SUPREME COUNCIL FOR PLANNINGSULTANATE OF OMAN

SOUTH Al-BATINAH LOGISTIC HUBRedefining logistics movement in

Oman

Ahmed Al AzkawiSupreme Council for Planning

March 2014

Government of Sultanate of OmanSupreme Council for Planning

BACKGROUND

South Al-Batinah Logistics Hub is a Government initiative to:

Support relocation of commercial cargo from PSQ to Sohar and ease traffic congestion in the Muscat region.

Position Oman as a gateway to the region.

Transform the logistics sector into an economically vibrant sector.

An area of 9000 hectares is reserved for a multifunctional development.

Of which, 2500 hectares are planned for an inland port and warehousing facilities.

Initial construction and commercial discussions to commence in 2014.

Full development to be completed by 2030.

SUPREME COUNCIL FOR PLANNINGSULTANATE OF OMAN

SBLH LOCATION

Figure No: 05

South Batinah Logistic Hub

SUPREME COUNCIL FOR PLANNINGSULTANATE OF OMAN

LOCATION ADVANTAGES

Located on the Interface between Muscat Governorate and Al Batinah Region

Figure No: 09

High Access Zone due to Batinah Highway, National Rail Network, Rail Yard, Batinah Expressway, Muscat Expressway etc.

Proximity to Muscat International Airport , Sultan Qaboos Port and Sohar Port .

These Regions comprises 56% of the Oman Population

High connectivity between other regions

Strategic location connecting to GCC and other parts of Region

SUPREME COUNCIL FOR PLANNINGSULTANATE OF OMAN

SBLH FUNCTIONS

Inland Container Depot (ICD)Transportation and Handling

• Multimodal Connectivity• Rail Sliding and Stacking• Truck Terminal Parking and Depot• Container Handling and Maintenance• Shippers / Transporters• Customs• Banking / Finance• Logistics Service providers: • Freight Forwarders/ Custom House• Agents/ Courier

Light industriesPackaging• Repackaging/ Palletization• Labeling• Regionalization/ ManualsWarehousing

Commercial developments

Residential:• Housing• Hotel and convention center• Entertainment.

ICDwarehouses

INDUSTRIAL

COMMERCIAL

RESIDENTIAL/HOTELS

SUPREME COUNCIL FOR PLANNINGSULTANATE OF OMAN

FLOW NETWORK OF IMPORT /EXPORT CARGO

IMPORT

DISTRIBUTION

EXPORT

SBLH-VALUE ADDITION

PROJECT PHASES

8

Phase 0

Wadi line

Ph Log Com. Res. Ind. Flex

0 150 0 0 0 0

9

Phase 1

Ph Log Com. Res. Ind. Flex

0 150 0 0 0 0

1 556 220 0 176 0

10

Phase 2

Unit = hectare

Ph Log Com. Res. Ind. Flex

0 150 0 0 0 0

1 556 220 0 176 0

2 571 481 642 297 452

11

Phase 3

Ph Log Com. Res. Ind. Flex

0 150 0 0 0 0

1 556 220 0 176 0

2 571 481 642 297 452

3 870 - 800 380 1028

600

730

210

Unit = hectare

Relocating of some of industrial and logistics/warehousing facilities from Ghala/Wadi Al-Kabir in Muscat.

KEY DRIVERS

Support planned shifting of container and general cargo activities from PSQ to Port of Sohar.

Facilitate growth of private sector logistics and industrial activities.

Port Sultan Qaboos

Ghala Industrial Area

Promote Oman as a Gateway to the region.

Reduce commercial truck related traffic congestion in Muscat Governorate.

Build a state-of-the-art facility, which offers one-stop-shop services to logistics providers and customers

Socio- Economic: Creation of direct and indirect jobs. Business revenues. Opportunities for small and medium enterprises (SME). Increase logistics contribution to the GDP.

Environmental benefits: It can help in shifting the goods movement by road to

rail and reduce pollution levels. Reduce empty containers traffic on the road.

SOCIO –ECONOMIC AND ENVIRONMENTAL BENEFITS

CONCLUSIONS

WAYFORWARD

The South Al-Batinah Logistics Hub is key in realising the government’s vision to grow logistics into an important sector of its economy and promote Oman as a regional hub.

The project is moving forward steadily with the initial phases planned for construction in 2014.

The remaining phases are part of a comprehensive study which is underway.