Sohar Celebrates Strong Performance in 2024: Key Highlights and Future Prospects
Sohar Port and Freezone marked a significant milestone in 2024, celebrating strong growth despite some challenges in overall cargo volumes. The port saw a mixed but promising performance, with several key areas achieving record growth. This achievement was highlighted during their annual business reception event, where the port’s leadership shared exciting figures and future plans.
Record Growth in Container and Ro-Ro Traffic
The container throughput at Sohar Port surged by 15% in 2024, reaching a total of 943,000 TEU (Twenty-foot Equivalent Units), up from 818,000 TEU in the previous year. This growth demonstrates the port’s increasing role as a key player in global trade. The surge in container traffic reflects enhanced logistical efficiencies and a growing demand for shipping services in the region.
Similarly, ro-ro (roll-on/roll-off) traffic grew by 25%, reaching 87,000 units, up from 70,000 units in 2023. This increase reflects a robust demand for vehicles and machinery transport, cementing Sohar’s position as a preferred hub for this important segment of maritime transport.
Breakbulk Cargo: A Star Performer
Among the most impressive developments was the substantial growth in the breakbulk sector. Sohar handled 1.57 million tonnes of breakbulk cargo, marking a remarkable 77% increase from the previous year’s 880,000 tonnes. Breakbulk, which includes goods like machinery, large equipment, and other non-containerized cargo, is a critical sector for Sohar, and this growth highlights the port’s expanding capacity to handle specialized and heavy shipments.
Increased Ship-to-Ship Transfer Activity
Ship-to-ship transfer activities also saw an increase of 19%, reaching 3.3 million tonnes in 2024, compared to 2.76 million tonnes in 2023. This increase reflects Sohar’s growing role in the global oil and gas logistics sector, as ship-to-ship transfers are essential for the smooth flow of bulk liquids and oils.
Challenges in Dry Bulk and Stable Liquid Bulk Shipments
On the downside, the port experienced a 10% decline in dry bulk shipments, totaling 37 million tonnes. Despite this decrease, liquid bulk shipments remained stable at 22.82 million tonnes in 2024. This stability indicates that Sohar’s infrastructure and capabilities in handling liquid cargo, such as chemicals and oil products, continue to meet market needs.
Sohar Freezone Thrives with New Investments
Sohar Freezone, an integral part of the region’s economic landscape, also saw remarkable growth. The Freezone achieved a land occupancy rate of 85%, signaling strong demand from businesses. In 2024, it signed agreements for 130 hectares of land, amounting to US$ 1.8 billion in investments. These investments reflect the Freezone’s attractiveness as a location for manufacturing and logistics operations, further boosting the local economy.
Notable investments include a 1.35 billion USD polysilicone production facility, the largest of its kind in the Middle East. Additionally, a US$ 1.6 billion LNG bunkering project, powered by solar energy, signals Sohar’s commitment to sustainable development. The US$ 600 million iron ore concentration plant also marks a significant development, enhancing Oman’s industrial footprint.
Record-High Investments: A Boost for Sohar’s Future
Sohar’s success is further illustrated by the total new investments in 2024, which reached an impressive US$ 4 billion. These investments are expected to play a pivotal role in transforming Sohar into a global industrial and logistics powerhouse. These major projects align with Oman’s broader goals of economic diversification and sustainability.
Looking Ahead: A Bright Future for Sohar
Looking ahead, the leadership at Sohar Port and Freezone remains optimistic. The 2024 performance underscores the port’s resilience and adaptability in the face of global challenges. With the ongoing expansion of its infrastructure and the increasing demand for its services, Sohar is well-positioned for continued growth in 2025 and beyond.
In particular, the emphasis on sustainable energy projects, like the LNG bunkering facility powered by solar energy, positions Sohar as a forward-thinking hub in an era where environmental responsibility is becoming paramount.
Conclusion
Sohar Port and Freezone’s performance in 2024 highlights their increasing importance in global trade and logistics. While challenges remain, the significant growth in key sectors, such as container traffic, breakbulk, and ship-to-ship transfers, offers a strong foundation for continued success. With strategic investments pouring into the Freezone and new industrial projects taking shape, Sohar’s future looks brighter than ever.
To read more click here Gulf magazine
for more information click here
