Japanese shipping major Nippon Yusen Kabushiki Kaisha (NYK Line) and the Port of Duqm Company (PODC), which oversees port management and terminal operations in Oman, have signed a comprehensive memorandum of understanding (MOU) to collaborate on the development and connectivity of the Port of Duqm.
As informed, NYK aims to accelerate concrete discussions with PODC across multiple domains, including support for the green steel industry, the development of alternative solutions for finished vehicle transportation within the Middle East region, and the production and maritime transport of green energy such as hydrogen and ammonia.
“We are delighted to have signed a MOU with PODC, marking a new phase in our collaborative relationship following our previous discussions. We will engage in concrete discussions with PODC to build a better supply chain, taking into account the geographical advantages of the port of Duqm and the potential of hydrogen and ammonia production utilizing renewable energy,” Yuji Otsuka, General Manager of Dry Bulk & Energy Business Co-ordination Group, NYK Line, commented.
“We are very proud of our collaboration with NYK Line, one of the most respected and globally renowned shipping lines. The signing of this MOU is a testament to the strong alignment of vision between NYK and PODC. It reflects our shared commitment to unlocking new growth opportunities and establishing Duqm as a strategic maritime hub in the region. We are confident that this collaboration will make a significant positive contribution to the development and economic growth of Duqm and the Sultanate of Oman,” Reggy Vermeulen, CEO, Port of Duqm Company SAOC, said.
NYK has positioned the Middle East as one of its key strategic regions. On April 1, 2022, NYK established its Middle East region head in Dubai to deepen its regional strategy and enable more agile business development across the area. Oman, while endowed with natural gas resources, is also globally recognized for its strong potential in renewable energy, which may lead the country to produce cost-competitive green hydrogen.
In particular, the Port of Duqm, strategically located outside the Strait of Hormuz, offers significant geographic advantages with its proximity to the Middle East, India, and East Africa. Furthermore, the area has been designated as the Special Economic Zone at Duqm (SEZAD), offering a range of incentives to attract both heavy and light industries, alongside ongoing infrastructure development. The port is currently promoting direct reduced iron (DRI), a green steel product, and is expected to become a hub for the production and export of hydrogen and ammonia, leveraging abundant renewable energy sources such as wind and solar power.
In related news, a joint development agreement (JDA) was signed in April this year to establish the “world’s first” liquid hydrogen corridor, connecting Oman, the Netherlands and Germany.
The corridor will link the Port of Duqm in Oman, the Port of Amsterdam in the Netherlands and key logistics hubs in Germany, including the Port of Duisburg, enabling the commercial-scale import of renewable fuel of non-biological origin (RFNBO) compliant liquid hydrogen to Europe.
