29 July 2015
MUSCAT: DHL Express plans further expansion in Oman as the government is developing the infrastructure to transform the country into a major logistics hub in the region.

"The Sultanate is blessed with a strategic natural location and the government has readily developed it with high quality, accessible infrastructure," said Ali Thabet, country manager at DHL Express Oman. Given the impending inauguration of Muscat International Airport, fully-fledged operation of the ports of Duqm and Sohar and Oman Rail's plan for a national raiway network, DHL Express Oman foresees a massive increase in presence through newer facilities, Thabet said in response to Times of Oman queries.

He said that DHL Express Oman believes it safe to say that the burgeoning e-commerce market remains one of the key contributors to making Oman a logistics hub.

E-commerce

"We plan to focus on promoting this, within the Sultanate. Based on a trend report focused on the Internet of Things (IoT) announced at the DHL Global Technology Conference in Dubai earlier in 2015, the e-commerce sector in 2014 saw a total revenue of a trillion US dollars - a direct 13 per cent growth of 2013. By the year 2016, we also expect e-commerce users in the Middle East region to grow up to 100 million in members and believe that Oman will be a major part of this growth trend," the official noted.

He added that according to the report, over the next decade, the logistics industry could unlock higher levels of operational efficiency as the web connects in real time millions of shipments being moved, tracked and stowed each day. "In warehousing, connected pallets and items will be a driver for smarter inventory management. In freight transportation, tracking and tracing of goods becomes faster, more accurate, predictive and secure while analytics of a connected fleet can help to predict asset failure and to schedule maintenance checks automatically," he said. "Finally, connecting delivery personnel with surrounding vehicles and people can become a way of monetising and optimising the return trip to improve efficiency and service in last mile delivery. For customers, this means DHL can provide an even faster, more reliable and cost-effective service - this is a snapshot of what we would like to bring to Oman," Thabet stated.

Small enterprises

Commenting on the support given by DHL Express Oman to small and medium enterprises (SMEs), he said, "In Oman, DHL Express has been intent on supporting SMEs by enabling the businesses to go online and initiate a shift from an import-centered model to an export-based one." As a business policy, as well as in adherence with Royal Directives in the Sultanate towards the support for small enterprises, preference is given to Omani companies in the sectors of packaging, local transport, maintenance and office supplies among others, at DHL Express Oman, he added. Thabet stated that DHL Express Oman invites local suppliers to be a part of the DHL supply chain -managing region-based deliveries within the DHL umbrella. "This initiative not only allows DHL to expand its existing network into the various wilayats of the Sultanate, but also gives entrepreneurs an opportunity to learn from one of the world's largest and most efficient logistics company," he said.

Asked about Oman's advantages in establishing the country's ports as transhipment centres for regional supply, the official said, "DHL ships to more than 220 countries and territories around the world. Among the destinations we cover in the Middle East region, Oman enjoys a favourable location. Ideally situated between several rapidly developing countries, it has been connecting the world to the Gulf and serving as a regional logistics hub for more than 4,000 years." "Today, the Sultanate has advanced from all arenas. Given its progress in recent years, and the steady growth of GDP and other economic indicators, we believe that the Omani economy will progressively continue to grow," said Thabet. He added that the stable political climate, which is one of the basic elements needed to make a significant development in the logistics service industry has enabled Oman to become a key centre for logistics in the world.

"In reflection, we at DHL in Oman are investing in our infrastructure, updating our facilities with the most advanced technologies and increasing our capacity, which will keep us well prepared to handle the growth and advances in the economy," he said.

Redistribution centre

Asked how successful the authorities have been in making Oman a centre for redistribution in the region, Thabet said, "As part of the 9th Five-Year Plan (2016-20), the government of Oman has developed a strategic plan for the logistics sector."

"This plan will look to build on the achievements of Oman in linking the key trading hubs in the country with Gulf, Arab, Asian and global markets through the presence of a land-transport network that includes over 32,600km of paved roads connecting the various governorates, Wilayats and villages within the Sultanate," he said. He added that the authorities in Oman have been paving the way by promoting initiatives that will complement the projects of the government in strengthening the infrastructure of the logistics sector to meet trade movement and the increasing volume of investment demand in the commercial and industrial sectors.

"Moreover, with the Muscat International Airport expansion en route to completion, the expanded Salalah airport with a capacity of 3 million passengers already function and several other airports in the pipeline, in addition to Oman's port infrastructure (in Duqm and Sohar) - there already exists a rather cohesive area for development," he said.

This is a huge benefit to a business such as ours, as we depend on developed infrastructure and a government with a vision towards making the country a nucleus of progress, added Thabet.

"The growth of the logistics sector is not limited to itself, but extends to the role it plays in supporting other sectors, and we, at DHL Express Oman are eager to make the most of the opportunities that the government is providing," he noted.

"We started our activities in Oman more than 30 years ago and in 2013, we set a budget for new investments in Oman, given the importance of the country, and the course of the development followed by the government to become a modern logistics hub in the Middle East," the country manager at DHL Express Oman concluded.

© Times of Oman 2015