Oman Logistics Magazine for GCC Supply Chain & Logistics Conference 2015 by Oman Establishment for Press, Publishing & Advertising (OEPPA), Business Development Department

Oman’s Strategic Role as the GCC’s Gateway and Indian Ocean Rim Hub Under the patronage of

His Highness Sayyid Shihab bin Tariq Al Said Adviser to His Majesty the Sultan 15th – 16th April 2015, Al Bustan Palace – A Ritz Carlton Hotel, Muscat, Sultanate of Oman

Supported by:

Organized by:

(Under Formation)

Strategic Media Partner:

& Logistics: 2 Transport Competitive advantage from

logistics transformation

Logistics Centre 4 Oman Spearheading Oman’s

transformation into a highperforming logistics destination

6 Ithraa Enhancing Oman’s national competitive advantage

Logistics & Supply Chain 10 Oman Association (under formation)

Nurturing professionalism in logistics

National Railway Project 12 Oman On the fast-track to growth

Al Batinah Logistics Area (SABLA) 16 South Delivering value and driving growth

- Connecting to Compete 2014 20 ITrade logistics in the global economy

- Connecting to Compete 2014 26 IINew challenges in trade facilitation and logistics

32 Creating pathways to careers in logistics

34 SOHAR Port and Freezone Opening the floodgates

38 Port of Salalah

Logistics is not a science – it is an art – the art of doing things simply

42 Port of Duqm

A transshipment and distribution hub in the making

46 The Chartered Institute of Logistics and Transport (CILT) Supporting logistics skilling and delivery in Oman

48 IMCO

A unique maritime education & training organisation in the GCC Region

Oman: 50 GAC Planning ahead to support SOLS 2040

Shipping Company 14 Oman A bridge to global markets

54 Speakers and Panelists 60 CONFERENCE PROGRAMME

CEO

Dr. Ibrahim bin Ahmed Al Kindi

Editor in Chief

Abdullah bin Salim Al Shueili

HOD Business Development Department

Bader bin Mohammed Al Thanawi

Editor

Conrad Prabhu

Business Development Department

Prem Varghese Fatima Al Gheilani Karen Jane Stephen Irine Mariam Raju Abdul Aziz Al Shukaili

Design

Ali Jawish

Transport & Logistics:

Competitive advantage from logistics transformation

erminology that until a few years ago had little broad-based appeal, save to industry professionals, is today de rigeur when the discussion is about a hugely promising, if nascent, economic sector currently taking shape in the Sultanate. ‘Logistics’, ‘supply chains’, integrated transport infrastructure’, multimodal networks, etc are examples of jargon that is increasingly a part of official government vocabulary today, underscoring the importance being accorded by authorities to an emerging industry that has the potential to become a ‘game-changer’ for the Sultanate’s long-term economic growth. From the standpoint of Oman’s economic diversification strategy, the logistics industry has the potential to supplant the hydrocarbon sector as the nation’s economic mainstay, according to Dr Ahmed bin Mohammed al Futaisi, Minister of Transport and Communications. “I believe that in the future, transport and logistics will be one of the economic sectors that the country can rely on to be one of the replacements for oil,” Dr Al Futaisi was recently quoted by a leading international journal as saying. The comparison with oil and gas – which currently account for nearly half of GDP – reflects the government’s ambitions for a future logistics-based economic sector. Transport and logistics services presently account for approximately 3 per cent of the GDP, a share the government hopes to gradually ramp up to at least 10 per cent within the next 25 years. That lofty goal lies at the heart of the ‘Sultanate of Oman Logistics Strategy’ (SOLS 2040), the broad thrust of which is expected to be outlined at the 2nd GCCSCL Conference currently underway at Al

Dr Ahmed bin Mohammed al Futaisi Minister of Transport and Communications

Integration is the new mantra at the heart of the Omani government’s vision to create the underpinnings of a new logistics-centric industry that promises to evolve over time into a fullfledged economic sector.

Bustan Palace – A Ritz Carlton Hotel. The product of an intensive two-year study, SOLS 2040 is a blueprint for securing a place for the Sultanate among the top logistics-centric economies of the world. Specifically, Oman’s ambition is to leapfrog its way into the rankings of the Top 10 countries figuring on The World Bank’s Logistics Performance Index (LPI). Oman was ranked 59th among 160 countries covered in the 2014 Logistics Performance Index. The top nations were Germany (1st), Netherlands (2nd), Belgium (3rd), United Kingdom (4th), Singapore (5th), Sweden (6th), Norway (7th), Luxembourg (8th), United States (9th) and Japan (10th). Germany was adjudged the best performer with a score of 4.12. In the Gulf region, the Sultanate lagged behind all of its fellow partners within the GCC bloc. The United Arab Emirates in 27th place led the field, followed by Qatar (29th), Saudi Arabia (49th), Bahrain (52nd) and Kuwait (56th). The LPI is based on a worldwide survey of operators on the ground (global freight forwarders and express carriers), providing feedback on the logistics “friendliness” of the countries in which they operate and those with which they trade. They combine in-depth knowledge of the countries in which they operate with informed qualitative assessments of other countries where they trade and experience of global logistics environment. Feedback from operators is supplemented with quantitative data on the performance of key components of the logistics chain in the country of work. While acknowledging the formidable gap that must be bridged in order for Oman to join the top 10, the Minister is nevertheless

April 2015

upbeat about prospects for achieving this goal. After all, the Sultanate, he explains, lies at the crossroads of two giant water bodies – the Arabian Sea and Indian Ocean – through which a sizable chunk of global shipping and trade passes. Suitably leveraged, this strategic geographical location offers comparative advantages to industries and investors targeting markets along the supply chain. In the upshot, Oman stands to reap the benefits of increased trade and investment inflows, which in turn will fuel the creation of jobs and drive socioeconomic development. Both Sohar and Salalah ports continue to augment their capacities and modernize their facilities to keep pace with demand growth as well as the specific needs of their customer base. Port of Duqm, the Sultanate’s newest gateway, is preparing to make the transition from early operations to full-fledged commercial operations in a couple of years when its infrastructure and superstructure development is substantially complete. All three gateways are cornerstones of a port-centric logistics strategy that calls for these ports and their extended supply chain ecosystems to be made competitive and thus attractive to mainline ships and other investors. But strategic location and infrastructure development in themselves are not enough to drive Oman’s long-term logistics objectives, says Dr Al Futaisi. Equally important, he stresses, is the need for the government to create an enabling environment in the form of suitable legislation, regulations, IT systems, and other mechanisms that facilitate trade and services. At the same time, the government is looking to ensure that transport and logistics infrastructure – a critical enabler

of trade – is not only comprehensively developed but suitably integrated as well. Carriageways linking the Sultanate’s maritime gateways – particularly at Sohar, Duqm and Salalah – with the hinterland will be suitably augmented to handle large volumes of freight. Additionally, connectivity by rail – envisioned as part of Oman’s national rail development strategy – promises to significantly enhances the nation’s appeal as a gateway for trade for the wider Arabian Gulf region, and potentially parts of the Middle East as well. Indeed, all three ports are expected to generate substantial freight volumes that will be transported by rail not only to and from the hinterlands of Oman, but into the GCC as well. Sohar, Duqm and Salalah are also eyeing opportunities to serve markets deep inside Saudi Arabia via a new road link currently under construction via The Empty Quarter. Rail connectivity promises to be a transformative force when it is eventually rolled out. Divided into nine segments, the 2,135km network will run the length of the Sultanate from Buraimi and Khatmat Malaha in the north to Duqm in the southeast and Salalah and Yemen in the south and southwest respectively. Linkages with industrial parks, special economic zones – current and future, mining and logistics clusters, as well as major urban centres, will help fuel growth in all parts of the Sultanate. Segment 1 covering the 207km Sohar-Buraimi stretch will also integrate Oman’s National Rail Network with the GCC rail system. Indeed, connectivity and integration are the hallmarks of the government’s far-reaching strategy to enable the development of a comprehensive,

competitive and seamless national transportation system for passengers and freight. Under an agreement signed by the government last year, The World Bank’s help has been enlisted in carrying out a comprehensive assessment of the current state of affairs vis-à-vis transport services in the Sultanate. The findings will help in the formulation of a roadmap for the restructuring of the transport sector with a view to demarcating the regulatory functions of the various government stakeholders now engaged in overseeing this sector. Separately, Spanish transport engineering consultancy services firm INECO has been commissioned by the Ministry of Transport and Communications to formulate a masterplan for the introduction of a full-fledged public transport system for Muscat City. The study encompasses five different aspects of public transport: public transport regulation and organization, urban bus systems, taxi and microbus sector, maritime passenger services and urban railways systems in Muscat. Various transport service providers are also being suitably overhauled to prepare them for a more pronounced role when public transport services are rolled out not only in Muscat, but across the country. One example is Oman National Transport Company (ONTC) which is tipped to be radically revamped in preparation for an enhanced role as the nation’s flagship bus operator in the future. Preliminary plans drawn up by the Ministry envisage not just a dominant role for ONTC as a national bus operator, but rather to position the state-run entity as a full-fledged public transport company that also operates taxis and potentially an underground metro as well. Integral to this vision is a modern air transport system comprising a network of international and domestic airports connected by a world class fleet of airplanes. The expanded and upgraded international airports at Muscat and Salalah are due to be commissioned over the court of the next 2 years, while regional airports in Sohar, Ras al Hadd and Duqm are in various stages of implementation. With nearly all of them boasting sizable air cargo terminals, airfreight logistics is poised to grow exponentially in the coming years. “Thus, with the current level of development of the ports on an international level, linked by the railway with the GCC countries, and coupled with the development of airports, I think we are going a long way to develop a strong sector. Transport and logistics can have great economic benefits and can be one of the replacements for the oil sector. It’s not yet here but I am very confident and can see this happening soon,” Dr Al Futaisi added. 3

Oman Logistics Centre

Spearheading Oman’s transformation into a high-performing logistics destination T

he Sultanate of Oman is uniquely positioned to play an important and leading role in logistics in the Indian Ocean and as a gateway to the Arabian Gulf. Logistics encompasses a very wide range of activities that are needed to move goods quickly and efficiently. This includes shipping, aviation, roads, ports, warehousing, rail which must be co-ordinated to ensure that cargo is moved with the minimum of delay or cost. It is essential that government process and procedures are carefully integrated to facilitate the movement of cargo. Oman’s geographical position, the excellent infrastructure already available and partially under construction, as well as its stable political climate, are all key ingredients necessary for the Sultanate to make a quantum leap in the growth of the logistics industry and to make it an important logistics hub. Logistics is a major driver for economic growth, creating both direct employment

in the transport of cargo and attracting inward investment by companies that wish to warehouse, rework or redistribute goods. Efficient logistics can reduce costs for both importers and exporters and enable new markets to be opened up. The logistics sector is one of the major non-oil dependent segments of the economy which has the potential to fill a substantial part of the Gross Domestic Product (GDP) of the Sultanate and create numerous quality jobs. The strategy lays out clear targets and ambitions to achieve this based on key parameters like, logistics contribution to GDP growth, employment growth opportunities that would stem from adopting logistics strategy, market share of goods that flow into the region and the position of Oman on various logistics and industrial indices. The World Bank and the World Economic Forum produce a number of allencompassing indices, covering logistics activities in the private and public sector.

Oman will improve its position with a goal of being in the top 30 by 2020 and ultimately in the top 10. The report highlighted the importance of a co-ordinated and integrated approach to the development of logistics across ministries and the private sector and the necessity for a complete refocus on trade facilitation by all government agencies, not only on paper but also in practice. These might require changes in rules, regulation and procedures covering the movement of cargo through Oman. If Oman is to be successful in fully realising the economic potential of the strategy some of these changes would need to be made quickly within the first two to five years. The logistics strategy is somewhat unique in that it is not dependent on large capital investment projects but instead focuses on the soft processes that by their nature cut across individual government and business entities, and

April 2015

Oman Logistics Centre (OLC), set up in line with the recommendations of the Supreme Council for Planning to oversee the development of an overall logistics strategy for the Sultanate, is now a reality.

which will be critical to the future growth and development of the non-hydrocarbon economy. To help manage and coordinate the development of the logistics strategy in Oman, a dedicated organization has been set up in line with the recommendations of the Supreme Council for Planning. The Oman Logistics Centre (OLC), as it is called, has a mandate to spearhead a concrete plan of action for making logistics a core economic driver for the economy. It will devise ways to encourage private investment to improve logistics competence, raise the sector to meet international standards and have in place a transparent system with proper monitoring and feedback. The establishment of the Oman Logistics Centre stems from an initiative launched by the Supreme Council for Planning in 2013 to prepare the groundwork for the formulation of a longer-term strategy aimed at positioning the Sultanate as a logistics destination

and gateway into the wider Arabian Gulf. A 10-member task force of senior government officials, private sector executives and academia was formed to develop a logistics strategy till 2020 and for the long-term until 2040. The taskforce, headed by the Dr Ahmed bin Mohammed al Futaisi, Minister of Transport and Communications, set up seven independent working groups to look at the key contributors to a successful and effective logistics industry. It drew 65 individuals from over eight separate ministries and government institutions and over 20 companies. They were supported by globally renowned experts. In December 2014, the findings of the strategy for logistics development in Oman were presented to the authorities, calling for the establishment of a dedicated organisation – Oman Logistics Centre – to be set up under the chairmanship of the Minister of Transport and Communications. The report of the taskforce said that the strategy would look at improving the logistics contribution to GDP growth, employment growth opportunities and raise the market share of goods that flow into the region. These should help improve the Sultanate’s position on various logistics and industrial indices. It is projected that with a proper strategy with a complete refocus on trade facilitation by all government agencies, the Sultanate could improve its position to be among the top 30 by 2020 and ultimately the top 10. The report noted that Oman’s existing port infrastructure was sufficient to meet the strategy targets. The investment in Oman Rail and ongoing investment in the airports and roads had the potential to open up substantial opportunities for logistics and movement of cargo through Oman to the rest of the GCC. The OLC will focus its efforts on four key areas or ‘soft infrastructure’ that has been identified by the task force. These include trade facilitation, technology, education and markets. The OLC’s key

responsibilities include, to execute and supervise the implementation of the logistics strategy, to make logistics a core economic driver for the Oman economy, to encourage the private sector to invest in and develop the logistics competence in Oman, to administer, improve and develop the logistics sector in accordance with international best practice, set standards and ensure that these are maintained and continually improved through clear and transparent processes, monitoring and feedback and to encourage and support the adoption of logistics technology within both government and the private sector. National Broadband Infrastructure A key component of the ‘soft infrastructure’ necessary to underpin Oman’s transformation into a topperforming logistics destination is pervasive Internet connectivity and highspeed broadband access. Towards this end, and in light of the pivotal importance of digital access to the nation’s broader socioeconomic development, a National Broadband Strategy was adopted in 2013. The aim is to provide efficient and affordable broadband infrastructure connecting all residents and businesses in Oman. As a key outcome of the plan, the Oman Broadband Company (OBC) was established as a government start-up company in Oman and given the mandate by the Council of Ministers to implement the wholesale national broadband network. The National Broadband Strategy centres on a plan for the rollout of highspeed and large capacity broadband infrastructure across the length and breadth of the country over a 10-year timeframe and at a potential cost of around OMR 500 million. According to the Minister of Transport and Communications, the strategy calls for, among other things, providing major cities with fibre to the home, fibre to the buildings – especially the government buildings – for improving 4G and LTE mobile internet access for most of Oman. For remote areas, internet access via satellite services is envisaged. Last December, Oman Broadband Company (OBC), in cooperation with Oman Electricity Transmission Company (OETC) and the Telecommunications Regulatory Authority (TRA), launched a pilot project to provide high speed internet services using the fibre-optic cable infrastructure of electricity companies. The pilot was carried out in Hamam Al Sunub in the wilayat of Bausher (Muscat Governorate), and involved the extension of fibre-optic cables between an Omantel mobile phone tower and an electricity transmission station. The network provides an internet connection of up to 40Mbps, compared to the previous speed 5

Ithraa

Enhancing Oman’s national competitive advantage

In this Q&A, His Highness Sayyid Faisal bin Turki Al Said, Director General, Marketing & Media, Ithraa, sheds light on Ithraa’s longstanding efforts to attract inward investment and promote Omani non-exports through a variety of far-reaching initiatives: Please share with us Ithraa’s latest successes. Ithraa has worked with inward investors and Omani non-oil exporters since 1997 helping them identify opportunities domestically and internationally. And we have been successful. Today, Omani firms export to 136 countries worldwide and in 2014, exported US$10.71 billion worth of non-oil commodities. Exporting is good for Omani business, good for Omani workers and good for Omani jobs. Put simply, when Oman exports, 6

Oman prospers. Targeting middle class consumers in Asia and Africa as well as in Europe and North America is crucial to putting Oman’s economy on a solid footing. Helping businesses penetrate these markets is what we excel at. Exporting is of course fundamentally a decision driven by local businesses. But firms attempting to close an export sale can face hurdles, including lack of readily available information about exporting and market research, challenges obtaining export financing and strong competition from foreign companies. This is where Ithraa’s staff and services play such an important role. We help Omani businesses assess export opportunities, from developing a plan, identifying buyers and markets, advising on regulations to managing logistics. We provide businesses with information, research, market studies, B-2-B meetings, participation at international trade shows and contact with our representatives in markets across the globe. Our goal is to provide everything an ambitious company needs to succeed in today’s global economy.

