Oman's economy performance during covid 19 with focus on the seaports' performance - mahmood sakhi albalushi - Nov 2020

1. Oman’s Economy Performance During Covid-19
(with focus on the seaports’ performance)
Mahmood Sakhi Albalushi
Member of Oman Economic Association
November 2020
1. Introduction:
The Covid-19 has enormously disrupted nearly most business sectors among other sectors. Logistics is the
arteries of economies and trade. The coronavirus crisis has significantly impacted the logistics sector and the
supply chains. On the other hand, the logistics sector has been a vital success support factor to sustain the
economies during the current Coronavirus crisis.
The primary entry/exit points of countries are managed through land borders, airports, and seaports. The
domestic operations are handled by the logistics service providers. With the outbreak of Coronavirus, the world
started to slow down as governments began to lock down and limit all accessibilities to and from their countries.
In Oman, the government and the private sector, as in many other countries, have started very early to mitigate
the risks and find solutions and alternatives to combat the Covid-19 negative impacts. Traffics at airports and
land borders were severely affected compared to the seaports. Seaports played vital roles in keeping the
countries connected with the outside world and keeping the imports and exports continue to flow. The medical
and food products have been the major contributors to the transported volumes.
This paper analyzes Oman’s economy in terms of GDP, trade, and workforce in general. The focus would be on
the primary seaports performance; Sohar and Salalah. The economic and social challenges are great during
these unprecedented difficult times caused by the Covid-19 crisis which is not only a health crisis but also an
economic crisis.
2. Asyad Group and the Customs
The Omani ports, with the leadership of the Asyad Group that oversees the logistics sector and ports, played a
vital role from day one as the Coronavirus outbroke. Oman Customs played a pivotal role in supporting and
facilitating trade. Asyad and the ports’ management teams have been proactively monitoring the Covid-19 crisis
and its impacts on ports’ operations and trade links. The Omani ports have been able to manage the operations
very well since the outbreak of the covid-19 crisis.
Asyad Group has proactively coordinated with ports’ administrations in assessing the effects of the Covid-19
pandemic on ports’ preparations and facilitating the trade links so that the flow of cargos continues as normal
as possible, especially for essential products such as food and medical supplies. Omani ports have managed the
operations very well during the first months of the crisis and continue to do so. All ports have been able to
operate to their full potential while taking strict measures to mitigate the risks of operations and the effects of
Covid-19 on the health of workers and those dealing with the ports.
The procedures carried out by the Directorate General of Customs have contributed significant positive impacts
on the ease and flow of export and import movements. It has facilitated the process of documents and
procedures for customs clearance requirements through the Bayan Electronic System and online transactions.
It has also introduced prior and remote customs clearance with excellent flexibility to assist the flow of trade.

2. Oman’s Economy Performance During Covid-19 with focus on Ports MAHMOOD SAKIH ALBAUSHI
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All seaports have been running full capacity while taking strict safety measurements to mitigate the operations'
risks during these tough health crisis times. The ports have been able to maintain an uninterrupted flow of
goods and commodities. Moreover, and in spite of the difficult times, the ports have been able to develop new
direct shipping line routes. According to Asyad, the Omani ports, despite these challenging times, were
successful in developing 200 direct routes connecting 86 ports in 40 countries. Notwithstanding some reduction
in the volumes, which is very normal during such crisis times, the overall performance is considered
commendable. However, the Asyad and ports companies need to evaluate and analyze the reductions if they
are temporary and related to the crisis or are long term and structural.
Figure 1: Alphaliner: Top Operators of world containers in term of TEUs, 2020
Asyad Group Oman has entered the containership business through its subsidiary Oman Shipping Company
under the brand “Oman Container Line (OCL).” With chartered 17,300 TEUs, it has achieved the rank 50 in the
top 100 container companies published by Alphaliner in September 2020. With this massive capacity, OCL
provides excellent capacity to businesses and traders, connecting Oman with the world.

