Oman all set for iron ore transhipment role

A major development in the pipeline for Oman's dry bulk shipping sector is the country's development into an iron ore transhipment hub. Oman's iron ore shipment is supposedly centred on catering for Middle East demand, but because of its strategic location the company will also offer export potential to North Africa and India. The port of Sohar is well-positioned for transhipment, as the port is on the South East coast of the Arabian Peninsula and offers shipping routes via the Gulf Sea to the UAE, the east coast of Saudi Arabia, Kuwait, Iran and Iraq. Oman is also well-placed for shipping access to routes via the Gulf of Aden to service the west coast of Saudi Arabia and North Africa. In May 2010, Oman Oil Company SAOC (OOC) and Vale S.A. announced the signing of an agreement for OOC's investment in Vale Oman Pelletizing Company LLC (VOPC). OOC will acquire 30% equity interest in VOPC, with Vale holding the remaining 70% shareholding and operating the plant. The iron ore palletising plant is presently under construction at Sohar and full commissioning by mid 2011. The plant is capable of producing nine million tonnes of direct reduction iron ore pellets annually, with the option to future expand. Advanced pollution control and safety systems will ensure compliance with Omani and international environmental and safety standards. The pellet plant forms a key element of a large industrial complex including an iron ore distribution centre with the capacity to handle up to 40 million tonnes of iron ore and pellets annually, using raw iron ore imported from Brazil for processing and export to steel makers in regional markets. The complex is Vale's first green-field iron ore project outside Brazil. Oman Shipping Company is constructing four very large ore carrier ships, each with a capacity of 400 thousand tonnes, to be leased to Vale to carry iron ore from Vale's mines in Brazil to Sohar. H.E. Mohammed bin Nasser Al Khasibi said the project supports future development of the iron and steel making industry and related support and downstream businesses in Oman, which will enhance the increased employment and specialised training of the Omani workforce. Vale CEO Roger Agnelli said the agreement is a perfect example of the company's global business strategy of forming long term partnerships with key local players to support the development of large scale green-field projects. The company sees the pellet plant and the distribution centre playing an important role in the Sultanate's efforts to diversify the Omani economy and to help promote more foreign private sector investment. Vale believes that the transaction with OOC also enhances its role in the region's iron and steel market, creating substantial value for their shareholders and for the Omani community. In August 31, 2010, Swiss engineering firm ABB announced that its local company in Oman, ABB Oman LLC, signed a three-year maintenance agreement for Vale's Oman iron ore pellet plant and distribution. The maintenance partnership agreement will be a continuation from the current agreement where ABB is responsible for the management and planning of the entire commissioning phase of the project. Scheduled for start-up in late 2010, the facility will operate with 720 employees, of which 202 employees will be part of ABB's maintenance team at the site. ABB will be active in both hiring and providing ongoing development of local Omani Nationals within their work team. The ABB deal will cover the development and execution of all maintenance activities at the plant. ABB will manage the entire maintenance crew to ensure that mechanical and electrical maintenance regimes, shutdown management, planning and scheduling, as well as reliability maintenance are completed according to the ABB's maintenance outsourcing concept. "By combiningZoom Lebron XV 15