Oman’s SOHAR Port and Freezone faced challenges of having to manage day to day operations through standalone business applications that required human intervention and was limiting business growth. Implementation of IFS ERP has integrated its primary revenue from marine services and land lease as well as human resources, payroll and procurement functions.
SOHAR Port is Oman’s largest port and industrial complex, handling almost 60 million tons of cargo.
The implementation of IFS ERP has transformed SOHAR Port’s IT architecture into a unified, centralised platform.
For the IT department, maintaining and integrating these disparate systems required more resources.
IFS ERP lays the foundation for digital transformation, positioning SOHAR Port to leverage emerging technologies for excellence.
SOHAR Port is a deep-sea port centrally located and within easy reach of the economies of the Gulf and the Indian subcontinent. It is one of the few global ports equipped with deep-water jetties capable of handling the world`s largest ships. SOHAR Port is ideal for the import and export of a wide variety of dry, break, and liquid bulk, as well as container shipping. SOHAR Port is a 50:50 joint venture between the Government of Oman and the Port of Rotterdam. The port uses the same landlord tenant model successfully deployed in Port of Rotterdam.
SOHAR Freezone is a 4,500 hectares development that, together with SOHAR Port, has attracted over US$27 billion in investments. The first phase of the free zone has been developed, with almost 75% of the 500 hectares leased. Phase 2 is now well under way.
SOHAR Port is Oman’s largest port and industrial complex, handling almost 60 million tons of cargo. It boasts well-developed industrial activities in petrochemicals, metals, and energy sectors. SOHAR Port is located just outside the congested Strait of Hormuz, giving easy access to the Gulf States and Iran.
The port area of approximately 20 km² features operational businesses along with large-scale construction activities and investments exceeding $26 billion from 2004-2016, including world-class bulk facilities to accommodate very large ore carriers completed in 2011, together with other bulk import and export terminals.
The Port’s three main industrial clusters, logistics, petrochemicals and metals, were recently joined by the region’s first ever terminal dedicated to the handling of agricultural bulk. This new addition will manage Oman’s food reserves and will offer a flourmill, sugar mill and facilities for downstream food processing and logistics.
Since its inception, SOHAR Port has witnessed a rapid increase in the number of vessel calls every year. Vessel calls today stand at somewhere close to 3,000 a year. Because of this rapid increase in the number of vessels, developments are always in progress within the Harbourmaster’s office, for example:
Bunkering and ship-to-ship operations are available for all vessels calling at the port through the port management system.
- Water and provisions services can be utilised for all vessels in the anchorage area and inside the port basin
- Crew change service is available
- Live weather report is available for all port users
- Full pilotage services
- Change of armed guards
In April 2021, SOHAR Port and Freezone announced it has selected IFS Enterprise Resource Planning, Service Management and Project Management to digitise, automate, and centralise the Finance, Supply Chain and HCM Departments into one platform.
As a major contributor to trade in Oman, it is important that SOHAR Port and Freezone makes adequate investments to ensure that they are future ready to adapt and meet the emerging business requirements of the ports industry.
Legacy pain points
Prior to implementing IFS ERP, SOHAR Port relied on two legacy systems: one for finance and procurement, and another one for human resources. This setup presented several challenges for both the business and IT teams.
From a business perspective, the siloed nature of the data hindered collaboration and reporting efforts, while manual processes and inconsistent user experiences led to inefficiencies and reduced productivity.
Cross-departmental processes were hindered by the need to switch between different systems, leading to inefficiencies and potential delays in completing tasks that required collaboration between various functions within the company.
For the IT department, maintaining and integrating these disparate systems required more resources. The limitations of the legacy systems also raised concerns regarding scalability, security, and the ability to incorporate innovative solutions.
“You want to ensure that you have everything with the click of a button. You want to see everything within a dashboard and you want to see systems are reading with each other,” says Ahmed Al Hosni, VP Finance and Technology, SOHAR Port and Freezone.
The main challenge for SOHAR Port was to integrate all the stand alone systems and make them scalable for future growth.
“Because we are not a small organization, we are also looking for growth. The expansion that we are planning for future is two times of the size that we are in today,” adds Al Hosni.
SOHAR Port also provides marine services for vessel calls and this is a source of revenue. Previously the invoicing was done manually and needed to be completed soon after the vessel had sailed.
For digital transformation of the Port, it starts by having an integrated software system that brings together everything.
Business expectations from ERP
The expected deliverables out of the ERP implementation project include:
- A fully unified ERP system that consolidate the existing systems into single platform.
- Streamline and standardise business processes.
- Enhance features and capabilities, such as advanced reporting and dashboard.
- Successful data migration from legacy systems.
- Thorough system testing and validation.
- Comprehensive user training and documentation.
- Dedicated support during go-live and post-implementation phases.
- Defined performance metrics and benefits realisation plan
- Comprehensive project documentation for knowledge transfer and future reference
IT and application architecture
When SOHAR Port implemented solutions from IFS, the IT team was restructured into two separate teams ensuring the segregation of duties. This included the help desk and infrastructure as one team and applications as a separate team.
Today IFS ERP is the mission critical solution and hosted on the main server. The other business applications are hosted on different servers and feed the main server.
The implementation of IFS ERP has transformed SOHAR Port’s IT architecture into a unified, centralised platform. It integrates business processes, eliminates data silos, and enables real-time visibility. The scalable and flexible architecture facilitates integration with critical systems and supports advanced technologies like AI.
Robust security measures and a cloud-based infrastructure ensure data protection and efficiency. IFS ERP lays the foundation for digital transformation, positioning SOHAR Port to leverage emerging technologies for operational excellence and competitive advantage.
Benefits for business and IT users
The implementation of IFS ERP has brought significant benefits to both business and IT users.
For the business, IFS ERP has enhanced cross-functional collaboration, digitalised, automated and streamlined processes, and provided real-time access to accurate data. The user interface and standardised workflows have increased productivity, while the improved reporting and analytics capabilities have enabled data-driven decision-making. This has empowered our teams to optimise operations, increase productivity and efficiency and drive business growth.
On the IT side, IFS ERP has simplified system maintenance by eliminating the need for complex integrations and data synchronisation. The scalable and flexible platform allows SOHAR Port to adapt to changing business requirements and supports future growth. Enhanced security features and improved data integrity ensure the confidentiality and accuracy of our critical business information.
After the implementation of IFS, all the business applications are integrated. Marine services for vessel calls is integrated with IFS ERP through the Port Management System. Processes, documentation, invoicing for land lease from SOHAR Freezone is also integrated with IFS ERP. Human resources and payroll, procurement and contracts have also been integrated with IFS ERP.
“Today with IFS, everything is integrated. Now everything comes under one umbrella and that is the beauty about it,” says Al Hosni.
Embracing digital transformation
SOHAR Port and Freezone’s business strategy has embraced digitalisation as one of the key objective, focusing on optimising operations, fostering innovation, and delivering superior customer value.
The implementation of IFS ERP has laid a foundation for achieving these goals as it is not only empowers employees and boosts productivity but offers a scalable platform to support future growth. It seamlessly supports the integration with upcoming systems such as Port Management and other systems.
Additionally, it provides robust cybersecurity capabilities and enables the adoption of artificial intelligence.
With IFS ERP serving as the core system, SOHAR Port and Freezone is well-positioned to achieve operational excellence, drive innovation, and maintain a competitive edge in the market. The integration capabilities, scalability, and advanced features of IFS ERP will play a crucial role in ensuring the long-term success of SOHAR Port’s digital transformation journey. The upgrade of the IFS applications is planned for the second half of this year.
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