Port of Sohar & Freezone Magazine 2014, Issue 7

Page 47

The vision of a multicommodity hub at SOHAR, anchored not only by petrochemical and industrial projects but agro-related ventures as well, is set to become a reality when construction begins later this year on a major sugar refinery complex. Promoted by Oman Sugar Refinery Company LLC (OSRC), 90

the project is unique from several standpoints: Firstly, it is the Sultanate’s first sugar mill, an initiative that will help reduce the country’s dependence on imports of this staple; Secondly, as the source of an important food commodity that falls within the ambit of the government’s food security strategy, the project help contribute to the establishment of strategic sugar

stockpiles; Thirdly, refined sugar and other byproducts from the mill will help catalyse the growth of value-added processing and packaging industries in the free zone adjoining the industrial port. “This will be the first sugar refinery to be established in the Sultanate of Oman and will create employment for Omani citizens, diversify the economy of the country, create many downstream opportunities and above all, enhance food security in the country,” said the project’s director, Mr. Ashwin D. Rana, summing up the enormous socioeconomic benefits associated with the venture. OSRC’s project will be set up on an 180,000 sq metre waterfront site being vacated by Oman International Container Terminal (OICT) as its moves to a larger site further up the quay wall. A lease agreement

to this effect was signed in April 2013 between SOHAR Port and Mr. Nasser Ali Saif al Hosni, Chairman and Managing Director of Oman Sugar Refinery Company LLC (OSRC). Mr. Al Hosni, the project’s main promoter, is a Tanzania-based Omani businessman with diverse interests in sugar manufacturing, sugar farms, as well as logistics.

State-of-the-art Oman’s maiden sugar refinery project will be truly world-class, says Mr. Rana. “It will be a modern, state of the art facility that will use the latest proven production technology to produce the highest quality refined sugar. Output is initially envisaged at 700,000 tons in the first phase, and ramped up to 1 million tons within three years thereafter.” As with all the industrial and petrochemical investments that

have since started operations at SOHAR Port, ORSC’s venture also aims to take advantage of the excellent facilities provided by the strategically located maritime hub which include a deepwater port and adjacent container terminal, with an agro-bulk terminal planned for development as well. Further, in line with its goal to develop a truly outstanding project, OSRC has roped in technology leader Tate and Lyle Process Technology of London, and project management specialists Bosch Projects of South Africa as partners in the venture. Both are formidable players in their respective areas of specialisation. Tate & Lyle Process Technology (TLPT) is globally experienced in designing and operating cane sugar factory processes and thermal distribution systems. These

capabilities provide Tate & Lyle Process Technology’s business partners with high yield investment opportunities from increased production volumes, improved product quality, increased sugar recovery and energy efficiencies. TLPT is a member of Florida-based ASR Group, which also owns Tate & Lyle Sugars, the renowned London based business well regarded globally as experts in international raw sugar procurement. Tate & Lyle Sugars is responsible for supplying raw sugar to nine port sugar refineries run by ASR in five countries, and will be also meeting OSRC’s raw sugar requirements. Bosch Holdings, on the other hand, has a long and successful history in the sugar industry with a global client base stretching from Africa to the Americas and as far as the Pacific Rim. The

South Africa-based engineering and consultancy services group specialises in the delivery of world-class, innovative packaged solutions to the sugar refining industry, as well a host of other sectors, spanning energy, pulp and paper manufacturing, mining, agriculture, and ports and terminals. Catalysing growth Significantly, OSRC’s investment will have hugely beneficial ramifications for the wider Omani economy, according to Mr. Rana. “The investment in Oman of private equity in cane sugar refining will simultaneously diversify the country’s industrial capability and contribute to reducing its economic dependence on oil. It will also provide direct employment and training opportunities to generations of Omani nationals and provide indirect

employment opportunities to other businesses, including the refinery’s supply chain and food processing businesses that use sugar in value-adding food processing.” As a dynamic and efficient industry, sugar refinery can make a significant impact on the local and national economy, the industry executive explains. For one, it will contribute significantly to the development of a vibrant value-added food processing sector, leading to the potential employment of hundreds more through both the supply chain and in sugardependant food industries. A free zone taking shape adjoining the port is the ideal location for the development of such additional industries, says Mr. Rana. “The building of the refinery will therefore provide the nucleus for the development of a host of these other 91


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Port of Sohar & Freezone Magazine 2014, Issue 7 by Oman Establishment for Press, Publishing & Advertising (OEPPA), Business Development Department - Issuu