Logistics


Air Transport

A sizeable market exists in Oman for airport and port equipment.  In late 2001, the Omani government awarded the management and development contract for Muscat's Seeb International Airport and Salalah Airport to a consortium led by the British Airport Authority.  A new company has been formed for this purpose, of which 75 percent belongs to the strategic partners and 25 percent is owned by the Omani government.  The 25-year contract dictates that the strategic partners should build a new terminal that has the capacity of handling eight million passengers per year at Seeb International Airport – a major expansion program for the airport.  Work on the expansion commenced in 2003 and is scheduled for completion in 2006.  In May 2002, the government announced its intention to develop a new small commercial airport in the Ras al-Hadd area.

Sea Transport

As of May 2003, the port of Muscat amended its tariffs and operating schedules to conform with other nearby ports. The implementation of the GCC Customs Union in January 2003 held the promise of a unified customs procedure throughout the region.  Sultan Qaboos Port remains a modern port capable of accommodating containerized shipping.

The Port of Salalah, located some 1,000 kilometers down the coast from Muscat in southern Oman, has established itself as a leading container transshipment center on the Indian Ocean Rim since its November 1998 opening.  Maersk is the principal customer of the port.  Port Salalah is the only port between Europe and Singapore that can accommodate S-class container vessels – the world's largest.  The port achieved a significant milestone in 2003, reaching 2 million TEUs for container ships serviced during the year.  More than 700,000 TEUs and 350 ships were serviced during the first quarter of 2004.  The average gross gantry moves per hour (GMPH, a measure of productivity) at the port during the year was an impressive 30 GMPH.  The Salalah port is capable of handling next-generation container ships of 10,000-12,000 TEU containers, and maintains a reputation as one of the most productive ports in the world.

Government established a free-zone at Salalah adjacent to the port have the potential to make Salalah a major air-sea cargo hub and a center for industrial development.  Talks are ongoing between the government and a Singaporean firm to manage the proposed free-trade zone.

Port Salalah is another successful project in Oman currently undergoing an expansion plan to increase the number of berths and extend the breakwater.  Port Salalah is a $250 million container transshipment port that opened in November 1998.  The port was established as a joint venture between the Omani government, private investors, and shipping companies.  After its opening, Port Salalah witnessed rapid growth in shipping traffic, operating at full capacity in 2003 and the first quarter of 2004.  Salalah Port has the potential to generate rapid industrial development in southern Oman.The port of Sohar is developing into a world class port, capable of receiving ships up to 16.5 draught (18 m in 2008), handling all types of cargo, well connected to its hinterland by highly efficient logistics.  The stevedoring company steinweg started a general cargo and dry bulk terminal in April 2004. The liquid bulk terminal is operated by oil tanking odfield; it received it first tanker in June 2006. Containers are handled by Oman International Container Terminal (OICT). The container terminal has hutchison port holdings as its principal shareholder. OITC has begun operation the 1st of December 2006. Maritime services like towage are done by Svitver Sohar. Striving  to be a "paperless port", the port of Sohar allows visiting ships to use a web-based vessel notification system. In 2006 the port received 335 vessels: general cargo ships, dry bulk carriers and liquid tankers. This figure is expected to rise steeply to some 600 in 2007 and well over 1000 in 2008.

Road Transport

he country enjoys modern roadways to all major urban areas and population centers.

Warehousing Facilities

Oman has no general provisions for the temporary entry of goods.  In the case of auto re-exports, a company can import vehicles into the country for the purpose of re-export and have the duties refunded if it re-exports the vehicles in six months.  The government has established a free-trade zone along an interior border crossing point with Yemen (al-Mazyounah).