Summary
France’s CMA CGM and Oman’s Asyad Group (ASCO.OM) announced a partnership to build a $400 million logistics terminal at Sohar, the Omani port that has been cited as an alternative trade route during the Iran war. The framework agreement was signed during the visit of Sultan Haitham bin Tarik to France and sets out plans for the two firms to develop, manage and operate a multipurpose terminal in Sohar, according to a joint statement from the shipping and logistics companies.
Deal details and stated objectives
The agreement establishes a collaborative framework for the construction and subsequent operation of the new terminal. Company statements say the facility is intended to support reliable inland access to key trade corridors, and to provide greater resilience and efficiency for customers' supply chains. Rodolphe Saade, chairman and CEO of CMA CGM, is quoted in the companies' statement highlighting those aims.
Context cited by the companies
CMA CGM and other shipping firms have previously developed land connections linking Gulf destinations with ports outside the Strait of Hormuz following disruptions to the strait during the Middle East war. The companies note that such alternative routes were expanded amid security concerns affecting maritime traffic through the waterway.
Transits through the Strait of Hormuz increased after the signing of an initial U.S.-Iran peace deal earlier this month. At the same time, the statement notes that tit-for-tat strikes by the two sides have continued to create uncertainty over security in the waterway, which carries a large share of global oil, gas and fertiliser trade.
Implications highlighted by the partners
The partners say the Sohar terminal will aim to bolster supply-chain reliability by offering inland access to key corridors and by serving as an alternate node for cargo flows. The framework agreement covers development, management and operational roles that CMA CGM and Asyad will undertake as they move forward with the project.
Note - The information in this article is based on the statements provided by the companies involved and reflects the details they disclosed at the time of signing.