3. Oman’s Economy Performance During Covid-19 with focus on Ports MAHMOOD SAKIH ALBAUSHI
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3. Impact of Covid-19 on the GDP and Workforce Mix
The impact of Coronavirus has been significant on all economic aspects. Oman is having its share of the impact.
The workforce market, which comprises of expatriates as the majority, has started to see the impact of economic
slowdown due to the lockdowns.
Figure 2: Oman Private Sector’s Workforce compared with GDP trends
Figure 2 analyzes the workforce (Omani-Expatriates) trend compared to the GDP trend over the last 15 years.
The trends show a strong correlation between the workforce and GDP. It shows the growth of the economy has
propelled the growth of the expatriate workforce while the Omani workforce remained almost constant (very
trivial growth compared to the annual numbers entering the job market) over the last 15 years. The yearly
average increase of Omanis in the private sector has been 11,494, compared to 77,704 for expatriates. With the
high numbers of job seekers augmented by new annual job seekers entering the labor market, the officials
seriously need to evaluate the causes and find realistic solutions. The natural growth trend should have been
the same for Omanis and expatriates. Another crucial point to study is the drop in the expatriate workforce over
the last four years, since 2017.
Figure 3: Oman Private Sector’s Workforce compared with GDP sub-sectors trends
-
5,000,000
10,000,000
15,000,000
20,000,000
25,000,000
30,000,000
35,000,000
(100,000)
100,000
300,000
500,000
700,000
900,000
1,100,000
1,300,000
1,500,000
1,700,000
1,900,000
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020e
Oman Private Sector Workforce and GDP (Rial Omani)
Omani Expatriate GDP
0
200,000
400,000
600,000
800,000
1,000,000
1,200,000
1,400,000
1,600,000
1,800,000
2,000,000
0
2000
4000
6000
8000
10000
12000
14000
16000
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020e
GDP sub-sectors and Private Sector Workforce mix
Omani-Private Sector Expatriate-Private Sector Crude Petroleum Natural Gas
Agriculture & Fishing Industry Activities Services Activities

4. Oman’s Economy Performance During Covid-19 with focus on Ports MAHMOOD SAKIH ALBAUSHI
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Figure 3 above analyzes the GDP sub-sectors trends compared with the workforce mix. The numbers show that
GDP grew mainly because of the crude petroleum (which was caused by high oil prices, not the production),
services activities, and industrial activities. Despite the significant drop in oil prices since the end of 2014, the
overall GDP continued to grow, supported by the Services Activities and Industrial Activities. With these two
sectors as prime drivers for GDP increase, the workforce had seen similar growth but in the expatriates' category,
while Omanis experienced a slight increase. It means the economy was able to create jobs. The government
needs to analyze the actual reasons why jobs were not suitable for Omanis or why Omanis were not suitable for
the jobs, or was it because of the laws and regulations that are governing the labor market.
Figure 4: Oman’s GDP Main Sectors’ Trends and Covid’s Effect
Charts in figure 4 show the trends of the main Oman’s GDP sectors over the past years. The Crude Oil has been
highly volatile. It had reached its peak in 2010 to 2014 when it started to drop drastically. It has completely
disrupted all development plans. The Natural Gas has come at the right time to compensate for the oil drop. It
has had consistent growth, though it has started to drop since 2018. The Services and Industrial Activities charts
show a correlation with the oil and gas contribution to the overall GDP. On the other side, the Agricultural &
Fisheries Activities show continuous growth despite the drop in other sectors. It indicates that some activities
do not necessarily get linked with the changes in the major sectors in the GDP. The agriculture & Fisheries sector
needs to have more attention from the development planners so it can add more value to the overall economic
growth.
-
2,000
4,000
6,000
8,000
10,000
12,000
14,000
16,000
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020e
Crude Petroleum
-
500
1,000
1,500
2,000
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020e
Natural Gas
-
2,000
4,000
6,000
8,000
10,000
12,000
14,000
16,000
Services Activities
-
1,000
2,000
3,000
4,000
5,000
6,000
7,000
Industry Activities
-
100
200
300
400
500
600
700
800
900
Agriculture & Fishing

5. Oman’s Economy Performance During Covid-19 with focus on Ports MAHMOOD SAKIH ALBAUSHI
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Figure 5: Oman Population mix: Oman and Expatriates
The chart in figure 5 shows the changes in the Oman’s population mix. The changes usually happen to the
expatriates. It is clear from the chart that the regular changes typically occur for the expatriate population in
the summer months and end/beginning of the years with minor change during March. All mostly are the results
of holidays and workforce transfers from one organization to another as they usually need to travel to change
the company (the general trend in the last years is a decline in expatriates population). As shown in the chart,
the 2020 year has been entirely different. The impact of Covid-19 is palpable. The reduction of the expatriates
continues since February 2020 with over a 1.6% compound decrease-rate. Since it is mainly due to Covid-19 and
lockdowns, we are yet to see if the curve will go upward if the new Normal starts to allow the businesses to
operate, and the economy begins the growth cycle.
Figure 6: Oman Private Sector’s Workforce Types Trends in 2020
-4.00%
-3.00%
-2.00%
-1.00%
0.00%
1.00%
2.00%
3.00%
Oman Population mix - Omani/Expats Percentage Change
Omani Expatriates
0
200,000
400,000
600,000
800,000
1,000,000
1,200,000
1,400,000
1,600,000
1,800,000
Jan Feb Mar Apr May Jun Jul Aug Sep Oct
Expatriates Workforce (2020)
Expatriates-Private Expatriates-Family Expatriates-Public

