10 sectors to be prioritised: Oman Global Logistics

STRATEGY: OGL is working to formulate a national markets development plan to help achieve the short, medium and long-term ambitions - Conrad Prabhu - MUSCAT, MARCH 13 - Oman Global Logistics Group (OGL), the transport and logistics arm of the Omani government, has prioritised 10 different sectors that, suitably developed and leveraged, have the potential to make a significant contribution to the strategic goal of supporting the growth of a logistics-centric economy in the Sultanate. Of the 10 target areas, five of them — Mining, Fisheries, Chemicals, Food Processing and Agriculture — are essentially production sectors with the potential to generate sizeable volumes for export. The remaining five thrust areas — Retail & FMCG, Automotive, E-commerce, Pharmaceuticals, and Oil & Gas — that are ideal as hubs or distribution centres with the potential to fuel the growth of logistics activities in the Sultanate. The initiative is an integral part of the National Logistics Strategy currently being implemented by OGL on behalf of the Omani government, according to a senior official of the state-owned grouping of the government’s investments in various ports, free zones, logistics hubs, and transport entities. Elements of OGL’s implementation strategy and the potential for logistics-related investment opportunities were outlined by Ahmed Said Tabook, Programme Director — Markets, Oman Global Logistics Group, at a key forum held in the city last week. Also as part of the National Logistics Strategy, OGL is working to formulate a national markets development plan to help achieve the short, medium and long-term ambitions and targets set out in the national logistics roadmap, said Tabook. Notable are government’s ambitions to lift the logistics sector’s contribution to the GDP to RO 3 billion by 2020, RO 8 billion by 2030 and RO 14 billion by 2040. It also envisions the growth of air cargo to 0.35 million tonnes by 2020, rising to 0.75 million tonnes by 2030 and 1.5 million tonnes by 2040. Sea cargo, on the other hand, is projected to surge to 58 million TEU by 2040, up from 27 million TEU in 2030, and 10 million TEU in 2020. To help achieve these ambitious goals, the Markets Department has set out four key objectives: to provide market intelligence and trends analysis; carry out segmentation and targeting of promising sectors and geographies; develop a competitive logistics product offering; and ultimate design, develop and promote an Omani Global Logistics Brand. These objectives will support the achievement of logistics sector goals in terms of GDP contribution, employment generation, trade value creation, and the position of Oman as a logistics hub, said Tabook. Significantly, Oman Global Logistics Group has set itself a number of targets for implementation during the course of this year, according to the executive. Notable targets are: That shippers submit declarations prior to vessel arrival; To fully operationalise the Risk Management Module of ROP Customs’ Bayan System; To introduce a One-Stop-Shop for Physical Inspections; To fully operationalise the TIR System with the Sultanate as a contracting party to the TIR Convention; To complete and operationalise the National Single Window system; To ensure that OGL-drafted Standard Operating Procedures are adopted by Customs for Bonded Warehousing, Transit volumes, and Local Clearance; and to support the founding of a Logistics Supply Chain Association in Oman. Among the handful of successes achieved so far this year is the introduction of the Authorised Economic Operator (AEO) programme that has so far seen four logistics companies granted the coveted AEO tag by ROP Customs, said Tabook.