Oman establishes holding firm to invest in logistics sector

Muscat: Oman government on Wednesday said that it is establishing a holding company, Oman Global Logistics Group SAOC, to invest in ports, free zones, railway, maritime and land transport companies.
The decision was announced by Dr. Ahmed bin Mohammed Al Futaisi, Minister of Transport and Communications here on Wednesday. The holding firm will be the government’s development arm and will play a key role in creating major growth opportunities to significantly raise the contribution of logistics sector to the gross domestic product.
“The aim is to synchronize investment and development objectives and therefore exploit the assets capabilities and potential in order to maximize the return on investment,” said a ministry release.
A key mandate for the holding firm will be the implementation of the National Logistics Strategy, under the direct supervision of the Ministry of Transport and Communication. A key drive in the implementation will be to activate the role of the private sector in accelerating the growth of logistics sector through joint investments, innovation and bydeveloping national capability in order to create employment opportunities.
The firm will also take necessary steps to implement the policies drawn by the government, including the coordination and integration between the state agencies to achieve the company’s investment and development objectives. Further, it will have the responsibility to monitor the performance of the group companies.
The Sultanate has translated its efforts to develop the logistics sector through massive infrastructure investments several specialised industrial zones and world-class ports that provide a competitive edge to attract major shipping lines. The ports and industrial zones are also well linked by a sophisticated roads network to ensure smooth cargo movements between the ports, industrial zones and the end customers.
Moreover, Oman has just completed the preliminary design of its entire planned rail network, which aims to link the ports, economic, industrial and commercial areas and also areas with potential urban growth.
The Sultanate's has equally constructed a developedroad transport sector, both public and private, through the sophisticated infrastructure and the issuance of laws, regulations and legislations governing the sector development in line with international best practices.
Aviation holding firm
In a similar direction, the Ministry of Transport and Communications is currently working on setting-up a holding company for the civil aviation sector, which will include Oman Air, Oman Airports Management Company and Air Navigation Company (under incorporation). The holding company will help the enhancement of the sector services and ensure the operation and management are in accordance with the policies determined by the government.