Oman’s logistics market set for steady growth
Dubai, August 12, 2014
The nascent transportation and logistics market in Oman will witness steady growth over the next five to seven years due to planned investments in logistics infrastructure and industrial development in the country, said a new report.
The widespread opportunities for integrated logistics service providers that offer end-to-end logistics solutions will arise in certain industries such as chemicals, said the new analysis from Frost & Sullivan, Strategic Analysis of Oman’s Transportation and Logistics Market.
The market earned $7.87 billion revenues last year and it is estimated to reach up to $12.02 billion in 2017, it said.
The study covered transportation, warehousing, freight forwarding, and value-added logistics services.
Srinath Manda, Frost & Sullivan automotive and transportation programme manager, said: “Oman’s strong transportation and logistics requirements stem from its centralised location in the Arabian Gulf, which makes it a trans-shipment centre and an ideal gateway for goods moving to the interior parts of Saudi Arabia, UAE and Yemen.”
The government has initiated large-scale infrastructure projects including Al Mazyounah Free Zone, Sohar Free Zone, Salalah Port, Muscat Knowledge IT City and Duqm Special Economic Zone to fulfil the needs of the logistics industry and consolidate the nation’s position as a premier logistics and transshipment hub, he said.
However, there is a lack of skilled labour to support transportation and logistics businesses. Low domestic manufacturing activity for many industries is also limiting the opportunities for domestic logistics services.
“Recognising these limiting factors, the Government of Oman has designed industrial expansion plans to diversify the economy of Oman and create manufacturing clusters to reduce the economy’s dependence on the oil and gas industry,” noted Manda.
“These initiatives will lead to the much-needed growth of the domestic manufacturing sector and, thus, necessitate a host of logistics services to carry raw materials and finished products for domestic and international consumption.”- TradeArabia News Service