Government of Sultanate of Oman Supreme Council for

Government of Sultanate of Oman Supreme Council for Planning SOUTH Al-BATINAH LOGISTIC HUB Redefining logistics movement in Oman Ahmed Al Azkawi SUPREME COUNCIL FOR PLANNING SULTANATE OF OMAN Supreme Council for Planning March 2014

BACKGROUND q South Al-Batinah Logistics Hub is a Government initiative to: q Support relocation of commercial cargo from PSQ to Sohar and ease traffic congestion in the Muscat region. q Position Oman as a gateway to the region. q Transform the logistics sector into an economically vibrant sector. q An area of 9000 hectares is reserved for a multifunctional development. q Of which, 2500 hectares are planned for an inland port and warehousing facilities. q Initial construction and commercial discussions to commence in 2014. q Full development to be completed by 2030.

SBLH LOCATION South Batinah Logistic Hub Figure No: 05 SUPREME COUNCIL FOR PLANNING SULTANATE OF OMAN

LOCATION ADVANTAGES Located on the Interface between Muscat Governorate and Al Batinah Region These Regions comprises 56% of the Oman Population High connectivity between other regions 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. Strategic location connecting to GCC and other parts of Region Figure No: 09 SUPREME COUNCIL FOR PLANNING SULTANATE OF OMAN

SBLH FUNCTIONS Inland Container Depot (ICD) Transportation and Handling RESIDENTIAL/HOTELS COMMERCIAL INDUSTRIAL ICD warehouses Light industries Packaging • Repackaging/ Palletization • Labeling • Regionalization/ Manuals Warehousing Commercial developments SUPREME COUNCIL FOR PLANNING SULTANATE OF OMAN • • • 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 Residential: • • • Housing Hotel and convention center Entertainment.

FLOW NETWORK OF IMPORT /EXPORT CARGO DIT D A E U L SBLH-VA ION RT O P M I ION DISTRIBUT EXPORT SUPREME COUNCIL FOR PLANNING SULTANATE OF OMAN

PROJECT PHASES

Phase 0 Wadi line Ph Log Com. Res. Ind. Flex 0 150 0 0 8

Phase 1 Ph Log Com. Res. Ind. Flex 0 150 0 0 1 556 220 0 176 0 9

Phase 2 Ph Log Com. Res. Ind. Flex 0 150 0 0 1 556 220 0 176 0 2 571 481 642 297 452 Unit = hectare 10

Phase 3 600 730 210 Unit = hectare Ph Log Com. Res. Ind. Flex 0 150 0 0 1 556 220 0 176 0 2 571 481 642 297 452 3 870 - 800 380 11 1028

KEY DRIVERS q Promote Oman as a Gateway to the region. Port Sultan Qaboos q Build a state-of-the-art facility, which offers onestop-shop services to logistics providers and customers q Support planned shifting of container and general cargo activities from PSQ to Port of Sohar. q Relocating of some of industrial and logistics/warehousing facilities from Ghala/Wadi Al-Kabir in Muscat. q Facilitate growth of private sector logistics and industrial activities. q Reduce commercial truck related traffic congestion in Muscat Governorate. Ghala Industrial Area

SOCIO –ECONOMIC AND ENVIRONMENTAL BENEFITS § 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.

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.