APL, Oman's Salalah port in joint venture

Container carrier APL and the Port of Salalah announced the formation of 50-50 joint venture to operate a new two-berth container terminal in Oman.

The venture will start operations in 2011, after completion of the planned expansion of the container terminal at the port, which is both the facility owner, operator and port authority.

The project covers a 28-hectare deep-sea facility that will have a total quay length of 700 metres and annual capacity of 1.6 million TEUs (20-foot equivalent container units). It will be capable of servicing container vessels of more than 10,000 TEUs.

"Salalah's location on the southwest coast of Oman makes it one of the most ideal transshipment hubs connecting the east-west container routes to the fast-growing Middle East and South Asia regions," said Ron Widdows Group CEO of APL's Singapore parent, Neptune Orient Lines.

The Port of Salalah began operations in 1998 and currently has six container berths, with a capacity of 4.5 million TEUs.

Port of Salalah has a 30-year concession to operate the port and acts as the port authority. AP Moller-Maersk's APM Terminals owns 30 per cent of the port, with public and private Omani interests holding the balance.

The joint venture will invest in super post-panamax cranes and other container-handling equipment and systems.

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