WASHINGTON: Oxford Business Group in the UK says Oman is looking to boost investment in its transport and logistics sector, one of five pillars targeted under the country’s Ninth Five-Year Development Plan (2016-20). Plans to develop the sector are to be carried out through the Sultanate of Oman Logistics Strategy (SOLS) 2040, which aims to double employment in the sector to 80,000, as well as double its GDP contribution to OR3bn ($7.8bn) by 2020.
To this end, the Sultanate recently established a new holding company – Oman Global Logistics Group (OGLG) – to consolidate state holdings in the country’s seaports, free zones, and maritime and land transport companies. OGLG will also be responsible for implementing SOLS, supervised by the Ministry of Transport and Communications. Industry leaders have welcomed the move, saying it will help align strategic developments in the country’s transport and logistics sector.
“The creation of OGLG should help improve collaboration and coordination in the sector and boost synergies between stakeholders,” Reggy Vermeulen, CEO of the Port of Duqm, told OBG. “This move will help further establish Oman as a serious logistics hub in the region and will boost our competitive edge.” A separate company with a similar mandate is expected to be established to manage Oman’s civil aviation sector, according to press reports. The company will hold the government’s stakes in Oman Air, Oman Airport Management Company and National Aviation Company.
Oxford Business Group said the creation of OGLG comes as Oman continues to inject money into its three major commercial ports at Duqm, Salalah and Sohar in a bid to attract investors and shipping lines. A 2040 master plan for Sohar Port and Free Zone – located about two hours from Muscat – is currently being finalised, according to media reports from October. The 2,000 hectare port area, which has already received US$26 billion in investment over a decade of operations, has a capacity of 1.5m TEUs. This is expected to increase to 5m TEUs by 2020 following the completion of a new container terminal. “With 95 per cent of the free zone already developed or leased to investors, there are also plans to expand the industrial area by up to 50 per cent in the near future,” said Oxford Business Group, noting that Oman’s two other major commercial ports are also expected to undergo significant expansions.
