Salalah Port’s $300 Million Expansion Enhances Global Shipping
The Port of Salalah, operated by APM Terminals, has successfully completed a major $300 million expansion, significantly boosting its annual container handling capacity from 4.5 million to 6.5 million twenty-foot equivalent units (TEUs). This expansion reinforces Salalah’s status as a key maritime hub in the Middle East, strengthening its role in global trade and offering better access to the Indian Subcontinent, East Africa, and major international shipping routes.
Infrastructure Upgrades
The expansion project included extensive infrastructure improvements, ensuring the port can efficiently accommodate ultra-large vessels and handle increasing shipping demands. A major part of the investment was allocated to upgrading all six existing berths and expanding the container yard to allow for smoother cargo handling.
A crucial addition to the port’s infrastructure is the introduction of 10 new ship-to-shore (STS) cranes, which are among the most advanced in the world. These fully electric cranes can handle ultra-large vessels carrying up to 26 containers wide. With a 75-meter outreach—longer than an Airbus A380’s wingspan—and a lifting height of 58 meters above the rail, these cranes enable faster and more efficient loading and unloading of the world’s largest container ships.
To complement the STS cranes, the port has also added 12 hybrid rubber-tyred gantry (RTG) cranes, two reach stackers, six empty container handlers, and 30 new terminal trucks and trailers. These modern machines are designed to improve container movement within the terminal, reducing turnaround times and enhancing overall operational efficiency.
Electrical and Access Enhancements
A key part of the expansion involved upgrading the port’s electrical infrastructure to support the new equipment and prepare for future growth. A high-capacity power substation has been built, along with major reinforcements to the electrical grid, which was originally established in 1998. These improvements ensure a reliable power supply as the port transitions to electrified and eco-friendly equipment, aligning with APM Terminals’ commitment to achieving net-zero emissions by 2040.
In addition, a new access road has been constructed to ease congestion and improve traffic flow for cargo operators and shipping lines. This upgrade will reduce delays, increase efficiency, and streamline operations for businesses using the port.
Operational Excellence
Despite undergoing extensive construction, the Port of Salalah has maintained high operational efficiency. In the 2023 Container Port Performance Index (CPPI), published by the World Bank and S&P Global Market Intelligence, Salalah ranked as the second most efficient container port in the world for the third consecutive year.
With the newly upgraded infrastructure, the port is expected to further improve efficiency by reducing port stay times and increasing the speed at which cargo is handled. This is a crucial factor for global shipping lines, as it allows vessels to reduce waiting times, optimize their schedules, and maintain better service reliability.
The expansion also ensures that the port remains competitive in handling the world’s largest container ships, giving it a strategic advantage in global trade. By offering faster cargo handling and reducing delays, the port is set to attract more shipping companies, further strengthening its role as a leading logistics hub.
Strategic Importance
Located along the major East-West shipping route, the Port of Salalah plays a vital role in global maritime trade. Its strategic location makes it a crucial transshipment hub connecting Asia, Europe, Africa, and the Americas.
The expansion comes at an essential time, as the port prepares to accommodate vessels from the newly established Gemini network, a global shipping alliance between A.P. Moller – Maersk and Hapag-Lloyd. The first Gemini vessel is scheduled to call at Salalah on February 18, 2025. This partnership further highlights Salalah’s importance in global logistics and trade, as the port is expected to handle increased container traffic under this new network.
Additionally, the expansion strengthens Salalah’s role as a key gateway for trade with the Indian Subcontinent and East Africa. By providing efficient access to these growing markets, the port is set to become a preferred choice for global shipping companies looking to optimize their supply chains.
Commitment to Oman’s Economic Vision
The expansion aligns with Oman’s Vision 2040, a national strategy aimed at diversifying the economy and enhancing the country’s logistics sector. The project represents a commitment to strengthening Oman’s position as a global trade hub, attracting international investment, and boosting economic growth.
Government officials have emphasized that the investment in Salalah Port will have long-term economic benefits, including job creation, increased trade opportunities, and improved connectivity for local businesses. With enhanced capacity and modern infrastructure, the port is expected to contribute significantly to Oman’s overall economic development.
Future Outlook
With the completion of the expansion, the Port of Salalah is well-equipped to handle the future demands of global shipping. The increased capacity and state-of-the-art infrastructure position the port as a competitive player in the maritime industry, attracting more shipping lines and boosting trade volumes.
Furthermore, the port is continuously adopting advanced technologies and lean operational practices to enhance efficiency and sustainability. As the global shipping industry moves towards greener operations, Salalah’s transition to electrified equipment and eco-friendly initiatives will ensure that it remains at the forefront of innovation.
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