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Report Advice Sustainable Terminal RMIMPM10.docx
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2021Sustainable Terminal
SUSTAINABLE TERMINAL SOHAR
KANE VAN DIJK 0948943
JELLE HOEKSTRA (0945734)
SOPHIE HOFFMAN (0854825)
RMIMPM10
J. BUURMAN
,Sustainable Terminal RMIMPM10
Preface
This advice report is written by three fourth year students:
Jelle Hoekstra, Logistics management student
Sophie Hoffman, Martime officer student
Kane van Dijk, Logistics engineering student
This advice report s written as an assignment for the course RMIMP10, sustainable port and
terminal development. Within this course the three students have prepared an advice within
a report, which will be executed in this document.
The timeframe for this research is 8 weeks. The basis of this report was made on the 3 th of
December and the final adjustments were made on the 15th of January.
The research team would like to thank the following institutions and persons:
Rotterdam Mainport Institute, for offering this interesting business case.
Hogeschool Rotterdam, for providing an online communication platform during
COVID-19 times.
Port of Sohar, for offering an interesting realistic business case.
J. Buurman, for guiding the current situation of the chosen port and the advice of
terminal development plan.
Rotterdam,15th January 2021
1
, Sustainable Terminal RMIMPM10
Management Summary
From the current situation the research team has carefully considered the SWOT analysis
and has come to the following advice for the development of a new terminal in the Port of
Sohar.
The Port of Sohar area is pretty much occupied therefore the research team decided to look
outside of the existing port area but still next to the Port of Sohar to make use of its
hinterland and other economy activities. The research team advices to build a container
terminal since it is the largest cargo flow of the Port of Sohar. Within a container terminal
the classic terminal activities like loading, unloading and transhipment. Since the Port of
Sohar has no major production company near it will mostly do import and transhipment
cargo flow. To monitor the operations of the terminal an TOS is recommend. The intra port
and inter port competition is low. The environmental assessment will be very low as well
since the terminal will only have to handle containers. The average wage of Oman is 325
OMR for a high school degree, and this rises with higher education. While running a
terminal, certain risks are in place. In this case it will be Quay crane accidents and rain and
flood damage. Equipment used for the operational process should be placed on high ground.
The infrastructure of the terminal is already mostly in place and connected to several
junctions. For the build of the superstructures the ground must be stable and laid with
concrete and asphalt. This is also needed to build to the 2500 m2 warehouse. Furthermore, a
camera system will be installed, and a guard house will be placed at the entry. The
equipment purchased for the terminal are:
4x Quay cranes costing €7.000.000
2x Volvo Eletric trucks costing €170.000
A 2500 m2 warehouse costing €28.790,48 (with possible expansion on the horizon)
A guard house costing €1.200
A guard fence costing €28.954,93 which surrounds the complex
Eletric trucks for waste disposal costing €23.333
The research team also advised KPI's for the different factors within the terminal like Quay
(ship-to-shore), Yard, gate and the human factor. These KPI's can be found in Table 2 . The
modalities of the hinterland are train, air and road transport with further investment in
multi-modal in development. The terminal will mainly focus on transhipment and import.
Regarding the financial situation the research team advises to keep the Landlord model,
which is already in place, because the strengths simply outweigh the weakness/risks. One of
those strengths is to allow private terminal operators which can be very efficient. For the
first year the following investment will be required: quays, cranes, paving, infrastructure,
superstructure/buildings, operational equipment and IT. The investment will be quite high
for the first year. The cost of each year will consist of CAPX and OPEX costs. The revenue
consists of the following points: Cargo service, handling fees, storage fees (daily rate), tariffs
for transhipment and other activities. Figure 6 in paragraph 3.3 shows the different cost
within CAPEX or OPEX.
For the implementation firstly, the land needs to be leased from the government and the
permits must be in order. When these permits are in order the construction can start. The
2
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