Freezone Sohar - 4500ha of Business Advantage

Freezone Sohar is spearheaded by Sohar Industrial Development Company, a joint venture between the Government of Oman, the Port of Rotterdam in The Netherlands and SKIL Infrastructure in India.

Freezone Sohar, along with other initiatives, such as the expansion of the Port of Sohar and investments in a deepwater jetty to support a huge iron ore pelletising plant by Brazilian giant Vale, will further accentuate the industrial port's importance as a driver of economic growth in the Batinah region.

Development of the 4,500-hectare zone is planned in four phases. Envisaged in the first phase, covering an area of 500 hectares, are a number of downstream industrial and petrochemical ventures, warehousing and logistics services, and so-called 'soft' investments, such as educational, medical and other service-related amenities. A master-plan drawn up for Phase 1 of the Freezone Sohar project envisions investments organised into the following clusters: Trading & Logistics (121 hectares), Light Manufacturing (68 hectares), Petrochemicals (26 hectares), Aluminium activities (18 hectares), Iron & Steel (100 hectares), Cement grinding (7 hectares), and Education & Services (20 hectares).

Operating from a strategic location on the Arabian Peninsula, Freezone Sohar offers an ideal environment for business growth. The combination of wide market access, sound global logistics and attractive business incentives ensure that your company will enjoy the ultimate freedom to do business.

Please click here to download Freezone Sohar map phase 1.

Incentives for Business

Attractive incentives ensure that doing business at Freezone Sohar is both investor friendly and lucrative.

This includes

• 100% foreign ownership
• Free repatriation of capital and profits
• Corporate Tax Holiday for 10 years, with possibility to extend this period depending upon criteria based extension (e.g. level of Omanisation)
• No personal income tax
• No currency restrictions
• No duty on imports and exports
• Sales to Omani market allowed on payment of 5% duty
• No minimum capital requirements
• All permits and consents to be granted by One-Stop-Shop operated by the Freezone Sohar authority
• Flexible manpower needs.
• Extension of the corporate tax holiday period may be considered for increased Omanisation levels as an additional incentive. Therefore education and training schemes are encouraged.

Making Business Easy

The One Stop Shop (OSS)takes care of major administrative obligations related to the start-up of your company at the Freezone Sohar.  Offering ease, speed and transparency, the OSS serves as a pivotal intermediary between yourself and government agencies.  The services include:

• Organising the legalities of company establishment and arranging the specific permits required
• Identifying, planing and executing the relevant important governmental obligations so that set-up can proceed smoothly.
• Arranging joint meetings with utility and service providers

The Expression of interest helps us to better understand your business and evaluate your project proposal. Please click here to download the form.

Please click here to download Freezone Sohar information and benefits.

The website for Freezone Sohar is under construction.

For more information please contact Mr Edwin Lammers, Executive Commercial Manager edwin.lammers@portofsohar.com  or call (+968) 800 SOHAR

Sohar Bulk Terminal to launch operations soon

The investment will be made by the joint venture of Khimji Ramdas Shipping, one of the largest providers of shipping and maritime services in the Sultanate, and TM International Logistics Limited (TMILL), a renowned Indian-based integrated marine logistics services company, in line with the terms of a recent concession agreement concluded with Sohar Industrial Port Company (SIPC) for the operation of the dedicated dry bulk terminal.

The terminal has been built as an extension of the 1,380-metre-long deepwater jetty currently operated by Vale Oman as part of its massive iron ore pelletising plant and distribution complex at Sohar. A 220-metre length of the jetty has been developed into a Bulk Minerals Terminal to handle both import and export cargoes.

“We have engaged the services of a specialised design consultant to prepare a preliminary engineering concept plan and evaluate the superstructure requirements linked to the operation of a 10 million tonnes per annum capacity terminal,” said MC Jose, CEO of Khimji Ramdas Projects & Logistics Group.

“The terminal will be equipped to handle various kinds of minerals, including aggregates, ores, limestone and thermal coal, to name a few. Technical design work and superstructure planned are being done in consultation with SIPC’s technical team,” he added in comments to the Observer.

Among the major superstructure facilities envisaged for installation at the terminal is a combined ship loader/unloader with a loading capacity of 4,500 tonnes per hour (TPH) and unloading capacity of 2,500 TPH. Also planned is a 3.6 kilometre long unified conveying system for inbound and outbound cargo.

Furthermore, a combined stacker and reclaimer system is proposed to be established at the 9-hectare storage yard earmarked by SIPC for dry bulk volumes.

The equipment is targeted for installation and commissioned within 18 months of the approval of the evaluation study, added Jose.

But pending the operationalisation of the new terminal, the joint venture operator plans to shortly commence operations from temporary jetty and storage facilities allotted by the port at Berth No 14.

“We are gearing up to launch operations from the temporary terminal during the second half of this month,” Jose explained. “A 45,000 sq metre area has also been allotted as storage yard space with Berth No 14 temporarily assigned for loading and unloading operations. Although these facilities are primarily earmarked for the export of aggregates from Sohar, we will also be targeting other mineral exports and imports.”

The temporary terminal will be suitably equipped to handle around 10,000 tonnes of aggregates per day. “While front-end loaders and tippers will be deployed for shore handling operations, ship loading will be done through the vessel’s gears fitted with grabs. Shore grabs will be made available if necessary. Stevedoring services will also be provided at site. The temporary facility will initially be geared to handle at least three export shipments per month, but the Consortium is prepared to beef up its handling capabilities if we see any upward trend in cargo throughput,” said Jose, adding that competitive tariffs will be available to customers against long term export agreements.

In the interim phase, Berth 14 will continue to be the setting for temporary dry bulk operations for at least two years before the focus shifts to the dedicated Bulk Minerals Terminal, Jose added.

As consortium partner, Khimji Ramdas Shipping, one of the largest and most diversified providers of shipping and maritime services in the Sultanate, is joining hands with Tata Martrade International Logistics (TMILL), an internationally renowned integrated marine logistics services company.

A subsidiary of the Indian steel conglomerate, Tata Steel, TMILL specialises in bulk and break bulk handling with operations at a number of major Indian ports.

At the Port of Haldia on India’s east coast, TMILL operates a terminal dedicated to the bulk handling of commodities like iron ore, limestone, fertilizer raw material, among others, in addition to break bulk cargoes such as steel products and project cargo.

The company also operates a facility at a new deepwater port at Dhamra jointly developed by Tata Steel and Larsen & Toubro also on India’s east coast. The terminal is designed to handle 25 million tons of coal and other ores annually.