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Port Salalah (ex Port Raysut)

Port Salalah (known formerly as Port Raysut) is located in southern Oman some 1000 km down the coast from Muscat, and just 150 km from major East-West shipping lanes. Port Salalah has established itself as a leading container transshipment center on the Indian Ocean Rim since its opening in November 1998. The Omani Navy is well armed, very efficient and has a base in Mina Salalah. They actively patrol the coast. There have been no reports of any criminal activity on the Omani coast.

Port Salalah is the only port between Europe and Singapore that can accommodate the S-class, or world's largest class of container vessel. The Port is already ranks among the top twenty container ports in the world. In its first year, shipping traffic levels at Port Salalah reached a maximum of 65 vessels per month and is expected to grow steadily. In its first year of operation, it averaged approximately 45 vessels per month, and 54,000 TEU containers per month, with an annual container handling output of one million TEU's per year.

This US $250 million container transshipment port was established as a joint venture between the Omani government, private investors, and shipping companies Sea-Land and Maersk. Salalah Port was originally established jointly by Omani private investors (40%), the Omani government (30%), U.S. Sea-Land (15%), and Maersk (15%). Prior to its acquisition by Maersk in 1999, Sea-Land Services served as manager for the Salalah Port Services Company and, with strategic partner Maersk, is a principal customer of the port. In 1999, Maersk bought Sea-Land's 15 percent stake in Salalah Port as part of an international acquisition from Sea-Land's U.S. parent company, CSX.

Since its opening, Port Salalah has witnessed steady growth in shipping traffic and has the potential to generate rapid industrial development in southern Oman. The Port Salalah project surpassed an Omanization target of 60% prior to its official opening in November 1998.

Government plans to establish a free zone at Salalah adjacent to the port have the potential to make Salalah a major air-sea cargo hub and center for industrial development, capable of handling next generation container ships of 10,000-12,000 TEU containers. In June 1999, the Omani government announced plans to launch an industrial free zone at Port Salalah, under the management of Salalah Port Services, the Omani- U.S. joint venture which runs the container port. It is expected that a Memorandum of Understanding between the Sultanate of Oman and the port operator, Salalah Port Services Company SAOG, will be signed in the near future to establish a free trade industrial zone at Salalah Port. This free trade zone is expected to attract storage and warehousing facilities as well as value-added light industries. With Salalah's prime location and container transshipment facilities, the free zone has the potential to attract leading multi-national manufacturing and processing operations, as well as become a major air-sea cargo hub.

In 1999, the government selected Credit Suisse/First Boston as financial advisor for the planned privatization of Muscat's Seeb International Airport and Salalah Airport, for which the government was expected to issue pre-qualification invitations to prospective bidders by year-end 2000. DLA Distribution Salalah, Oman held a ribbon cutting ceremony for the new material processing center on 09 Februuary 2017. DLA Energy’s commanding general, Air Force Brig. Gen. Martin A. Chapin officiated the ceremony. Salalah, Oman was chosen for the new MPC because it provides an efficient and effective joint solution including material aggregation, trans-shipment, short-term storage and delivery functions for visiting U.S. Navy vessels and other U.S. customers in the U.S. Central Command area of responsibility. This will reduce overall costs to individual services and logistics response time to USCENTCOM, USNAVCENT and other forces operating in the region. “This is a part of what the Defense Logistics Agency does; leveraging capabilities, providing solutions to the Warfighter, and leaving a positive impact globally,” explained Paul McMillan, an area manager with DLA Disposition Europe.

The MPC meets USCENTCOM requirements via DLA Distribution’s worldwide contingency contract, and executes assigned missions through the diligent application of institutional processes, professional employees and enterprise business systems. Renovation of Warehouse 5 began on July 30, 2016 and became fully operational on October 27, 2016 as the DLA Distribution Salalah, Oman material processing center.

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Page last modified: 24-03-2019 19:54:48 ZULU