“This terminal project is part of the strategic crude reserves initiative of the country, and is complementary to the development of Duqm,” Reggy Vermeulen, Commercial Director, Port of Duqm SAOC, said. “Given this very positive and complementary location to the Port of Duqm, we see the potential for interaction and co-operation in the development of the strategic storage reserve. At this stage I’m not aware of any concrete plans that may have been communicated to us (on this project), but there is definite scope for co-operation and collaboration between our two organisations,” the official added.

Last week, the wholly government owned Oman Oil Company (OOC) announced that it was studying plans for the establishment of a 200 million barrel-capacity storage facility for crude oil and petroleum products at Ras Markaz. Nasser bin Khamis al Jashmi, Under-Secretary of the Ministry of Oil and Gas, who is also Chairman of OOC, said the terminal will be one of the largest of its kind in the world.

Ras Markaz, one of many promontories that jut into the Arabian Sea on the Wusta coast, is located just beyond the bay from Ras Duqm, currently the site of an ambitious industrial and petrochemical hub anchored by the Port of Duqm and a ship repair yard. Located just north of Duqm SEZ, Ras Markaz is largely uninhabited but is frequented by local fishermen as well as adventure-minded tourists attracted by its spectacular white-sand beachfront and dramatic headland.

In comments to the Observer, Vermeulen also noted that the Port of Duqm continued to make headway in negotiations with investors behind plans for the establishment of dedicated Cement and Bitumen terminals at the port. A modern Cement Terminal with a 150,000-tonne annual throughput capacity is envisaged at a site along Duqm Port’s quay wall.

The facility will be linked via a system of pipelines and conveyors to a roughly 4-hectare plot earmarked by the port authority for use by the investor for storage, bagging and other purposes.

“We are in the phase of final negotiations on the Cement Terminal, with an agreement targeted for signature before the end of this year,” the Commercial Director said. Talks are also underway with a well-established cement manufacturer for the establishment of a major cement plant on a plot of land managed by the Port of Duqm.

Separately, the Port of Duqm is also in discussion with one of the world’s leading producers of bitumen for the establishment of an import base for bitumen within the port. In this regard, the port has also allocated a site for use by the bitumen investor for storage and other activities. Vermeulen also highlighted opportunities for cooperation between the port and the state-owned Oman Drydock Company (ODC), which operates a world-class ship repair yard within the port.

“Cooperation between ODC and the Port of Duqm is excellent. We have very good relations at the management, operational and marketing levels, because we see ourselves as partners in the development of Duqm SEZ and Duqm Port. We are working together because it’s in our mutual benefit. We are working on some joint initiatives that we can present as a (partnership) of our companies to develop and support Duqm. The fact that we are located in the same office building in Muscat is also part of our common desire to be able to collaborate on a regular basis,” Vermeulen stated.

Commenting on the potential for transshipment traffic at Duqm, he said the port would target opportunities that are currently not covered by other Omani ports, notably Port of Salalah. “There is a big potential for transshipment at Duqm in the future. It will be a market that will be developed not before 2015.

The goal of the port is to attract transshipment that does not happen today in Oman. Duqm, like Salalah on the Indian Ocean, are both extremely well located to serve the Indian and African markets very closely. So these are the two big markets that we will be targeting in terms of transshipment in the future.”