Market Trends of Oman Third-Party Logistics (3PL) Industry
Investments on infrastructure and latest technology for upgrading ports, airport facilities, new road links
All seven commercial ports in Oman are state-owned. Deep-water ports may be found in Sohar in the north, Duqm in the center of the country's coastline, and Salalah in the south. All three deep-water ports connect to 86 ports in 40 different countries through joint ventures between the government and foreign commercial enterprises operating under concessions. Duqm, an important port town on the Indian Ocean halfway between Muscat and Salalah, is Oman's flagship development project. In July 2021, Asyad built its first new ship in Duqm's dry dock, which also provides ship repair and maintenance services. Saudi Arabia is considering establishing an industrial zone near Duqm. The Duqm refinery project offers opportunities in transportation and logistics. Oman's two developed ports, Sohar and Salalah, provide substantial prospects as well.
The proposed GCC railway, a USD 15.5 billion project that will connect the six nations with a network of 2172 kilometers of track, will handle up to 29 million tons of the 61 million tons transferred within the area yearly across all forms of transport.
Improving the efficiency of connection between Oman and other countries
Oman's strategic location on the Strait of Hormuz, as well as its deep-water ports in the Gulf of Oman and the Indian Ocean beyond the Strait, are key selling points as its logistical infrastructure expands and communication improves. Oman looks to be emerging from budget limitations that forced it to postpone many significant infrastructure projects in 2022. The Duqm Special Economic Zone Authority and the Port of Duqm are aggressively seeking international investment to assist with development financing. Duqm requires infrastructure development in sewage treatment, drainage, water desalination, power plants, buildings, communications services, and landscaping in addition to the huge variety of construction projects. Another important priority for domestic and regional growth is road construction. The government plans to complete a new road across the Empty Quarter in December 2021, linking Riyadh to Muscat and other key Omani towns, including Duqm and other Omani ports.
The Omani government is collaborating with the Asian Infrastructure Investment Bank (AIIB) on a commercial terminal and operational zone development project worth USD 349 million to improve transport efficiency, strengthen logistics, facilitate mineral exports, and reduce supply chain delivery time and costs for the various industries in the Duqm Special Economic Zone and its broader hinterland.
