David Gledhill, chief executive of the Port of Salalah.
The Port of Salalah lies at the southern-most point of Oman, close to the border with Yemen. It is partly Government-owned and operated by APM Terminals, part of the Maersk group of companies.
Traditional dhows alongside, centre, while the cranes handle the bigger ships at the Port of Salalah
As well as handling 3.5million containers a year, this world-class port also handles a million tonnes of general cargo every month and is a popular call for cruise ships. It also welcomes traditional dhows, vessels that carry a range of cargo to and from North Africa, Somalia and Yemen. It can handle the world’s largest container vessels and even has a dedicated quay for the royal yacht should the Sultan decide to drop in. It is the largest employer in southern Oman and injects the equivalent of one million pounds a month into the local economy through wages to Omani staff.
Traditionally a transshipment hub on the lucrative east-west trade routes and with close proximity to India and Africa, the Port of Salalah now has ambitions to become a gateway port, a challenge being taken up by its new leader David Gledhill.
The former chief executive of Hutchison Ports (UK), which owns and operates the Port of Felixstowe, Harwich International Port and London Thamesport, who was also a founding member of the New Anglia Local Enterprise Partnership (LEP), started his new job in April.
“This is a growing port with an exciting future,” said David, “and this is a great time to be involved.
The Port of Salalah cranes seen from one of the city’s deserted beaches where camels roam freely
“It is a well-run business and there are developments on the horizon which will be transformational and being involved in something so positive, that will be so beneficial to the region and its people, is great.”
The range of cargo and craft using the port represent a common theme in the Middle East where state of the art technology and systems often sit alongside ancient traditions.
“The diversity of the business is interesting. Having the dhows coming in, for example, and handling them safely alongside the huge container ships, is unique. The dhows have been coming here for thousands of years because Salalah has been a key trading point for Africa and India and the Arabian peninsula. That dates right back to when its frankincense was being shipped all over the world and that’s a fascinating heritage. These days the dhows carry anything and everything, even cattle. It’s not unusual to see a herd of goats walking across the terminal.”
In order for the Port of Salalah to become a meaningful gateway it requires a pioneering rail link, which will mean containers and general cargo can enter through Salalah and then moved overland to markets across the Middle East.
David Gledhill, chief executive of the Port of Salalah.
A champion for the enhancement of freight rail services to and from the Port of Felixstowe, which grew by 50% during his stewardship, David is in talks with the government to ensure that Salalah is included early in the construction programme.
“The great thing about Salalah is its position and its adjacency to the major shipping routes. Shipping lines do not like deviation and so the challenge for us is the onward overland transit and with the railway we overcome that and will be transformational.”
The rail project is just one of many initiatives to improve the port’s capability and efficiency.
The government is currently investing in the roads to the port and plans to build a new breakwater to shelter ships alongside during the monsoon and to improve the cruise offer. There is also a fuel jetty under construction and work on an improved general cargo terminal is under way.
The government’s high level of involvement means David finds himself in the capital city Muscat most weeks for meetings with ministers and other officials.
“The government not only has a physical share in the port but also huge influence over the future of the business so it is important to have a regular interface with them.
“The Omani way is to encourage free enterprise but their stake in the big businesses means they get a kick start.
“It was the right decision to live in Salalah, you can’t run a business 1,000 kilometres away, but representing the port at government level is one of my responsibilities and is key to being part of the business community and to encouraging Omani companies to partner with us.
“Oman is a great place to be and Salalah is thriving. The infrastructure is good, we have a new airport on the way, good telecommunications and the investment in the port is fantastic. The money is being spent sensibly. For a country that is not as oil-rich as some of its neighbours, the spending on infrastructure is impressive and the rail link would cap that off.”
Oman also throws some unique challenges at its business leaders including Omanisation, a government initiative to increase the number of Omanis working in every business, Khareef, an unusual weather system that brings monsoon rain and powerful tides and then there’s the issue of Somali pirates to contend with. “Omanisation is a challenge. The target is to have 80% Omani workers and I think we have reached the 60% mark and are working to improve that. I think employing local people is the right thing to do but there will always be those jobs that are more attractive to expats than to local people, which is much the same in the UK.
“Khareef is also a challenge for us but again a solution is being sought and the plan is to build a breakwater so that mooring is much safer and that has to be a priority.
“Piracy isn’t the problem it once was, but we remain vigilant. The anti-piracy task force is based in the Arabian Sea off Salalah and many of the naval vessels that are part of the task force are regular callers at the port.
“There are a lot of grey ships out there and the incidence of piracy have dropped dramatically over the last couple of years but we must never be complacent.”
The safety of everyone working on the port is at the top of David’s priority list and he has plans for the port to take a role in the safety of the wider community, something he hopes will continue to have a positive effect long after he his time in Salalah is over.
“On the port the safety culture is quite good, and we will improve that. Outside the port the safety culture is not good. I just don’t think people are as aware of the need for safety at home and on the roads as well as at work and I think it is a responsible thing for the port to try and educate and enlighten people. If I can use my influence and experience to help achieve better safety here then that will have been a good achievement.”
Six months in and despite being 7,000 miles from home missing family and friends, David is relishing his new role and getting to grips with a unique Omani way of life. He loves the climate (except during the Khareef), is learning Arabic and is enjoying doing business in the Gulf.
“The basis of the culture here and the way to do business is good manners,” he said.
“If you are polite to people and have an understanding of the customers’ needs or your stakeholders’ needs then it is easy to do business. It’s about translating the skills you have and it’s about good manners and listening.
“The people here are welcoming, generous and open. You can talk about any subject, and whether it’s religion or politics, they will share their views with you in a friendly and open way.
“The Omani people are renowned for their hospitality and openness and lack of bigotry, so it is a great place to work and they are wonderful people to do business with.”
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