Nippon Yusen Kabushiki Kaisha (NYK Line) and Port of Duqm Company (PODC), the entity managing port and terminal operations in Oman, signed a memorandum of understanding (MoU) to collaborate on the development and connectivity of the Port of Duqm.
NYK has positioned the Middle East as one of its key strategic regions. On April 1, 2022, NYK established its regional headquarters for the Middle East in Dubai to consolidate its regional strategy and facilitate more agile business development across the region.
Yuji Otsuka, general manager of the Dry Bulk and Energy Business Coordination Group of NYK Line, stated that “we are pleased to have signed this memorandum of understanding with PODC, which marks a new stage in our collaboration following previous talks. We will enter into concrete talks with PODC to build a more efficient supply chain, taking into account the geographical advantages of the Port of Duqm and the potential for hydrogen and ammonia production using renewable energy.”
In particular, the Port of Duqm, strategically located outside the Strait of Hormuz, offers significant geographical advantages due to its proximity to the Middle East, India, and East Africa.
Furthermore, the area has been designated as the Duqm Special Economic Zone (SEZAD), offering a series of incentives to attract both heavy and light industry, along with continuous infrastructure development.
The port is currently promoting direct reduced iron (DRI), an eco-friendly 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.
By signing this memorandum of understanding, NYK seeks to accelerate concrete talks with PODC in various fields, including support for the green steel industry, the development of alternative solutions for the transportation of finished vehicles in the Middle East region, and the production and shipping of renewable energies such as hydrogen and ammonia.
