MUSCAT: Port of Salalah will receive an insurance settlement of $67.5 million towards damages caused following Cyclone Mekunu in 2018.
According to the Directors Report published by Shaikh Braik Musallam Al Amri, Deputy Chairman of Board of Directors, Salalah Port Services SAOG said the Port has come to a settlement agreement with its insurer. In his report, Al Amri said that more than half of the amount was received at the time of the incident, while the balance amount is due to be settled this year.
“During 2018, on-account payment of RO 14.808 million was received towards the Company’s Mekunu insurance claim. No insurance receipts have been received during the year 2019. Settlement has been reached with insurance company at RO 26.06 million ($67.75 million) out of which RO 14.808 million ($38.50 million) has been already received and recognised in the income, the balance amount of RO 11.25 million ($29.25 million) to be received and recognised as income in 2020,” the Deputy Chairman noted.
In 2018, Cyclone Mekunu had unleashed havoc in the southern part of Oman bringing an extensive damage to the logistics hub including its infrastructure and machinery. The terminal was restored completely only by 2019.