6. Oman’s Economy Performance During Covid-19 with focus on Ports MAHMOOD SAKIH ALBAUSHI
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The chart in figure 6 shows different types of expatriates based on job category and sector. All these types have
been affected and have started to decrease since February 2020 considerably. The main cause has been the
Coronavirus as it disrupted almost all business sectors and led some businesses to partially and fully close during
these months. This has forced enterprises to control costs and reduce the workforce needed for operations.
Figure 7: Oman Private & Public Sectors’ Workforce Mix Trends and Change
From January to October 2020, the number of Omanis in the Private Sector reduced by 6,017, about 2.3%. While
the expatriates in the Public Sector decreased by over 20%; 10,763 and in Family Sector decreased by over 11%;
32,922. The effect of Coronavirus has been significant also on expatriates in the private sector. The decrease in
the private sector has been around 14.7%; 195,865.
Figure 8: Oman Private Sector’s Workforce Mix Trends
The workforce in the private sector has had exceptional growth over the past years (see charts in figure 8).
However, growth has been more remarkable, primarily in the Expatriates workforce. Even with these growth
trends, the overall numbers in the private sector has been decreasing since 2017. The labor force is critical for
developing the overall economy. The decreasing number of expatriates needs to be analyzed and studied in
terms of its correlation with economic development growth.
(200,000)
(150,000)
(100,000)
(50,000)
-
Oman Private & Public Sector Workforce
Jan-Oct 2020 Change
-
500,000
1,000,000
1,500,000
2,000,000
2,500,000
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020e
Private Sector Workforce Mix
Omani-Private Sector Expatriate-Private Sector
-
200,000
400,000
600,000
800,000
1,000,000
1,200,000
1,400,000
1,600,000
1,800,000
2,000,000
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020e
Private Sector Workforce Mix
Omani-Private Sector Expatriate-Private Sector

7. Oman’s Economy Performance During Covid-19 with focus on Ports MAHMOOD SAKIH ALBAUSHI
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4. General Performance of Exports and Imports
Balance of Trade is one of the primary indicators that help gauge the quality and strength of countries’ economic
health. When exports value is more than imports value, it is viewed that the country’s economy enjoys a positive
balance of trade. While higher imports’ value compared to the exports’ value is considered as a trade deficit.
Oman enjoys a positive balance of trade primarily due to the sale of crude oil and gas. Therefore, we need to
analyze the balance trade in terms of other than the contribution of oil and gas in the trade. This will give us a
better understanding of the economy and productivity. Below charts in figure 9 show the trends in Exports (non-
oil), Re-Exports, and Imports. With the drop in the oil prices since 2014, the exports, imports, and re-exports all
have been negatively affected and expected to further drop, as shown in the charts in figure 9. All types of trade
have decreased since 2017. None-Oil exports, imports, and ex-exports by 11.5%, 10.9%, and 46% respectively.
Figure 9: Oman’s Non-Oil Exports, Imports, and Re-Exports
23%
21%
26%
19%
23%
20%
19%
16% 16%
0%
5%
10%
15%
20%
25%
30%
-
2,000
4,000
6,000
8,000
10,000
12,000
14,000
16,000
2012 2013 2014 2015 2016 2017 2018 2019 2020e
Oman Non-Oil Exports, Imports & Re-Exports
Re-Export % of Imports Non-Oil Export Import Re-Export Net Import
0
100
200
300
400
500
600
700
800
Non-Oil
Export
Import Re-Export Net Import
Exports(Non-Oil), Imports, Re-Exports 2020
Jan Feb Mar Apr May Jun
24%
26%
19%
26%
12%
15%
0%
5%
10%
15%
20%
25%
30%
0
200
400
600
800
Jan Feb Mar Apr May Jun
Exports(Non-Oil), Imports, Re-Exports
(R.O. Million) 2020
Re-Export % of Imports Non-Oil Export
Import Re-Export
Net Import

8. Oman’s Economy Performance During Covid-19 with focus on Ports MAHMOOD SAKIH ALBAUSHI
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Below charts in figure 10 show trends of imports by point of entry during the first half of 2020 in terms of value
and tonnage. The trends show the effect of Coronavirus and Ramadhan season when traders piled the inventory
during April. The volumes started to regain from May 2020.
Figure 10: Oman’s Imports by point of entry in terms of value and tonnage in 1st half of 2020
The sea trade has shown exceptional performance to compensate for the air and land trade volumes. The air
cargo movement has been the most hit by Covid-19 as most countries imposed complete lockdown and
restriction on air travel, except for emergency and pharmaceutical products. The air cargo dropped by over
38.4% in terms of freight ton and around 41.2% in value Omani Rial. The land border had the same restriction
on the transport of the cargo across borders. It dropped by 25.7% in terms so freight ton and by around 20.3%
in terms of value in Omani Rial. The trade through seaports had exceptional growth in terms of volumes but
dropped in terms of value in Omani Rial. It had increased by over 35.7% in volume and decrease by around 3.7%
in value.
Jan Feb Mar Apr May Jun
Air (RO million) 107 91 72 62 50 92
Land (RO million) 219 242 234 146 130 174
Sea (RO million) 341 308 385 283 325 328
-
100
200
300
400
500
600
700
800
Imports (Value R.O. million) by Point of Entry 2020
Jan Feb Mar Apr May Jun
Air (000 Tons) 5 5 5 2 3 3
Land (000 Tons) 660 699 548 535 393 490
Sea (000 Tons) 1,326 1,090 2,321 668 2,107 1,800
-
500
1,000
1,500
2,000
2,500
3,000
3,500
Imports (000 Tons) by Point of Entry 2020