If I’m to highlight some of our recent Ithraa success stories these would certainly include the 2013 UNCTAD Award for Excellence in Promoting Export-oriented FDI. This is a major international prize and one we’re very proud of. We recently organized trade missions to Brunei, China, Italy, Iran, Ethiopia and Dubai, these were very successful and have helped strengthen our business ties with these important international markets. We also played a lead role in the success of the Omani Products Exhibitions held in Riyadh, Dubai and Doha. This initiative was designed to help expose local companies to the many commercial opportunities available in Saudi Arabia, the UAE and Qatar. And with mega events such as the World Cup and the World Expo coming to the region, it’s important we help local businesses explore and penetrate these markets. Last December we organized for the second consecutive year the Oman Competitiveness Forum. This attracted presenters and participants from across the globe. It was a resounding

April 2015

success and has become an annual flagship event for us. Having a competitive national offer is central to our work in promoting non-oil exports and attracting inward investment. How would you rate Oman’s diversification policy to date? Today, Omani non-oil exports can be found in 136 countries and in 2014, we exported US$10.71 billion worth of non-oil commodities, that’s an increase of 8.3% over 2013. This is very healthy and very exciting. Indeed, it speaks volumes about the quality of the products made in Oman. If I’m to talk diversification and inward investment, I’d have to mention Vale - a Brazilian multinational metals and mining company who made an initial investment of US$1.25 billion in their Oman operations. They’ve generated more than 1,200 direct jobs and injected over US$2.5 million into SME contracts which will lead to further job creation and national capacity building. They’ve also invested heavily in training more than 200 of their employees all of whom are now qualified mining industry engineers, technicians and operators. It’s also important to look at what’s happening around us. It’s estimated that by 2025, 600 cities will generate nearly 65% of the world’s economic growth. But, the most revealing fact is that by 2025, cities in emerging economies will account for close to half of overall growth. One billion people will enter the global consuming class by 2025. They will have incomes high enough to be classified as significant consumers of goods and services, and 600 million of them will live in emerging markets that are on Oman’s doorstep. These trends point to great opportunities for Omani firms. We’re strategically placed and have the business base, track record, infrastructure, experience, talent, leadership and connectivity to help any business take their activities global. Kindly throw light on Ithraa’s efforts to boost non-oil exports. Certainly, we work closely with domestic exporters and run an annual visit program to Omani manufacturers, this helps us identify any export problems or obstacles encountered by domestic firms. The field visits also provide us with an opportunity to brief local exporters on Ithraa-led activities and services. We’ve also identified importers of Omani products and have invited them to visit the Sultanate. In this regard, we organize regular B-2-B matchmaking meetings which link Omani exporters with international buyers.

‘We help Omani businesses assess export opportunities, from developing a plan, identifying buyers and markets, advising on regulations to managing logistics. We provide businesses with information, research, market studies, B-2-B meetings, participation at international trade shows and contact with our representatives in markets across the globe. Our goal is to provide everything an ambitious company needs to succeed in today’s global economy,” His Highness Sayyid Faisal bin Turki Al Said Director General, Marketing & Media Ithraa On the international front, we’ve trade and investment representatives in key global markets – all actively involved in promoting Omani products as well as investment opportunities. Indeed, helping domestic companies penetrate mature as well as emerging markets is extremely important to us. In fact, we’ve had considerable success in this regard and the number of Omani firms exporting to international markets continues to rise. With regard more mature markets, we’ve been helping local companies participate at major international trade shows in the Gulf, US, Asia, Africa and Europe. We’ve also been encouraging Omani exporters to

take advantage of the Oman-US Free Trade Agreement which has seen our non-oil exports to the US reach over US$480mn in 2013. Exports matter because they represent the very sectors that drive wealth, attract investment and talent, boost productivity and innovation and generate employment. The production of exported goods and services creates jobs, both directly and indirectly in the supply chain. One study finds that every US$1 billion in new exports creates 5,400 additional jobs. In fact, SMEs that export generally experience greater revenue growth than non-exporters and weather tough economic times better as a result; in one international study, 7

SME manufacturing exporters grew revenues by 37% while non-exporting manufacturers experienced a 7% decline in revenues. How is Ithraa promoting and branding Oman internationally? Ithraa is working with partners in the public and private sector to help differentiate Oman from other places and hence facilitate the promotion of the Sultanate’s place product offer. In simple terms, a nation’s brand is a multidimensional assortment of functional, emotional, relational and strategic elements that collectively generate a unique set of associations in the public’s mind. This set of associations creates a brand image - a bundle of ideas, feelings and attitudes that people have about a particular country. We believe the astute branding of Oman will highlight to the international community the essence of the sultanate in terms of core benefits, values, style and culture and critically will assist potential investors, residents and tourists identify the sources of place products relevant to their needs. What a potential customer thinks, does and ultimately buys is driven by his perceptions of the country it comes from. Like any country, Oman’s brand is experienced through various encounters, these range from the level of customer service tourists receive in Salalah hotels, to how visitors are welcomed by passport control at Muscat International Airport, through to the quality of products bearing the Origin Oman label. With the impact of globalization and the rise of the ‘Attraction Economy’, it’s increasingly important that Oman gets it international image right. Essentially, we’re up against every country in the world competing for the consumers’ attention and respect. Let’s be clear, consumers are attracted to clear and consistent messages about things they value, from competent governance, to 8

friendly and hospitable people, to financial transparency and investment opportunities. It’s in these areas that Ithraa is working with a host of public and private sector partners to present unified and coherent messages. As a nation, Oman’s always seeking to enhance its role in the global economy by making the most of the opportunities created by new or established global markets. For that to happen, Ithraa is actively encouraging and supporting more Omani businesses to sell their goods and services overseas and it’s attracting more quality international investment. Indeed, all of this will help realize the goals and objectives outlined in Vision 2020. I firmly believe Oman’s already in a strong position internationally. Many global businesses run their regional operations out of Oman and with that presence we’re attracting more international talent, people that bring with them a wealth of skills and experience. Oman couldn’t be truly successful if it didn’t attract and encourage these international companies to invest and build their operations here. Investment into Oman is a crucial economic driver, delivering employment, higher salaries, advanced skills, new technologies and a positive image of the sultanate. But helping present a strong case that helps attract investment is just one aspect of Ithraa’s work. An important additional market for us is the existing population, businesses and investor base. Given the hyper mobility of firms, people and investment it’s natural for countries and cities not just to be concerned with what they can attract, but also with how they retain what they already have. However, our branding and marketing for these audiences raises a different challenge. They are much more likely to be well informed about Oman’s overall strengths and weaknesses and are not

targets for activities which simply give them information they already have, they’re in effect a separate group of ‘re-investors’ who have very different needs. They need communication which helps them to believe that Oman is genuinely on the right track whether that’s to do with the economy, the environment, tourism, manufacturing or sport. Nation branding isn’t about a logo but the intricate details - as small as clean beaches and as deep as getting the Sultanate’s residents, people of all nationalities, to feel proud to be brand ambassadors. When people are proud, visitors and businesses are encouraged to find out what the fuss is all about and then tell the world. It’s impossible to sum up Oman’s brand in a word - it’s multidimensional and constantly changing – and we’re fully aware that trying to create a brand artificially is dangerous. At Ithraa, we’re working on reality, not image. It’s this approach that will generate real interest in the Sultanate. How are you helping small Omani businesses learn about export markets? Omani companies that are new to exporting often need help getting started. Even companies that are aware of global opportunities often prefer operating within the confines of Oman’s market, where they have successfully grown their businesses. Led by Mrs. Nasima Al Balushi, Ithraa’s Export Development Directorate is taking a proactive approach to supporting the export efforts of Omani businesses, ensuring, for example, that local firms are wellrepresented at important trade shows around the world. We understand that Omani companies require assistance expanding into foreign markets due to their own internal constraints and perceived trade barriers. Businesses have suggested that challenges with customs and compliance, distributors,

April 2015

intellectual property protection, financing, marketing, packaging and language barriers are some of the biggest barriers to becoming exporters. In response to these challenges, Ithraa created the Trade Up seminar series which is designed to help Omani enterprises that are new to overseas trade take the plunge, as well as assist those already trading overseas to increase sales. Through the Trade Up series, we have tapped into the experiences of seasoned exporters to give businesses ideas and advice on how to avoid the main pitfalls and build a successful book of export business. How important is young talent to Oman’s business community? In simple terms, it’s crucial. For the past 25 years, public policy makers across the world have sought to increase the entrepreneurial capacity of young people. Initially, this was a response to global youth unemployment in the early 1980s but more recently there’s been a focus on bridging the gap between the world of work and education; and increasing national competitiveness through the enterprise culture. In a response to this, we’ve seen a number of highly successful enterprise schemes designed to specifically help young people start and run their own businesses. Perhaps the best known international examples are: The Prince’s Trust, Shell Livewire, the New Deal for Young People (UK), Law 44 (Italy), Youth Business Initiative (Australia) and Atlantic Canada. Perhaps people don’t realize the size of the world’s youth population and

its importance to the global economy. The World Bank estimates that by 2015 – target year for the Millennium Development Goals – there’ll be 3 billion people in the world under the age of 25. Entrepreneurship isn’t something special that a few people are born with, it’s a way of thinking that can be nurtured – and it’s a culture Ithraa with a range of public and private sector stakeholders is looking to promote amongst Oman’s youth and in 2013 we launched Bidiya, a summer internship program aimed at 18 to 24 year-olds. The US-based National Association of Colleges and Employers’ (NACE) Experiential Education Survey shows that companies of all sizes benefit

from meaningful and well-structured internship programs. The survey reveals that 25.3% of employers’ fulltime, entry-level college hires came from their internship programs and 67.7% of interns are offered full-time positions. Moreover, The NACE survey showed that 40% of employers reported a higher five-year retention rate among employees hired via their internship programs, suggesting that internships boost employee-retention rates. Oman’s actively reshaping its educational systems in ways that are consistent with our national priorities for achieving competitive national advantage. And Ithraa’s contributing positively to that process via the Bidiya summer internship programme. 9

Oman Logistics & Supply Chain Association (under formation)

Nurturing professionalism in logistics L

ogistics is embedded in the DNA of Omanis, says Warith al Kharusi, Chairman of Oman Logistics & Supply Chain Association – OLSCA (under formation), a pioneering non-profit professional body that, in its own modest way, has helped shine a spotlight on an industry that is currently the subject of an ambitious effort to elevate it into a full-fledged economic sector. After all, long before the advent of modern transportation modes in this region, Omanis travelled by camel caravan and ships along trade routes that linked their native ‘Magan’ with ancient civilizations, argues Warith. In their pursuits overland and by sea, these travellers and traders were guided by a rudimentary understanding of logistics that eventually enabled them to be a force to reckon with in times bygone, he explains.

Fast forward to the present-day and Oman finds itself in the nascent stages of an ambitious plan to catapult the country into the ranks of the world’s top performing logistics-centric economies. The Sultanate, says Warith, has all of the ingredients necessary to position the country as a logistics hub for the entire region, thanks to its advantageous geographical location and proximity to the East Africa and the Indian subcontinent. It is also not hampered by the kind of geographical constraints that other countries of the GCC face by virtue of their location within the Arabian Gulf. Operationalising strategy In line with its strong support for the government’s vision for Oman’s longterm logistics development, OLSCA has been working with all of the key parties

and players – government and private – that have a stake in this promising future. It has done so primarily by extending close support and expert assistance to major conferences and forums that spotlight the importance of logistics. OLSCA backed the 1st GCC Supply Chain and Logistics Conference held in Muscat in April 2013, and has thrown its weight behind the second edition of this key event too. Commenting on what the latest event is envisaged to achieve, Warith said: “The first conference in 2013 was a major success in that it attracted international players from various countries, including key figures from the logistics industry. Among the very important outcomes from that conference was the spotlight that was comprehensively shone on Oman’s vision for logistics. The

April 2015

Warith Al Kharusi, Chairman of Oman Logistics & Supply Chain Association – OLSCA (under formation)

Oman Logistics & Supply Chain Association – OLSCA (under formation), representing stakeholders across all segments of the Sultanate’s vibrant transport and logistics industry, is backing the 2nd GCCSCL 2015 Conference as a key partner. Its presence on the high-profile Conference Organising Committee chaired by Said bin Hamdoon al Harthy, Ports & Maritime Affairs Under-Secretary at the Ministry of Transport and Communications, is a testament to the important role that the Association continues to play in supporting the government’s strategic ambitions for the logistics sector. upcoming conference will build on that and also provide a platform for the roll-out of the SOLS 2040 strategy. As you know, this strategy has been in the works for the past year and a half. The goal now is to unveil the strategy, explain its objectives, and the accompanying plan to implement it in an effective and efficient manner. What we need to do now is to operationalise the strategic location that Oman enjoys, in order to attract foreign investment and global trade to the Sultanate, while facilitating exports. Logistics an also play a key role in advancing economic diversification. Through the conference, and the SOLS initiative, we hope to able to drive Oman’s diversification towards the next big economic game-changer.” The Chairman sees OLSCA as providing a powerful and meaningful platform for logistics professionals to work alongside with decision-makers in government to forge a common vision in achieving the Sultanate’s logisticsrelated aspirations. “We see ourselves as a unique forum for all of the stakeholders to interact, debate, network and collaborate in driving forward our collective vision for Oman’s logistics development. Our

goal is to highlight the highlight the importance of logistics and supply chain in economic development and represent transport and logistics companies in the Sultanate.” Human capital development A key objective of OLSCA is to support the development of human capital that is indispensable to the long-term growth of the logistics sector, says Warith. “A prime goal of the Association is to promote logistics as a preferred professional among young Omanis and to connect the logistics industry with government and academia. We also want the enable industry professionals and members to advance their professional development, as well as to develop professional standards for logistics and supply chain management in the Sultanate. Our ultimate aim is to build a cadre of professional and highly competent nationals to take on current and future challenges facing the logistics and supply chain industries.” To help support this objective, OLSCA has tied with the UK’s Chartered Institute of Logistics and Transport (CILT), a leading professional body associated with logistics and transport.

