Omani Ports’ performance during Covid-19 Mahmood Sakhi Albalushi Member of Oman Economic Association August 2020 1. Introduction: The Covid-19 has enormously disrupted almost all business sectors. Logistics is the arteries of economies and trade. The coronavirus crisis has significantly impacted the logistics sector. On the other hand, the logistics sector has been a vital success support factor to sustain the critical parts of the economies during the current crisis. The primary entry/exit points of countries are managed by land borders, airports, and seaports. The domestic operations are handled by the logistics service providers. With the outbreak of coronavirus, the world started to slow down as governments started to lock down and limit all accessibilities to and from their countries. Oman’s government, as well as the private sector, as in many other countries, have started early to mitigate the risks and find solutions and alternatives to combat the Covid-19 negative impacts. Airports and land borders were severely affected compared to seaports. Seaports played vital roles in keeping the countries connected with the outside world and keeping the imports, as well as the exports, continue to flow. The pharma and food have been the major contributor to the transported volumes. This paper analyzes Oman’s primary seaports performance, Sohar and Salalah, during these unprecedented difficult times caused by the Covid-19 crisis, which is not only a health crisis but also an economic crisis.

1. Omani Ports’ performance during Covid-19
Mahmood Sakhi Albalushi
Member of Oman Economic Association
August 2020
1. Introduction:
The Covid-19 has enormously disrupted almost all business sectors. Logistics is the arteries of economies
and trade. The coronavirus crisis has significantly impacted the logistics sector. On the other hand, the
logistics sector has been a vital success support factor to sustain the critical parts of the economies during
the current crisis.
The primary entry/exit points of countries are managed by land borders, airports, and seaports. The
domestic operations are handled by the logistics service providers. With the outbreak of coronavirus, the
world started to slow down as governments started to lock down and limit all accessibilities to and from
their countries.
Oman’s government, as well as the private sector, as in many other countries, have started early to
mitigate the risks and find solutions and alternatives to combat the Covid-19 negative impacts. Airports
and land borders were severely affected compared to seaports. Seaports played vital roles in keeping the
countries connected with the outside world and keeping the imports, as well as the exports, continue to
flow. The pharma and food have been the major contributor to the transported volumes.
This paper analyzes Oman’s primary seaports performance, Sohar and Salalah, during these
unprecedented difficult times caused by the Covid-19 crisis, which is not only a health crisis but also an
economic crisis.
2. Asyad Group
The Omani ports, with the leadership of the Asyad Group, which oversees the logistics sector and ports,
played a vital role from day one as the coronavirus outbroke. Asyad along the managements of the ports
have been proactively involved in monitoring the Covid-19 crisis and its impacts on ports and trade links.
The Omani ports have been managing the operations very well during the crisis. All ports have been
running full capacity while taking strict measurements to mitigate the risks of operations during these
tough health crisis times. The ports have able to maintain an uninterrupted flow of goods and
commodities and have developed new direct marine shipping lines routes. According to Asyad, the Omani
ports during these challenging times still were able to develop 200 direct routes connecting 86 ports in 40
countries. Despite some reduction in the volumes, which are very common during the crisis times, the
overall performance is considered commendable. However, the Asyad and ports companies need to
evaluate and analyze the reductions if they are temporary and related to the crisis or are long term and
structural.