9. Oman’s Economy Performance During Covid-19 with focus on Ports MAHMOOD SAKIH ALBAUSHI
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5. Sohar Port Performance
Sohar Port is considered the main industrial and commercial port in Oman. About 60% of all cargo of the country
moves through it. The Sohar industrial port's overall area is managed by Sohar Industrial Port Company, a 50:50
joint venture company between the Government of Oman and the Port of Rotterdam through the landlord
concept. The Sohar Port is considered one of the major deep-sea ports in the region. It is strategically located
on the Gulf of Oman and easily reachable to major economies in the region such as GCC, the Indian subcontinent,
and eastern Africa. It is also on the main maritime routes between the East and the West, as well as Africa.
The port was developed to be Oman’s main industrial port in addition to handle all commercial cargo and to
replace the Sultan Qaboos Port in Muscat.
The port cargos’ terminals are managed and operated by three companies. The container terminal is managed
and operated by Oman International Container Terminal (managed by Hutchison Ports). The dry bulk and break-
bulk terminals are managed by C. Steinweg Oman Company. The liquid terminal is managed and operated by
Oiltanking Terminal & Company.
Figure 11: The overall view of Sohar Industrial Port

10. Oman’s Economy Performance During Covid-19 with focus on Ports MAHMOOD SAKIH ALBAUSHI
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Sohar Port is the main industrial and commercial port for Oman. It handles over 60% of Oman’s imports, over
40% of exports, and over 80% of re-exports volumes.
Figure 12: Overall imports and exports through Sohar Port in 2020
The Sohar Port has announced that the results of Q2 of 2020 have experienced an increase of 112% in the volume
of goods transported via the port, a 16% increase in the Ship-to-Ship (STS) operations, and an increase of 4% in
the anchorage calls.
Figure 13: Sohar Port – Vessel Calls
Since the shift of Oman’s commercial port from Sultan Qaboos Port to Sohar Port in 2014, Sohar Port has grown
faster. The number of vessels handled by Sohar Port continues to grow since 2015. Though the container
volumes are expected to decrease, the overall volumes handled by other terminals at Sohar Port are expected
to grow, increasing the number of calls by vessels.
60%
40%
80%
Imports Exports Re-Exports
Oman's Imports, Exports, & Re-Exports (2020)
Sohar Port Others
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
30.0%
35.0%
40.0%
45.0%
50.0%
0
100
200
300
400
500
600
700
800
2012 2013 2014 2015 2016 2017 2018 2019 2020e
Sohar Port - Vessels Calls
Vessels Change %

11. Oman’s Economy Performance During Covid-19 with focus on Ports MAHMOOD SAKIH ALBAUSHI
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5.1 Container Terminal at Sohar Port
The container terminal company, Oman International Container Terminal Company, was established in 2005. It
is a subsidy of Hutchison Ports. It is dedicated to handling container cargo. The Twenty-foot Equivalent
Containers (TEUs) handled by the Sohar Port are shown in the below charts.
The overall TEUs handled by the container terminal has been decreasing since 2018. Sohar Port experienced
exceptional growth starting the 2nd
half of 2014 as a result of the closure of commercial operations at Sultan
Qaboos Port in Muscat on 31st
August 2014. The growth continued till 2017. Since then, the volumes have
started to decline. The 3rd
Quarter of 2020 experienced a small increase; however, the total number of TEUs in
2020 is expected to be lower by 1% compared to the year 2019 total.
Figure 14: Sohar Port annual TEUs handled, 2020 Total is estimated based on the first three quarters’ figures
Figure 14 shows quarterly volumes of TEUs handled by Sohar Port. The volumes of the 1st
Quarter of 2020 and
the 1st
quarter of 2019 are almost the same. While the 2nd
quarter of 2020 was down by 7% compared to the 2nd
quarter of 2019. The 3rd
quarter of 2020 shows about 1.4% more than the 3rd
quarter of 2019 and over 7%
compared to the 2nd
quarter of 2020. Overall, the three-quarters of 2020 is down 2% compared to 2019. The
year-end volume is yet to be achieved as the businesses started to open, while many face immense cashflow
pressures due to the low and some cases that suffer almost no income.
Figure 15: Sohar Port – TEUs / Vessel Calls
-
50,000
100,000
150,000
200,000
250,000
300,000
201220132014201520162017201820192020
Sohar Port TEUs
Q1 Q2 Q3 Q4
2012 2013 2014 2015 2016 2017 2018 2019
2020
e
Total 198,8 209,8 330,6 536,3 618,8 838,7 825,6 795,4 788,5
Change % 5.5% 57.6% 62.2% 15.4% 35.5% -1.6% -3.7% -0.9%
-10%
0%
10%
20%
30%
40%
50%
60%
70%
-
100,000
200,000
300,000
400,000
500,000
600,000
700,000
800,000
900,000
Sohar Port TEUs Volumes & Change
-
100,000
200,000
300,000
400,000
500,000
600,000
700,000
800,000
900,000
-
200
400
600
800
1,000
1,200
1,400
1,600
2012 2013 2014 2015 2016 2017 2018 2019 2020e
Sohar Port - TEUs and Vessels
Vessels TEUs/Vessel TEUs Linear (Vessels)

