facility in line with a contract award secured from the US government to supply fuel to its vessels calling at Salalah.

The award was the result of an open and competitive tender process conducted in accordance with the US Federal Acquisition Regulation (FAR), the rules governing procurement initiatives of US government agencies.

“The project, which adds to the growing importance to Salalah as a logistics hub on the Indian Ocean, will contribute significantly to the Omani economy”, Al Hatmi said.

Most importantly, of course, the depot will provide jobs in the region”, he said. Salalah Port has elements of enormous potential characterised by an ambitious expansion plan, taking advantage of its outstanding strategic location.

The Port’s proximity to the Red Sea and the panoramic view on a number of tracks shipping navigational lines connecting East and West make it an ideal location to host the fuel depots strategy of this level, he added. The Port plays a very large role in improving network costs within the global supply chain. The port achieved last year a major breakthrough by handling 35 million containers after 15 years of starting its operations in this area.

Salalah Port Services Company manages the port under the supervision of IBM for container terminals which owns a share in the company and is the largest container terminal operators in the world.

The port consists of a container terminal with six wharf of 18-metres draft, and general cargo terminal with 12 wharf of 4-16 metres draft, along with a good infrastructure for receiving and handling the largest container ships in the world, handling bulk cargo and refuelling, in addition to warehouses and stores.

“The Mina is also exploring a number of options for corporate social responsibility, including sewage treatment and water purification infrastructure for the rural Dhofar communities, technical training programmes for local students in fuel facilities operations and maintenance, investment in local education and recreation activities,” Al Hatmi said.

Mina Group owns, operates, and invests in energy infrastructure assets to optimise its supply chain and commodity trading operations. The Group has sourced over one billion gallons of fuel from diverse markets and transported that fuel across thousands of kilometres by sea, rail, road and pipeline.

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