Duqm Port’s Basin 2 to Anchor Oman’s Green Metals Hub

Port of Duqm’s Basin 2 is set to become a cornerstone of Oman’s emerging green steel and low-carbon metals ecosystem within the adjacent Special Economic Zone at Duqm (SEZAD).

The infrastructure development is being led by CAP Infra, a consortium of the Port of Duqm Company, DEME Group, and Port of Antwerp Bruges, with strategic investment from Investcorp Aberdeen Infrastructure Partners (AIIP). AIIP, a joint venture between Bahrain’s Investcorp and Scotland’s Aberdeen plc, is backing the USD 550 million development package.

Reggy Vermeulen, CEO of the Port of Duqm, said that the project will include dredging, construction of new quay walls, and installation of platforms to handle high-volume cargo, directly supporting the Mitsui-Kobe Steel initiative. “Basin 2 will at least double our current capacity, accommodating multiple industries, steel, liquids, renewables, and ship repair, within one integrated layout,” Vermeulen added.

Major industrial projects are anchoring Oman’s green metals strategy. The Kobe Steel-Mitsui partnership plans to produce 5 million tonnes of low-CO₂ direct reduced iron (DRI) annually using the MIDREX process, targeting Asian and European markets. Brazilian mining giant Vale is developing a green iron and metallics complex, while India’s Jindal Steel Duqm advances a 5-million-tonne-per-year low-carbon steel project. Singapore’s Meranti Green Steel is expected to finalize a 2.5 Mtpa green-iron venture by mid-2026.

These projects will drive substantial bulk cargo traffic, iron ore inbound and metallics and steel outbound, supported by Basin 2’s deep-draft berths, bulk terminals, storage yards, and dedicated logistics corridors. Vermeulen emphasised Al Duqm’s multi-product, multi-hub strategy, aimed at integrating mineral value chains for both exports and domestic industrialisation.