MUSCAT: The Ministry of Transport, Communications and Information Technology unveiled the executive programme for Oman Logistics Centre 2023-2025. The programme aims to increase the value of investments and economic diversification in the transportation and logistics sector. The executive programme for the transport and logistics sector targets several areas, including the private sector, investments, international cooperation, economic diversification, financial sustainability, the labour market and employment, as well as governance of the state’s administrative apparatus, resources and projects. It also aims to increase the value of investments in the transportation and logistics sector to RO 2.5 billion by 2025.
Further, the programme focuses on economic diversification and financial sustainability to raise the growth of government revenues from the transport and logistics sector. It also targets increasing returns in the land transport sector to RO 18 million in 2025, and raise the percentage of employment opportunities in sectors related to transport, logistics, communications and information technology from 19% in 2023 to 21% in 2025.
The event was held under the patronage of Dr Saud Hamoud al Habsi, Minister of Agricultural, Fisheries and Water Resources.
Eng Said Hamoud al Maawali, Minister of Transport, Communications and Information Technology said that the transport and logistics sector is witnessing growth at an accelerated pace, as its contribution to the gross domestic product (GDP) of the Sultanate of Oman during 2022 reached approximately RO 2 billion.Al Ma’awali added that the Ministry seeks to make the logistics sector the second largest contributor to the Omani economy by 2040.
For his part, Eng Khamis Mohammed al Shamakhi, Under-Secretary of the Ministry of Transport, Communications and Information Technology for Transport, said that the Sultanate of Oman ranks fifth in the Arab world and regionally and 43rd internationally in the Logistics Performance Index (LPI) issued by the World Bank in 2022.
He pointed out that the percentage of land transport activities’ contribution to the total contribution of the logistics sector to the GDP in 2022 amounted to 60%. Contribution of other activities stood as follows: water transport activities 6.7%, air transport activities 3.2%, while the contribution of warehousing and support activities for transport and mail reached about 30%.
Al Shamakhi said that the growth of exports in the logistics sector through Omani ports in2022 reached 21%, while the growth of imports reached about 18% and re-exports grew by 3%.
Meanwhile, the Ministry of Transport, Communications and Information Technology announced during the ceremony the launch of the ‘Best Practices in the Logistics Sector Award’ which is to be awarded for the most innovative projects in logistical activities over the past 12 months.
The award aims to raise the efficiency of the sector, enhance the competitiveness of companies, and enhance the competitiveness of small and medium enterprises (SMEs) in the logistics sector.
Moreover, the award covers the activities of warehouses, shipping agents, air transport, sea transport, land transport, customs brokers, ports and free zones, ground handling and cargo agents. It also includes the categories of Omanisation, health and safety, environment, best operational technical practices, as well as Omani products and services.
Furthermore, Oman Logistics Centre was established by the Ministry of Transport, Communications and Information Technology in 2015. It is concerned with following up and implementing the Sultanate of Oman’s logistics strategy 2040 and working on making logistics services as one of the main components of the economy. The strategy, which was launched in 2015, aims to place Oman in the classification of global logistics and industrial indicators. It also targets increasing the contribution of the logistics sector to the growth of the gross domestic product, expanding job opportunities in the logistics sector, in addition to raising the share of the Omani market globally in the field of logistics services.
The national logistics strategy is based on facilitating trade through a qualitative shift in the transaction processing systems that govern the movement, inspection and financing of the freight market across borders, ports, airports and the entire supply chain.
On the sidelines of the ceremony, a cooperation agreement was signed between Oman National Transport Company (Mwasalat), one of the Asyad Group’s companies, and Oman Energy Association (Opal), related to the field of vehicles and logistical transport. The agreement aims to enhance joint efforts to support the establishment of a framework for qualification and training and raise the efficiency of workers in companies specialized in the fields of energy, minerals and related sectors.
The Ministry of Transport, Communications and Information Technology also signed an agreement to establish Khazaen Logistics Complex with Khazaen City to clear transactions and facilitate procedures within Khazaen Economic City.
Further, Khazaen Dry Port Company signed an agreement with another company to provide one-stop services at Khazaen Dry Port.
As part of the ceremony, the Ministry of Transport, Communications and Information Technology and the Civil Aviation Authority (CAA) launched two-week workshops to attract investments in transport and logistics. — ONA
Oman Observer is now on the WhatsApp channel. Click here
