The Port of Salalah offers an alternative to the Red Sea route
- May 17, 2024
- News
The Port of Salalah in Oman has introduced multi-modal service options to address the ongoing Red Sea blockade, offering a more efficient and cost-effective alternative to the lengthy and expensive re-routing around the Cape of Good Hope. With an annual capacity of 5 million TEU and ongoing expansion plans to increase capacity by 30%, the port is strategically located on major ocean routes connecting South and East Asia with Europe, North Africa, the Americas, and the upper Gulf with East Africa.
Unlike other transhipment ports in the region, the Port of Salalah does not require a detour from the main East-West shipping routes into the Gulf of Oman, saving 4-5 days in transit time. The new multi-modal solutions provide Beneficial Cargo Owners (BCOs) and Shipping Lines with fast and cost-effective alternatives between Asia, the United States East Coast, and European destinations.
From the Port of Salalah, an overland route by truck connects to Jeddah in Saudi Arabia, located at the midpoint of the Red Sea, in approximately 4-5 days. From Jeddah, cargo can continue by container vessel through the Suez Canal to Europe or the US East Coast, reducing overall transit time compared to current routing.
For time-sensitive cargo, a sea-air option is available, transferring cargo in transit to Salalah or Muscat Airports or even Jebel Ali, depending on airlift capacity and connections. This option reduces lead time compared to full ocean leg and costs compared to full air freight.
The new multi-modal service reduces transit times by an estimated 20-40% compared to traditional east-west trade routes and could deliver a cost saving of 10-20% compared to a pure air-freight solution. Additionally, the Port of Salalah offers scalable warehousing, storage, and modern Container Freight Facilities, adding flexibility to supply chains and customer-designed intermodal solutions.
Port of Salalah is consistently ranked as the second most efficient terminal in the world, offering fast discharging and industry-leading truck turn times, making it extremely cost-competitive compared to other ports in the region. The port’s efficiency, along with continual reforms aimed at enhancing the business environment in Oman, positions Salalah as an unparalleled business opportunity, offering speed, value-added services, flexibility, and streamlined business operations.
In conclusion, the Port of Salalah is committed to collaborating with BCOs, ensuring consistency and predictability in their supply chains, and providing multi-modal product offerings that unlock tomorrow’s potential today. The port aims to facilitate seamless transshipments for shipping lines, enhancing market access, and navigating disruptions caused by geopolitical or other developments beyond their control.