With over 33,000 members working in over 100 countries worldwide, CILT holds unparalleled professional international recognition. Established in 1919, its principal objective is ‘To promote and advance the art and science of logistics and transport’. “We are keen to tap into CILT’s incredible expertise for the benefit of Oman’s logistics sector,” said Warith. “The Institute offers a wide range of development programmes and qualifications that are accredited around the world. We are keen to set up a formal chapter of CILT in Oman and provide our young Omanis with the knowledge and skills they need to pursue rewarding careers in this emerging industry.” An industry veteran, who spent roughly half of a three-decades-long oilfield career as the head of logistics at majority government owned oil company Petroleum Development Oman (PDO), Warith is keen for all of the stakeholders to pull together to bolster the growth of Omani logistics professionals. Skills development, he stresses, is of paramount importance if the Sultanate is to succeed as a logisticsfriendly destination.

Oman National Railway Project

On the fast-track to growth

fter initial teething issues, which are an inevitable part of any big ticket venture of this complexity, construction work is set to begin early next year on the Sultanate’s landmark national railway project. Starting with a relatively short 207km stretch from Sohar to Al Buraimi, the national rail network will progressively be rolled out to Duqm, Salalah and eventually Yemen, with branch lines and spurs linking urban centres and future industrial zones. Development of the entire 2,135km national railway system will take around 10 years, considering the novelty of railroad construction in Oman and the challenging terrain through which the alignment runs, is an understandable timeframe. As its price tag of a ballpark $15 billion indicates, Oman’s national railway project is no ordinary undertaking. Its importance to Oman’s long-term development will be both momentous and far-reaching, surpassing in significance previous infrastructure initiatives of a comparative nature. It is therefore being integrated with the rest of the country’s transport infrastructure, helping unlock synergies in industries, services and logistics that can be commercialized. As experts point out, rail operations are an increasingly vital

component of the logistics network that can contribute to the more sustainable movement of freight to and from ports and other hubs. The Oman National Rail project is intended to form a central element in the modernisation of Oman’s goods distribution system, linking its ports, population centres, sources of raw materials and industry. The network is also envisaged to provide rail connectivity with the various growth centres of the Sultanate, notably seaports, airports, industrial parks, free trade zones, mining hubs, and so on. Major flows are expected to include containers between the ports and intermodal hubs, bulk raw materials from the ports to industrial centres and export of raw materials and semi-finished goods to the GCC countries. Importantly, the national network will provide connectivity with the GCC network through UAE at Al Ain and Khatmat Milaha. There are also plans to connect Yemen with other GCC countries in the future. Oman Rail, a wholly government owned entity, has been established to oversee the implementation and operation of the rail system in the Sultanate. Implementation of the national rail network – covering a total

distance of 2,135km – is planned in nine segments. The first segment, covering the 207km stretch from Sohar Port to Buraimi, is currently under tender. Joint venture partnerships led by railway construction giants from Italy, Austria, Korea, China, Turkey and India are among 11 international groups competing for the multibillion dollar Segment 1 package. The list comprises: JV of Porr Bau GmbH (leader), Yuksel Insaat, Sarooj Construction Company LLC and Daewoo E&C LLC; (ii) JV of Saipem SpA (leader), Rizzani De Eccher SPA and Dogus Insaat; (iii) JV of Ircon International Limited (leader), Hani Archirodon LLC and Tata Projects; (iv) JV of Larsen & Toubro Ltd (leader), FCC Construction SA and Khalid Bin Ahmed & Sons; (v) JV of China State Construction Engineering Corporation (leader) and SK E&C; (vi) JV of Astaldi SPA (leader), ONEIC, Yapi Merkezi and Corsan-Corviam Construccion SA; (vii) JV of Hyundai Engineering & Construction Co Ltd (leader), Hasan Juma Backer, Assignia Infraestructuras, and Maire Technimont Civil Construction; (viii) JV of China Railway Group Limited (leader), and Mapa Insaat ve Ticaret AS; (ix) Salini Impregilo SPA; (x) JV of China Railway Construction Company Limited,

April 2015

When eventually integrated with road, sea and air transport services, Oman’s ambitious rail project has the potential to deliver immense value to the logistics industry taking shape in the Sultanate. International Contractors Co LLC (leader) and Mohammed al Kharafi & Sons; and (xi) JV of Societa Italiana Per Condotte D’Acqua SPA (leader), Federici Stirling BATCO LLC, SWS Engineering SPA and Itinera SPA. The successful bidder stands to win a contract that is widely billed as the largest and most complex infrastructure development in the Sultanate to date. Expected to cost several billions of dollars, the Design & Build contract covers the design, supply, installation, construction and completion of works related to Segment 1 comprising three distinct sections: Sector 1A, covering a distance of 127km, connects the station of Sohar to the Oman-UAE border at Al Buraimi and Khatmat Milahah. Sector 1B is a 34-km spur line that departs from Sector 1A and ends at Buraimi station. Sector 1C is 38km spur line connecting the Port of Sohar to Sector 1A. A contract award is likely to be announced early in the third quarter of this year, with construction work on Segment 1 slated to commence before the end of this year or early in 2015.

Awaiting the successful bidder is a substantial package of works encompassing virtually all aspects of rail design, engineering, supply, construction, installation and commissioning. It requires the contractor to undertake, among other things, topographic and geotechnical site surveys; earthworks design; hydrology and drainage; design and construction of major and minor structures such as bridges, tunnels and viaducts; track works; stations; freight facilities and yards; and the provision of line maintenance facilities. Plans drawn up by Oman Rail envisage the construction of a number of passenger stations, maintenance depots, freight terminals and wayside maintenance centres at key locations along the Sohar-Buraimi stretch. In all, five intercity passenger stations are planned along the 207km route of the Sohar-Buraimi corridor, representing Segment 1 of the 2,135km national rail network. These are envisaged at Hafeet (medium GCC intercity type), Al Wasit (commuter), Sohar City (medium GCC intercity), Zurub (commuter) and Buraimi (small/medium GCC intercity). When completed and brought into operation in 2018, Segment 1 will connect the Port of Sohar with the GCC rail network at Oman’s border with the UAE at Buraimi and Khatmat Milahah. It will also serve as a vital lifeline for the transportation of rail-based freight to and from Sohar Port to markets deep into the Arabian Peninsula. Given the segment’s pivotal role as a conduit for freight plying between Sohar and Gulf markets, Oman Rail has plans to establish a series of freight terminals at vantage points between the industrial port and Hafeet close to the border with the UAE. Hafeet will host a major complex of freight terminals catering to the handling of containers, break bulk cargo and liquids. Rail links will be

provided for these freight terminals to connect them to the national railway line through the marshalling yard at Hafeet. Buraimi too has been tipped to host substantial rail freight terminal infrastructure because of its proximity to the border. Freight terminals are planned for the handling of containers and bulk cargoes, according to authorities. Sohar Port, at the other end of Segment 1, will be equipped with a major Intermodal Logistics Hub that will be integrated with the national rail network through the marshalling yard of the port. The hub’s intermodal capabilities will allow for containers and other cargoes to be freighted from Sohar to their intended destinations either by road or rail. Oman Rail will also invest in comprehensive rail maintenance infrastructure along the alignment of the Sohar-Buraimi stretch. Major depots are planned for the maintenance of rolling stock at Sohar Port, Sohar City, Hafeet and Buraimi. Sohar Port, in particular, will play host to a facility that will be equipped to provide maintenance services for freight wagons and freight locomotives. It will be the only depot Segment 1 that will be designed to perform heavy overhaul maintenance on rolling stock. Hafeet, on the other hand, will boast a depot with facilities for the maintenance of freight trains, wagons and locomotives, and passenger train coaches and locomotives. A diesel fuelling facility will be incorporated into this depot. Modest maintenance facilities are planned near the station at Buraimi primarily for the provision of intervention services on passenger trains between two services, says Oman Rail. Importantly, two marshalling yards will be built at Sohar Port and Hafeet to facilitate the marshalling of freight wagons into trains. While the yard at Sohar Port will mainly serve wagons from the port and the nearby Sohar Industrial Estate, the Hafeet facility will cater to wagons going to and coming from the GCC. Additionally, wayside maintenance centres will be constructed at Sohar City, Al Wasit and Hafeet. They will allow for the overtaking of trains, diversion from one line to another, and for the change of track in the event of an out-of-service track. For overtaking, passing loops and dedicated tracks into stations will be provided. For diversions, switches will be laid to join the lines. Conceived as a double track network, the diesel-powered freight and passenger line is proposed to link the most populated areas, the ports and the increasing productive activities of the Sultanate.

Oman Shipping Company

A bridge to global markets

aunching operations with a handful of LNG carriers just over a decade ago, state-owned Oman Shipping Company (OSC) has since seen its fleet burgeon and proliferate across key segments of the shipping business. Remarkably, this growth has panned out in lockstep with the Omani economy’s evolving maritime transportation needs, as the national flag carrier continues to deliver on its strategic goal of connecting domestic industries – spanning oil and gas, petrochemicals, mineral ores, containers and other bulk commodities - with global markets. Commenting on the company’s pivotal role in meeting the nation’s maritime transportation needs, OSC Acting Chief Executive Officer Tariq al Junaidi said: “OSC’s history actually started with the LNG sector with the company investing in six LNG vessels catering to the requirements of the LNG plants at Qalhat, Sur. OSC carries almost 45% of the country’s total LNG production to the Far East. Moreover, OSC is a major player in the industrial projects mainly in Sohar, handling almost 100% of alumina and iron ore imports bound for Sohar. In addition, OSC is also contributing to the

refining and petrochemical industry, mainly catering to ORPIC’s requirements through coastal shipping and local transportation of petroleum products between Sohar, Salalah and Mina Al Fahal, as well as exports of LPG and methanol to international markets,” he added. In effect, OSC remains a lynchpin in the government’s goal of positioning the Sultanate as a regional gateway and logistics hub, says Mr. Al Junaidi. “OSC always focuses on supporting the Omani economy not only by leveraging the import and export of Omani cargoes, but also by providing shipping solutions which will enhance connectivity between Omani ports, as well as other ports in the region. Having well connected ports and linkage to hub ports in the region is essential for Oman in order to be a logistics gateway. “ According to the CEO, the company is in continuous communication with all of the stakeholders that together make up the Omani maritime cluster, including the Ministry of Transport and Communications. The objective is to understand the government’s future plans, and try to align the company’s activities to match the country’s long term developmental strategies.

World-class ambitions In line with its vision to evolve into a world-class shipping company, OSC now boasts a well-diversified national shipping fleet that includes gas carriers, tankers, bulk carriers and liners catering to a wide range of industrial and economic activities in the country. With the growth of the mining and mineral processing sector, the company is now keen to offer its formidable resources and expertise to meet the shipping needs of this promising industry as well. “OSC would like to see itself supporting the growth of the mining industry of Oman, notably in handling the exports of Omani minerals and bulk commodities, mainly from Salalah and Sohar, as well as Duqm in the future,” said Mr. Al Junaidi. As the preeminent maritime transportation services provider, OSC continues to grow and develop in trend with the Omani economy. The addition of LNG Adam last year boosted the company’s fleet to a total of 42 ships of around 7.8 million DWT by the end of 2014. A further 10 MR tankers are due to join the fleet over the next two years. Together with additional chartered tonnage, the fleet is expected to swell to a formidable 60 vessels by 2016-17.

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Tariq Al Junaidi OSC Acting Chief Executive Officer

Oman Shipping Company (OSC) continues to invest in the expansion of its shipping fleet in line with its mandate to support the maritime transportation requirements of the Sultanate’s rapidly diversifying economy. On the technical management side, Oman Ship Management Company (OSMC), a wholly owned subsidiary of OSC, saw the size of its fleet under inhouse technical management expand to 26 vessels by the end of 2014, up from 23 during the previous year. Ships under technical management include LNGs, VLCCs, Product and Chemical Tankers, VLOCs and Multi-Purpose vessels – a testament to the growing prowess of Oman’s national shipping company. Delivering value Going forward, OSC says it intends actively partner Omani industries and companies in meeting their shipping needs and thereby enhance the value proposition of their businesses and support economic growth in general. “In 2015, Oman Shipping Company plans to focus on a long term strategy to serve Oman by leveraging the import and export of Omani cargoes. With the potential growth of the existing industrial hubs, and the establishment of new ones, the Company must position itself to be the first choice shipping

solutions provider, in particular, for Oman based firms,” said Mr. Al Junaidi. Additionally, OSC is closely monitoring developments in the Duqm Special Economic Zone where the company envisions a lot of potential in the tanker, bulk and container segments of the shipping business. “OSC sees a lot of opportunity not only to grow in Duqm, but also to play a major role in supporting Duqm’s development and enhance its connectivity with local as well as regional hubs. Indeed, OSC’s support to Duqm is important and has the potential to extend across of the company’s business operations, including tankers, bulk, liner and heavy lift. In addition, OSC will continue to tap into other international market opportunities in line with the Company’ Mission Statement, as a recognised international shipping company, on competitive and profitable terms,” he

added in conclusion. Oman Shipping Company S.A.O.C. (OSC) is a closed joint stock company, incorporated in 2003 and owned by the Government of the Sultanate of Oman through the Ministry of Finance (80%) and Oman Oil Company S.A.O.C. (20%). Headquartered in Muscat, Oman Shipping Company was established to transport the Sultanate’s Oil and Gas products to world markets, providing Omani shipping services to the country’s trade partners in other commodities, and to re-vitalize Oman’s long standing and proud seafaring tradition. The Company is involved in ship owning, chartering and technical management activities through its subsidiary companies: Oman Charter Company S.A.O.C., Oman Ship Management Company S.A.O.C., and Oman Container Line S.A.O.C. By Conrad Prabhu

South Al Batinah Logistics Area (SABLA)

Delivering value and driving growth

he Government of Oman, through the Supreme Council for Planning (SCP) and the Public Establishment for Industrial Estates (PEIE), has unveiled a landmark plan for the development of a new logistics hub in the South Al Batinah region of the Sultanate. The so-called South Al Batinah Logistics Area (SABLA) promises to further drive the Sultanate’s ambitions to emerge as a logistics gateway for the wider region, according to a top official who has been associated with the initiative from the very outset. “The vision of the project is to facilitate growth and opportunities in commerce for the Sultanate of Oman and its partners by enabling efficient logistics in a responsive, sustainable, financially sound and transparent manner,” said Engineer Ahmed Al Azkawi, Project Manager – South Al Batinah Logistics Area. “This logistics area will act as a nerve centre of economic activity fundamental to the growth and diversification strategy of the economy of Oman, in doing so it will have a multiplier effect on various sectors of the economy and aid national development in a significant manner,” he further added.

Ahmed Al Azkawi Project Manager – South Al Batinah Logistics Area

April 2015

Strategic location A project site spread over 9,500 hectares has been identified at the intersection of the Barka-Nakhal Road and the MuscatAl Batinah Expressway route, as well as the planned rail line between Sohar and Muscat. The strategic location, coupled with the abundance of land earmarked for the project, will help underpin the projectâ&#x20AC;&#x2122;s long-term growth, as well as drive its ability to suitably serve the growing international and domestic logistics demand of the Sultanate and regional economy. While the core function of the development will serve as a logistics zone, the strategy of the project will seek to also develop dedicated areas for commercial activities, light industrial business, and residential areas in addition to supporting facilities with a view that each of these functions will become more interdependent overtime. Each functional area will be developed in phases, with the first phase of the Logistics Area being a priority for initial development. Activities and facilities within the Logistics Area will include a customs bonded dry port, eventual intermodal rail terminal, warehouse and distribution facilities, open area storage yards, truck parking, and service centres, amongst others. The Logistics Area will be oriented toward the Western and Central part of the project site in order to facilitate the eventual intermodal rail connectivity and remain close to highway access while preserving more valuable

The South Al Batinah Logistics Area will aim to facilitate growth and opportunities in commerce for the Sultanate.

highway and regional roadway frontage for commercial activities, said the official. The Commercial Area will seek to attract and support investments in retail outlets for consumer-based products, wholesale facilities, office space, restaurants, auto malls, a convention centre, and other hospitality related businesses such as hotels.

