(MENAFN- Muscat Daily) Muscat -
Port of Salalah, one of the largest multi-purpose ports in the Middle East region, has recorded significant growths in container and general cargo volumes this year, which boosted the port's revenues and profits in the first half of 2019.
The port's container terminal handled 1.941mn twenty-foot-equivalent units (TEUs) in the six months period ending June 30, 2019 compared to 1.763mn TEUs in the corresponding period of last year, an increase of 10 per cent.
The general cargo terminal handled 8.191mn tonnes of cargo during the first half of this year, recording an increase of 8 per cent compared to the same period a year ago, Salalah Port Services Co said in its company report submitted to the Muscat Securities Market.
It said the major commodities handled are limestone, gypsum, methanol and cement, which are exported from Salalah to nearby markets and continue to drive the general cargo business.
Revenues of the general cargo terminal increased by 23 per cent compared to the same period last year and the container terminal revenue rose by 20 per cent as compared to the corresponding period of last year.
As a result of improved performance in volumes and revenues, Salalah Port's consolidated net profit jumped to RO2.169mn in the first six months of this year compared to a net profit of RO767,000 recorded in the corresponding period of 2018.
Port of Salalah suffered from Cyclone Mekunu during May 2018 that impacted its results for the first half of the previous year.
The company said that the cyclone expenses amounting to RO2.525mn incurred during the January-June period of 2019 are included under total expenses. 'The insurance claim settlement is ongoing. Cyclone Mekunu claims led to insurers demanding higher premium rates for the renewal of port package policy on April 1, 2019 that caused higher premium of RO1.73mn per annum,' Salalah Port said.
The commercial outlook for the Port of Salalah continues to be relatively stable despite overall negative sentiments in the region due to the various political and economic issues, the company said.
It added, 'On the container side of the business, volumes have been consistently close to the safe operating capacity of the terminal and additional volumes have been secured as and when the safe operating capacity is increased. Close cooperation with customers continues to be a growth driver in the recovery period from Mekunu with volumes ramping back close to pre-cyclone levels.'
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