12. Oman’s Economy Performance During Covid-19 with focus on Ports MAHMOOD SAKIH ALBAUSHI
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Figure 15 shows the vessel calls to Sohar Port and TEUs. The number of vessel calls has been growing since 2014.
However, the number of TEUs carried by vessels for the port has been declining since 2017. The average number
of TEUs per vessel call for the Sohar Port for the years 2018 and 2019 were 1,409 TEUs and 1,281 TEUs,
respectively and expected to be lower in 2020, reaching 1,157 TEUs.
Charts in figure 16 show the percentage shares of 40ft containers and 20ft containers handled by the container
terminal. The below chart shows the percentage of each container type. It looks that over the years, the share
of 40ft containers is increasing. This may cause a shortage of 20ft containers, which are mostly used for exports
from Oman. The percentage of 40ft containers has been growing since 2016, reaching 57% in 2020.
Figure 16: Volumes & Shares of 40ft and 20ft containers at Sohar Port
The container terminal has been handling Freight Tons (FRTs) of containers, as shown in the charts in figure 17.
Figure 17: FRTs handled at Sohar Port
The average FRT per container has always been at an average of 10FRT per container over the past years. The
total of the FRTs has been declining for the last few years and getting more pressure now due to the Coronavirus.
Therefore, the decline most probably continues in the fourth quarter of 2020 as the Covid-19 crisis continues to
impact the business and trade.
2012 2013 2014 2015 2016 2017 2018 2019 2020e
20ft 56% 54% 57% 51% 49% 47% 50% 44% 43%
40ft 44% 46% 43% 49% 51% 53% 50% 56% 57%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Sohar Port - Containers % of 40ft and 20ft
-
50,000
100,000
150,000
200,000
250,000
300,000
350,000
2012 2013 2014 2015 2016 2017 2018 2019 2020e
Sohar Port - Containers 40ft and 20ft
40ft 20ft
-
500,000
1,000,000
1,500,000
2,000,000
2,500,000
3,000,000
2012 2013 2014 2015 2016 2017 2018 2019 2020
Sohar Ports FRTs of Containers
Q1 Q2 Q3 Q4
-10%
0%
10%
20%
30%
40%
50%
60%
70%
-
2,000,000
4,000,000
6,000,000
8,000,000
10,000,000
Sohar Ports FRTs of Containers
FRT Cont Change%

13. Oman’s Economy Performance During Covid-19 with focus on Ports MAHMOOD SAKIH ALBAUSHI
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5.2 Break-bulk and Dry-Bulk Terminal at Sohar Port
The break-bulk and dry-bulk terminal is managed and operated by C. Steinweg Oman company. The company
was established in early 2004. The dry bulk mainly includes grain, minerals, and aggregate. The break-bulk
includes timber and steel, in addition to project cargo. Steinweg also handles RoRo. The iron ore is handled by
Vale Company through a dedicated jetty.
Figure 18: Photos of Sohar Port General Cargo Terminal and Vale Jetty
Dry Bulk at Sohar Port:
The quarterly dry bulk volumes handled at Sohar Port are shown in the charts in figure 19.
Figure 19: Dry Bulk volumes handled by C. Steinweg Terminal at Sohar Port
During the first three quarters of 2020, the Dry Bulk Terminal handled almost the same in 2019 (with a small
drop of 1.3% only). The Dry Bulk Terminal is expected to handle over 35 million tons in 2020 compared to over
36 million tons. It is forecasted that about a 2% decrease in 2020 after a continuous growth of CAGR 16.21%
since 2016.
-
2,000,000
4,000,000
6,000,000
8,000,000
10,000,000
12,000,000
2012 2013 2014 2015 2016 2017 2018 2019 2020
Sohar Port Dry Bulk (MT)
Q1 Q2 Q3 Q4
-15%
-10%
-5%
0%
5%
10%
15%
20%
25%
30%
-
5,000,000
10,000,000
15,000,000
20,000,000
25,000,000
30,000,000
35,000,000
40,000,000
2012 2013 2014 2015 2016 2017 2018 2019 2020e
Sohar Port - Dry Bulk (MT)
Tons Change%

