April 2015
upbeat about prospects for achieving this goal. After all, the Sultanate, he explains, lies at the crossroads of two giant water bodies – the Arabian Sea and Indian Ocean – through which a sizable chunk of global shipping and trade passes. Suitably leveraged, this strategic geographical location offers comparative advantages to industries and investors targeting markets along the supply chain. In the upshot, Oman stands to reap the benefits of increased trade and investment inflows, which in turn will fuel the creation of jobs and drive socioeconomic development. Both Sohar and Salalah ports continue to augment their capacities and modernize their facilities to keep pace with demand growth as well as the specific needs of their customer base. Port of Duqm, the Sultanate’s newest gateway, is preparing to make the transition from early operations to full-fledged commercial operations in a couple of years when its infrastructure and superstructure development is substantially complete. All three gateways are cornerstones of a port-centric logistics strategy that calls for these ports and their extended supply chain ecosystems to be made competitive and thus attractive to mainline ships and other investors. But strategic location and infrastructure development in themselves are not enough to drive Oman’s long-term logistics objectives, says Dr Al Futaisi. Equally important, he stresses, is the need for the government to create an enabling environment in the form of suitable legislation, regulations, IT systems, and other mechanisms that facilitate trade and services. At the same time, the government is looking to ensure that transport and logistics infrastructure – a critical enabler
of trade – is not only comprehensively developed but suitably integrated as well. Carriageways linking the Sultanate’s maritime gateways – particularly at Sohar, Duqm and Salalah – with the hinterland will be suitably augmented to handle large volumes of freight. Additionally, connectivity by rail – envisioned as part of Oman’s national rail development strategy – promises to significantly enhances the nation’s appeal as a gateway for trade for the wider Arabian Gulf region, and potentially parts of the Middle East as well. Indeed, all three ports are expected to generate substantial freight volumes that will be transported by rail not only to and from the hinterlands of Oman, but into the GCC as well. Sohar, Duqm and Salalah are also eyeing opportunities to serve markets deep inside Saudi Arabia via a new road link currently under construction via The Empty Quarter. Rail connectivity promises to be a transformative force when it is eventually rolled out. Divided into nine segments, the 2,135km network will run the length of the Sultanate from Buraimi and Khatmat Malaha in the north to Duqm in the southeast and Salalah and Yemen in the south and southwest respectively. Linkages with industrial parks, special economic zones – current and future, mining and logistics clusters, as well as major urban centres, will help fuel growth in all parts of the Sultanate. Segment 1 covering the 207km Sohar-Buraimi stretch will also integrate Oman’s National Rail Network with the GCC rail system. Indeed, connectivity and integration are the hallmarks of the government’s far-reaching strategy to enable the development of a comprehensive,
competitive and seamless national transportation system for passengers and freight. Under an agreement signed by the government last year, The World Bank’s help has been enlisted in carrying out a comprehensive assessment of the current state of affairs vis-à-vis transport services in the Sultanate. The findings will help in the formulation of a roadmap for the restructuring of the transport sector with a view to demarcating the regulatory functions of the various government stakeholders now engaged in overseeing this sector. Separately, Spanish transport engineering consultancy services firm INECO has been commissioned by the Ministry of Transport and Communications to formulate a masterplan for the introduction of a full-fledged public transport system for Muscat City. The study encompasses five different aspects of public transport: public transport regulation and organization, urban bus systems, taxi and microbus sector, maritime passenger services and urban railways systems in Muscat. Various transport service providers are also being suitably overhauled to prepare them for a more pronounced role when public transport services are rolled out not only in Muscat, but across the country. One example is Oman National Transport Company (ONTC) which is tipped to be radically revamped in preparation for an enhanced role as the nation’s flagship bus operator in the future. Preliminary plans drawn up by the Ministry envisage not just a dominant role for ONTC as a national bus operator, but rather to position the state-run entity as a full-fledged public transport company that also operates taxis and potentially an underground metro as well. Integral to this vision is a modern air transport system comprising a network of international and domestic airports connected by a world class fleet of airplanes. The expanded and upgraded international airports at Muscat and Salalah are due to be commissioned over the court of the next 2 years, while regional airports in Sohar, Ras al Hadd and Duqm are in various stages of implementation. With nearly all of them boasting sizable air cargo terminals, airfreight logistics is poised to grow exponentially in the coming years. “Thus, with the current level of development of the ports on an international level, linked by the railway with the GCC countries, and coupled with the development of airports, I think we are going a long way to develop a strong sector. Transport and logistics can have great economic benefits and can be one of the replacements for the oil sector. It’s not yet here but I am very confident and can see this happening soon,” Dr Al Futaisi added. 3