MUSCAT -- Construction work on the South Batinah Logistics Hub, a strategic initiative of the Omani government to kick-start the growth of a logistics-based economic sector in the Sultanate, will be launched this year. Covering an area of a massive 9,000 hectares, the hub will incorporate Oman's first ever inland port as well as dedicated zones earmarked for multimodal connectivity, light industries, value adding activities, commercial services, warehousing and logistics, urban and residential developments, hotels and convention centres, and leisure areas. Its strategic location, roughly midway between Muscat and Sohar, coupled with planned connectivity -- road and rail -- with Omani ports, airports and industrial hubs, and wider GCC markets, will effectively position the South Batinah hub as the nerve centre of the Sultanate's future logistics industry.
"The South Al Batinah Logistics Hub is key to realising the government's vision to grow logistics into an important sector of its economy and promote Oman as a regional hub," said Ahmed al Azkawi, Project Director, Supreme Council of Planning, which is overseeing the implementation of this ambitious initiative. "The project is steadily moving forward with initial phases to be constructed in 2014 and the remaining phases currently undergoing a comprehensive study. Full development of the logistics hub will be completed by 2030," he stated. Plans for a logistics hub in South Batinah, said Al Askawi, stem from Royal Directives relating to the conversion of Muscat's Port Sultan Qaboos into a cruise tourism port and for the relocation of all commercial cargo operations to Sohar Port.
"Accordingly, a study was kicked off to review the processes and infrastructure required to achieve this goal. That's how the South Batinah Logistics Hub was born. It later became a strategic initiative when the government decided to capitalise on Oman's strategic location to make it a hub for the region, and of course, to transform the logistics sector into an economically viable industry. This led to more studies being carried out." Of the 9,000 hectares set aside for the mammoth development, around 2,500 hectares will be reserved for logistics services, said Al Azkawi. "Planned within this area is an inland port, which will be the first of its kind in Oman. An inland port is essentially a port but located inland away from the sea, but it has many advantages. You can create economic corridors between the seaport and the inland port."
Furthermore, its location close to the population centres of the Batinah and Muscat governorates is expected to spawn industrial, commercial, residential, hospitality and other economic activities all around the hub. "The industrial activities will add value to the supply chain process. Imports by sea, air or land will go into the logistics hub, where it will be value-added and then go out in the form of exports or goods for distribution within the country." Development of the project is planned in phases, according to the official. In Phase 0, the focus of developmental activity will be on the inland port (also called a dry port) and early warehousing facilities. "In addition to a customs office, we also expect a number of facilities, such as bonded warehousing, to be provided while other incentives are under discussion," he said.
Phase 1 envisages investments in a range of commercial and industrial activities, followed by residential developments and hotels. Based on market demand, new areas within the hub can be opened up for future development, he noted. Importantly, the South Batinah Logistics Hub project aims to deliver on a number of strategic objectives, said Al Azkawi. It aims to facilitate the growth of private sector logistics and industrial activities, reduce empty container traffic on the roads, and ease commercial truck related traffic congestion in Muscat Governorate. Besides creating direct and indirect jobs, the initiative will also support the growth of SMEs and increase the share of logistics to the GDP. "The goal is to build a state-of-the-art facility, which offers one-stop-shop services to logistics providers and customers, and thereby promote Oman as a gateway to the region," he added.
-- (OEPPA Business Development Dept)
© Oman Daily Observer 2014