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Break Bulk at Sohar Port:
Figure 20: Break-Bulk volumes handled by C. Steinweg Terminal at Sohar Port
The breakbulk cargo volumes are shown in the charts in figure 20. Based on the volumes and trend in the first
three quarters of 2020 and despite the Covid-19 impacts, the break-bulk volumes are expected to grow in 2020
by 21%. However, as the effects on businesses are yet to get revealed, growth in the last quarter is a challenging
goal. The previous years 2017, 2018, and 2019 all had continuous declining figures, a drop of 40% from 2016.
The performance of the breakbulk trade needs to have a more detailed analysis of the future expected volumes
and growth.
5.3 Liquid Terminal
The liquid terminal is managed and operated by the Oiltanking Terminals Company. It has 66 tanks with tanks
capacity of 1,395,278 cbm. The Jetty capacities can handle 120,000 dwt. The products handled include
petroleum products, petrochemical, and gases.
Figure 21: Oiltanking Liquid Terminal at Sohar Port
-
100,000
200,000
300,000
400,000
500,000
600,000
700,000
800,000
2012 2013 2014 2015 2016 2017 2018 2019 2020
Sohar Port Break Bulk (MT)
Q1 Q2 Q3 Q4
-50%
-40%
-30%
-20%
-10%
0%
10%
20%
30%
40%
50%
60%
-
500,000
1,000,000
1,500,000
2,000,000
2,500,000
2012 2013 2014 2015 2016 2017 2018 2019 2020e
Sohar Port Break Bulk (MT)
Tons Change%

15. Oman’s Economy Performance During Covid-19 with focus on Ports MAHMOOD SAKIH ALBAUSHI
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Figure 22: Volumes handled by Liquid Terminal at Sohar Port
The volume in 2019 was lower than in 2018, but it is expected to be a little higher in 2020 despite Covid-19. The
liquid terminal has not experienced any significant growth as the overall range has been around 16 million CBM
since 2012 except for 2016 when it almost hit 19 million CBM.
Figure 23: Sohar Port – Liquid Terminal Volumes/vessels
The liquid vessel calls have been 834 ships since 2012. The volume per vessel has been around 83,419.791 CBM
on average. No growth is expected for this terminal despite the location of Oman’s main oil refinery inside the
Port; Sohar Refinery. The business potentials of the liquid terminal are high and need to be explored by the
government.
-
1,000,000
2,000,000
3,000,000
4,000,000
5,000,000
6,000,000
2012 2013 2014 2015 2016 2017 2018 2019 2020
Sohar Port Liquid Terminal
Q1 Q2 Q3 Q4
-20%
-15%
-10%
-5%
0%
5%
10%
15%
20%
-
2,000,000
4,000,000
6,000,000
8,000,000
10,000,000
12,000,000
14,000,000
16,000,000
18,000,000
20,000,000
2012 2013 2014 2015 2016 2017 2018 2019 2020e
Sohar Port - Liquid Terminal volumes
CBM Change%
-
5,000
10,000
15,000
20,000
25,000
-
2,000,000
4,000,000
6,000,000
8,000,000
10,000,000
12,000,000
14,000,000
16,000,000
18,000,000
20,000,000
2012 2013 2014 2015 2016 2017 2018 2019 2020e
Sohar Port - Liquid Terminal volumes/vessels
CBM Ships CBM per Ship

16. Oman’s Economy Performance During Covid-19 with focus on Ports MAHMOOD SAKIH ALBAUSHI
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6. Salalah Port
Salalah Port is located far south of Oman on the Indian Ocean. It has developed itself to be one of the major
deep-sea ports and among the world's top efficient ports in handling the containers’ moves. The port is managed
by Port of Salalah Company, which is a public company. All terminals at the port are managed and operated by
APM Terminals with a 30% stake in the company. The port has all types of cargo handling berths. The main one
is the container terminal. Other terminals include general cargo terminal and liquid terminal. The port
commenced operations in 1998. It is considered the main mega port in Oman and one of the biggest in the
region to handle transshipment cargo.
Figure 24: Salalah Port (Google map), managed by APM Terminals
6.1 Container Terminal - Salalah Port:
The container terminal is the heart of the Salalah port. The transshipment container operation is the mainstay
of the port business. The port has experienced continuous growth with double-digit growth year-on-year during
2003-2010. The main success factors, according to the Port of Salalah, are location advantages, congestion-free
deep-sea berths, competitive service level, and consistently high productivity.
Figure 25: Container Terminal at Salalah Port