Leveraging on connectivity The SABLA project is strategically planned along the major connecting roadways for efficiency in freight movements while the commercial areas within the project are oriented to mitigate the amount of small vehicle traffic having to combine with heavier truck traffic associated with the logistics and light industrial areas. The area reserved for light industrial activities is located along the southern boundary of the project. This location is conveniently close to the planned rail road marshalling yard to facilitate transfer of non-containerized goods associated with light industrial activities that may utilize the rail. Business activities in the Light Industrial Area could include textile production, electronics manufacturing, food processing, commercial bakeries, automobile and equipment machinery repair and processing. Also set aside within the project site is an area earmarked for the development of guest worker and executive housing for employees of companies operating within the overall development. â&#x20AC;&#x153;Plots of land will be made available to employers and developers to construct housing facilities that will be required to meet minimum quality standards and maximum occupancy levels. This area may also include recreational facilities and other green spaces,â&#x20AC;? the official explained. Earlier this year, the Steering Committee signed a Memorandum of Understanding (MoU) with Oman

International Exhibition Centre (OIEC) for the establishment of an integrated centre complete with display areas that investors in the Logistics Area can use to showcase their goods and services to their respective target audiences. The Integrated Centre will include showrooms, offices, shops, open display areas, and service offices and shops, facilities for the landing, loading and storage of goods, reception areas, and public parking. Long-term growth ambitions Importantly, the South Al Batinah Logistics Area is proposed to be operated and managed based on the landlorddeveloper model. Under this model, the government will provide the land and invest in initial utility connections and road works, as well as prepare ready-to build-on plots to be made available for leasing. Future tenants will enter into long-term ground rent agreements with the project development company and receive permission to build facilities for operations that conform to the master plan and minimum quality standards. According to the official, the development company may also consider providing build-to-suit facilities as well as offer prebuilt structures for lease depending on market conditions. The project development company will be responsible for, amongst other things, maintaining all roads, general common user property, public lighting, and certain utilities while also promoting development in accordance with the

master plan and long term business strategy. Development of the Logistics Area project has been overseen by a Steering Committee set up pursuant to a decision issue by the Supreme Council for Planning. This committee was set up to represent the major governmental and industry stakeholders in the planning and execution of the project. The committee was chaired by Eng. Ahmed bin Hassan al Dheeb, Chairman of the Public Establishment for Industrial Estates (PEIE), and included Talal bin Suleiman al Rahbi, Deputy SecretaryGeneral of the Supreme Council for Planning; Brigadier Issa bin Saeed al Kiyumi, Director General of Customs â&#x20AC;&#x201C; ROP; Mubarak bin Sulaiman al Mundhri, Director-General of investment, Ministry of Finance; Mohammed bin Khalifa al Ghassani, Assistant Director-General of Ports, Ministry of Transport and Communications; Eng Hamoud bin Salim al Saadi, Chairman of the Oman Chamber of Commerce and Industry (OCCI) branch in South Batinah, Eng Musallam bin Mohammed al Shahri, Assistant Chief Operating Officer of PEIE, and Eng Ahmed bin Said al Azkawi, Project Manager â&#x20AC;&#x201C; South Al Batinah Logistics Area. More recently, the Steering Committee was replaced by the Founding Committee of the Oman Logistics Company (under formation), a fully government owned entity which will assume responsibility for the development and management of the South Al Batinah Logistics Area.

April 2015

Upon its formal incorporation, the Oman Logistics Company will also be responsible for, among other functions, urban planning, engineering design, managing the development, commercialisation, and investment management of the remaining phases. Dry Port Development is currently focused on Phase 1 encompassing a 30-hectare area featuring a Dry Port and a number of Logistics Area plots. Conceived as a full-service inland port, this first-of-itskind facility in the Sultanate is designed to serve as a customs bonded gateway location for shippers to receive and deliver their cargo originating from or to the greater Muscat region via the country’s ports and land boarders, including the Port of Sohar amongst others. “With customs bonded services, ample capacity, and eventual connectivity with the Muscat-Batinah Expressway and GCC rail, the Dry Port will be ideally positioned to serve the needs of shippers and logistics service providers,” the Project Manager said.

Also envisaged in this phase is the provision of primary and secondary road networks within the site, utilities, preparation of pad sites to be developed for logistics centres and distribution space, or build-to-suit contracts. The initial phase will also include facilities for supporting services including truck service centres, restaurants, office space, and administration buildings. Included in the master plan is an eventual intermodal rail transfer area once the GCC railway line is completed, areas for administrative functions, customer service, and government services including customs. A Request for Expression of Interest (EoI) for the Operation & Management of the Dry Port, floated by the Steering Committee earlier in January, attracted significant local and international interest from regions including the GCC, Asia, Europe, North America, Africa and Australia. A short list of qualified firms to be invited to participate in a Request for Proposal process is expected to be announced by the end of the month. The robust interest, the official

explained, reflected the Logistics Area’s strategically advantageous location in South Al Batinah Governorate which is conducive as a hub for logistics, warehousing and distribution, consolidation, re-exports of containers and general cargo alike. Excellent multimodal connectivity with seaports along the coast, industrial parks and free zones also ensure speedy and seamless handling and movement of these goods, he said. Coherent strategy Pending the appointment of a qualified operator to run the initial Dry Port facility, the development company also plans to progress other components of the project over the next two years. It is the goal of the Founding Committee to secure lease commitments covering a sizable part of the potential leasable area during this period. Additionally, a critical component of the strategy is to ensure that customs and other single-window services for cargo clearance are fully in place and functional. By Conrad Prabhu

I - Connecting to Compete 2014

Trade logistics in the global economy

Inefficient logistics raises the costs of trading and reduces the potential for global integration, The World Bank warns in its groundbreaking study accompanying the publication of its 2014 Logistics Performance Index. 20

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mproving logistics performance is at the core of the economic growth and competitiveness agenda. Policymakers globally recognize the logistics sector as one of their key pillars for development. Trade powerhouses in Europe like the Netherlands or in developing countries like Vietnam or Indonesia see seamless and sustainable logistics as an engine of growth and of integration with global value chains. Indeed, inefficient logistics raises the costs of trading and reduces the potential for global integration. This is a hefty burden for developing countries trying to compete in the global marketplace. Since 2007, the Logistics Performance Index (LPI) has been informing the debate on the role of logistics for growth and the policies to support it in such areas as infrastructure, service provision, and cross-border trade facilitation. Logistics performance continues to converge—slowly The results of Connecting to Compete 2014 point to Germany as the best performing country with an LPI score of 4.12, and Somalia as the worst with 1.77 (on a scale of 1 to 5). (Germany was also the best performer over 2007–14—

Efficient border management is critical for eliminating avoidable delays and enhancing predictability in border clearance

box 1.) A slightly converging trend from previous LPI surveys in 2007, 2010, and 2012 is also found in 2014, with lower performing countries improving their overall LPI scores more than higher performing countries. The modest convergence since 2007 is

explained by a perceived improvement in trade supporting infrastructure in lowand middle income countries—and to a lesser extent in their logistics services and customs and border management. This perceived improvement attests to the success of developing countries in closing the transport infrastructure gap with high-income countries. If service delivery is poor, good physical connectivity is not enough Infrastructure development has assured basic connectivity and access to gateways for most developing countries, a fact consistent with trends in the LPI since 2007. Yet countries have been more successful in delivering quality for some types of infrastructure. Quality of information and communications technology infrastructure is regarded not only as the highest across all respondents, but also where the gap between lowest and highest performers has narrowed the most, partly due to automation in border management. Conversely, rail infrastructure inspires general dissatisfaction. Ratings for other types of infrastructure vary by region. Infrastructure services are delivered by logistics providers that operate 21

Supply chain reliability is a major concern for traders and logistics providers alike

under very different environments globally. Usually, the quality of the services they provide is perceived better than the quality of the corresponding infrastructure they operate. This “divide” between services and infrastructure quality is wider in air and maritime transport. Railroads, again, have low ratings almost everywhere. And low income countries still score poorly on road freight services, despite having given them more policy attention recently. Acceptable services in infrastructure can be achieved in lessthan-ideal circumstances, but differences in service quality can be substantial for similar levels of perceived infrastructure quality, for operational excellence cannot be replaced or necessarily equated with good physical “hardware.” Trade facilitation and border management reforms matter Supply chain reliability is a major concern for traders and logistics providers alike. In a global environment, consignees require more certainty about when and how deliveries will take place. This increases the demand for quality in logistics services, posing challenges for private agents and for governments, all of which face pressure to facilitate trade while safeguarding the public against criminal activity, health concerns, or terrorism threats. Efficient border management is critical for eliminating avoidable delays and enhancing predictability in border clearance. Coordination among government control agencies will remain essential in trade facilitation efforts—as will introducing best practices in automation and risk management in non-customs control agencies, which have generally been less open to reform. Accordingly, customs agencies have obtained higher LPI ratings than all other agencies in border

management, particularly sanitary and phytosanitary control agencies, and less so those enforcing standards. The World Trade Organization Ministerial Conference Agreement on Trade Facilitation, in December 2013 in Bali, marked the importance of the facilitation agenda for expanding trade. After more than a decade of negotiations, the Bali Ministerial Declaration renewed the impetus to reform trade facilitation. It also created some urgency for the donor community to support developing countries in this endeavor. Increased complexity, no more lowhanging fruit Previous editions proposed a typology of four broad groups of countries, based on how friendly their logistics environments are. The most in need of attention from the international community and their neighbors are those with governance challenges—such as post conflict countries and fragile states—as well as those challenged by their economic size or geography in their connectivity to global markets—such as landlocked developing countries and small island states. Long-standing, but still mainly unresolved, implementation challenges in these countries, such as regional transit regimes, remain key for future progress as many now have the basic connective infrastructure in place. Despite least developed countries’ efforts to improve their logistics, there is a growing need for consistent action plans where complexity is higher, as in most middle-income countries. The notion that there may be low-hanging fruit that countries can pick easily is less and less true. Further, reforms with many stakeholders can be slow to implement, or even reversed by governance weaknesses, as in Tunisia. More detailed, accurate data for policymaking and information sharing is needed. For instance, the trade facilitation concept of “single windows for trade” requires alignment of several government control agencies, which takes time, but can be implemented in least developed countries, as in the Lao People’s Democratic Republic. Countries that introduce far-reaching changes have combined regulatory reform with investment planning, interagency coordination, and incentives for operators. The LPI shows that the quality of services is driving logistics performance in emerging and richer economies, too. Yet developing services like third-party logistics, trucking, and forwarding may be the most complex policy agenda ahead, with few success stories so far. In “logistics friendly” countries, manufacturers and

traders already outsource logistics to third party providers, and focus on their core business while managing more complex supply chains. Supply chain sustainability concerns are stronger in this edition. About 37 percent of respondents shipping to countries in the Organisation for Economic Cooperation and Development recognized a demand for environmentally friendly logistics solutions, compared with just 10 percent for low-income destinations. Governments will need to make longterm policy changes that improve and

April 2015

maintain the competitiveness of these services, consistent with fast-changing industry practices. So developing countries will have to not only consider the environmental footprint of their logistics, especially in trading with developed countries, but also revisit governance and operational models for environmentally friendly infrastructure and related transport modes, especially railways, that seem to perform poorly relative to those in the top performers.

Conclusion Logistics performance is strongly associated with the reliability of supply chains and the predictability of service delivery for producers and exporters. Supply chains—only as strong as their weakest links—are becoming more and more complex, often spanning many countries while remaining critical to national competitiveness. Comprehensive reforms and longterm commitments from policymakers and private stakeholders will be

essential. Here, the LPI provides a unique reference to better understand key trade logistics impediments worldwide. [Extracted from ‘The Logistics Performance and its Indicators’ authored by Jean-François Arvis (The World Bank), Daniel Saslavsky (The World Bank), Lauri Ojala (Turku School of Economics), Ben Shepherd (The World Bank), Christina Busch (The World Bank) and Anasuya Raj (The World Bank)]

Oman ranked 59th in 2014 LPI

Oman was ranked 59th among 160 countries covered in the 2014 Logistics Performance Index. The top nations were Germany (1st), Netherlands (2nd), Belgium (3rd), United Kingdom (4th), Singapore (5th), Sweden (6th), Norway (7th), Luxembourg (8th), United States (9th) and Japan (10th). Germany was adjudged the best performer with a score of 4.12. In the Gulf region, the Sultanate lagged behind all of its fellow partners within the GCC bloc. The United Arab Emirates in 27th place led the field, followed by Qatar (29th), Saudi Arabia (49th), Bahrain (52nd) and Kuwait (56th).

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LPI ranking and scores, 2014 2014 LPI

2014 LPI

Rank

Score

Rank

Score

% of highest performer

Germany

4.12

100.0

Croatia

3.05

65.8

Benin

109

2.56

50.0

Netherlands

4.05

97.6

Kuwait

3.01

64.4

Tunisia

110

2.55

49.7

Belgium

4.04

97.5

Philippines

3.00

64.2

Fiji

111

2.55

49.5

United Kingdom

4.01

96.6

Cyprus

3.00

64.1

Angola

112

2.54

49.4

Singapore

4.00

96.2

Oman

3.00

63.9

Chad

113

2.53

49.0

Sweden

3.96

94.9

Argentina

2.99

63.6

Tajikistan

114

2.53

48.9

Norway

3.96

94.8

Ukraine

2.98

63.3

Mauritius

115

2.51

48.5

Luxembourg

3.95

94.4

Egypt, Arab Rep.

2.97

63.0

Georgia

116

2.51

48.3

Economy

Rank

Score

% of highest performer Economy

3.92

93.5

Serbia

2.96

62.9

Macedonia, FYR

117

2.50

48.0

Japan

3.91

93.4

El Salvador

2.96

62.8

Libya

118

2.50

47.9

Ireland

3.87

91.9

Brazil

2.94

62.3

Mali

119

2.50

47.9

Canada

3.86

91.5

Bahamas, The

2.91

61.2

Botswana

120

2.49

47.8

France

3.85

91.2

Montenegro

2.88

60.1

Bolivia

121

2.48

47.4

Switzerland

3.84

91.1

Jordan

2.87

60.0

Guinea

122

2.46

46.9

Hong Kong SAR, China

3.83

90.5

Dominican Republic

2.86

59.6

Zambia

123

2.46

46.9

Australia

3.81

90.0

Jamaica

2.84

59.0

Guyana

124

2.46

46.7

Denmark

3.78

89.1

Peru

2.84

59.0

Azerbaijan

125

2.45

46.4

Spain

3.72

87.1

Pakistan

2.83

58.5

Papua New Guinea

126

2.43

45.8

Taiwan, China

3.72

87.0

Malawi

2.81

58.1

Guinea-Bissau

127

2.43

45.7

Italy

3.69

86.2

Kenya

2.81

58.0

Comoros

128

2.40

44.9

Korea, Rep.

