The Ministry of Transport and Communications has laid out its ambitious plans for 2019, aimed at developing the logistics sector as one of  the mainstays of economy, creating jobs for the national workforces and attracting FDI to the free zones  

Oman is looking to attract foreign direct investments (FDI) worth RO500mn in Sohar and Salalah free zones during 2019, according to HE Dr Ahmed bin Mohammed Al Futaisi, Minister of Transport and Communications. Speaking to OER at the sidelines of a press meet to announce some ambitious plans for the Sultanate’s transport and communications sector in 2019, HE Al Futaisi said, “For 2019, we have set the target of attracting RO500mn to our two key free zones in Sohar and Salalah and we will work hard to achieve the target through effective marketing.”

“The transport and logistics sector has significantly improved over the last years, and we aspire to continue this goal which will aid in the overall development of the Sultanate,” the minister added.

In 2018, Oman’s logistics sector grew at a rate of 7.2 per cent, creating 3,500 jobs and contributing 3.75 of the national GDP during the year. The Sultanate also advanced five positions in the World Bank’s report on logistics performance. Overall, the sector is likely to create 2,500 jobs for Omanis this year.  Speaking at the press conference, Abdul Rahman bin Salim al Hatmi, CEO of Oman Global Logistics Group (ASYAD), said the Omanisation rate in the group during 2016-18 rose from 74 per cent to 83 per cent.

In 2019, the government seeks a 15 per cent growth in the size of container and 20 per cent in general cargo, apart from Omani Shipping Company operating five shipping lines connecting ports of Oman.  “The year 2019 will see the operation and development of Khasab and Shinas ports by the Marafi management company,” HE Al Futaisi informed.

The ministry will expand the Port of Suwaiq by adding a 160-metre berth for goods and additional handling equipment, in addition to operating the rock quay at Sohar Port and land port (Khazaen), which is slated to become one of Oman’s largest logistics, warehousing and light-industrial developments. The ministry will also launch a hotline for port communications and is planning on using drones in the logistics sector in 2019.

During the year, the government will host five new pilot projects within the sailing incubator, in addition to support five national companies specialised in logistics sector for digital transformation in their institutions. The government will operate a one-stop inspection station at the Port of Salalah and plans to reduce the inspection rate to 10 per cent to complement the efforts of applying “risk systems” and to increase pre-clearance in ports from 14 per cent to 20 per cent.

Al Hatmi also informed that there was an increase in the number of vessels and passengers through the Port of Sultan Qaboos, which saw 147 cruise ships and 490,000 passengers.

Region’s best quality roads
The Sultanate is ranked first in the Arab world and eighth globally in the quality of roads. The first and second phases of Adam-Thamrait (dual carriageway) and Sharqiyah Expressway will be opened for traffic in 2019, besides expansion of Al Rusayl-Bidbid road and Daba-Lima- Khasab road, informed HE Al Futaisi.

The ministry opened parts of road projects in different governorates in the Sultanate with a total length of 383 kilometres, which includes the opening of the Al Batinah Expressway. Additionally, the ministry began the operation of public transportation in wilayat Sohar and Salalah. In 2018, the ministry also began working on the first tunnel in the Sultanate, which will be part of the Sharqiyah Expressway.

The aviation sector created 981 employment opportunities in 2018.  Mustafa al Hinai, CEO, Oman Aviation Group (OAG), said the 2019 plan also includes long-term development initiatives such as the Cargo Village, landscaping around Muscat International Airport and other airports, technology upgrades and special projects that will boost fisheries, agriculture and trade sectors.

The rehabilitation of the southern runway at the Muscat International Airport will begin in 2019. Other major initiatives during the year include the inauguration of new aircraft maintenance building, an integrated distribution centre for corrosive materials at the airport, and implementation of the master plan to reuse the old Muscat airport building. The second phase of study on Musandam airport is also expected to begin this year. Air cargo village at Muscat International Airport will also be launched.

On the communication front, the third telecom operator will start commercial operations in the second quarter of 2020, HE futaisi said. The minister also informed that 40,000 residential units in Muscat and 45,000 outside Muscat will be covered by the optic fibre network in 2019.