17. Oman’s Economy Performance During Covid-19 with focus on Ports MAHMOOD SAKIH ALBAUSHI
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The container terminal has handled the following TEUs volumes since it commenced operations in 1998 (see
figure 26). Most of the handling has been for transshipment containers.
Figure 26: Containers TEUs handled at Salalah Port
Salalah Port has enjoyed steady growth for the first ten years from its commencement of operations in 1998.
The fluctuation started in 2009 and continues to date. The year 2018 had a significant drop of 14%, while 2019
had a big increase of 18%. Despite the Covid-19, the year 2020 is expected to have a growth of 4% due to the
expected transshipment trade and high volume handled in the 1st
quarter of 2020. The 4th
quarter is expected
to be around 3% lower than 3rd
quarter figures. Even the 3% growth estimate could be challenging due to the
Coronavirus effects on businesses and consumers.
The quarterly analysis of container volumes (see figure 27) shows the first quarter handled about 28% more than
the previous year, while the second-quarter handled almost the same (but last year had over 12% growth). The
third quarter declined by around 3%. Though the first quarter of 2020 had exceptional growth compared with
the previous year, the second and third quarters had declining figures, which expected to continue.
Figure 27: Quarterly Containers TEUs handled at Salalah Port
-20%
-10%
0%
10%
20%
30%
40%
50%
60%
70%
-
500,000
1,000,000
1,500,000
2,000,000
2,500,000
3,000,000
3,500,000
4,000,000
4,500,000
5,000,000
19992000 2001 2002 2003 2004 20052006 20072008 2009 2010 20112012 20132014 2015 20162017 2018 20192020
Salalah Port - TUEs
TEUs Change %
-
200,000
400,000
600,000
800,000
1,000,000
1,200,000
1,400,000
2016 2017 2018 2019 2020
Salalah Port - Containers per Quarter
Q1 Q2 Q3 Q4
-20%
-10%
0%
10%
20%
30%
40%
-
1,000,000
2,000,000
3,000,000
4,000,000
5,000,000
2016 2017 2018 2019 2020e
Salalah Port - TUEs

18. Oman’s Economy Performance During Covid-19 with focus on Ports MAHMOOD SAKIH ALBAUSHI
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6.2 General Cargo Terminal – Salalah Port
The general cargo terminal handles a wide range of vessel types and various types of products; dry bulk and
break-bulk cargo. The main products handled by this terminal include limestone, cement, livestock, project
cargo, and other dry bulk commodities.
Figure 28: General Cargo Terminal at Salalah Port
The general cargo terminal has had sturdy growth volumes over the years since the inception of the operations
in 1998. The below chart shows the growth success story in the last few years. However, the general cargo
volumes are expected to face significant challenges in 2020 due to the general impact of Coronavirus.
Figure 29: General Cargo Volumes handled at Salalah Port
The overall operations are divided into two categories; one for dry bulk and general break-bulk cargo, the other
is for bagged cargo. The general dry-bulk and break-bulk cargos have been rising, but the Covid-19 seems to
have negative impacts on the expected volumes in 2020 despite the increase in the third quarter of 2020 by
25%.
-
500,000
1,000,000
1,500,000
2,000,000
2,500,000
3,000,000
3,500,000
4,000,000
4,500,000
2016 2017 2018 2019 2020
Salalah Port - Dry Bulk and Break Bulk Cargo
Q1 Q2 Q3 Q4
-20%
-15%
-10%
-5%
0%
5%
10%
15%
20%
25%
-
2,000,000
4,000,000
6,000,000
8,000,000
10,000,000
12,000,000
14,000,000
2016 2017 2018 2019 2020e
Salalah Port - Dry Bulk and Break Bulk Cargo
Salalah Port - Dry Bulk and Break Bulk Cargo Change %

19. Oman’s Economy Performance During Covid-19 with focus on Ports MAHMOOD SAKIH ALBAUSHI
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Figure 30: General Cargo Volumes handled at Salalah Port
The bagged cargo at Salalah Port has also enjoyed significant growth over the years, with an exceptional big drop
in 2017 by 47%. The overall bagged cargo to be handled in 2020 is expected to grow by 15%.
6.3 Liquid Terminal – Salalah Port
The liquid Terminal at
Salalah Port is also operated
by APM Terminals. It is a
deep-sea liquid terminal.
This has helped to improve
the overall port capacity and
performance.
Figure 31: General Cargo Volumes handled at Salalah Port
The overall performance of the liquid terminal has been very volatile. Initially, it started with a growth trend but
started to drop from the last year 2019. With new connectivity being constructed by OQ of the new pipelines
directly with the port will definitely increase the volumes and hence a growth is envisaged in the coming years.
-
50,000
100,000
150,000
200,000
250,000
300,000
2016 2017 2018 2019 2020
Salalah Port - Bagged Cargo
Q1 Q2 Q3 Q4
-60%
-40%
-20%
0%
20%
40%
60%
80%
-
200,000
400,000
600,000
800,000
1,000,000
2016 2017 2018 2019 2020e
Salalah Port - Bagged Cargo
Bagged Cargo Change %
-
100,000
200,000
300,000
400,000
500,000
600,000
700,000
800,000
900,000
2016 2017 2018 2019 2020
Salalah Port - Liquid Terminal
Q1 Q2 Q3 Q4
-6%
-4%
-2%
0%
2%
4%
6%
8%
2,000,000
2,050,000
2,100,000
2,150,000
2,200,000
2,250,000
2,300,000
2,350,000
2,400,000
2016 2017 2018 2019 2020e
Salalah Port - Liquid Terminal
Liquid Change %