3.67

85.4

Nigeria

2.81

57.9

Uzbekistan

129

2.39

44.7

Austria

3.65

84.8

Venezuela, RB

2.81

57.9

Niger

130

2.39

44.6

New Zealand

3.64

84.7

Guatemala

2.80

57.6

Lao PDR

131

2.39

44.5

Finland

3.62

84.0

Paraguay

2.78

57.0

Madagascar

132

2.38

44.3

Malaysia

3.59

83.0

Côte d’Ivoire

2.76

56.4

Lesotho

133

2.37

44.0

Portugal

3.56

82.0

Rwanda

2.76

56.3

Central African Republic

134

2.36

43.6

United States

3.54

81.3

Bosnia and Herzegovina

2.75

56.0

Mongolia

135

2.36

43.4

China

3.53

81.1

Maldives

2.75

56.0

Equatorial Guinea

136

2.35

43.4

Qatar

3.52

80.6

Cambodia

2.74

55.8

Zimbabwe

137

2.34

42.9

Turkey

3.50

80.1

São Tomé and Príncipe

2.73

55.5

Tanzania

138

2.33

42.6

Poland

3.49

79.9

Lebanon

2.73

55.3

Togo

139

2.32

42.2

Czech Republic

3.49

79.8

Ecuador

2.71

54.8

Turkmenistan

140

2.30

41.8

Hungary

3.46

78.9

Costa Rica

2.70

54.5

Iraq

141

2.30

41.6

South Africa

3.43

77.9

Kazakhstan

2.70

54.4

Cameroon

142

2.30

41.5

Thailand

3.43

77.8

Sri Lanka

2.70

54.3

Bhutan

143

2.29

41.3

Latvia

3.40

77.0

Russian Federation

2.69

54.3

Haiti

144

2.27

40.7

Iceland

3.39

76.6

Uruguay

2.68

53.8

Myanmar

145

2.25

40.0

Slovenia

3.38

76.3

Armenia

2.67

53.6

Gambia, The

146

2.25

40.0

Estonia

3.35

75.1

Namibia

2.66

53.1

Mozambique

147

2.23

39.4

Romania

3.26

72.4

Moldova

2.65

53.0

Mauritania

148

2.23

39.4

Israel

3.26

72.4

Nicaragua

2.65

53.0

Kyrgyz Republic

149

2.21

38.7

Chile

3.26

72.3

Algeria

2.65

52.8

Gabon

150

2.20

38.5

Slovak Republic

3.25

72.2

Colombia

2.64

52.5

Yemen, Rep.

151

2.18

37.9

Greece

3.20

70.5

Burkina Faso

2.64

52.5

Cuba

152

2.18

37.8

Panama

3.19

70.3

Belarus

2.64

52.5

Sudan

153

2.16

37.2

Lithuania

3.18

69.8

Ghana

100

2.63

52.1

Djibouti

154

2.15

36.8

Bulgaria

3.16

69.1

Senegal

101

2.62

52.0

Syrian Arab Republic

155

2.09

34.9

Vietnam

3.15

69.0

Liberia

102

2.62

51.9

Eritrea

156

2.08

34.7

Saudi Arabia

3.15

68.8

Honduras

103

2.61

51.5

Congo, Rep.

157

2.08

34.5

Mexico

3.13

68.2

Ethiopia

104

2.59

51.0

Afghanistan

158

2.07

34.3

Malta

3.11

67.5

Nepal

105

2.59

50.9

Congo, Dem. Rep.

159

1.88

28.2

Bahrain

3.08

66.7

Solomon Islands

106

2.59

50.8

Somalia

160

1.77

24.8

Indonesia

3.08

66.7

Burundi

107

2.57

50.2

India

3.08

66.6

Bangladesh

108

2.56

50.1

United Arab Emirates

viii

C ONNECTING TO COMPETE 2014

T RADE LOGISTICS IN THE GLOBAL ECONOMY

II - Connecting to Compete 2014

New challenges in trade facilitation and logistics

April 2015

Logistics is not limited to transportation or trade facilitationâ&#x20AC;&#x201D;but part of a broader agenda that also includes services, development of facilities, infrastructure, and spatial planning, says The World Bank in its report accompanying the publication of its 2014 Logistics Performance Index (LPI).

mproving logistics performance is at the core of policies to bolster competitiveness and to boost trade integration. Recent trade research shows that improving logistics is where developing countries have the most potential to reduce trade costs. The recent WTO agreement in Bali, focusing on core trade facilitation standards, is also an example of this awareness and thrust toward implementation. Logistics is not limited to transportation or trade facilitation—but part of a broader agenda that also includes services, development of facilities, infrastructure, and spatial planning. Sustainability and environmental footprints are increasingly a concern, especially when connecting to OECD countries. Some countries’ needs, like those of landlocked countries, have to be accommodated. “Humanitarian logistics” for countries in crisis is also receiving more attention. Countries are facing more complex reforms to push through. Design and implementation ultimately occur nationally or regionally, within country groupings. Further, because the robustness of a supply chain depends on its weakest link, the benefits of progress in addressing performance bottlenecks in one area may not be felt until progress is made in other areas. Areas of reform: No more low-hanging fruit? First, this report confirms the need for consistent action plans in view of the higher complexity found in middleincome countries. The low-hanging fruit that countries can pick off earlier is less and less easily found. Incremental reforms may not address the weakest link and they can be easily neutralized or reversed by change in the governance environment when the incentives of the people resisting changes (private or public) are not addressed at a broad level. Most successful countries are introducing far-reaching changes, combining legislative changes with investment planning and incentives for operators. Large countries like Brazil and Indonesia have created high-level interagency bodies to help manage these complexities. While there is no change in the needs for basic infrastructure in developing countries, some infrastructure and service provision issues require more attention. The most obvious is the lack of reliable rail services across country income levels. While green transport policies emphasize the importance of a modal shift from roads to rail, influencing the demand for rail beyond captive bulk markets will require a transformational change in performance that is just not happening, except in a few high-income countries. Further, in line with the emergence

Trade facilitation remains a core agenda item, which recently came under the global spotlight due to the Bali agreement.

of outsourcing in logistically friendly countries, developing economies are looking increasingly to promote sectors from different angles, such as regulations of warehousing or spatial planning of logistics clusters. Service reform, as in road freight, is still their priority. Trade facilitation remains a core agenda item, which recently came under the global spotlight due to the Bali agreement. Implementation challenges have also received more attention from governments and the global development community. The pressing needs are moving toward more complicated projects with many stakeholders, and where progress is bound to be slower than in automating customs, for instance. One such area is integrating processes of border agencies as part of trade clearance. These agencies are deemed more problematic than customs, based on the results obtained in the domestic LPI including standards, transport, veterinary, and health/SPS bodies. As noted in Connecting to Compete 2012, progress is also comparatively slow for regional integration of trade and transport procedures, such as transit regimes, which would generate major gains in, for instance, corridor performance for landlocked countries. Fact-based policymaking Policymakers are increasingly looking for the data on which to base their decisions. General cross-country benchmarks like the LPI are useful, and are complemented by connectivity indicators for specific modes, such as shipping and air. They provide international comparability but remain coarse-grained benchmarks. More detailed and greater specificity is needed to assess the impact of decisions on ports, corridors, border crossings, trucking reforms, and the like. These needs fall into two categories: Measures of performance outcomes on cost, time, and reliability of specific

chains—corridors or ports, for instance. Impact of cutting logistics costs on the economy. With automation frequent in most supply chains, raw performance data are often available. There is now an extensive body of experience in measuring, for instance, corridor performance, both in developing economies or in high-income countries. Assessing the footprint of logistics in the economy is more complex. Several governments or national logistics associations have monitored it through specific firm surveys, including those in Germany, France, Brazil, the Nordic countries, Thailand, and Malaysia. These surveys try to estimate logistics spending in manufacturing and commerce—and to break down the operating costs of service providers. The Finnish survey model has been replicated in several countries, including Greece and Kazakhstan. Differentiated needs by country The four-category breakdown remains relevant, though changes over time point to “churning” between the second and third categories (partial performers and consistent performers). The single most important characteristic of logistics friendly countries is their services’ sophistication, which allows their manufacturers to outsource logistics to thirdparty providers, increasing their competitiveness while focusing on their core activities. Outsourcing is much less common or even nonexistent in the other categories. Countries in the logistics unfriendly category are in most need of support from the international development community and neighbors. They include countries with governance challenges (such as post-conflict countries and fragile states), and countries challenged by their small economic size or geographic connectivity (such as landlocked developing countries and small island states). Addressing some of the implementation challenges above, such as regional transit regimes, will be key for future progress. If countries want to be more competitive, they should encourage the development of third-party logistics functions, including those in the service sectors. To ensure that services are efficient and competitive, governments will need to make long-term policy changes that improve and maintain competitiveness of services, including logistics services that allow their countries to join global supply chains. A country’s competitiveness based on low labor costs or abundant natural resources, for example, can be easily lost through inefficient logistics.

April 2015

The impact of outsourcing on trade and competitiveness

Manufacturing and wholesale/retail companies (shippers) often outsource functions of product delivery to providers of “third-party logistics” (3PL is a bundle of transport, warehousing, and related logistics and information technology services). The partnership allows greater specialization: shippers focus on their core business in manufacturing or commerce, while the 3PL providers develop better ways to provide other services in the supply chain, including freight forwarding, warehousing, and transport. Outsourcing in logistics is a sign of strong logistics performance and of a mature logistics market, and is often a direct marker of logistics sophistication. In developed logistics markets, shippers and other 3PL users generally outsource some 60 percent of their freight forwarding, 70 percent of their warehousing, and 80 percent of their transport services. The remainder is provided in house. Outsourcing and spread of 3PL is rarer in even high-income countries that have not yet developed a mature logistics market. In peripheral European countries or emerging economies, outsourcing is typically 30 percent or less. In low-income economies as in Africa, outsourcing is negligible. While inherent demand for advanced logistics services may be low in these countries, provision of these services is also hampered by regulatory and other constraints. In 2012, 3PL had an estimated global market of about $677 billion. Its growth has been especially rapid in the Asia-Pacific region—the largest regional market at $236 billion in 2012, followed by the United States ($170 billion) and Europe ($156 billion). [Extracted from ‘The Logistics Performance and its Indicators’ authored by Jean-François Arvis (The World Bank), Daniel Saslavsky (The World Bank), Lauri Ojala (Turku School of Economics), Ben Shepherd (The World Bank), Christina Busch (The World Bank) and Anasuya Raj (The World Bank)]

Creating pathways to careers in logistics T

Prof. Dr. Oliver Lorz

he strategy for Oman’s logistics development, coupled with ongoing investments in major infrastructure projects, will definitively raise the demand for qualified specialists in the fields of logistics and related areas, such as supply chain management and operations management. To fill the gap between demand and supply in this field will be both a challenge and an opportunity for universities in the region. Logistics experts can work in a variety of management positions in the transportation industry, for logistics service providers, in railway companies, for retailers or wholesalers, just to name a few. With the rapid growth in logistics facilities in Sohar,

Barka, Salalah, and so on – which will be developed as logistics hubs for the region – logistics managers with sound expertise in the field will be highly sought after. In anticipation of the rapidly growing market demand for welleducated logistic managers in the GCC region, GUtech has introduced a new Bachelor’s programme in Logistics in the winter of 2014/15. This programme combines a sound general education in international business and management with specific knowledge of logistics, supply chain management, and transportation management. Students can also choose from electives to obtain deeper insights into certain fields of logistics such as airport

April 2015

logistics, railway logistics, or container terminals. The study programme has a strong focus on the employability of its candidates and therefore includes practical elements such as applied logistics projects as well as an internship. The Bachelorâ&#x20AC;&#x2122;s study programme has been developed by a team of professors of RWTH Aachen University, with one of the team members, Prof. Dr. Hans-JĂźrgen Sebastian being the holder of the Deutsche Post Chair of Optimization of Distribution Networks. Members of RWTH Aachen University as well as from other German academic institutions teach regularly in the programme, thereby providing close personal links to academia and industry in Germany. The cooperation agreement signed recently with Deutsche Bahn

Logistics experts can work in a variety of management positions in the transportation industry, for logistics service providers, in railway companies, for retailers or wholesalers, just to name a few

International gives GUtech the opportunity to develop specialized training for railway engineering students and technicians in Oman. Moreover, it opens the opportunity for qualified students and faculty to participate in job training programmes in facilities of DB International. Prof. Dr. Oliver Lorz, who heads the International Economics Unit at RWTH Aachen University, is the Inaugural Dean of the Faculty of Business and Economics at GUtech. He received his doctoral degree from the University of Kiel. Before coming to Aachen, he held positions at the Kiel Institute of World Economics and at the University of Konstanz. He was a visiting research scholar at the Massachusetts Institute of Technology and at the National Bureau of Economic Research in Cambridge, USA.

SOHAR Port and Freezone

Opening the floodgates

April 2015

SOHAR is a joint venture with Port of Rotterdam and forms an important component within its Global Port Network. Together we have sustained triple and double-digit growth to the point where, on average, we welcome a vessel every 4 hours, handle a kilogramme of cargo every 0.63 seconds, and unload a brand new car at our pre-inspection centre every 2.6 minutes.

Edwin Lammers Executive Commercial Manager

fter little more than a decade since its creation, SOHAR Port and Freezone is preparing to open the floodgates to its already burgeoning logistics industry, as Oman nears completion of more than US$15 billion worth of new expressways and ambitious infrastructure projects. The same figure represents total investment in SOHAR, which after twelve shorts years, is already fulfilling its potential as a conduit for channelling overseas funds to industries across the Sultanate through economic growth, value chain creation, and increased employment opportunities, according to SOHAR Executive Commercial Manager, Edwin Lammers. “SOHAR is a joint venture with Port of Rotterdam and forms an important component within its Global Port Network. Together we have sustained triple and double-digit growth to the point

where, on average, we welcome a vessel every 4 hours, handle a kilogramme of cargo every 0.63 seconds, and unload a brand new car at our pre-inspection centre every 2.6 minutes.” “More than 2,000 ships now call at SOHAR, which is an almost unbelievable 4,700 per cent increase since inception. However, while cargo volumes are also pushing beyond the 50 million tonne per year threshold, the real growth is yet to come. Logistics will be the catalyst to this growth and Oman is investing heavily in developing its infrastructure to meet demand.” More than 60 per cent of the Al Batinah Expressway has been built, with the remainder of this 265km-long eight lane super-highway on course for completion by the end of the year. With an estimated cost of US$2.5 billion, this vital artery will extend from Muscat, to Oman’s border with the UAE, and will strengthen the business case for setting up operations at SOHAR. In addition to modern road links that will cut onward transportation times, the opening of Sohar Airport comes after Middle East cargo carriers reported 7.8 percent growth in demand for air freight services. Located a few kilometres outside the city, the airport underpins future plans for the transformation of economic interests on the Batinah coast, while a passenger capacity of 500,000 also bodes well for SOHAR’s long-term strategy, says Mr. Lammers. “It goes without saying that SOHAR Airport will add a new dimension to logistics industries in the region, but one thing that is sometimes overlooked is the quicker, direct route that business leaders and investors exploring available opportunities in the north of Oman have access to as a result of passenger flights. In particular, this will accelerate efforts to fill out SOHAR Freezone.” Last but not least, Mr. Lammers says

rail continues to excite investors and remains the mode of choice for bulk shippers. As a ‘game-changer’ for the region and for SOHAR, more than US$250 billion has been set aside for a 67,000 kilometre grid that will feature the US$20 billion Gulf Railway – joining Qatar, UAE, Bahrain, Kuwait, Saudi Arabia, and Oman – at its core. “As one of the driving forces behind Oman’s US$2 billion plus trade surplus, the SOHAR Rail Terminal will be an important junction along the country’s historic 2,244-kilometre leg of the new GCC railway line. Work has already begun on the line in Oman, while hundreds of miles of track have also been constructed in the region’s biggest consumer market, Saudi Arabia.” “Maximum speeds of 120 kilometres per hour for freight trains will mean goods can reach UAE within an hour from departure at SOHAR, and will be on a par with

April 2015

similar rail networks in other parts of the world. We continue to prioritise rail on account of its ability to transform supply chains and communication systems into active and sustainable sources of growth,” he said. As the rail industry grows, the value it creates is expected to increase exponentially according to Mr. Lammers. He points to a correlation between the arrival of rail links and forecasts for the national logistics industry, which is expected to grow from US$8 billion to US$12 billion by 2017. Meanwhile, although the rail network is not expected to be fully operational until a year later, he says it comes with the benefit of lower road traffic, multiplied transit capabilities, and contributing to what is already one of the best environmental records in the world. Equally important will be the development of a skilled Omani rail

labour force, complete with everything from drivers, engineers, station masters, dispatchers, foremen, and signalmen. “We understand that this won’t happen overnight but we are already looking at how we can contribute to the transport and logistics industry and achieve our business objectives. We are drawing on the experience of Port of Rotterdam, where freight rail infrastructure is undergoing modernisation to cater for expansion beyond the 250 freight trains that start and finish there.” “This is the kind of experience that will be needed in building a rail network and other transport links from scratch, and it goes without saying that modern operations must be accompanied by customer-focused and effective coordination. This is where our unique global partnerships and worldwide network of expertise will come into its own and contribute to unrivalled growth.”

