TIN news: Port of Salalah achieved strong volume growth at both its container and general cargo terminals during the first half of 2016, despite stiff competition in the global transshipment market.
The port’s container terminal handled 1.58mn TEUs (twenty-foot equivalent units) during the six-month period ended June 30, 2016, an increase of 29 per cent over the same period last year.
Salalah Port Services Co (SPSC), which operates and manages Port of Salalah, said the strong growth in volumes handled at the container terminal was due to a strong support from one of its major customers.
“The management has been pursuing an increase in its share of business from existing customers and actively endeavours to attract new customers,” SPSC said in its first half financial report released on Wednesday, adding the container terminal has also registered consistent improvements in productivity.
Salalah port’s general cargo terminal handled 7.15mn tonnes of general cargo during the January–June period this year, recording a ten per cent year-on-year growth. The major commodities handled include limestone, gypsum, methanol and cement, which are exported from Salalah to nearby markets and continue to drive the port’s general cargo business, the company said.
SPSC said revenues of the general cargo terminal rose 24 per cent while container terminal revenue increased six per cent on year. The company posted a consolidated net profit of RO2.67mn for the first half of 2016, which is marginally higher than the RO2.66mn reported a year earlier.
SPSC said the liquid jetty is now operational and negotiations on the construction and operation of the corridor and pipe rack are ongoing between the port, Ministry of Transport and Communications and Oman Oil.
The company noted that the global container shipping industry remains mired in a prolonged period of uncertainty due to historically low rates as a result of weak global economic growth and oversupply of tonnage available in the market.
“Shipping lines will continue to remain risk averse with procurement decisions and we will see more uncertainty as mergers & acquisitions announced early in the year are still unfolding as well as the resulting changes to traditional shipping alliances,” it said.
SPSC added that, globally, the outlook is quite negative for transshipment hubs, as shipping lines are deploying their cascaded tonnage on direct services rather than opting for transshipment network designs.
“In spite of the increased risk, the Port of Salalah container terminal has been successful in the first half and is expected to continue this success in the second half of 2016. The improved operational performance of the container terminal and strategic importance of Salalah to the 2M Alliance enables us to remain guardedly optimistic.”
SPSC added its focus will continue on closer collaboration with the Salalah Free Zone, local and Yemeni businesses as well as government institutions to encourage more imports and exports via Salalah in order to reduce dependency on transshipment volumes.
The port’s container terminal handled 1.58mn TEUs (twenty-foot equivalent units) during the six-month period ended June 30, 2016, an increase of 29 per cent over the same period last year.
Salalah Port Services Co (SPSC), which operates and manages Port of Salalah, said the strong growth in volumes handled at the container terminal was due to a strong support from one of its major customers.
“The management has been pursuing an increase in its share of business from existing customers and actively endeavours to attract new customers,” SPSC said in its first half financial report released on Wednesday, adding the container terminal has also registered consistent improvements in productivity.
Salalah port’s general cargo terminal handled 7.15mn tonnes of general cargo during the January–June period this year, recording a ten per cent year-on-year growth. The major commodities handled include limestone, gypsum, methanol and cement, which are exported from Salalah to nearby markets and continue to drive the port’s general cargo business, the company said.
SPSC said revenues of the general cargo terminal rose 24 per cent while container terminal revenue increased six per cent on year. The company posted a consolidated net profit of RO2.67mn for the first half of 2016, which is marginally higher than the RO2.66mn reported a year earlier.
SPSC said the liquid jetty is now operational and negotiations on the construction and operation of the corridor and pipe rack are ongoing between the port, Ministry of Transport and Communications and Oman Oil.
The company noted that the global container shipping industry remains mired in a prolonged period of uncertainty due to historically low rates as a result of weak global economic growth and oversupply of tonnage available in the market.
“Shipping lines will continue to remain risk averse with procurement decisions and we will see more uncertainty as mergers & acquisitions announced early in the year are still unfolding as well as the resulting changes to traditional shipping alliances,” it said.
SPSC added that, globally, the outlook is quite negative for transshipment hubs, as shipping lines are deploying their cascaded tonnage on direct services rather than opting for transshipment network designs.
“In spite of the increased risk, the Port of Salalah container terminal has been successful in the first half and is expected to continue this success in the second half of 2016. The improved operational performance of the container terminal and strategic importance of Salalah to the 2M Alliance enables us to remain guardedly optimistic.”
SPSC added its focus will continue on closer collaboration with the Salalah Free Zone, local and Yemeni businesses as well as government institutions to encourage more imports and exports via Salalah in order to reduce dependency on transshipment volumes.