2. Omani Ports’ performance during Covid-19 MAHMOOD ALBAUSHI
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3. Impact of Covid-19 on the Workforce
The impacts of coronavirus have been significant on all economic aspects. Oman is having its share of the
impact. The workforce market, which compromises of expatriates as the majority, has started to see the
impact of economic slowdown due to the lockdowns.
Figure 1: Oman Private Sector’s Workforce compared with GDP trends
Figure 1 shows the analysis of the workforce (Omani-Expatriates) trend compared to the GDP trend over
the last 15 years. The trends show a strong correlation between the workforce and GDP. It shows the
growth of the economy has been propelled by the growth of expatriates workforce while the Omani
workforce remained constant (almost negligible) over the last 15 years. The annual average increase of
Omanis in the private sector has been 11,791, compared to 93,242 for expatriates. With a high number
of job seekers and additional graduates entering the labor market, the officials seriously need to evaluate
the causes and find realistic solutions. The natural growth trend should have been the same for Omanis
and expatriates.
Figure 2 below analyzes the GDP sub-sectors trends compared with the workforce mix. The numbers show
that GDP grew mainly because of the crude petroleum (which was caused by high oil prices, not the
production), services activities, and industrial activities. Despite the significant drop in oil prices since the
end of 2014, the overall GDP continued to grow, supported by the Services Activities and Industrial
Activities. With these two sectors as prime drivers for GDP increase, the workforce has seen similar
growth but in the expatriates' category, while Omanis experienced a very small increase. It means the
economy was able to create jobs. The government needs to analyze the actual reasons why they were not
suitable for Omanis or why Omanis were not suitable for the jobs.
0
5,000
10,000
15,000
20,000
25,000
30,000
35,000
0
200,000
400,000
600,000
800,000
1,000,000
1,200,000
1,400,000
1,600,000
1,800,000
2,000,000
2004200520062007200820092010201120122013201420152016201720182019
Oman Private Sector Workforce and GDP
Omani Expatriate GDP

3. Omani Ports’ performance during Covid-19 MAHMOOD ALBAUSHI
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Figure 2: Oman Private Sector’s Workforce compared with GDP sub-sectors trends
Figure 3 shows how the impact of Covid-19 has affected the expatriates’ population in the country:
Figure 3: Oman Population mix: Oman and Expatriates
The chart shows that the normal changes usually happen in the summer months and end/beginning of
the years with minor impact during March. All mostly are the result of holidays and workforce transfers
from one organization to another as they usually need to travel to change the company. As shown in the
chart, the 2020 year has been entirely different. The impact of Covid-19 is obvious. The reduction of the
expatriates continues since February 2020. Since it is due to Covid-19 and lockdowns, we are yet to see
if the curve will go upward as the new normal starts to allow the businesses to operate, and the economy
starts the growth cycle.
0
500,000
1,000,000
1,500,000
2,000,000
0
2,000
4,000
6,000
8,000
10,000
12,000
14,000
16,000
2004200520062007200820092010201120122013201420152016201720182019
GDP sub-sectors and Workforce mix
Omani Expatriate Crude Petroleum Natural Gas
Agriculture & Fishing Industry Activities Services Activities
-4.00%
-3.00%
-2.00%
-1.00%
0.00%
1.00%
2.00%
3.00%
Oman Population mix - Omani/Expats Percentage Change
Omani Expatriates

4. Omani Ports’ performance during Covid-19 MAHMOOD ALBAUSHI
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4. Sohar Port Performance
Sohar Port is considered the main industrial and commercial port in Oman. About 60% of all cargo of the
country moves through it. The overall area of the Sohar industrial port is managed by Sohar Industrial
Port Company, a 50:50 joint venture company between the Government of Oman and the Port of
Rotterdam. The Sohar Port is considered one of the major deep-sea ports in the region. It is strategically
located on the Gulf of Oman and easily reachable to major economies in the region such as GCC, the Indian
subcontinent, and eastern Africa. It is also on the main maritime routes between the east and west, as
well as Africa.
The port was developed to be Oman’s main industrial port in addition to handle all commercial cargo and
replace the Sultan Qaboos Port in Muscat.
The port cargo is managed and operated by three companies. The containers terminal is managed and
operated by Oman International Container Terminal (managed by Hutchison Ports). The dry bulk and
break-bulk terminals are managed by C. Steinweg Oman Company. The liquid terminal is managed and
operated by Oiltanking Terminal & Company.
Figure 4: The overall view of Sohar Industrial Port
The Sohar Port has announced that the results of Q2 of 2020 have experienced an increase of 112% in the
volume of goods transported via the Port, 16% increase in the Ship-to-Ship (STS) operations, and an
increase of 4% in the anchorage calls.