Port of Salalah

Logistics is not a science â&#x20AC;&#x201C; it is an art â&#x20AC;&#x201C; the art of doing things simply

April 2015

Salalah Portâ&#x20AC;&#x2122;s efficiency and record-breaking productivity is second to none and prides itself on customer service levels, which have helped to attract major shipping lines as well as the worldâ&#x20AC;&#x2122;s naval fleets and increasing numbers of cruise ships, allowing tens of thousands of tourists to experience the unique treasures of Salalah and its environs.

By David Gledhill

alalah traces its history as a key trading post back thousands of years thanks to its strategic location and an abundance of what was considered Arabia’s most precious commodity, frankincense. This most treasured and fragrant resin, burned as incense and prized for its medicinal qualities, is produced by the indigenous Boswellia tree and rivaled gold, silk and gems in value. Demand across the ancient world was high and frankincense spawned pioneering trade with Persia, Africa, India, and beyond, establishing Oman as a trading nation. Set in Oman’s deep south on the Indian Ocean Rim and below the arc of the Dhofar mountains, the Port of Salalah is proud to continue the Sultanate’s rich maritime history and to facilitate its

prerogative to trade internationally. Ideally located to service the lucrative East-West shipping lanes, the port was established as a joint venture between two shipping companies and the Omani Government and is operated by APM Terminals under a 30-year concession. Its General Cargo Terminal still welcomes traditional wooden dhows carrying all manner of goods including minerals such as locally mined gypsum and limestone, food and livestock. Across the quay from the GCT is a state of the art Container Terminal, which was opened in 1998 and now takes its place among the top 10 transshipment ports of the world. In the past year, the Container Terminal and the General Cargo Terminal handled 3 million TEUs (twenty foot equivalent units) and 10.3 million tons respectively. The port’s efficiency and recordbreaking productivity is second to none and prides itself on customer service levels, which have helped to attract major shipping lines as well as the world’s naval fleets and increasing numbers of cruise ships, allowing tens of thousands of tourists to experience the unique treasures of Salalah and its environs. Investment in the port is ongoing. A dedicated liquid fuel jetty will be delivered later this year and it continues to employ pioneering mooring systems to ensure visiting ships are safe during the Khareef season. The Port of Salalah contributes $70 million annually in cash contributions to the Omani economy and remains one of the country’s leading employers. It also supports its local community, contributing more than OMR 70,000 in CSR activities last year alone, helping to fund education, sports and infrastructure initiatives that have a powerful and

positive impact on Dhofar and across Oman. As the port grows, so does its commitment to safety. Providing a safe working environment for employees, customers and all port users remains at the top of the agenda. Today, Oman stands at a crossroads. Not only the physical crossroad as the centre of world trade but a metaphorical crossroad, as it seeks to find its place as a Logistics Gateway to the region. The GCC railway will link our ports to the consumer markets of the Arabian Peninsula and beyond and with our ability to handle the biggest ships in the world there is an opportunity for us to shift the centre of gravity for trade in the region outside the Gulf. After years of investment in physical infrastructure to make the movement of goods easy it is now vital that we take away the bureaucratic obstacles to doing business. Our model should be the great city-ports of the world, Hong Kong, Singapore and Dubai, where there is no heavy hand of government hindering the ability to trade. The much discussed ‘single window’ as an interface with Government ministries must become a reality and has to be easily accessible and decision-making has to become faster by embracing new technology. The GCC Supply Chain and Logistics Conference here in Muscat gives us all a unique opportunity to talk openly and honestly about how to better serve our markets and grow our businesses. We welcome the prospect of pooling our expertise and building a world-class future for the sector. David Gledhill, CEO, Port of Salalah

April 2015

Port of Duqm

A transshipment and distribution hub in the making

April 2015

A key part of Duqmâ&#x20AC;&#x2122;s appeal lies in its potential to become a consolidation and distribution hub serving the wider region.

Reggy Vermeulen CEO – Port of Duqm Company

rom the geographical and geopolitical standpoints, Port of Duqm enjoys inherent advantages which, if suitably leveraged, can make it the envy of major hubs in the wider region. After all, given its vantage location overlooking the Arabian Sea and Indian Ocean and its proximity to some of the world’s busiest shipping lanes, Duqm has a lot going for it as one of the region’s nascent, yet most promising, mega ports. Soft launched just over two years ago, the port already has set its sights on the booming markets of the Indian Sub-continent, East Africa and the Arabian Peninsula. “As a green-field port surrounded by an abundance of space on the landside, Port of Duqm is fortunate to enjoy a location that places virtually no limits on its potential for growth in the longterm,” says Chief Executive Officer Mr. Reggy Vermeulen. “We are ideally placed to serve as a transshipment and distribution hub for the Middle East, East Africa and the west coast of India. True, we are the rookie port at the moment, but

over time, we will evolve and grow into a mega seaport for, on the one hand, trade in petrochemicals and liquid commodities, and on the other, as a container transshipment hub. Of course, our vision for container transshipment will complement what Port of Salalah is already offering, but with a specific focus on the Indian and African markets.” From the logistics perspective, Port of Duqm is well-positioned to serve as the gateway of choice for the handling and discharge of wide-load and over-dimensional freight into the Sultanate, the CEO points out. Green-field settings, wide-open spaces, proximity to oilfields in the hinterland, and reinforced carriageways for heavy haulage, combined to give Port of Duqm a significant handling when compared with its peers. Following the closure of Muscat’s Port Sultan Qaboos to commercial traffic, and with overland connectivity with Sohar and Salalah already subject to height and load restrictions, Duqm is the inevitable choice for consignees taking delivery

April 2015

of heavy project cargo and outsized freight. “Because we’re essentially a brand new port, we have been able to design and equip ourselves to welcome extra heavy loads that our sister ports do have the flexibility to handle,” said the CEO. “We have invested in heavy lifting equipment and cranes, and trained our people as well in the handling of such cargo. Ample land has also been set aside for the storage of such freight. Our superior handling capabilities gives us an edge over other ports in Oman.” A key part of Duqm’s appeal lies in its potential to become a consolidation and distribution hub serving the wider region, Mr. Vermeulen adds. “We are looking to replicate the hugely successful Antwerp model here in promoting Duqm as a logistics hub. With the massive area available all around the port, multinational manufacturing company can weigh the benefits of setting up their consolidation and distribution centres here in Duqm to supply markets across the Gulf and Middle East

region. Take for example, a global electronics brand that manufactures a wide range of consumer electronics and home products. By choosing to use Duqm as its regional distribution base, it can customize and consolidate cargoes based on specifications and requirements peculiar to a specific market. For example, when it plans to ship its goods to India, it makes sure to include the power codes, manuals and other accessories specific to the Indian market. Likewise, goods shipped to Africa would have to similarly customized to meet local market specs. This business of consolidation and distribution affords significant reductions in inventory costs to multinational companies and is a new trend in global logistics management.” According to the CEO, the keenlyawaited Sultanate of Oman Logistics Strategy 2040 (SOLS), due to be unveiled at the 2nd GCC Supply Chain & Logistics Conference, promises to leverage the respective strengths of Oman’s three main ports to support the country’s development into a logistics-

centric economy. “Through SOLS 2040, the Omani government wants to capitalize on the country’s superb geographical location to be the regional gateway for the Gulf, Africa and Indian subcontinent. We will see a closer alignment of the strategies of our ports – being the logistics cornerstones of the country – to enhance Oman’s logistics appeal,” he explains. Aside from a pivotal role for the Port of Duqm as a transshipment and distribution hub, Mr. Vermeulen also envisions an equally important opportunity for the port as a gateway to the Arabian hinterland, centring on the markets of southern UAE and Saudi Arabia. The latter function will be further accentuated when eventually Duqm is connected with the national rail network, and by road to a blacktop that cuts through The Empty Quarter at Ibri into Saudi Arabia. Air connectivity between Duqm Airport and other international and domestic airports within Oman is also expected to fuel the growth of sea-air freight, he added. 45

The Chartered Institute of Logistics and Transport (CILT)

Supporting logistics skilling and delivery in Oman C

ILT International is the overall body responsible for bringing together our global activities across over 30 countries. Committed to the development and skilling of transport and logistics professionals, the CILT has established a wide range of qualifications and courses to support the school-leaver right through to senior managers, directors and executives. CILT International have been working with CILT Oman to support them in their current expansion plans, offering materials, resources and best practice from right across the globe to help meet the logistic challenges and opportunities here. CILT International are also focusing on supporting growth and skills development right across the Middle East, with key education providers already based in Dubai, Bahrain, Saudi Arabia and here in Oman. Both Jon Harris (International Professional Development Coordinator) and Jan Steenberg (Chair of the International Education Standards Committee) will be speaking during

the GCC Conference, covering the importance of education and skills to the major growth planned for Oman, and explaining how CILT’s offering respond to the marketplace in a flexible manner. At CILT we fully recognise the need for skills

capacity to be ‘home grown’ within each country we serve – so therefore our blend of continuing professional development, mentoring and knowledge sharing is critically important to help with the ongoing Omanisation process.

Profiling our education services

By Jon Harris

s the International Professional Development Coordinator for the CILT, my job is to focus on countries outside the UK and Europe, helping to deliver

qualifications and Continuing Professional Development opportunities and ensuring that their quality and standards are kept high. As one CILT family we learn from each other and for that reason we have developed a series of qualifications to comparable standards; the CILT UK and the CILT International range of qualifications. We are delighted to be working with the Polyglot Institute and Maharat (GIMT) here in Muscat, who are accredited to offer our qualifications following a comprehensive assessment process. To give readers an idea of the types of qualification we offer, here are some examples of our courses that lead to a formal qualification in logistics and transport. But beyond this list there is also a whole range of CPD. Short course and modular studies – some of which have already been developed in the UAE to support the markets there. The qualifications we provide are: Entry Award in Logistics and Transport (ideal for school-leavers and

apprentices providing the basics) Introductory Certificate in Logistics and Transport (providing a good overall grounding in core topic areas) Certificate in Logistics and Transport (providing a key stepping stone to a career in logistics and transport and supporting supervisors) Diploma in Logistics and Transport (developing managers and supervisors in specific sectors) Advanced Diploma in Logistics and Transport (providing certification to degree standard) These courses are offered through approved centres throughout the GCC countries, and study of the UK qualifications can also be offered via Distance Learning. These qualifications provide an easy stepping-stone route to career development, which can be taken flexibly, and which lead to professional membership at different grades, including Chartered status. The CILT team will be on hand during the conference exhibition to help with

April 2015

advice for training providers, employers and those interested in developing their career path. Part of my job is to ensure that new training providers are able to provide the quality of learning environment, tuition and support needed to deliver these courses overseas, and that we follow a robust accreditation process to ensure that colleges, universities and other training providers are able to deliver these programmes. Note the CILT International qualifications are taught programmes assessed by examination. We welcome applications from training centres, education providers and also larger companies across the Gulf region who wish to deliver these qualifications in-house, and as part of the process we will consult with the local CILT organisations to ensure they support the initiative. All of our qualifications have been recently refreshed and modernised with the latest material. A new feature of our programme is the ability for a training provider to offer individual unit modules with a Unit Certificate award. This allows the development of â&#x20AC;&#x2DC;wrap-aroundâ&#x20AC;&#x2122; courses which would include visits, guest lecturers and other CPD learning with the unit syllabus and examination at the core. This allows employers who wish to sponsor staff to develop in a niche area (i.e. warehousing, ports, inventory management, supply chain, transport planning etc.) to take the units most directly relevant to them, but then take the module award with them to another

college or provider to carry on their studies to gain the whole qualification. We are really keen to engage with delegates at the GCC Supply Chain and Logistics Conference so we are delighted to be able to profile some of our key activities. If readers would like to find out more about CILT and what it can offer

please visit www.ciltinternational.org. You can also contact Jon Harris on +44 (0) 7881 805 952 or email jon.harris@ ciltinternational.org. Jon Harris is the International Professional Development Coordinator for the Chartered Institute of Logistics and Transport

The importance of a skilled workforce

By Jan Steenberg

ast week I was at a workshop in London. The SAS Institute was presenting the latest in predictive analytics and demand planning to a group of top retailers and

CPG manufacturers in the UK. Impressive stuff and amazing functionality. Big question was why all this hasnâ&#x20AC;&#x2122;t been implemented across the industry yet: Skilled People was the most prevalent answer, or rather a lack of them. The week prior I was speaking at a conference for Supply Chain Leaders in South Wales on the subject of S&OP or Integrated Business Planning. Again the key reason for these processes either not working at all or working badly was a lack of skilled people. As a supply chain professional both of those events were on the one hand quite disturbing. Why is it so difficult for businesses across supply chain, logistics and transport to get hold of employees with the right set of skills? On the other hand I was quite encouraged, because we as the CILT offer numerous courses from the most basic level to degree level providing exactly those skills. I have listened to many industry leaders over the past few years talking about talent management and skill gaps, but it seems to me that while industry has been quite

prepared to make substantial investments in sophisticated systems and increasingly clever equipment and processes, they have not had the same appetite for investments when it comes to developing their people. But why? When it seems so obvious that without skilled people in our organisations we will not be able to utilise all the smart functionality in systems and equipment. For the institute it is not just a formal statement in our royal charter, it is our lifeblood to develop people in supply chain, logistics and transport. It is what we do, as a not-for-profit charity working for professionals in supply chain, logistics and transport. Jan Steenberg is the Chair of the International Education Standards Committee, CILT International and will be speaking as part of the Human Capital and Leadership Development session at the Conference. Jan is a sought after conference speaker and guest lecturer, having been heavily involved in all aspects of supply chain management but with a particular focus on training, education and talent development. 47

IMCO

A unique maritime education & training organisation in the GCC Region A

joint collaboration between the Government of Oman and the STC Group from the Netherlands, the International Maritime College Oman (IMCO) is a unique education & training institute in the GCC Region that offers diploma, degree and short courses- to both sexes- to provide a feed to the maritime, port, transport, logistics and petrochemical process industries. With students from countries as diverse as Qatar, Bahrain, Egypt, Jordan, Yemen, Kazakhstan, India, Bangladesh, Nigeria and Cameroon, IMCO also boasts a multinational staff and excellent facilities for maritime education. Along with Oman attractive and strategic location, construction of new railway lines, investments in airports and new terminals at the country’s seaports auger well for the growth of Oman’s logistics sector and the demand for training. Also the country’s strategic location at the edge of the Arabic peninsula, close to one of the busiest trading routes (between Asia & Europe) and most importantly, outside the Strait of Hormuz, is another major important factor that gives leverage to the sector. Unlike other competing nations, Oman has a great potential as it is not gasping for space, it has not reached the real estate rates of its neighbouring nations, as it is neither deprived of land nor space. Oman is situated at a rather privileged position as opposed to its competitors, as mentioned above. Of course this creates further opportunities for the growth of Logistics, or if you wish putting the Sultanate on the map as a Logistics Powerhouse (SOLS 2040). There has been an endless list of developments taking place in the 48

logistics sector, including the Al Mazyuna free trade zone and Free trade zones (or industrial zones) in Ibri, Nizwa and Sohar. The triangle which is close to the border with UAE and the Kingdom of Saudi Arabia, the logistics centre in Barka, Sohar, Doqum and Salalah ports, new highway connecting Oman to Saudi Arabia. All these projects are currently under development and seeking to increase the potential of the sector further. In a recent paper, titled “the role of hinterland connectivity and inland dry ports in the regionalization of ports: a case study of Sohar Port” it is mentioned in more detail the role of the railway as a significant station in the regionalization phase of the port of Sohar, by means of providing an extended and integrated network for the transportation of cargo from Oman to the extended hinterland. Logistics is a major driver for economic growth, taking major western economies into account (in Australia it accounts for 15 per cent of the GDP, 13 per cent in South Africa, and around 9 per cent in Germany) creating both direct employment in the transport of cargo and attracting foreign investment.

