MIDDLE-EAST LOWER GULF: PORT DEVELOPMENT
CAPACITY OVERLOAD? There are largescale development plans in the Lower Gulf region. AJ Keyes looks at who is doing what, by when and how, and assesses what the impact will be Based on confirmed expansion plans in several locations, significant additional capacity is being added in the Lower Gulf region. An analysis of plans in Doha, at Port Khalifa, in Jebel Ali and at Sohar indicates an increase in container capacity of up to 18 million TEU per annum by 2030 – if not more. An assessment of plans at specific ports is made in order to help determine if this is capacity overload or simply keeping pace with anticipated demand. EXPANDING IN THE WORLD’S RICHEST COUNTRY By many financial measures, Qatar remains the richest country in the world. The country’s economy is underpinned by the oil and gas trades, but along with many other Mid East economies, there is a desire at government levels to broaden the economic base, with diversification contained in the Qatar National Vision 2030. Part of the future process is the development of Hamad Port. It commenced operations at the end of 2016 and currently covers 28.5km2, with an annual capacity for 1.7 million tonnes of general freight, one million tonnes of grain and capability for 500,000 vehicles per year. The container terminal development is shown in Table 1. Phase 1, currently operational, has a capacity of two million TEU per annum, with known plans (albeit timescales unconfirmed) to increase to 7.5 million TEU per annum. Each phase represents a “container terminal” according to Mwani Qatar and operator, QTerminals. ABU DHABI MOMENTUM STRONGLY SUPPORTED Abu Dhabi’s container traffic is focused at Khalifa Port, where container handling capacity is 2.5 million TEU per annum. However, this is being increased to 8.5 million TEU per annum in the next five years following strategic partnerships with both COSCO and Mediterranean Shipping Co (MSC). CMA CGM is also due to commence calling from 2024. Table 2 provides a summary of Khalifa Port’s ongoing AED 4 billion investment. When completed, the port is expected to offer 15 million TEU annual container capacity, with 2030 the current completion estimate. A new channel, with depth of -18.5m is also planned. JEBEL ALI T4 STILL ON HOLD The port facilities at Jebel Ali have long been the yardstick by which the Mid-East region is measured. In 2021, the terminals handled 13.7 million TEU, making it the largest volume port in the area, although no longer in the world’s top 10. There are three existing terminals, with T1 offering 9.0 million TEU per annum capacity across its 15 berths, T2 adding 6.5 million TEU space per annum and the newer semiautomated T3 option, which opened in 2014, offering annual capacity of 3.8 million TEU through 19 automated gantry units and 50 automated yard rail mounted gantries (RMGs). Collectively, these terminals offer 19.3 million TEU capacity for containers annually and with 2021 volumes handled at 13.7 million TEU, that’s an estimated utilisation of 71 per cent – of which at least half is still transshipment, although this is vulnerable to increased direct calls at other deep-water port options. Consequently, it is no surprise that T4 is still on hold. DP
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Phase 1
Phase 2
Phase 3
Quay Length
1,200 m
1,200m
1,200m
Water Depth
-17m
-17m
-17m
2.0
2.0
3.5
Capacity in million TEU per annum
Note: Ruwais Port also has expansion plans include deepening of the approach channel and port basin to -10m, along with expansion of the yard and quay to serve its local markets. Source: Mwani Qatar, Dataand.com
World has longstanding plans to add a further 3.1 million TEU per annum capacity with this expansion, but it has been on hold since 2017 and there seem to be few compelling reasons why this stance will change.
8 Table 1: Port of Hamad: Container Terminal Characteristics
SUBSTANTIAL SOHAR POTENTIAL In comparison to other regional ports assessed, Sohar Port and Freezone is a small container facility, with annual volumes fluctuating in recent years between 725,500 TEU (2021) and 838,700 TEU (2017). However, in addition to the existing Oman International Container Terminal (OICT) (operated by Hutchison Ports, the port manager, Sohar Industrial Port Company (SIPC), a 50:50 joint venture between the Port of Rotterdam and the Sultanate of Oman, has substantial expansion potential in its masterplan options. Terminal
Key Characteristics
ADT
Quay extension to 2,265m 10 additional Ship-to-Shore quay cranes
South Quay
8 berths, 1.3 million sqm terminal yard, 3km quay wall with 18.5m draft
KPL
15 berths, land plots, 3.1km quay wall with 8-16m draft
Port development capacity
Current – 2.5 million TEU p.a. Within 5 years – 8.5 million TEU p.a. By 2030 – 15.0 million TEU p.a.
Source: AD ports, datanand.com
These include expansion opposite the existing OICT facility, 250ha in two phases for Sohar Port South and substantial, almost unlimited land, to develop Sohar Port East. Current timescales are unconfirmed but a local adviser who wished to remain unnamed stated that pre-qualification of master-planning support commenced in January 2022, so the process is well underway. There are known plans at Duqm in Oman, but it is regarded as a competitor with Salalah due to its more southern geographic location.
8 Table 2: Port Khalifa – Summary Development Characteristics
PUTTING THE SQUEEZE ON DP WORLD With ADP expanding and reaching joint-venture agreements with major shipping lines and Hamad Port also well-underway with its phased expansion, any moves undertaken in Sohar, as expected, will further put the squeeze on DP World, meaning that Jebel Ali’s T4 expansion may remain on hold. DP World currently has the critical mass of volumes, but as ADP is proving, shipping lines are prepared to consider moving away from Dubai, for transshipment and direct calls.
SEPTEMBER 2022 | 29