5. Omani Ports’ performance during Covid-19 MAHMOOD ALBAUSHI
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4.1 Container Terminal
The container terminal company, Oman International Container Terminal Company, was established in
2005. It is a subsidy of Hutchison Ports. It is dedicated to handling container cargo. The Twenty-foot
Equivalent Containers (TEUs) handled by the port are shown in the below figures.
The overall TEUs handled by the container terminal is decreasing since 2018.
Figure 5: Sohar Port annual TEUs handled, 2020 figure is estimated based on 1st half figures
Sohar Port experienced exceptional growth starting the 2nd
half of 2014 as a result of the closure of Sultan
Qaboos Port in Muscat on 1st
August 2014. The growth continued till 2017. Since then, the volume has
started to decline. The figure for 2020 is an estimate based on the 1st
half of 2020 figures.
Figure 6: Sohar Port Quarterly TEUs handled
2012 2013 2014 2015 2016 2017 2018 2019 2020e
TEUs 198,818 209,818 330,663 536,377 618,846 838,712 825,679 795,471 770,100
Change% 5.53% 57.60% 62.21% 15.38% 35.53% -1.55% -3.66% -3.19%
-10.%
0.%
10.%
20.%
30.%
40.%
50.%
60.%
70.%
-
100,000
200,000
300,000
400,000
500,000
600,000
700,000
800,000
900,000
Sohar Port - TEUs
-
50,000
100,000
150,000
200,000
250,000
300,000
350,000
2012 2013 2014 2015 2016 2017 2018 2019 2020
Sohar Port TEUs
Q1 Q2 Q3 Q4

6. Omani Ports’ performance during Covid-19 MAHMOOD ALBAUSHI
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Figure 5 shows quarterly volumes of TEUs handled by Sohar Port. Comparing the 1st
Quarter of 2020 with
the 1st
quarter of 2019, the volume almost the same. While the 2nd
quarter of 2020 is down 7% compared
with the 2nd
quarter of 2019. Overall 1st
half of 2020 figure is down 4% compared with the figures for
2019. The year-end volume is yet to be achieved as the businesses started to open while many are facing
immense cashflow pressures due to the low and some cases with almost no income.
The percentage shares of 40ft containers and 20ft containers handled by the container terminal are
almost 50:50 as shown in figure 6. The below chart shows the percentage of each container type. It looks
that over the years, the share of 40ft containers is increasing.
Figure 7: Shares of 40ft and 20ft containers at Sohar Port
The container terminal has been handling the Freight Tons (FRTs) as shown in figure 7.
Figure 8: FRTs handled at Sohar Port
2012 2013 2014 2015 2016 2017 2018 2019 2020e
20ft 56% 54% 57% 51% 49% 47% 50% 44% 43%
40ft 44% 46% 43% 49% 51% 53% 50% 56% 57%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Sohar Port - Containers % of 40ft and 20ft
-15.%
-10.%
-5.%
0.%
5.%
10.%
15.%
-
10,000,000
20,000,000
30,000,000
40,000,000
50,000,000
60,000,000
70,000,000
2012 2013 2014 2015 2016 2017 2018 2019 2020e
Sohar Port - FRTs
FRTs Change %

7. Omani Ports’ performance during Covid-19 MAHMOOD ALBAUSHI
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The FRTs are decreasing due to the decrease in the container volumes during the Covid-19. Hence, the
decrease is expected to continue in the second half of 2020 as the Covid-19 crisis continues to impact the
business and trade.
4.2 Break-bulk and Dry-Bulk Terminal
The break-bulk and dry-bulk terminal is managed and operated by C. Steinweg Oman company. The
company was established in early 2004. The iron ore is handled by Vale Company through a dedicated
jetty. The dry bulk mainly includes grain, minerals, and aggregate. The break-bulk includes timber and
steel, in addition to project cargo. Steinweg also handles RoRo.
Figure 9: Sohar Port General Cargo Terminals
The dry bulk volumes handled at Sohar Port are shown in figure 9.
Figure 10: Dry Bulk volumes handled by C. Steinweg Terminal at Sohar Port
-15.00%
-10.00%
-5.00%
0.00%
5.00%
10.00%
15.00%
20.00%
25.00%
30.00%
-
5,000,000
10,000,000
15,000,000
20,000,000
25,000,000
30,000,000
35,000,000
40,000,000
2012 2013 2014 2015 2016 2017 2018 2019 2020e
Sohar Port - Dry Bulk
Tons Change%