April 2015

GAC Oman:

Planning ahead to support SOLS 2040

AC is committed to supporting Oman as it embarks on its latest plan to develop its logistics infrastructure and raise the country’s profile as a regional logistics hub. The country’s only fully integrated and independent logistics and shipping services provider, GAC has been active in Oman for more than 40 years, and is planning ahead to support development in line with the Sultanate of Oman Logistics Strategy 2040 (SOLS 2040). General Manager Daniel Nordberg says the national goal is to increase the

contribution of the logistics business to the GDP. “Boosting the country’s status as a regional hub and a gateway to the Middle East will attract more business and have wide-reaching benefits that go beyond the logistics sector. Projects to improve road links with Saudi Arabia or upgrade the GCC rail network will bring opportunities for Oman, enabling it to capitalise its strategic location at the entrance to the Gulf.” “To do so will require a concerted effort at all levels to improve the country’s

ranking in the World Bank Logistics Performance Index, where is it currently placed 59th on the list,” he adds. Oman has a relatively low profile as a logistics hub and SOLS 2040 seeks to remedy that by enhancing its appeal with the development of free zones, more warehousing and greater opportunities for regional logistics opportunities. GAC, in turn, is working with several shipping lines and logistics customers to take advantage of proposed development for attracting more business to the country.

April 2015

Nurturing skills But development must look beyond infrastructural improvements and investment be made in nurturing local skills and professional expertise, to boost the appeal of the country in a highly competitive regional market, Nordberg points out. “Investment in developing our people has long been a priority for GAC. We have a wide range of services on offer throughout the country, but such services are only as good as the people who deliver them.” Of the 216 employees that make up GAC Oman’s national workforce, 137 are Omanis, underscoring the company’s commitment to recruiting and developing the professional skills of Omani nationals. The GAC Group’s Corporate Academy is testament to the organisation’s commitment to professional development, and Nordberg is determined to take full advantage of the opportunities it offers his staff to raise the level of service to meet the challenges that a growing Omani logistics sector will bring. GAC Oman is part of the global GAC Group, which employs more than 10,000 people in over 300 offices worldwide. It is one of the Sultanate’s top LCL and air freight businesses and offers a range of integrated supply chain and logistics solutions, with warehouses in Al Khuwair, Muscat, and the Ghala area. It serves a wide range of manufacturers, distributors and retailers, and also caters for the special logistics demands of the oil & gas, construction, fast moving consumer goods (FMCG), automotive parts and events sectors. The company helps its customers to deliver their strategies and fulfill their business goals by serving as a longterm strategic partner, committed ally and trusted counsel, working with them to maximise operational and cost efficiencies, whatever the challenge.

Vision “With careful planning and execution, Oman has the resources to achieve the targets set by SOLS 2040, and more,” says Nordberg. “At GAC Oman, we share the Sultanate’s vision for efficient growth and development in new markets. The past few years have brought steady growth with the company going from strength to strength, significant new business wins and contract renewals with large organisations that have helped to underline GAC’s credentials as an innovative, customer-driven organisation.” GAC’s ability to tailor a unique package of freight, customs clearance and other logistics services with its shipping capabilities and relationships with shipping lines and terminals enables it to deliver each customer with the best possible service. The company works closely with the local authorities to promote the Sultanate and smooth the delivery of its services to customers. That client base includes the Omani Ministry of Tourism, for which GAC is the official logistics provider. GAC Oman’s logistics service portfolio includes: • Freight services (consolidation): GAC Oman is an IATA-approved provider of freight services, and received the TransOman Logistics Excellence Award in 2010 • Oil & gas logistics: GAC Oman is a one-stop solution for both onshore and offshore oil & gas logistics. The company is a member of the Oman Society for Petroleum Services (OPAL), which works to raise industry standards in the Sultanate. • Project Logistics: Shipments which are too big, too non-standard and too sensitive to be handled like ordinary cargo present special challenges –

and GAC Oman has the expertise, experience, resources and reach to meet those challenges. • Warehousing & distribution: GAC Oman has a state-of-the-art facility next to its head office in Al Khuwair, Muscat, as well as two other warehouses in the Ghala area. • Supply Chain Management: Global supply chain management is a critical success factor for manufacturers and retailers in many industries. GAC has what it takes to manage your supply chain in the most efficient way. • Land Transportation: GAC Oman offers a wide range of transportation services from project cargo to international land transportation as well as domestic retail distribution and delivery. Its fleet of trucks is fitted with In Vehicle Monitoring Systems (IVMS) for easy tracking and traceability. • Ship Spares Logistics: GAC Oman offers ship owners and management companies a “door-to-deck” delivery service for ship spares and marine parts, with the best delivery method chosen based on customers’ timing and cost concerns. • International Moving: GAC International Moving has been helping companies move personnel and corporations in and out of the Middle East for more than 30 years, and is a registered member of the world’s leading international moving associations. • Courier Services: GAC Oman offers courier services to any destination worldwide. For more about GAC Oman, go to www.gac.com/oman

April 2015

The Official Supply Chain & Logistics Event in Oman Welcome to the 2nd GCC Supply Chain & Logistics The Ministry of Transport & Communications, Sultanate of Oman is delighted to organize once again the 2nd GCC Supply Chain & Logistics Conference which takes place during 15 – 16 April 2015 at Al Bustan Palace, A Ritz Carlton Hotel, Muscat, Oman. During the past year, an Omani Task Force under the Chairmanship of H.E. Dr Ahmed Al Futaisi, Minister of Transport & Communications, has intensively worked on developing the

‘Sultanate of Oman Logistics Strategy 2040’ (SOLS 2040). This strategy has high ambitions and involves among other things: the re-engineering of logistics related processes, planning and implementing sector related projects and inducing a cultural and behavioral change in the short and medium term, which is a pre-requisite to make Oman an even more important logistics hub. The 2nd GCCSCL Conference 2015 is fully in line with the SOLS 2040 strategy. This year’s conference brings together top international and local

executives and professionals from logistics and supply chain management, as well as related industries, to share insights and views on how to drive forward logistics and supply chain objectives. The conference will also highlight emerging opportunities in Oman’s world-class ports, airports, railway, logistics hubs and free zones and its important role in the Gulf region, the Indian Ocean Rim and beyond.

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Speakers and Panelists H.E. Dr. Ahmed bin Mohammed bin Salim Al Futaisi Minister of Transport & Communications, Sultanate of Oman

Mr. Eric S.C. Ip

Group Managing Director, Hutchison Port Holdings Limited (HPH)

p Sing-Chi, Eric is the Group Managing Director of Hutchison Port Holdings Limited (HPH) and Executive Director of Hutchison Port Holdings Management Pte Limited, the Trustee-Manager of HPH Trust.

Mr Ip joined Hongkong International Terminals, a member of HPH Trust, in 1993 as the General Manager of Commercial and was promoted to Managing Director in 1998. In 2001, Mr Ip was entrusted with additional responsibility as the Managing Director of Hutchison Ports South China, a regional division of the HPH Group, overseeing the Group’s business in Hong Kong and Southern China. In July 2005, Mr Ip was appointed Executive Director on the Board of HPH and assumed the corporate role as Head of Commercial of HPH in addition to his role in Southern China. In 2013, Mr Ip was appointed Deputy Group Managing Director of HPH. After graduating with a Bachelor of Arts Degree from the United Kingdom, Mr Ip began his career in the maritime industry in 1980, holding management positions with various leading shipping agencies. Mr. Ip is an independent non-executive director of COSCO Pacific Limited and China Shipping Development Company Limited, and an outside director of Hyundai Merchant Marine Company Limited. 54

Mr. Kim Fejfer

Chief Executive Officer, APM Terminals

im Fejfer was appointed CEO of APM Terminals in June 2004 and is located in The Hague, Netherlands company headquarters. He is a member of the Group’s Executive Board since January 2011. A native of Denmark, Mr. Fejfer graduated from the University of Aarhus, Denmark with a Master’s Degree in Finance and Economics. He served as an officer in the Danish Army, and has attended management programs at IMD, Switzerland and the Cranfield School of Management, in England and Harvard Business School in Cambridge, Massachusetts.

Mr. Eddy Bruyninckx

Chief Executive Officer, Port of Antwerp

ddy Bruyninckx, has headed the Antwerp Port Authority since 1992, first as general manager of the Antwerp Municipal Port Company (as it was then), and for the last seventeen years as CEO of the Authority in its present form. As CEO he forged the Authority into an efficient, independent company under public ownership, while at the same time establishing peaceful industrial relations within the port of Antwerp. For this successful turnaround and modernisation he was awarded the title of “Public Sector Manager of the Year” in 2003, conferred for modern public management by the Flemish Association for Management and Administration Science, and in 2012 he had the honour of receiving the first World Ports Award in Abu Dhabi from Sultan Bin Saeed Al Mansouri, Minister of Economy of the UAE. Eddy Bruyninckx is currently also a director of the publicly-owned transport company NMBS, the Belgian National Railway Company, as well as a number of other organizations.

April 2015

Dr. Allard Castelein

Mr. Kimble Winter

Chief Executive Officer, Port of Rotterdam Authority

he Port Authority is the manager, operator and developer of Rotterdam’s port and industrial area. The Port Authority invests in the development of the existing port area, new port sites (Maasvlakte 2), public infrastructure and in the handling of shipping traffic. The goal is to strengthen the port of Rotterdam’s competitive position as a logistics hub and industrial complex of world standing. Allard Castelein is Chief Executive of the Port of Rotterdam Authority since January 1, 2014. Before, he was Vice President Environment at Royal Dutch Shell

Mr. Dirk Reich

President and Chief Executive Officer, Cargolux Airlines, Luxembourg

r. Dirk Reich has been the Chief Executive Officer and President of Cargolux Airlines International SA since March 26, 2014. Mr. Reich served as an Executive Vice President and Member of Management Board at Kuehne & Nagel International AG (Kuehne + Nagel International AG) until November 30, 2012. He served as an Executive Vice President of Road & Rail and Contract Logistics at Kuehne & Nagel International AG since 2010. He served as an Executive Vice President of Contract Logistics at Kuehne & Nagel International AG from 2001 to November 30, 2012 and Company Secretary from April 2008 to 2009. He served as Senior Vice President of Corporate Development of Kuehne & Nagel International AG from 1995 to 2001. He served in various positions at Lufthansa AG and VIAG AG. Mr. Reich was Graduated from Koblenz School of Corporate Management in Germany (Wissenschaftliche Hochschule frUnternehmensfhrung Koblenz (WHU), Germany).

Global Chief Executive Officer, Logistics Executive Group

dynamic and engaging senior executive with 35 years leadership experience spanning Corporate Advisory, Executive Coaching, Public Speaking, Search & Recruitment across the Supply Chain, Logistics, FMCG, Retail, Resources, Industrial, Disaster Relief and Humanitarian sectors. Kimble has built an international reputation as the founder (1999) of Logistics Executive Group which delivers Whole of Life Cycle Talent Management including Search & Executive Recruitment, Corporate Advisory, On-Line Education and Executive Coaching / Mentoring. A regular contributor of thought leadership to industry and media, he is a professional Master of Ceremonies, frequently invited to Chair international events on contemporary / future industry trends and leadership issues. A handson leader working with his teams from the company’s offices in Sydney, Dubai, Melbourne, Singapore, Hong Kong, Shanghai, Chennai, Mumbai, Delhi and London, he is a Board member of over a dozen companies throughout APAC, India and the Middle East. A New Zealand citizen, he holds formal resident status in Australia and the United Arab Emirates and is the Australia & New Zealand appointed representative for the UAE Govt owned Jebel Ali Free Zone (JAFZA), one of the world’s largest Economic Free Zones. An active sportsman, triathlete and ex-professional rugby player, Kimble advisor to charity Boards and Founder / Chairman of successful not for profit humanitarian organization Oasis Africa www.oasisafrica.org.au working with local communities to provide sustainable primary /secondary education, security and holistic support in some of East Africa’s most notorious slums. Kimble is an experienced Executive Performance Coach and holds an MBA and BA Massey & Victoria Universities (NZ).

Mr. Paul Gregorowitsch

Chief Executive Officer, Port of Duqm

aul Gregorowitsch is the Chief Executive Officer of Oman Air the National Carrier of the Sultanate of Oman. Prior to joining Oman Air, Mr. Gregorowitsch was a management board member in Air Berlin and was tasked with the responsibility of overseeing the German carrier’s commercial activities. From 2007-2011 he was the President and CEO of Amsterdam-based passenger and cargo airline airline Martinair Holland NV, where he implemented successful restructuring measures to bring the company back into profit in record time. Mr. Gregorowitsch has also held series of international management positions within Air France-KLM, rising to Executive Vice President for Commercial. He was part of the Executive team that was responsible for the amalgamating the passenger divisions of Air France and KLM, and was Co-Chairman of the Alliance Steering Committee for the successful joint venture of Northwest Airlines and KLM

Mr. Reggy Vermeulen has been recently appointed as the Chief Executive Officer of Port Duqm. Prior to his current position he was the PoD’s Commercial Director for three years. Prior to joining Port of Duqm, Reggy was the CEO of the port and industrial zone of Haiphong in Vietnam. This location under his management has attracted over 1.5 billion dollars of investment and has been elected amongst the top 5 companies of Vietnam. Mr. Reggy was also positioned in Nigeria for the launching the port and industrial zone of “OK Free trade zone” next to Lagos. He started his career as consultant at Deloitte consulting with a specialization in Supply chain optimization and companies restructuring.

Mr. David Gledhill

Mr. Willem Heeren

Chief Executive Officer, Port of Salalah

avid Gledhill has spent 35 years in the ports industry, previously as CEO for Hutchinson Ports UK and COO at Felixstowe Dock and Railway Company prior to joining APM Terminals and his appointment as CEO of the Port of Salalah. He has held senior positions in Germany, the Netherlands, Belgium, Luxembourg, and Portugal.

