The government of Oman, represented by the Ministry of Transport and Communications, is responsible for the design and construction of the port infrastructure. The management and development of the port is in the hands of Sohar Industrial Port Company (SIPC) SOAC. This company is also responsible for co-ordination of marine traffic and safety in the Port of Sohar. SIPC is a 50/50 joint venture of Oman’s government and the Port of Rotterdam in The Netherlands.

More about SIPC

Sohar Industrial Port Company (SIPC) SOAC is not only responsible for managing and developing the port, it also takes care of marine traffic and safety. SIPC was established in 2002. The organization has a concession for 25 years, which may well be extended in 2027. The Port of Rotterdam, the largest industrial port in Europe, was selected as partner because of its expertise.

It was decided to manage the Port of Sohar according to the principles of the landlord port model, maximising the involvement of the private sector. SIPC is responsible for the leasing of plots and the maintenance and development of infrastructure (after the Ministry of Transport and Communications has handed it over). Unlike a service port manager, SIPC is not involved in any operational activities, such as tugs, pilotage, linesmen, stevedoring and warehousing. This is all done by private companies. SIPC, in its capacity of port authority, is responsible for issuing Rules and Regulations and establishing the framework for health, safety, environment, emergency and security.

Landlord port model

In the landlord port model, land and waterfront infrastructure is leased to privately run companies. Industrial production, cargo handling and other essential operations and services are done by specialised companies. These private companies provide and maintain their own superstructure including buildings and equipment (e.g. installations, offices, sheds, warehouses, container freight stations, workshops). Because these companies are specialised, they can offer quality and competitive rates..  

The ‘landlord port’ is currently the dominant port model in larger and medium sized ports. Examples of landlord ports are Rotterdam, Antwerp, New York and Singapore. Regional examples can be found in Saudi Arabia, Iran and India.

The mission of SIPC

“To create a world-class industrial port within the framework of the Sohar Vision 2025. This world-class port is complete, competitive and state-of-the-art. It is attractive to investors and users, operated under internationally accepted “good practices” and provided with adequate (expandable) infrastructure. It has an efficient and effective institutional environment and is embedded in an adequate knowledge infrastructure.”

The activities of SIPC

·         Attracting industries, downstream activities and cargo – in cooperation with the companies already active in the port. 

·         Formulating the Rules and Regulations that provide the institutional framework in which activities in the port and Sohar Industrial Port area are to be executed.

·         Coordinating shipping in the harbour basin, the entrance channel and the anchorages, 24 hours a day.

·         Advising the Ministry of Transport and Communication on infrastructure to ensure that tenants have adequate facilities at their disposal. Once the infrastructure is delivered, SIPC will take care of the maintenance.

·         Coordinating and regulating the activities in the ‘common areas’. For these activities a coherent and consistent permit system has been set up. Work Permits, Construction Permits, Pipeline Permits and Special Transport Permits regulate the activities in the common areas.

·         Stimulating the development of the social infrastructure in the North Batinah region, such as the provision of schools, housing, and leisure activities.