8. Omani Ports’ performance during Covid-19 MAHMOOD ALBAUSHI
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The terminal is expected to handle over 33 million tons in 2020 compared to over 36 million tons. It is
estimated that a 9.11% decrease in 2020 after a continuous growth of CAGR 16.21% since 2016.
The breakbulk cargo volumes are shown in figure 10.
Figure 11: Break-Bulk volumes handled by C. Steinweg Terminal at Sohar Port
Based on the volumes in the 1st
half of 2020 and despite the Covid-19 impacts, the volumes of the break-
bulk are expected to grow in 2020 by 23% based on the 1st
half figures. However, as the effects on
business are yet to get revealed, growth is the 2nd
half is a challenging goal.
4.3 Liquid Terminal
The liquid terminal is managed and operated by the Oiltanking Terminals Company. It has 66 tanks with
tanks capacity of 1,395,278 cbm. The Jetty capacities can handle 120,000 dwt. The products handled
include petroleum products, petrochemical, and gases.
Figure 12: Oiltanking Liquid Terminal at Sohar Port
-60.00%
-40.00%
-20.00%
0.00%
20.00%
40.00%
60.00%
-
500,000
1,000,000
1,500,000
2,000,000
2,500,000
2012 2013 2014 2015 2016 2017 2018 2019 2020e
Sohar Port - Break Bulk
Tons Change%

9. Omani Ports’ performance during Covid-19 MAHMOOD ALBAUSHI
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The volumes handled by the liquid terminal are shown below, figure 13.
Figure 13: Volumes handled by Liquid Terminal at Sohar Port
The volume has decreased in 2019 and is expected to remain the same in 2020.
5. Salalah Port
Salalah Port has developed itself to be one of the major deep-sea ports and among the world's top
efficient ports in terms of handling the containers’ moves. The Port is managed by Port of Salalah
Company, which is a public company. The port is managed and operated by APM Terminals with a 30%
stake in the company. The port consists of all types of cargo handling berths. The main one is the
container terminal. Others include general cargo terminal and liquid terminal. The port commenced
operations in 1998. It is considered the main mega port in Oman, and one of the biggest in the regions to
handle transshipment cargo.
Figure 14: Salalah Port (Google map), managed by APM Terminals
-20.00%
-15.00%
-10.00%
-5.00%
0.00%
5.00%
10.00%
15.00%
20.00%
-
5,000,000
10,000,000
15,000,000
20,000,000
2012 2013 2014 2015 2016 2017 2018 2019 2020e
Sohar Port - Liquid Bulk
Tons Change%

10. Omani Ports’ performance during Covid-19 MAHMOOD ALBAUSHI
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5.1 Container Terminal:
The container terminal is the heart of the Salalah port. The transshipment container operation is the
mainstay of the port business. The port has experienced continuous growth with double-digit growth
year-on-year during 2003-2010. The main success factors according to the Port of Salalah are location
advantages, congestion-free deep-sea berths, competitive service level, and consistently high
productivity.
Figure 15: Container Terminal at Salalah Port
The container terminal has handled the following volumes (see figure 15), mostly are transshipment
containers.
Figure 16: Containers TEUs handled at Salalah Port
-20%
-15%
-10%
-5%
0%
5%
10%
15%
20%
25%
30%
35%
-
500,000
1,000,000
1,500,000
2,000,000
2,500,000
3,000,000
3,500,000
4,000,000
4,500,000
5,000,000
2012 2013 2014 2015 2016 2017 2018 2019 2020e
Salalah Port - TEUs
TEUs Change %

