The logistics industry in the Sultanate of Oman is experiencing a change to conquer infrastructure bottleneck, lack of investment in port handling capacity, and poor land transport network with other GCC nations. The Logistics segment is one of the main non-oil economic sectors and contributed real stake in the nation’s GDP, the government is hence enthused about promoting Oman as a main logistics center in the region.

The key drivers for logistics industry in Oman’s economic development are the infrastructure investments related with national logistics development plans, economic diversification efforts, and trade with the GCC, Asia and Sub-Saharan African nations.

As a member of the Gulf Cooperation Council (GCC), Oman is probably going to benefit by trade policies and customs regulations and integration of national transport infrastructure with territorial transportation corridors in the GCC. The Oman Logistics Plan and the Oman Logistics Strategy (SOLS) plan to improve the nation’s soft infrastructure, especially the regulatory environment, support mechanisms, and organizations. Oman’s strategic centralized location in the Arabian Gulf makes it perfect for conversion into a noteworthy transshipment hub for the East-West exchange route.

1. Some of the key trends identified in the Oman logistics industry are :

Initiated by the Supreme Council of Planning (SCP), the task force has developed the Sultanate of Oman Logistics Strategy.

Investments on infrastructure and latest technology for upgrading ports, airport facilities, new road links, supported by increased Government spending.

High priority is given for the development of national rail network to connect with the GCC rail network to improve efficiency and reduce logistics costs.

Trade with the GCC, Asia, and Europe is likely to remain the major driver for freight forwarding and transportation companies in the region.

Main exports continue to be mineral fuels, oils distillation by-products, while imports comprise manufacturing goods and agriculture products.

Among all cargo activities in Oman, ocean transport is the dominating mode, accounting of cargo in Oman dealt with by Sohar and Salalah Ports. As a feature of the government’s plan, Port Sohar has been reserved to deal with ocean freight as an alternative to Muscat.

The road freight in Oman is driven by domestic financial activities to meet local demand and land-based trade with other GCC nations. New route between Oman and the KSA gives a more direct route between the two nations as well as reduced the number of border crossings, while expanding road transport efficiencies. As international trade gains momentum force with the development of freight taking care of limits in major airports.

2. Oman’s Logistics Transformation :

Oman’s Logistics Industry can possibly be one among the key Logistics Centres in the region. The accentuation on domestic output is creating scope for substantial cargo volume growth to and from Oman. This can trigger improved connectivity and networking, which would then prompt be changing the logistics industry to support trade for other countries as well.

Nonetheless, this development could be challenged by surging competition from the UAE and the KSA, alongside different nations with comparable portfolios and venture scenarios for the logistics industry. The inefficient logistics infrastructure (particularly, in the sub-urban regions) increasing the potential expenses and time effectiveness of the logistics operations, and lack of skilled labour relating to logistics services to help the growing requirements of the market, are also significant challenges.

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