Analysts at Ken Research in their latest publication “Oman Freight Forwarding Market Outlook to 2022 – By Freight Movement (Sea, Road, Air and Rail Freight); By Normal and Express Delivery; By International and Domestic Freight; By International Flow Corridors (Asian Countries, NAFTA Countries, European Countries and Others)” believe that increasing the number of channel points, strengthening infrastructure connections, improving service quality in terms of training the personnel and promoting railways for freight transportation will have a positive impact on market.
- The Sultanate has been aiming to grow the contribution of logistics sector to the GDP from current RO 1.1 billion to RO 3.3 Billion
- Sea is by far the most popular medium for moving freight within the country however, with increasing trade among GCC countries and integration of regional economies, road freight will capture significant share in the future.
The Oman government aims to position the Sultanate as a vital logistics center by 2040 under SOLS 2040 for its strategic logistics positions such as Duqm, Sohar, Salalah, and Muscat, high quality infrastructure, competitiveness and qualified human resources in this sector. The large-scale logistics development project in the country launched by the government will harmonize free zone ports, railways, maritime transport and road transport infrastructure as part of the development of a logistics-based economy that will play a major role in creating significant growth opportunities to increase the sector’s contribution in GDP.
Sea freight has the major share of Omani freight market, however, with the rising level of trade among the GCC nations, major emphasis has been placed on developing rail and road network that will increase the efficiency of logistics and reduce the cost. Efforts are on going to connect the three major economic gateways at Sohar, Duqm and Salalah with GCC rail network. Oman Rail is studying plans for a 375km train line to transport minerals between the Shweimiyah area in Dhofar Governorate and Port Duqm. The country exports significant amount of Mineral fuels and derivatives, Vehicles Parts and Accessories, Organic chemicals, Aluminum and articles, Fertilizers, Iron and steel to other countries and imports machinery and mechanical appliances, vehicles- parts and accessories, mineral fuels and derivatives, electrical machinery and equipment and parts, articles of iron or steel, natural or cultured stones and metals etc. from other countries, thus creating a positive impact on Oman freight forwarding market.
Oman freight forwarding market is expected to register a positive CAGR of 3.6% during the forecast period 2018-2022. The recent improvement in the ease of doing business ranking of Oman will facilitate more FDI into the country and companies will be looking to gain advantage of its rapidly developing logistics infrastructure to gain market share in GCC region.
For more information on the research report, refer to below link:
Ankur Gupta, Head Marketing & Communications