The Port of Rotterdam Authority plans to invest millions of euros in the port of Sohar in the sultanate of Oman in order to be able to benefit as shareholder from future revenue. For several years now the Port of Rotterdam Authority has been responsible for part of the management for the very successfully developing, new port of Sohar.
Hans Smits, CEO of the Port of Rotterdam Authority, confirms that discussions are underway with the government of the sultanate to partly finance an imminent expansion of the complex with the aim of becoming a shareholder in the new port.
man has succeeded in getting a port off the ground in record time in the somewhat isolated Sohar. While the activities of this new port include container transhipment, it principally focuses on energy in every shape and form. The wish of the Port of Rotterdam Authority to be able to draw more profit from the developments is directly related to the plans of the Brazilian steel company Campanhia Vale do Rio Doce (CVRD) to invest $ 1 billion in setting up a blast furnace complex in Sohar. The final decision concerning this investment will be taken before the end of this year. Parallel to this are the negotiations between the sultanate and the Port of Rotterdam Authority aimed at raising together with banks $246 million (Euro 170 million) for the infrastructure needed for the blast furnace complex and for extension of the existing concession. Discussions are still ongoing as to what the financial contribution of the Port of Rotterdam Authority will be exactly.
During a recent trip to the Far East, Smits explained their plans in that region. "The Port of Rotterdam Authority wants to invest more abroad." In addition to Oman, the CEO particularly has his eye on ports in India. "But we stick to our core business which is the port of Rotterdam. We ourselves are not planning to invest in terminals abroad. We will be adhering to the landlord model, which comprises the development of master plans, designing ports and carrying out management, as is the case in Sohar with around a dozen highly experienced Rotterdammers responsible for management. The Port of Rotterdam Authority has no intention of becoming a Dubai Port World that buys up ports worldwide", according to Smits.
Hans Smits, CEO of the Port of Rotterdam Authority, confirms that discussions are underway with the government of the sultanate to partly finance an imminent expansion of the complex with the aim of becoming a shareholder in the new port.
man has succeeded in getting a port off the ground in record time in the somewhat isolated Sohar. While the activities of this new port include container transhipment, it principally focuses on energy in every shape and form. The wish of the Port of Rotterdam Authority to be able to draw more profit from the developments is directly related to the plans of the Brazilian steel company Campanhia Vale do Rio Doce (CVRD) to invest $ 1 billion in setting up a blast furnace complex in Sohar. The final decision concerning this investment will be taken before the end of this year. Parallel to this are the negotiations between the sultanate and the Port of Rotterdam Authority aimed at raising together with banks $246 million (Euro 170 million) for the infrastructure needed for the blast furnace complex and for extension of the existing concession. Discussions are still ongoing as to what the financial contribution of the Port of Rotterdam Authority will be exactly.
During a recent trip to the Far East, Smits explained their plans in that region. "The Port of Rotterdam Authority wants to invest more abroad." In addition to Oman, the CEO particularly has his eye on ports in India. "But we stick to our core business which is the port of Rotterdam. We ourselves are not planning to invest in terminals abroad. We will be adhering to the landlord model, which comprises the development of master plans, designing ports and carrying out management, as is the case in Sohar with around a dozen highly experienced Rotterdammers responsible for management. The Port of Rotterdam Authority has no intention of becoming a Dubai Port World that buys up ports worldwide", according to Smits.