Premier International wins Freezone Sohar contract

Freezone Sohar will emerge as a major logistics hub.

RELATED ARTICLES: Kuwait says controversial megaport on track | Policing the Port | Top 10 Port Projects

Premier International Projects, the Oman contractor, has been awarded a major infrastructure contract on the freezone port venture in Sohar.

The scope of work includes construction of road networks, street lights, drainage channels, culverts and other facilities in an area of 250ha, according to Jamal T. Aziz, chief executive of Freezone Sohar, the company behind the 4,500ha port and industrial development.

Freezone Sohar is being developed by Sohar International Development Company (SIDC), a joint venture between Oman’s government, Port of Rotterdam, and SKIL Infrastructure Limited of India. It will be maneged

Story continues below

Advertisement

FEATURED COMMENT Please click here to comment on this article

The project, which will be executed in four phases, will develop the port and surrounding area into a diverse centre for logistics and industry – part of the Sultanate’s wider plan to modernise its business infrastructure in the wake of competitive port developments in Ras Al Khaimah and Abu Dhabi in the UAE and in Jizan in Saudi Arabia.

The first phase, over 500ha, will see the installation of downstream industrial and petrochemical facilities, warehousing and logistics services, along with educational, medical and other service-related amenities. It is split into four areas: trading and logistics (121 hectares), light manufacturing (68 hectares) –including petrochemicals, aluminium, iron and steel - cement grinding, and education and services (20 hectares).

Al Naboodah Contracting recently completed work on package one, which included levelling of land and fencing.

The second package for developing infrastructure was signed on behalf of the free zone by Sheikh Sa’ad bin Mohammed Al Mardhouof Al Sa’adi, minister of commerce and industry amd chairman of Sohar industrial Port Company, Jamal T. Aziz and Mohan Babu, managing director of Premier International Projects.

Business incentives for tenants include a corporate tax holiday for 10 years, with possibility to extend this period depending upon criteria based extension, such as the company’s proportion of Omani workers; a 5% fuduty charge on sales into Oman; and a 100% foreign ownership of a company’s operations.

Five to six companies have already signed with the free zone authorities to set up their logistic centre or manufacturing base within the zone, according to Aziz. These customers have either reserved plots or are preparing to commence construction. Interest ranges from industrial to logistic activities taking advantage of free zone incentives, facilities and the diverse port-related services.

The value of the infrastructure contract is still undisclosed.