Oman Shipping Company (OSC) is launching a new freight service linking all Omani ports to the United Arab Emirates by mid-April, 2016, in a bold move to boost trade links.
OSC’s new fortnightly Oman Express Service will be the first freight feeder operator to connect all Omani ports. It will be run by OSC subsidiary Oman Container Lines (OCL).
OSC chief executive Tarik Mohamed Al Junaidi said the new service will be cheaper and faster than the road transport which currently handles all freight to the interiors.
The main objective of OSC, one of the Gulf’s biggest ship operators, is to connect Oman with the rest of the world with a regular service linking the Omani ports of Salalah, Duqm and Sohar, with the UAE.
The state-owned company will be the focal point for all customers and the Oman Express Service will use its own multi-purpose vessel to carry containers, break bulk and project cargo, which has a capacity of 350 TEUs (Twenty Feet Equivalent Unit containers) or 8,000 tonnes of general cargo.
Mr Al Junaidi said the ambitious move will drive the development of freight-handling facilities in both Duqm and Salalah ports.
“The Oman Express Service will revolutionise the trade movement in Oman by linking our main ports with one fast and efficient freight feeder operation,” said Mr Junaidi. “We are looking to harness the power of our coastline and maximise Oman’s strategic location, to boost both trade within the Gulf and worldwide.
“Duqm is set to become Oman’s gateway for heavy cargo and the Sultanate’s next industrial hub once it is fully operational, with major construction work in hand to handle greatly increased container, project and general cargo.
“There is going to be a lot of development in Duqm,” said Mr Al Junaidi. “So there will be a demand for equipment, project cargoes, supplies for construction projects and container services. We are discussing this with the port authorities of Duqm, Salalah and other government authorities.”
Improved road links will enable faster and easier movement of cargo via Duqm port to central Oman’s oilfields. The Oman Express Service will also increase the amount of cargo being handled at Salalah and Sohar ports.
Mr Al Junaidi said that OSC already operates a weekly feeder service connecting Sohar with Jebel Ali port. He said within a few months of starting the new service, OSC will be able to evaluate the actual requirement and, if necessary, exchange the vessel to meet whatever needs would have arisen.
OSC’s modern fleet is expected to rise to more than 50 vessels this year. It spans from very large crude carriers (VLCCs), liquefied natural gas (LNG) carriers, product tankers, multi-purpose vessels, bulk carriers and container ships, to serve Oman’s oil and gas, petrochemical and other industries.
Mr Al Junaidi said: “Our intention in the long-run is to have all of them managed by Oman Ship Management Company, which is a wholly-owned subsidiary of OSC, currently technically managing 32 vessels.
“Five of our latest ships are the 183m long, 29,354 gross tonne product and chemical tankers, which have been recently constructed at Hyundai Mipo Dockyard in Ulsan, South Korea, as part of a deal for 10 medium range (MR) tankers. All the vessels will be chartered to Shell International Trading and Shipping Company Ltd for its Project Silver.
“This recent investment will strengthen and consolidate our position in the hydrocarbon shipping sector. It also demonstrates how we can offer the very best, and very latest, shipping solutions to major operators like Shell. Entering into new joint venture agreements to expand our fleet is the key to OSC’s ongoing business development.”
The continued growth and success of OSC will play a key role in the Government’s wider plan to diversify the Omani economy. Under the Government’s wise vision, maritime, ports and shipping are fundamental to the future prosperity of Oman driving jobs and wealth creation.
For further information contact OSC tel: +968 2440 0900 email: info@omanship.co.om visit: www.omanship.co.om
OSC FACTFILE
1) COMPANY STRUCTURE
Oman Shipping Company (OSC) was incorporated in 2003 and is owned by the Government of Sultanate of Oman through Ministry of Finance (80 per cent) and Oman Oil Company SAOC (20 per cent). OSC is the parent company, which is the investment arm, while Oman Charter Company SAOC (OCC) undertakes chartering and broking activities, Oman Ship Management Company SAOC (OSMC) looks after in-house ship management activities and Oman Container Lines (OCL) Inc. undertakes container-related activities. All the three companies are fully-owned subsidiaries of OSC. OSC was launched with the acquisition of six LNG vessels, which were employed to transport Omani LNG to the world markets in partnership with Mitsui OSK Lines (MOL). The company has since diversified into Crude Oil, Chemicals and Products, Dry Bulk, LPG and also Container and General Cargo market segments.
2) FLEET
Currently OSC operates 47 ships of different types and sizes with a total cargo carrying capacity of about eight million tons. It has a further 5 Medium Range (MR) product tankers under construction which will be delivered from July till October 2016.
3) CORE SECTORS
Oil, Gas and Petrochemicals are the core sectors for OSC. These vessels trade internationally. As regards the dry bulk transport, OSC is mainly in the international transport of minerals. The company also provides coastal services for movement of products along the Omani coast and a container feeder service connecting Omani ports with UAE ports. Customers include: OLNG, ORPIC, OTI, Sohar Aluminium, Vale Oman, Mitsubishi, Itochu, Mitsui, Vela, Reliance, UNIPEC and oil majors like Shell, Exxon, Chevron etc.
4) TRAINING
OSC has been making a big contribution to the shipping industry in the region through its Scholarship Program (cadetship), in which OSC offers scholarships every year for high school fresh graduates to study either Nautical Science or Marine Engineering in maritime colleges in Oman or the United Kingdom. To date it has sponsored 183 such cadets. It also offers job opportunities to such sponsored cadets after they successfully complete their studies. Furthermore, OSC is also keen on developing its seafarers through the Scholarship Program for securing management level certificates, under which fully paid Scholarships are made available to the local seafarers enrolled with the company. In 2013, OSC signed an agreement with the International Maritime College Oman to provide training berths to all its cadets including non-Omanis, to complete their required sea service on board its vessels.
Source: Port Finance International
Source: Port Finance International