Oman - Logistics

Oman - Logistics Oman - Logistics. A sizeable market exists in Oman for meeting the Sultanate’s transportation needs and the GoO is focusing on the logistics sector to bolster economic diversification. In addition to passenger vehicles, Oman is importing construction, airport, and port equipment. Highlighting its infrastructure investment initiatives are the government’s aspiration to build a national railway connecting Oman to the GCC (though this has been largely shelved since early 2016). The construction of an industrial and transshipment port in Duqm is proceeding, and the Ports of Salalah and Sohar are expanding. Road construction is another major focus of domestic and regional development. The new Muscat International Airport is expected to open late 2017 and Salam Air, Oman’s first budget airline, has already been launched. There is also a drive to improve the public transport infrastructure in Oman through the addition of a limited bus system, a government-run taxi service, and discussions of a light rail/metro system. However, many projects are currently believed to be either ‘on hold’ or delayed due to the current economic pressures. Sub-Sector Best Prospects. Construction equipment, buses, aircraft, X-ray security screening equipment, port equipment (cranes, rubber tire gantries), port access control and security solutions, logistics software as well as engineering, project management, and consultancy services. Opportunities. In March 2017, Oman Rail announced that it would award the tender for multifunctional consultancy services within a month. In October 2016, the state-owned company invited proposals for tendering Multifunctional Consultancy Services covering operation and maintenance, infrastructure, rolling stocks, management, railway facilities, mass transit system and auxiliary services for ports and mines. Oman’s estimated $7 billion per year in infrastructure spending over the last decade has been focused on the three main ports of Sohar, Duqm, and Salalah; achieving the government’s goals of economic diversification and job creation, and at the same time equipping the Sultanate to serve as a global shipping and logistics hub. Duqm is a new city established in the interior of Oman featuring a new port; naval base; drydock; fisheries hub; industrial free zone; hotels; power and desalination plants; a $6 billion, 230,000 barrels per day refinery; a $500M, 250km pipeline network from interior oil fields; liquid jetty; and a groundbreaking new 15 million barrel per month (up to 200 million barrel total capacity) oil tank storage terminal. In addition, the new city requires sewage treatment, drainage, water desalination, power plants, buildings, telecom services and landscaping. The Government of Oman has put a heavy emphasis on building the Port of Duqm and all its surrounding activities. Sohar’s free zone has been at the forefront of Oman's downstream manufacturing boom. Oman's largest oil refinery also resides there, and is in the process of a $1.5billion expansion to add another 60,000 barrels to its current 116,400bpd capacity. In the fall of 2014 the Port of Sohar received most of the container traffic redirected from Muscat’s Port Sultan Qaboos. After some initial logistics challenges, Sohar has had increasing success with the expansion and is an attractive alternative for some businesses to Port Jebel Ali, to the north in Dubai. The Sohar industrial zone is also seeking to attract additional manufacturing companies to establish facilities or distribution centers. Salalah is in a prime location at the crossroads of East-West shipping and fast growth. If Oman's $15 billion railway is complete in the future, connecting to the GCC network, shippers will be able to avoid the Strait of Hormuz, dropping regional cargo at Salalah for onward multi-modal transit via rail, air, and local shipping. Salalah is linked through direct lines to 54 ports around the world, in addition to ships engaged in short trips to markets in East Africa, India and the GCC countries, making it an ideal transshipment hub less than two weeks from any destination. The Port of Salalah boasts the fastest transit times to Europe and Asia– 32% lower than competing ports. Since its inception 15 years ago, the Port of Salalah has handled 35 million containers, experiencing general cargo growth of 600%, container growth of 665%, and has set a world record of 250 moves per hour, according to port officials. Three new projects for the development of the Port of Salalah have been underway since early 2014. The first consists of building an additional berth for general cargo and a liquid terminal. The second project involves upgrades to the old cargo terminal. The third project includes the new Northern breakwater, an extension of the existing breakwater, an additional wharfs and ferry docks. Khazaen logistics city, the Sultanate’s flagship integrated facility in South Batinah Governorate, is scheduled to be operational in the first quarter of 2018. The logistics hub, to be spread over a total area of 95 square kilometers will let shippers and consignees from Muscat and other areas drop and collect their freight from the facility rather than go all the way to the ports. Oman Logistics Company SAOC is seeking a strategic partner to master plan, finance, build and operate certain assets for this initiative. The Ministry of Transport and Communication is currently constructing several road projects as well as repairing, dualizing, and raising the capacity of the existing roads. One such project is the strategic 256km Al Batinah Expressway. The government authorized RO 1 billion ($2.6 billion) in the 2012 budget to complete this project. The 750km Adam-Thumrait dualization project is another strategic project as it eases traffic in the northern governorates.