27 September 2015
Sohar Port says it is heartened by the groundswell of investor interest in a major food processing cluster due to come up at the adjacent free zone development -- a move, it adds, will also spawn the growth of logistics and packaging industries.
The cluster, anchored by the country's first-ever Agro-Terminal currently under development in the port area, has the potential to underpin the establishment of a large-scale, export-oriented processed foods industry in the Sultanate, according to a senior port executive. Boding well for the realisation of this ambitious vision is the port's joint venture partnership with the Port of Rotterdam, Europe's largest logistics and industrial hub with its own world-scale food cluster, said Jamal Aziz (pictured), Deputy CEO -- Sohar Port and Freezone.
"Although it is too early to release specific names, I can say that there has been huge interest from the food sector -- nationally, regionally and internationally," the official said, when asked to comment on the strength of investor interest in the free zone's ambitious food cluster initiative.
He further added: "Actually I am not surprised, as we bring a great deal of relevant experience to the table from Port of Rotterdam, on top of what I believe is the perfect mix of location, connectivity and costs."
Speaking to the Observer, Jamal said the new agro- terminal taking shape at Sohar Port has huge significance for the Sultanate. "Not only will it create more job opportunities for people in the local region and stimulate investment opportunities, it will also play a pivotal role in supporting the Oman government's food security strategy and develop an export capacity in processed foods. The expansion will also produce a host of spin-off benefits for the logistics and packaging sectors," he stated.
Already, key anchor elements of the proposed food cluster are added in place within the industrial port. Oman Sugar Refinery Company LLC (OSC) is making headway in the development of a sugar refinery at Sohar, having recently signed a finance agreement to this effect, said Jamal. Also moving forward are plans for a flour mill, strategic grain silos and a food processing company, he added. "So far, a total of more than $21 billion has been pumped into the Port and Freezone and in less than a decade we have created a world-class facility here. We will eventually see the development of a fully-fledged food cluster taking shape in the Port and Freezone. This combined with recent developments in road, air, sea and rail infrastructure will undoubtedly spur interest in Sohar as a prime destination for further agro-industrial investments," Jamal, who is also CEO of Sohar Freezone, stated.
Adding to Sohar's appeal are planned investments in food packaging industries, according to the official. Most notable, he said, is Ompet's decision to set up a $600 million facility to produce 250,000 tons per year of PET, which is the principal feedstock for plastic beverage bottles.
"Our aim is to attract new investment in food and food-processing industries and create a cluster than can help feed the region. Grain silos and a sugar refinery are already in the pipeline, and as this sector grows, the opportunities for packaging companies to serve multinational businesses will grow," he said.
With almost all of the leasable plots within Phase 1 of the free zone having been practically leased out -- three years ahead of schedule, work has now commenced on Phase 2 of the sprawling 4,500-hectare development, according to the official. International investors eager to invest in the Food Cluster will be offered either long-lease land parcels, or pre-build warehousing and storage facilities. Service corridors linking the Agro-Terminal in the port area with the food cluster in the free zone will ensure that material transfers will be fast, direct and by and large free of complex customs formalities, he stressed.
Longer-term, Jamal sees the potential for Sohar to evolve into a food logistics gateway for the surrounding region. "Ninety 90 per cent of the Gulf's food demands are currently met via imports.
However, the region has positioned itself as a major logistics centre for the global food industry -- partly due to significant re-exports resulting from supply eclipsing local demand. With plans for a major flour mill, world-scale sugar refinery, grain silo complex and agro bulk handling terminal already progressing, the new food cluster will stimulate the growth of Sohar Port and Oman as a food distribution hub for the wider region," he added.
Sohar Port says it is heartened by the groundswell of investor interest in a major food processing cluster due to come up at the adjacent free zone development -- a move, it adds, will also spawn the growth of logistics and packaging industries.
The cluster, anchored by the country's first-ever Agro-Terminal currently under development in the port area, has the potential to underpin the establishment of a large-scale, export-oriented processed foods industry in the Sultanate, according to a senior port executive. Boding well for the realisation of this ambitious vision is the port's joint venture partnership with the Port of Rotterdam, Europe's largest logistics and industrial hub with its own world-scale food cluster, said Jamal Aziz (pictured), Deputy CEO -- Sohar Port and Freezone.
"Although it is too early to release specific names, I can say that there has been huge interest from the food sector -- nationally, regionally and internationally," the official said, when asked to comment on the strength of investor interest in the free zone's ambitious food cluster initiative.
He further added: "Actually I am not surprised, as we bring a great deal of relevant experience to the table from Port of Rotterdam, on top of what I believe is the perfect mix of location, connectivity and costs."
Speaking to the Observer, Jamal said the new agro- terminal taking shape at Sohar Port has huge significance for the Sultanate. "Not only will it create more job opportunities for people in the local region and stimulate investment opportunities, it will also play a pivotal role in supporting the Oman government's food security strategy and develop an export capacity in processed foods. The expansion will also produce a host of spin-off benefits for the logistics and packaging sectors," he stated.
Already, key anchor elements of the proposed food cluster are added in place within the industrial port. Oman Sugar Refinery Company LLC (OSC) is making headway in the development of a sugar refinery at Sohar, having recently signed a finance agreement to this effect, said Jamal. Also moving forward are plans for a flour mill, strategic grain silos and a food processing company, he added. "So far, a total of more than $21 billion has been pumped into the Port and Freezone and in less than a decade we have created a world-class facility here. We will eventually see the development of a fully-fledged food cluster taking shape in the Port and Freezone. This combined with recent developments in road, air, sea and rail infrastructure will undoubtedly spur interest in Sohar as a prime destination for further agro-industrial investments," Jamal, who is also CEO of Sohar Freezone, stated.
Adding to Sohar's appeal are planned investments in food packaging industries, according to the official. Most notable, he said, is Ompet's decision to set up a $600 million facility to produce 250,000 tons per year of PET, which is the principal feedstock for plastic beverage bottles.
"Our aim is to attract new investment in food and food-processing industries and create a cluster than can help feed the region. Grain silos and a sugar refinery are already in the pipeline, and as this sector grows, the opportunities for packaging companies to serve multinational businesses will grow," he said.
With almost all of the leasable plots within Phase 1 of the free zone having been practically leased out -- three years ahead of schedule, work has now commenced on Phase 2 of the sprawling 4,500-hectare development, according to the official. International investors eager to invest in the Food Cluster will be offered either long-lease land parcels, or pre-build warehousing and storage facilities. Service corridors linking the Agro-Terminal in the port area with the food cluster in the free zone will ensure that material transfers will be fast, direct and by and large free of complex customs formalities, he stressed.
Longer-term, Jamal sees the potential for Sohar to evolve into a food logistics gateway for the surrounding region. "Ninety 90 per cent of the Gulf's food demands are currently met via imports.
However, the region has positioned itself as a major logistics centre for the global food industry -- partly due to significant re-exports resulting from supply eclipsing local demand. With plans for a major flour mill, world-scale sugar refinery, grain silo complex and agro bulk handling terminal already progressing, the new food cluster will stimulate the growth of Sohar Port and Oman as a food distribution hub for the wider region," he added.
© Oman Daily Observer 2015
