As investments in Omans flagship SOHAR Port top $25 billion, focus on developing a regional logistical hub is set to continue under new CEO Mark Geilenkirchen. Logistics News catches up with Mark and outgoing CEO Andre Toet
Last month, SOHAR Port and Freezone CEO, Andre Toet, headed back to Europe after five years in the Sultanate to focus on the Chairmanship of essDOCS; a global enabler of paperless trade.
His successor, Mark Geilenkirchen, picked up the baton and joined SOHAR as CEO from APM Terminals in Hong Kong, where hes been working for two years as global client director, managing client portfolios at over 60 ports around the globe.
Mark, why did you take on a job in Oman?
As a country, Oman is really focusing on developing itself as a global logistics hub and that fits well with my previous experience. I started as a business consultant in the Netherlands in the early 1990s, focusing on logistics and quality; I became a business school lecturer and helped to establish a specialised faculty for logistics; and later I worked internationally in the field, most recently in Hong Kong, where I spent the last two years as global client director with APM Terminals managing client portfolios at over 60 ports around the globe. Today, SOHAR is one of the worlds fastest growing port and free zone developments and is really establishing itself as the regions challenger brand; frankly, I am very keen to help write the next chapter of this amazing success story. SOHAR stands at the crossroads of Europe and Asia, both in terms of culture and business styles; since I have a great deal of experience from both regions, it seemed like the perfect assignment from my perspective.
Mark, whats your plan to get up to speed on the SOHAR business?
For many weeks now, Ive been working side-by-side with Andre and Jamal T. Aziz, our Freezone CEO, and the rest of the Port and Freezone management team. Before that, I spent time at Port of Rotterdam to fully understand their side of the business: their long-term global goals and how SOHAR integrates into the World Port Network. But above all, Im just listening attentively to all our stakeholders: our staff, our tenants and terminal operators, our current and prospective investors and, of course, the Oman government theres a wealth of experience, knowledge and know-how embedded here in SOHAR.
Andre, what measures have been put in place to make the handover as smooth as possible?
As you might imagine, this transition was planned a long time ago, and a great deal of preparation was done together behind the scenes to ensure that this handover was as seamless as possible. When it comes to sector experience Mark and I speak the same language, and we share the same international perspectives with a focus on Asia, so thats made things much easier. Were both firm believers in open communications at every level, from the board to the operational teams. Moreover, weve had the full support of our international, best-in-class terminal operators in the Port; the terminals have been with us since practically day one at SOHAR and we could not have achieved our success without them.
Mark, what experience do you bring to the role?
I see myself as an entrepreneur, and I think that this is the right mind-set to manage a business that is now challenging the more established regional ports. These are uncertain economic times and thats also something that Im used to. I helped to navigate ABNAmro, the Dutch bank, through a very turbulent time in its history during the global financial crisis. Later, I helped to manage a financial turnaround at Port of Zeebrugge, a business that had been struggling, by attracting significant investments from China. And, of course, I have a lot of international experience in logistics, from consulting and teaching the theory of logistics at business school, to hands on global business experience, acquired in both Europe and Asia.
Andre, how has the business developed since you started in 2011?
The growth story of SOHAR, in terms of international investment and industrial diversification, has been phenomenal. When I started here five years ago, SOHAR was still seen as the Omani newcomer port, whereas today were establishing a significant regional hub that is very much on the map – and people all over the globe are sitting up and taking notice. We should not forget, we only had our first ship here in 2004 and now we have over 2,500 ships a year and a million tons of cargo a week, with investments in the Port and Freezone reaching $25 billion earlier this year.
Mark, whats the biggest challenge in succeeding Andre?
To be frank, change management, like my role at ABNAmro or at Port of Zeebrugge, is often easier than inheriting a house thats already firmly in order. The business here has seen continuous double-digit growth for ten years now and my role is to build on that. This means further development across our four major hubs metals, logistics, petrochemicals and food as well as supporting continued, dynamic growth in our container, liquid, dry-bulk and general cargo terminals.
Mark, what is your focus for the next 12 months?
Its going to be all about continuity and building on our already successful long-term strategies. Well be looking to develop more synergies between our Port and Freezone businesses, and further developing the Freezone as a regional hub for innovation in the logistics sector. Then well be talking with our neighbours in the hinterland, especially in Saudi Arabia, and across the water in Iran, to develop more business opportunities with them.
Andre, what do you think the future holds for SOHAR?
As the GCC countries continue the rapid economic diversification, shifting their focus away from hydrocarbons, this will drive more non-oil, international investments into the region and SOHAR is ideally positioned to benefit from that. Also, as Iran reopens for international business there is phenomenal upside potential for Oman in general, and specifically for SOHAR.
And Mark, how do you see the future?
We are in exactly the right place at the right time: thanks to our prime location, as well as our excellent marine and landside connectivity, SOHAR is poised to become a very significant international logistical hub in the years to come.
Andre, what is your advice for Mark?
My advice for Mark is very simple: stay calm, keep smiling and appreciate Omani culture, you will have a good time here.