The terminal, according to a top official of the Port of Duqm, will be large enough to cater to the bulk liquid volumes associated with a large-scale refinery and petrochemicals hub envisioned at the Special Economic Zone (SEZ) adjoining the port.

“Duqm Port’s cargo throughput over the medium and long terms will include a sizable liquids component. A significant share of these volumes will be generated by the refinery, which we understand will be designed for a capacity that can be gradually increased to 10 million tonnes per annum. Accordingly, we are looking to build jetty infrastructure with a capacity corresponding to these throughput levels,” Peter Broers, Chief Executive Officer, said.

Speaking to the Observer, Broers said the Liquids Terminal will be constructed as part of the second phase development of the port’s infrastructure. The facility, which will come up close to the Northern Breakwater, is proposed to be brought into operation in conjunction with the planned launch of the refinery project in 2017.

Oman Oil Company, a wholly government owned energy investment company, is partnering with the Abu Dhabi-based International Petroleum Investment Company (IPIC) to develop a 230,000 barrels-per-day capacity refinery complex at Duqm. A 900-hectare site has already been allocated for the project at the SEZ.

Total investment in the refinery scheme, which will anchor an ambitious petrochemicals and downstream processing zone at Duqm, is estimated at $6 billion.Underlining the importance of the refinery project, Broers said the venture is expected to spawn investments in a wide array of petrochemical ventures and secondary spinoffs. “The refinery will catalyse the growth of downstream industries whose products in turn will open up opportunities for further value-added processing, and so on. Thus, there will be products with applications in the manufacture of automotive parts, fabrics, textiles, chemicals, and so on. All of these products can be traced back to the refinery investment.

”Significantly, the proposed Liquids Terminal will complement Duqm Port’s impressive cargo handling infrastructure that will include dedicated terminals for general cargo, containers, and dry bulk commodities.

In addition to 2,300 metres of commercial quay wall envisioned in Phase 1 of the port’s development, the maritime gateway will also feature a Multipurpose Cargo Terminal with a handling capacity of around 0.8 million tonnes annually.

While the Phase 1 facilities are slated for launch in 2014, the port authority plans to commence early operations later this year with the commissioning of a 300-metre length of the commercial quay.

The early operations phase is intended to enable the handling of ships carrying mainly project cargo for nearby oil and gas fields, as well as various infrastructure schemes under development at the SEZ.

In developing a world-class industrial and maritime hub, the Port of Duqm will draw on the vast experience and expertise of its joint venture partner, the Belgian Port of Antwerp, which already ranks among the world’s largest gateways, the CEO noted. “Antwerp Port, underpinned by multimodal transport logistics, is a huge industrial and petrochemicals hub for a sizeable region of Europe. It’s a service provider not only for Belgium, but also for Germany, France, the Netherlands and large swathes of Europe.

In fact, the Antwerp model will guide us in the eventual development of Duqm as an industrial hub in its own right. Industrialisation is the key. It’s a process that starts small but will expand over time,” Broers commented. A 50:50 joint venture between Consortium Antwerp Port (CAP) and the Omani government, Port of Duqm Company SAOC was set up in 2010 to run the Sultanate’s newest maritime gateway.

CAP is supported by the Port of Antwerp, one of Europe’s largest hub ports. Under an agreement signed with the government last April, the joint venture won a 28-year concession to co-invest, operate, manage and market Duqm Port.