Oman Port Targets Bigger Iran Shipping Ties
By Jonathan Saul
LONDON, Feb 29 (Reuters) – Oman goals to broaden transport and commerce hyperlinks with Iran and get forward of rivals after the lifting of worldwide sanctions on Tehran, main port officers concerned say.
Measures had been lifted final month as a part of a nuclear take care of world powers, ending years of isolation which noticed the worldwide transport sector minimize ties and disrupt provides to import-dependent Iran.
The United Arab Emirates beforehand loved larger transport exercise with Iran however Oman’s close by Sohar port is increasing ties.
Oman may additionally profit from a spat between rivals Saudi Arabia and Iran which noticed Riyadh minimize ties final month and others just like the UAE to downgrade relations. Annual UAE-Iran container commerce pre-sanctions was estimated at 1.5 million TEUs (20-foot equal items).
Reports cited by ship insurers pointed to a ban on all Iranian flagged ships calling at Saudi ports and neighbouring ally Bahrain.
While Oman maintained heat ties with Tehran it now faces competitors from throughout the Arabian Sea within the type of India.
Andre Toet, chief government of Sohar’s port and freezone, acknowledged they had been smaller than close by terminals.
“What we are trying to do is see if we can get a piece of the cake and divert or create new business opportunities for business between Oman and Iran using Sohar as the base for that,” he informed Reuters.
“The first signs are there that it is happening. It is still in very small pockets.”
Sohar, a 50-50 three way partnership between the federal government of Oman and the Dutch port of Rotterdam, acts because the port authority and landlord and runs its 45 km freezone.
Toet stated Sohar was focusing on extra commerce with main Iranian dry bulk and container line IRISL and nationwide tanker operator NITC. An IRISL ship made its first name to Sohar just lately.
Separately, a direct service between Iran’s main cargo port of Bandar Abbas and Sohar had opened up. Toet stated the port was hyperlinks with different Iranian terminals similar to Chabahar.
“We are talking to several Iranian companies looking for possible investment in the free zone – small metal manufacturing and warehousing distribution of agricultural products,” he stated.
Total vessel calls to Sohar reached 2,545 final 12 months – an increase of 26 % from the earlier 12 months.
With international cargo and container transport markets struggling a chronic recession since 2008, Iran represents a possible space of progress for the Oman International Container Terminal (OICT), positioned in Sohar.
“I can see high potential for an increase of trade between our two countries,” stated Albert Pang, chief government of OICT, which is operated by traders together with Hutchison Port Holdings and Oman’s authorities.
Last 12 months OICT reported cargo volumes of round 540,000 TEUs, versus 329,000 TEUs in 2014, and Pang stated it was focusing on double-digit progress this 12 months, with Iran doubtlessly including to it. (Editing by Jon Boyle)
(c) Copyright Thomson Reuters 2016.