Muscat: As much of the northern half of the Sultanate remains hunkered down for what has been forecast as a tropical cyclone of ‘Gonu-like’ ferocity – a reference to the Super-cyclone Gonu that slammed Oman with devastating effect in 2007 – corporates, contractors and insurers are now braced for potentially severe business disruptions and losses unleashed by Tropical Cyclone Shaheen which made landfall on the country’s Batinah coast on Sunday night.
North and South Batinah governorates, along with adjoining Muscat Governorate, while no strangers to adverse weather events, are particularly vulnerable when menaced by powerful storms. After all, this extended region accounts for more than half of the country’s population, and also contributes the lion’s share of Oman’s industrial and economic output.
Of particular concern for market observers is Suhar, presently the industrial powerhouse of the country underpinned by Sohar Port and Freezone (the Sultanate’s principal commercial gateway) Suhar Industrial City.
Also clustered in and around this industrial port city are, among other infrastructure elements, gas-based power plants, water desalination schemes and road networks that are critical to the economic well-being of much of the northern half of the country.
Given that Shaheen is the latest in a succession of cyclones to batter the Sultanate with increasing frequency and magnitude, resulting in significant insurance and other economic losses as well, a high-level representative of Oman Chamber of Commerce and Industry (OCCI) has called for a strategic, national-level response to risks associated with these natural phenomena.
“It’s high time we look at risk management as a joint responsibility of the government and private sector insurance companies to address all risks emanating from natural phenomena, such as Shaheen,” said Murtadha bin Mohammed Jawad Ibrahim al Jamalani, Chairman – OCCI’s Finance and Insurance Committee. Not to do so would leave the government hemorrhaging scarce financial resources in offsetting losses causes caused by such events, he warned.
“We need to work together to look at risk management from all angles, including national catastrophes, and human and social impacts,” Al Jamalani stressed. “It’s untenable for the government alone to shoulder the entire cost burden stemming from such weather events. This burden should be shared in some fashion between the private sector and the government. While some issues fallen within the remit of the government, others fall on the shoulders of the private sector.”
Al Jamalani called for the establishment of a special department within the Chamber to oversee risk management. Such an initiative, he noted, would strengthen and advance the interests of the private sector in the management of insurance risks stemming from natural disasters.
SOHAR Port suspends operations
Hours before Shaheen came ashore, Sohar Port and Freezone announced a temporary suspension of marine operations at the commercial gateway. In a statement, Mark Geilenkirchen, CEO of Port of SOHAR, said: “Due to the ongoing adverse weather conditions the Sultanate is currently facing, marine operations at the Port have been temporarily suspended and will resume once it is safe again. This is in accordance with international standards and the directives received from the Government of Oman. The safety and security of all SOHAR workers and stakeholders remains top priority.”
An emergency response plan has been activated in preparation for Shaheen’s arrival, the CEO stated. “Our HSSE team and concerned authorities on the ground are continually monitoring the situation and have ensured that all necessary controls are in place to mitigate any additional risks and to safeguard business continuity.”
A number of insurers contacted by the Observer said they were concerned for key economic developments and projects lying in Shaheen’s path along the Batinah coast. While all major high-value investments are suitably insured against storm damage, some losses are inevitably borne by the owners, it is pointed out.
Another area of concern is Barka in South Al Batinah Governorate which hosts Khazaen Economic City, an upcoming destination for warehousing and distribution, light manufacturing, logistics and dry port operations. Additionally, investments in warehousing capacity have proliferated all along South Al Batinah in light of its proximity to the capital city.
Meanwhile, flooding in parts of Muscat Governorate brought back memories of Supercyclone Gonu, which inundated entire neighbourhoods, wrecked road infrastructure, damaged utilities and claimed a number of lives.
In Qurum, CCC – one of the city’s earliest shopping landmarks which had been virtually submerged during Gonu – was hit this time around as well, despite significant improvements to drainage channels in the area. The outlets of many leading retail brands were inundated in the latest flooding, but no casualties have been reported.
Visuals circulating on social media also appeared to suggest that scores of private cars were submerged in flood water at various places in Muscat and elsewhere. Floodwaters had entered the basements of some residential buildings trapping many cars parked there. While motor insurance mandatorily covers cars from risks related to Storms, Tempests and Fires (STF), insurers are expected to refuse compensation for vehicles left behind in wadis or flood-prone low-lying areas, according to experts.
Even before Shaheen made landfall last night, tidal surges had unleashed some damage to coastal roads, shore facilities and roadside ornamentations in the capital region and other parts of North and South Batinah.
In the Riyam Park area of Al Bahri Street (Muttrah seafront road), crashing waves smashed decorative pots and other fixtures that adorned the street, littering the road with debris. Elsewhere along the corniche, towering waves also toppled sections of the boundary barrier overlooking the bay.
Earlier, Muttrah Souq – a tourist landmark on Al Bahri Street that was shuttered by authorities ahead of the storm – was inundated by floodwater. Any damage is expected to be reduced in light of measures encouraging shop-owners to store their merchandise well above ground level.
Precautionary measures:
Majan Electricity Company, member of Nama Group, took to social media on Sunday to announce that it had cut supply to 13 distribution stations in the wilayats of Al Khabourah and Saham as a “precautionary measure”. The utility cited seawater ingress into networks in the wilayat for its action. The temporary measure, it noted, was warranted by a desire to avert “an immediate danger to lives and property”.
In Muscat Governorate, where power failures were reported in parts of the city overnight on Saturday, Muscat Electricity Distribution Company (MEDC) said it had scrambled technical teams to address these outages. The utility cautioned people against venturing close to malfunctioning electrical assets, such as fallen poles, substations, transformers and electrical boxes.
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