20. Oman’s Economy Performance During Covid-19 with focus on Ports MAHMOOD SAKIH ALBAUSHI
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7. The future
Due to the coronavirus pandemic, the pressure on both demand and freight rates continue. So, exceptional
uncertainty still is the name of the game for the coming months and possibly coming years. The volatility of
demand and supply continues with no clear vaccine for Coronavirus.
The last quarter of 2020 could be going in any direction and may not have any links to the first three quarters or
the previous years' trends. So, ports need to properly manage the resources in the short-term and plan
investments for the long-term very carefully so they don’t incur additional expenses while not missing new
opportunities as the demand and supply may change over the coming months.
According to Drewry and UNCTAD reports, the container volumes would face a contraction of 8.1% in 2020,
mainly because of the Coronavirus, while the year 2021 expects a growth of 13%.
Figure 32: Drewry and UNCTAD Reports 2020 on World TEUs volumes current and future estimates
-25
25
75
125
175
225
TEUs handled by World ports (2020 & 2021 estimates)
802
737
833
680
700
720
740
760
780
800
820
840
860
2019 2020 2021
TEUs (Million) Forecast
8.1%
Decrease
13.0%
Increase

21. Oman’s Economy Performance During Covid-19 with focus on Ports MAHMOOD SAKIH ALBAUSHI
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Omani ports are well established as deep-sea ports and strategically located on the Indian Ocean. Sohar Port is
strategically located outside the Strait of Hormuz, connecting the Gulf to the region and the world. It is the main
industrial and commercial port of Oman. The port needs to be more proactive to attract more international
direct routes and larger mother vessels. Sohar Ports is also well connected through its hinterland to GCC
countries and beyond.
Salalah Port is the largest port in Oman, with a capacity of 5 million TEUs. The majority of business in Salalah
Port compromises of transshipment containers. The port needs to be more competitive to attract more
transshipment lines and support the local exports and imports with competitive rates and services. Salalah Port
is also well connected through a bonded-land-road lane to the huge market in Yemen through Mazuanah Dry
Port.
Duqm Port is the latest deep-sea port to join Sohar and Salalah ports. The port is operational while it needs to
complete its full infrastructure and equipment that are required in order to operate with full capacity. The port
is part of the mega economic city, Special Economic Zone at Duqm. The zone houses mega projects, such as the
Duqm refinery and crude oil storage facilities.
The ports need to study the future of the mother vessels. In recent years, the capacity of vessels and size have
grown massively. The vessel capacity jumped from 15,000 TEUs to close to 24,000 TEUs in just few years. HMM
has the biggest Triple E vessels (also called MegaMax) with capacity of 24,000 TEUs. The Triple E (EEE) stands for
Economies of scale, Energy efficiency, and Environmentally friendly. The average size of a Triple-E Class ship is
about 400 meters in length, 60 to 73 meters in width to accommodate over 25 container rows and over 54
meters in height. The ports need to plan how to handle such sizes that need new cranes that reach further and
higher. Other areas of concern are new technologies and faster speed in operations to achieve a shorter
turnaround time for the ships.
Figure 33: HMM’s Triple E vessel and Salalah Port
It is a good time for Oman to take the opportunities that arise from the challenges and attract more new
investments and maritime routes to its world-class ports that enjoy exceptional and excellent free zones and
economic zones attached to them. The Omani ports need to manage capacity and mitigate the expenses while
marketing the services and incentives to current and potential clients. Asyad Group and the newly established
government agency, Public Authority for Special Economic Zones and Free Zones, have a great role to play in
developing and facilitating potential opportunities for investors and businesses, and hence enhancing Oman as
a great and attractive logistics hub in the region.

22. Oman’s Economy Performance During Covid-19 with focus on Ports MAHMOOD SAKIH ALBAUSHI
Page 22 of 22
References:
apmterminals.com
alphaliner.com
Asyad.om
Customs.gov.om
drewry.co.uk
google.com/maps/
hmm21.com
hutchisonports.com
Jindalshadeed.com
maersk.com
marafi.om
NCSI.gov.om
oiltanking.com
Oman.Steinweg.com
portofduqm.om
SalalahPort.com
SoharPortAndFreeZone.com
worldbank.org
unctad.org