CBR: The Port of Salalah has become one of the largest ports in the region, handling over 50 million TEUs and over 100 million MT of bulk, liquid, and general cargo. What has contributed to its success, Salalah’s, is your strategy to ensure continuous growth?
Keld Christensen: Our success is rooted in several key factors. First and foremost, the Omani government’s visionary leadership and strategic planning have been instrumental. Their commitment to developing Oman as a major regional port and global transshipment hub gave us the necessary support and framework to achieve our milestones.
Our strategic location at the crossroads of major global shipping routes has also played a crucial role in attracting significant cargo traffic. Coupled with our state-of-the-art infrastructure and continuous investments in technology and equipment, we’ve handled large volumes efficiently.
Moreover, our skilled and dedicated workforce has maintained high operational standards. Strong relationships with key stakeholders, including shipping lines, logistics providers, and government authorities, have facilitated smooth operations and growth. Our partnerships with key customers, mutual support for growth, and commitment to fostering local trade have also been pivotal.
Looking ahead, our strategy for continuous growth includes expanding our capacity, enhancing service offerings to meet evolving customer demands and leveraging digital technologies to optimize operations. We also focus on sustainability initiatives to reduce our environmental footprint and improve energy efficiency, aligning with global standards and customer expectations.
CBR: The Port of Salalah is committed to an ambitious target of a 70% reduction in total emissions as an interim milestone for 2020-2030. Can you provide an update on the status of this project and the key factors ensuring its success?
Keld Christensen: We are making significant progress towards our target of reducing total emissions by 70% by 2030. We’ve implemented Several key initiatives, including adopting energy-efficient equipment, transitioning to cleaner fuels, and implementing advanced energy management systems.
Our commitment to continuous improvement and innovation is a critical factor in ensuring the success of this project. We are constantly exploring new technologies and practices to reduce our emissions further. Additionally, we’ve engaged with stakeholders to promote sustainable practices across the supply chain.
CBR: The Port of Salalah is planning a $300 million expansion by the end of the year, which will increase its annual container handling capacity to 6 million TEUs. Moreover, you aim to accommodate the world’s largest port to date. How will this expansion impact your operations and Oman’s economy?
Keld Christensen: This expansion will have a transformative impact on our operations and Oman’s economy. By increasing our annual container handling capacity to 6 million TEUs, we will accommodate larger cargo volumes, positioning us as a key logistics hub in the region.
Additionally, this expansion will enable us to accommodate the world’s largest shipping company, making Salalah a more attractive port of call for major shipping lines. This will result in increased traffic, more efficient logistics solutions, and enhanced connectivity for our customers.
Economically, the expansion will create job opportunities, stimulate local businesses by providing more trade options, and attract foreign investment. It will enhance Oman’s competitiveness in the global logistics market, positioning the country as a pivotal player in international trade.
CBR: What are the competitive advantages of the location of the Port of Salalah, and which kinds of clients/suppliers will benefit from it?
Keld Christensen: The Port of Salalah’s location Salalah’s several competitive advantages. Situated at the crossroads of major shipping routes between Europe, Asia, and Africa, it serves as a vital transshipment hub. This strategic positioning allows us to offer shorter transit times and cost-effective logistics solutions to our clients, enabling them to position their products closer to the market, achieve faster delivery lead times, and enhance their competitiveness.
Clients and suppliers from various industries, particularly manufacturing, retail, and automotive sectors, benefit from our location. The port’s proximity to portaging markets in the Middle East and East Africa provides access to a vast consumer base and new business opportunities. Additionally, our efficient connectivity to inland destinations through road, sea, and air networks enhances overall supply chain efficiency for our customers.
CBR: Based on your 2023 performance, as per the World Bank Group, the Port of Salalah is the world’s second-most efficient container port. What is your overview of 2023, including the challenges you faced and how you maintained the highest efficiency possible?
Keld Christensen: Last year was both a challenging and remarkable year for the Port of Salalah. Our ongoing Container Terminal upgrade works, which involved the closure of berths and restrictions in yard space, were anticipated. However, the unexpected Red Sea crisis disrupted vessel schedules, caused network changes, and increased costs, subsequently affecting our productivity. Additionally, we faced a storm warning in Q4, necessitating the closure of port operations for a couple of days.
Despite these challenges, our proactive approach, robust contingency planning, and strong partnerships with stakeholders enabled us to navigate these difficulties effectively. We invested in advanced technologies and process optimizations, enhancing our productivity and reducing turnaround times.
Our commitment to sustainability and workforce development also played a crucial role in maintaining high efficiency. We implemented various training programs to upskill our employees in problem-solving and continuous improvement skills and adopted new methods for process flows, all of which helped us maintain high-efficiency levels.
Overall, our success in 2023 is a result of our dedicated team, strategic investments, and a customer-centric approach. Being recognized as the second most efficient container port in the world by the World Bank Group for three consecutive years, including 2023, is a testament to our relentless focus on operational excellence and continuous improvement. We will continue to build on these strengths to achieve even more significant milestones in the future.
