Oman’s Sohar Port and Freezone plans to attract downstream plastics manufacturers to the logistics hub ahead of the construction of the Sultanate’s first dedicated agricultural terminal, a report said.

"With the planned construction of an agricultural terminal and anticipated influx of grain products that will accompany its completion, our aim is to attract new investment in food and food processing industries and create a cluster than can feed the region,” the Times of Oman report quoted a statement by the freezone.

“Grain silos and a sugar refinery are already in the pipeline, and as this sector grows, the opportunities for packaging companies to serve multinational businesses will grow," it said.

"We are pleased to see the response that we have had to the news that more than 1.5 million tonnes of environment-friendly packaging materials will soon be produced at Sohar, led by Oman International Petrochemical Industry Company,” Edwin Lammers, executive commercial manager, was quoted as saying in the report.

“This will centre on production of PET (polyethylene terephthalate) typically used in the manufacturing of single-serve beverage and soft drink bottles," he said.

The $3.6 billion Liwa Plastics Project, which is being developed at Sohar by Oman Oil Refineries & Petroleum Industries, will provide polyethylene and polypropylene to packaging companies interested in setting up operations at the freezone, Lammers pointed out.

"The link between food and plastics is clear. The global packaging industry will generate $975 billion in sales by 2018, and 60 per cent of that will be created in the food industry,” Lammers said.

“Thirty per cent of packaging is made from plastics, and 90 per cent of the region's foodstuffs are imported. Much of this is pre-packaged elsewhere at a higher cost and our aim is to leverage our low-cost energy resources to reduce that cost," he added.

"However, packaging is not the only option available to potential investors. High density polyethylene and PET can be extruded for use in large-scale water and other types of piping, for example. This bodes well for the region's construction industry, though we do not envision Sohar being able to supply this industry just yet. Nevertheless, all of the plastics that will be produced at the port remain extremely versatile," he was quoted as saying in the report.