30 July 2015
SALALAH: The formation of a new joint logistics company is right on track, as the founders of the company named Salalah Port and Airport Logistics Services met yesterday at Hilton Salalah Resort with a promising feasibility report.
The investors were happy over the fact that the report was ready within stipulated eight weeks after the agreement signing with the Netherlands-based Maritime transport and Business Solutions (MTBS).
According to Dr Anwar bin Mohammed al Rawas, Chairman of the Founding Committee of Salalah Port and Airport Logistics Services, the indicators are quite promising and more than 20 business opportunities have already been identified.
"There has been very good response from the investors and as of now we have a capital of RO 1.9 million. We are in the process of registration of the company, meeting prospective investors, banks and other stakeholders, as September 3 would be the last day of receiving investors' contribution," Dr Rawas said.
He dwelt upon the fact that Salalah has very big potential in logistics sector, which has multiplied several times after the opening of the new Salalah Airport. Port of Salalah and planned railway network would give further boost to the sector.
Paul van Eulem, Director of MTBS, gave a presentation outlining the salient features of the feasibility study, saying "with a revenue potential RO 50 million in required funding, the substantial immediate opportunities for the new company lie in the port logistics and free zone businesses.
"There are opportunities within the free zone, expansion of the container activity and cold storage logistics."
"The preliminary projections are positive and robust with shareholder returns 20 per cent and payback in 4 to 6 years. RO 10 million is to be raised as capital from private investors. The projects will boost the regional economy with important downstream. There would be high barrier-to-entry (concession).
International partners and operational experts would give the company a further boost," added Eulem.
The business opportunities identified for the upcoming company are in the areas of professional trucking services, dry warehousing with value added logistics, cold warehousing (storage and distribution), empty container depot (storage, distribution cleaning repair), railway development (Thumrait -Salalah ), emergency relief hub, port terminal concession (import, export and transshipment), community system (seaport, free trade zone and airport), manpower service (staffing training patrolling and free zone management.
Octal upstream or downstream activities, mining of limestone and gypsum, setting up of an aviation academy for pilot training, aircraft repair and overhaul and aquapark and tourism theme park were some other areas listed in the feasibility report.
Outlining the company's vision Eulem said: "The vision is to build a logistic conglomerate in Oman with state of the art technology and knowledge base. It would compete with the international players."
"We aim at linking the customers with the international market by building international partnerships with specialised regional and international companies and utilising integrated logistical solutions in order to achieve the highest competency and quality levels," he added.
The objective of the company is to build local competencies, provide highly efficient and competitive services, maintain a safe and clean environment, achieve financial gains to the shareholders and contribute in the community service and development.
SALALAH: The formation of a new joint logistics company is right on track, as the founders of the company named Salalah Port and Airport Logistics Services met yesterday at Hilton Salalah Resort with a promising feasibility report.
The investors were happy over the fact that the report was ready within stipulated eight weeks after the agreement signing with the Netherlands-based Maritime transport and Business Solutions (MTBS).
According to Dr Anwar bin Mohammed al Rawas, Chairman of the Founding Committee of Salalah Port and Airport Logistics Services, the indicators are quite promising and more than 20 business opportunities have already been identified.
"There has been very good response from the investors and as of now we have a capital of RO 1.9 million. We are in the process of registration of the company, meeting prospective investors, banks and other stakeholders, as September 3 would be the last day of receiving investors' contribution," Dr Rawas said.
He dwelt upon the fact that Salalah has very big potential in logistics sector, which has multiplied several times after the opening of the new Salalah Airport. Port of Salalah and planned railway network would give further boost to the sector.
Paul van Eulem, Director of MTBS, gave a presentation outlining the salient features of the feasibility study, saying "with a revenue potential RO 50 million in required funding, the substantial immediate opportunities for the new company lie in the port logistics and free zone businesses.
"There are opportunities within the free zone, expansion of the container activity and cold storage logistics."
"The preliminary projections are positive and robust with shareholder returns 20 per cent and payback in 4 to 6 years. RO 10 million is to be raised as capital from private investors. The projects will boost the regional economy with important downstream. There would be high barrier-to-entry (concession).
International partners and operational experts would give the company a further boost," added Eulem.
The business opportunities identified for the upcoming company are in the areas of professional trucking services, dry warehousing with value added logistics, cold warehousing (storage and distribution), empty container depot (storage, distribution cleaning repair), railway development (Thumrait -Salalah ), emergency relief hub, port terminal concession (import, export and transshipment), community system (seaport, free trade zone and airport), manpower service (staffing training patrolling and free zone management.
Octal upstream or downstream activities, mining of limestone and gypsum, setting up of an aviation academy for pilot training, aircraft repair and overhaul and aquapark and tourism theme park were some other areas listed in the feasibility report.
Outlining the company's vision Eulem said: "The vision is to build a logistic conglomerate in Oman with state of the art technology and knowledge base. It would compete with the international players."
"We aim at linking the customers with the international market by building international partnerships with specialised regional and international companies and utilising integrated logistical solutions in order to achieve the highest competency and quality levels," he added.
The objective of the company is to build local competencies, provide highly efficient and competitive services, maintain a safe and clean environment, achieve financial gains to the shareholders and contribute in the community service and development.
© Oman Daily Observer 2015
