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APL, Port of Salalah in joint venture

APL, Port of Salalah in joint venture

Widdows

      APL and the Port of Salalah in southern Oman have announced the creation of a 50-50 joint venture to operate a new two-berth container terminal.

      The joint venture will start operations in 2011, after completion of the planned expansion of the container terminal at the Port of Salalah, which is both the facility owner/operator and port authority.

      The facility will have annual capacity of 1.6 million TEUs and be capable of servicing container vessels of more than 10,000 TEUs.

      Ron Widdows chief executive officer of APL’s parent company Neptune Orient Lines, said the deal was “part of our long-term commitment to enhance our service to customers. Salalah’s location on the Southwest Coast of Oman makes it one of the most ideal transshipment hubs connecting the east-west container routes to the fast-growing Middle East and South Asia regions.”

      The Port of Salalah began operations in 1998 and currently has six container berths, with a capacity of 4.5 million TEUs. Port of Salalah has a 30-year concession to operate the port and also acts as the port authority. APM Terminals owns 30 percent of Port of Salalah, with public and private Omani interests owning the balance.