Investor interest growing in Duqm industrial clusters

Conrad Prabhu -

MUSCAT, JUNE 27 -

Duqm Industrial Land Company (DILC), a special purpose vehicle set up by the Port of Duqm Company (PDC), has reported significant headway in its efforts to attract investment inflows into the sizable swathes of industrial land placed under its care for all kinds of industrial-related development.

An initial parcel of 125 hectares — part of a 2,000-hectare plot earmarked exclusively for medium and heavy industrial projects as well as petrochemical schemes — has already been levelled and handed over to a number of tenants, according to officials.

General infrastructure development of this tract, encompassing the construction of roads, drainage channels and corridors for utilities, will commence this year. A contract for the rollout of electricity infrastructure will be tendered out soon as well.

Established in 2014, DILC is a joint venture entity established by PDC’s shareholders — the Government of the Sultanate of Oman and Consortium Antwerp Port (CAP), the international arm of Belgium’s Port of Antwerp, one of Europe’s largest hub ports. Its principal remit is to develop and promote the sprawling 2,000-hectare industrial cluster created within the adjoining Duqm Special Economic Zone (SEZ).

Levelling works covering the development of a second parcel of land for industrial investment will commence when around 75 per cent of the first phase has already been handed over to tenants, say officials.

Pending the completion of a pipeline supplying natural gas from central Oman to the SEZ, fuel alternatives in the form of liquefied petroleum gas (LPG) and synthetic natural gas (SNG) will be made available to tenants that require energy for their operations. An agreement to this effect has been signed with Muscat-based National Gas Company, a leading distributor and supplier of LPG and other gas based fuels.

Initial investment interest in the industrial cluster managed by DILC has been heartening, say officials. Last December, Port of Duqm Company signed agreements with a number of companies for the lease of a total of voer 10 hectares of land managed by DILC. The new tenants include Oman Engineering LLC (OEL), Gold Fish Company (GFC) and Galfar Engineering and Contracting (GES).

Officials anticipate investment interest ramping up once construction work on the giant $7 billion Duqm Refinery project begins in earnest at the SEZ next door.

Keen to develop the capabilities of Duqm Port as a logistics hub, PDC is also offering up to 560 hectares of land adjoining the port for logistics related investment.

An initial portion of 65 hectares is currently being leveled in preparation for its handover to a number of clients. A second parcel of land will be taken in hand for development next year. Its proximity to the port is seen as ideal for investments in storage and warehousing of such commodities as drilling chemicals, pipelines, Oil Country Tubular Goods (OCTG) and so on.