Oman’s Port of Salalah is experiencing a recovery in cargo traffic after enduring a significant downturn in container throughput earlier this year, largely due to the ongoing crisis in the Red Sea. The port, which serves as a key hub in the region, saw its container traffic plummet to 878,000 TEUs (twenty-foot equivalent units) in the first quarter of 2024, a sharp 17 percent decrease from the 1.056 million TEUs recorded during the same period in 2023. This decline was primarily attributed to vessels rerouting around Africa to avoid disruptions in the Red Sea, a vital maritime corridor.
However, recent reports indicate that the port is bouncing back. Mohammed Al-Mashani, CEO of Salalah Port Services, stated in a recent interview with local media that cargo throughput is improving. By the end of the first half of 2024, the Port of Salalah had handled 1.7 million TEUs and 11.6 million tons of general cargo. This recovery is a testament to the port’s resilience and its strategic efforts to adapt to shifting global trade dynamics.
Al-Mashani emphasized that the port is gearing up for an expanded transshipment market, leveraging its advantageous location on the main east-west shipping routes. To support this growth, Salalah is implementing a $300 million expansion plan aimed at increasing its annual container handling capacity from 5 million to 6 million TEUs. This ambitious expansion includes the addition of six fully electric ship-to-shore cranes, which will bring the total number of cranes at the port to 27 by the end of the year.
Strategic Adaptations and Expansion Plans Drive Throughput Recovery
“We are fostering connections with major international shipping lines as well as expanding our transshipment market, which links the continents of Europe, Asia, and Africa,” Al-Mashani remarked.
This strategic expansion aligns with the growing demand for international trade in the East African market, where Salalah is well-positioned to serve as the premier transshipment port. The port offers up to five days’ shorter transit times between Southeast Asia and East African nations, including Somalia, Djibouti, Kenya, Tanzania, Seychelles, and Ethiopia, compared to traditional routes.
In response to the logistical challenges posed by the Red Sea crisis, the Port of Salalah has introduced a multi-modal service option aimed at shipping lines looking to avoid the time-consuming and costly rerouting around the Cape of Good Hope. This innovative option involves transporting cargo from Salalah via an overland route by truck to Jeddah, located at a safer midpoint of the Red Sea in Saudi Arabia. The overland journey takes approximately 4-5 days, after which the cargo can continue its journey by container vessel through the Suez Canal to destinations in Europe or the U.S. East Coast.
The Port of Salalah’s ability to adapt and innovate in the face of geopolitical disruptions has not only facilitated its recovery but also positioned it as a critical player in global maritime trade. As the port continues to strengthen its connections with international shipping lines and expand its infrastructure, it is set to enhance its role as a key transshipment hub in the region. This recovery and strategic expansion underscore the port’s importance in facilitating trade across continents, particularly between Asia, Africa, and Europe.
