Nippon Yusen Kaisha (NYK Line) and the Port of Duqm Company (PODC) have signed a comprehensive Memorandum of Understanding (MoU) to collaborate on the development and connectivity of the Port of Duqm.
NYK has identified the Middle East as a key strategic region, establishing its regional head office in Dubai on 1 April 2022, to strengthen its presence and enable agile business development.
Oman, rich in natural gas and renewable energy potential, is positioning itself to produce cost-competitive green hydrogen.
The Port of Duqm, strategically located outside the Strait of Hormuz, offers geographic advantages for access to the Middle East, India, and East Africa.
The surrounding Special Economic Zone at Duqm (SEZAD) provides incentives for heavy and light industries and ongoing infrastructure development.
The port is promoting direct reduced iron (DRI), a green steel product, and is expected to become a hub for hydrogen and ammonia production and export, leveraging abundant wind and solar energy.
Through the MoU, NYK plans to accelerate discussions with PODC across multiple areas, including supporting the green steel industry, developing alternative solutions for finished vehicle transport in the Middle East, and producing and transporting green energy such as hydrogen and ammonia.
Yuji Otsuka, General Manager of Dry Bulk & Energy Business Co-ordination Group at NYK Line, said:
“We are delighted to sign this MOU with PODC, marking a new phase in our collaboration. We will engage in concrete discussions to build a better supply chain, leveraging the Port of Duqm’s geographic advantages and its potential for renewable energy-based hydrogen and ammonia production.”
Reggy Vermeulen, CEO of PODC, added: “We are proud to collaborate with NYK Line, one of the world’s most respected shipping lines. This MoU reflects our shared vision to unlock growth opportunities and establish Duqm as a strategic maritime hub, contributing to the economic development of Duqm and Oman.”
In September, NYK announced the integration of two of its group companies — Keihin Dock Co., Ltd. and Yokohama Machinery Co., Ltd. — as part of its ongoing business restructuring.
