The logistics sector plays a vital role in Oman’s modern and ambitious economy and is key to increasing inward investment, non-oil exports and the nation’s competitiveness. Logistics isn’t only an important sector in its own right but also a critical enabler for businesses of all sizes operating across the sultanate – from the gypsum quarry in Thumrait, hypermarkets in Seeb, battery manufacturer on Rusayl Industrial Estate, the pelletizing plant in Sohar to the plastics exporter on Salalah Free Zone. A well-oiled logistics sector provides Omani businesses and manufacturers with ways to increase efficiency, go greener and drive profits.
Earning revenues of US$7.87bn in 2013 that are forecast to reach US$12.02bn in 2017, Oman’s logistics sector is already competitive, contributing 4.9% to the sultanate’s GDP in 2015. The industry is led by multinationals offering a comprehensive range of sophisticated logistics services, down to smaller national freight forwarders offering the simple storage and shipping of merchandise. Oman’s logistics industry is expected to grow at a CAGR of 7% between 2015 and 2020. The key drivers for economic growth are the infrastructure investments in ports, free zones, industrial estates, roads, airports and rail network, economic diversification efforts and trade with GCC states, Asia and Sub-Saharan Africa.
FOR OMAN’S PORTS THE LOGISTICS OPPORTUNITY IS THERE FOR THE TAKING. MINISTRY OF TRANSPORT & COMMUNICATIONS COMMISSIONED RESEARCH ON CONSOLIDATION IN THE CONTAINER SHIPPING INDUSTRY ESTIMATES THAT ON A BENCHMARK VOYAGE DIRECT FROM SINGAPORE TO SUEZ, A WEEKLY CALL AT SALALAH FOR AN ULTRA-LARGE CONTAINER VESSEL WOULD REPRESENT AN ANNUAL COST OF US$4.47M, AT DUQM US$8.69M AND AT SOHAR US$17.09M.