11. Omani Ports’ performance during Covid-19 MAHMOOD ALBAUSHI
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The overall growth rate of CAGR is 4%. Despite the Covid-19, the year 2020 is expected to have small
growth due to the expected transshipment trade and based on the linear trend of the first half of 2020.
The growth estimate could be challenged when analyzing the quarterly figures, which show a decrease in
the second quarter of 2020 (see figure 16).
The quarterly analysis of container volumes (see figure 16) shows the first quarter handled about 28%
more than the previous year, while the second-quarter handled almost the same. The overall first half of
2020 handled over 13% compared to the first half of 2019.
Figure 17: Quarterly Containers TEUs handled at Salalah Port
However, if we analyze the quarterly figures, we find that although the second quarter of 2020 has
maintained the same level of the year 2019, but has dropped by 11% compared to the first quarter, while
the second quarter of 2019 experienced an increase of 12.8% compared to quarter one of 2019. It looks
very volatile, and yet to see if the trend continues downward or the port would be able to enhance the
volumes through the transshipment and locally imported/exported goods containers.
5.2 General Cargo Terminal
The general cargo terminal handles a wide range of vessel types and all types of products; dry bulk and
break-bulk cargo. The main products handled by this terminal include limestone, cement, livestock,
project cargo, and other dry bulk commodities.
-
200,000
400,000
600,000
800,000
1,000,000
1,200,000
1,400,000
2016 2017 2018 2019 2020
Salalah Port - Containers TEUs per Quarter
Q1 Q2 Q3 Q4

12. Omani Ports’ performance during Covid-19 MAHMOOD ALBAUSHI
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Figure 18: General Cargo Terminal at Salalah Port
Figure 18 shows that the general cargo terminal has had sturdy growth volumes over the years since the
inception of the operations in 1998. The below chart shows the growth success story. However, the
general cargo volumes are expected to face significant challenges in 2020.
Figure 19: General Cargo Volumes handled at Salalah Port
Quarter one of 2020 has maintained its volume level, but quarter two has shown over a 27% drop in
volume compared to the same period in 2019 and a drop of 36% when compared to quarter one of 2020.
-
500,000
1,000,000
1,500,000
2,000,000
2,500,000
3,000,000
3,500,000
4,000,000
4,500,000
2016 2017 2018 2019 2020
Salalah Port - Dry Bulk and Break Bulkd Cargo
Q1 Q2 Q3 Q4

13. Omani Ports’ performance during Covid-19 MAHMOOD ALBAUSHI
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6. The future
Due to the coronavirus pandemic, the effects on both demand and freight rates continue. So, exceptional
uncertainty still is the name of the game for the coming months and years. The volatility of demand and
supply continues with no clear vaccine for coronavirus.
The second half of 2020 could be going any direction and may not have any links to the first half or
previous years' trends. So, ports need to properly manage the resources in the short term and plan
investments for the long term very carefully so they don’t incur additional expenses while not missing
new opportunities as the demand and supply may change over the coming months.
Omani ports are well established as deep-sea ports and strategically located on the Indian Ocean. Sohar
Port is strategically located outside the Strait of Hormuz, connecting the Gulf to the region and the world.
It is the main industrial and commercial port of Oman. The port needs to be more proactive to route more
lines through Sohar Port. Sohar Ports is well connected through its hinterland to GCC countries and
beyond.
Salalah Port is the largest port in Oman, with a capacity of 5 million TEUs. The majority of business is
transshipment containers. The port needs to be more competitive to attract more transshipment lines
and support the local exports with competitive rates. Salalah Port is also well connected through a bonded
land road-lane to Yemen through Mazuanah Free Zone.
Duqm Port is the latest deep-sea port to join Sohar and Salalah ports. The port is operational while it
needs to complete its full infrastructure and equipment that are required in order to operate with full
capacity. The port is part of the mega economic city, Special Economic Zone at Duqm. The zone house
mega projects, such as the Duqm refinery and crude oil storage facilities.
It is a very good time for Oman to take the challenges and attract more new investments and maritime
routes to its world-class ports that enjoy exceptional and excellent free zones and economic zones
attached to them. The Omani ports need to manage capacity and mitigate the expenses while marketing
the services and incentives to current and potential clients.

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References:
apmterminals.com
Asyad.om
Customs.gov.om
google.com/maps/
hutchisonports.com
Jindalshadeed.com
maersk.com
marafi.om
NCSI.gov.om
oiltanking.com
Oman.Steinweg.com
portofduqm.om
SalalahPort.com
SoharPortAndFreeZone.com
worldbank.org
unctad.org