Mr. Reggy Vermeulen

Chief Executive Officer, Oman Air

Chairman, DINALOG - Dutch Institute for Advance Logistics

r. Heeren has worked for Exxon in Europe and the United States from 1973-1994 where he was active in various management functions in engineering, operations and supply & logistics. From 1994-2010 Mr. Heeren was the Managing Director of Jan de Rijk Logistic and currently serving as Chairman of the Supervisory Board. He was also the President of Royal Dutch Transport Association (KNV), Vice President of TLN, Branche Organization of Transport and Logistics Netherlands, Member of the supervisory board of Nederland Distributie Land (NDL) and Supervisory Board of de Jong Intra Vakanties. Mr. Heeren is currently the Chairman of the Executive Board of DINALOG (Dutch Institute for Advanced Logistics).

April 2015

Mr. John Arthur Lesniewski

Eng. Mahmood Al Bastaki

John Lesniewski has more than 35 years of experience in the United States and Middle East in rail and logistics management, consulting, and architecture. He has held his current position as Chief Commercial Officer at Oman Rail since October 2014. Prior to his current position, John served Acting Executive Director of Commercial and Director of Sales at Etihad Rail. In the past he served as Vice President at Pacer International, one of North America›s largest rail intermodal operating companies, leading their business development, sales management, marketing, research, and product development. He also held the position of Regional Manager, Freight Planning at Wilbur Smith Associates, a leading transportation and infrastructure consulting firm. The core of John›s Middle East experience includes 4 years as Director of Sales at Etihad Railway and 12 years in Kuwait in project management and product development. He holds a Masters in Business Administration from the University of California, Berkeley as well as a Bachelor of Architecture from the University of Arizona.

Chief Commercial Officer, Oman Rail

Mr. Gunnar Malm

Former Director General, Swedish Transport Administration

irector-General of the Swedish Transport Administration since it was formed on 1 April 2010. Before becoming Director-General, Gunnar Malm had been entrusted with the task by the Government of looking into how to form the Swedish Transport Administration. He was also given the task of analysing the possibilities of developing railway tracks for high-speed trains in Sweden. Gunnar Malm has been CEO of a number of companies in the transport sector including Swedcarrier AB, ASG AB, Translink AB and Arlandabanan Infrastructure AB. Gunnar Malm also has a number of international positions, such as membership of the EU High-level Group for a Rail Strategy Platform, the Chair of the European Rail Infrastructure Managers (EIM) and a member of the Management Committee for International Railway Organisations (UIC). Gunnar Malm is also the Swedish Chair of the Nordic Road Association (NVF).

Chief Executive Officer, Dubai Trade FZE

eading Dubai Trade FZE to become the innovative trade and supply chain e-hub of the world, Eng. Mahmood Al Bastaki has played a major role in the advancement of e-business in the region. An expert in e-commerce solutions, Al Bastaki served as the Chief Information Officer (CIO) of Dubai World Corporate Departments before taking up his current position as the CEO of Dubai Trade FZE. Al Bastaki was appointed as an Advisor for the Dubai Expo 2020 bid team. He is also a member of The UAE National Committee of World Trade Organization current president of the Chartered Institute of Logistics and Transport - UAE Board of Trustees and Advisory Board Member in the “National Association of Freight and Logistics NAFL” A Winner of the 2013 “Accomplished Leaders” category of Feigenbaum Leadership Excellence Award, organised by Hamdan Bin Mohammed E-University and voted as the “Popular CEO of the Year” at the 6th International Maritime Awards in 2013. He was selected as one of the Government Technology Leaders by “The Who’s Who of Government Technology – Middle East” in 2006. Al Bastaki is also the former Acting Director of E-Services of Dubai E-Government where he formulated the 2005 E-Government Strategy. He managed critical projects such as the governmental Electronic Payment Gateway “ePay”, Unified Contact Center “AskDubai”, and Web Hosting and Management Platform “eHost”. A graduate of Mohammed Bin Rashid Leadership Development Program and Dubai World Leaders Program in association with Wharton School of Government in Pennsylvania, USA. Al Bastaki began his career in the public sector as a Speech Recognition Expert in the Forensic Laboratory of Dubai Police where he successfully set up a Voice Analysis Division. Al Bastaki had also worked as a Senior Engineer in Products & Services Development at the multi-national Thuraya Satellite Telecommunications Company between 1999 and 2002. He received a Bachelor of Science degree in Electronics Engineering Technology from the University of Arkansas in Little Rock, USA in 1993, and a Master degree in Electrical Engineering from Oregon Graduate Institute, USA, in the year 1998.

Mr. Andre Toet

Mr. Jan Steenberg

ndré G.F. Toet, Dutch, born in 1963, The Hague. After leaving the Maritime Institute ‘Willem Barentz’ (higher technical education level) Andre joined Nedlloyd Lines in 1986, where he worked for a number of years on the bridge as mate and nautical officer. After his sailing career he worked for several Nedlloyd Group subsidiaries in several countries in senior positions Netherlands, Sudan, Thailand and Hong Kong. After the merger of P&O Group and Nedlloyd Lines he became in 2000 Managing Director of P&O Nedlloyd Europe. Subsequently after the take-over by Maersk became CEO of Maersk Central Europe. In 2008 he was appointed as COO of the Port of Rotterdam. As well as his role as CEO of Sohar Industrial Port Company, he also holds the position of Non-Executive Director of Electronic Shipping Solutions (ESS) Malta.

Mr. Tim Sebastian

Mr. Dom McKenna

im Sebastian is the chairman of The New T Arab Debates, currently broadcast and distributed worldwide on Deutsche Welle

Chief Executive Officer, SOHAR Industrial Port Company SAOC

Chairman, The New Arab Debates

TV. The award-winning former BBC foreign correspondent was the first presenter of HARDtalk, BBC World’s daily half-hour interview programme, where he worked for more than seven years. Tim was the founder and chairman of The Doha Debates which were broadcast across the globe on BBC World News from 2004 until 2012. The programmes, recorded in the Gulf state Qatar, provided a unique, uncensored forum for discussing the most controversial issues in the Arab and Islamic worlds. In 2012 he presented the Outsider Debates, recorded in India and screened on Bloomberg TV. in 1982, Tim was the winner of the “Richard Dimbleby Award” at BAFTA and was also named “Television Journalist of the Year” by the Royal Television Society. For two years running, in 2000 and 2001, he received the Royal Television Society’s “Interviewer of the Year” Award. He began his career as a foreign correspondent in Warsaw, covering the Solidarity revolution, before becoming the BBC’s Europe Correspondent in 1982 and Moscow Correspondent in 1984. A year later he was expelled by the Soviet authorities and sent to Washington until 1989. Born in London in 1952, Tim speaks Russian and German fluently and also holds a BA Honours degree in modern languages from Oxford University. A best-selling author, he has written eight novels and two non-fiction books. In 2015 he was elected a Fellow Commoner at Corpus Christi College, Cambridge to serve during the academic year 2015-16. Tim has written widely for newspapers including the Mail on Sunday, The Sunday Times and the New York Times. He also chairs conferences and seminars. He has a wealth of experience hosting events and award ceremonies, both at home and abroad.

Chairman of IESC, Chartered Institute of Logistics & Transport International (CILT)

an joined the Council of Trustees as International Vice President in June 2013. He is working as the Supply Chain Director for Connect Education and Care, part of the Connect Group Plc and has previously held similar roles in Tata Steel, Dentsply International and Remington Consumer Products. With more than 25 years’ experience in end-to-end supply chain management, Jan is a sought after conference speaker and guest lecturer, having been heavily involved in all aspects of supply chain management but with a particular focus on training, education and talent development.

Group International Director, Freightliner Group.

om joined Freightliner Group in August 2010 with a remit to further develop the Group’s presence in new markets globally. He led the acquisition of ERS Railways BV in August in 2013 and the successful agreement in 2015 to partner Saudi Arabian Railways to develop World Class freight rail services in Saudi Arabia. In addition to membership of the Group Management Board, he is Chairman of the Board of ERS Railways and Freightliner Middle East, and a Board member of Freightliner Poland. Dom has 25 years’ experience developing profitable distribution and logistics businesses, with an emphasis on service leadership and employee culture. During his career he has personally led multi-site, multi-disciplinary teams of up to 10,000 people; has developed a track record successfully turning around under-performing businesses; and has led entry into new markets via start up, partnerships, joint ventures, operating contracts, consortia and acquisitions across the UK, Continental Europe and the Middle East. In addition to Chairing and Managing businesses, Dom has held senior Operational and Commercial roles and has had Board responsibility for Procurement, Engineering and IT. Dom has a Masters in Business Administration (Distinction) majoring in Strategy and Finance, and a BSc Degree in Business.

April 2015

Mr. Peder Winther

President- MEA Region, Kuehne + Nagel Management – MEA

eder Winther , 51 years of age and a Danish national , was appointed President of Kuehne-Nagel in the Middle East and Africa Region as of 1st January 2015 and is located in Dubai , United Arab Emirates. He joined Kuehne-Nagel in 2011, and was most recently Senior Vice President for Seafreight in Western Europe , and a part of The Global Sea freight Board. Prior to that, he held executive positions with Samskip and Maersk Logistics (now Damco). Mr Winther has complimented his education with Management Courses at Insead, London Business School and Ohio State University.

Mr. Karl Michael Mohnsen

Chief Executive Officer, TX Logistik AG

arl Michael Mohnsen is the Chief Executive Officer of TX Logistik AG since October 2004. Following his military service, Karl was the Managing Director of the International Timber Company, a family owned company (with subsidiary in Ivory Coast). After the company was sold in 1990 He joined Hellmann Worldwide Logistics as member of the Executive board responsible for the European countries and activities for 12 years. He also worked for DB Cargo (later Stinnes AG) as acting Senior Executive President for Freight Logistics and in 2004 Karl joined Trenitalia and held a senior level position responsible for supporting the European development.

Mr. Aflah Al-Hadrami

Mr. Abdulmalik Al Balushi

Vice President - Supply Chain Management, Occidental of Oman Inc.

r. Al Hadhrami is the Vice President of Occidental Oman Inc. for Supply Chain Management. Mr. Al Hadhrami has been working in Oil & Gas sector for almost two decades. His professional career started as a trainee with Petroleum Development of Oman, and thereafter followed increasingly important and senior Leadership in Supply Chain positions at Oman Refinery LLC, Schlumberger Overseas S. A., and then to Occidental Oil and Gas Corporation, where he has been for the past 11 years. Aflah has successfully completed his bachelor and master’s degree in Business Management and is now in his final stages of completing his PhD in Business Management from University of Liverpool (UK). He is also a member in the Royal Chartered Purchasing Institute in the UK (MCIPS). In addition to his work in Oil and Gas he is employed with Sultan Qaboos University as an adjunct lecturer at the College of Economy and Political Science where he teaches Operations Management and Supply Chain to the bachelor degree students, where he also sits on the College Advisory Board. Mr. Al Hadhrami is also an active member in various committees and boards, including the SOLS committee, and more recently he has been appointed as a board member at Oman Petroleum Association Society (OPAL).

General Manager– Support Services, Oman Shipping Company

r. AbdulMalik Al Balushi is currently working as the General Manager of Support Services at Oman Shipping Company. He is responsible for managing the HR, Admin and IT Functions. He was previously associated with Oman Power & Water Procurement Company as Manager for HR and Support Services. Prior to joining OPWPC he work also at Telecommunication Regulatory Authority and Muscat Municipality. Mr. AbdulMalik Al Balushi is a graduate of University of Arizona with a BSc in MIS and he holds an MBA from Sultan Qaboos University.

H.H. Sayyid Faisal bin Turki Al Said

Director General, Marketing & Media, ITHRAA

Eng. Saeed Khamis Al Zadjali

Acting Chief Executive Officer, Oman Airports Management Company

Peter Young

Director, Advisor to the Minister of Transport and Communications

CONFERENCE PROGRAMME Wednesday, 15 April 2015

Oman Auditorium - Conference Opening Ceremony (Day One) 8:00 – 9:00 Registration 9:00 – 9:10 Recital of Holy Quran 9:10 – 9:20 Introduction 9:20 –9:40 Welcoming Speech Accelerating the Sultanate of Oman’s Logistics Strategy (SOLS) H.E. Dr. Ahmed bin Mohammed bin Salim Al Futaisi, Minister of Transport & Communication, Oman 9:40 –10:00 Keynote Speech Kim Fejfer, Chief Executive Officer, APM Terminals 10:00– 10:30 Distribution of Tokens and Exhibitions Tour with the Chief Guest, Distinguished Guests and Diplomatic Corp (followed by refreshments) – Bosher Room 10:30 – 11:30 MARKETS SESSION A panel of government & industry leaders will discuss some of the most prevalent topics on the global logistics market outlook and the future direction of global logistics means for the emerging markets. It will also focus on: What will the industry look like in the coming years? · Impact on those within the sectors / key stakeholders · The important role of Gulf ports in the international trade & commerce; · Challenges & Opportunities for Oman to become the next potential logistics hub in the Gulf region? Session Moderator: Tim Sebastian, Chairman, The New Arab Debates Panelists: · H.E. Dr. Ahmed bin Mohammed bin Salim Al Futaisi, Minister of Transport & Communication · H.H. Sayyid Faisal bin Turki Al Said, Director General, Marketing & Media, ITHRAA · Kim Fejfer, Chief Executive Officer, APM Terminals · Dirk Reich, President & Chief Executive Officer, Cargolux Airlines International S.A · Dr. Allard Castelein, Chief Executive Officer, Port of Rotterdam Authority 11:30 – 12:00

Refreshment & Networking 12:00 – 12:15 Oman Air’s on its Journey: Expansion Plans / Cargo Plans Paul Gregorowitsch, Chief Executive Officer, Oman Air

12:15 – 12:30 Success in a Difficult Environment: TX Logistics Experience Karl Michael Mohsen, Chief Executive Officer, TxLogistik AG 12:30 – 12:45 Experience from Establishing the Swedish Transport Administration Gunnar Malm, Former Director-General, Swedish Transport Administration 12:45 – 1:20 Oman & Global Market Overview Panel Discussion Local, regional & global carriers, forwarders and shippers will explore the global market as well as the cargo opportunities and key industrial segments in the gulf and Indian Ocean region. · Changing cargo flows · Impact of the Railway · Opportunities for inward investments into the region. Session Moderator: Tim Sebastian, Chairman, The New Arab Debates Panelists: · Paul Gregorowitsch, Chief Executive Officer, Oman Air · Andre Toet, Chief Executive Officer, Port of Sohar · Eng. Saeed Khamis Al Zadjali, Acting Chief Executive Officer, Oman Airports Management Company · John Arthur Lesniewski, Chief Commercial Officer, Oman Rail · Gunnar Malm, Former Director-General, Swedish Transport Administration HUMAN CAPITAL DEVELOPMENT & LEADERSHIP SESSION 1:20 – 1:35 Talent Management in Freight Forwarding and Logistics: A Risk or an Opportunity? Peder Winther, President- MEA Region, Kuehne + Nagel Management – MEA 1:35 – 1:50 Developing Capability and Skills in New Markets Dom McKenna, Group International Director, Freightliner 1:50 – 2:05 Professional Development in Supply Chain, Logistics & Transport Jan Steenberg, Chairman of IESC, Chartered Institute of Logistics & Transport International 2:05 – 2:30 Human Capital Development & Leadership Panel Discussion Expert panel will debate on a number of interrelated issues on human capital development that also touch directly on Oman’s ability to create new employment opportunities including the significant employment opportunities in logistics and where these opportunities can best be created. · How to ensure a match between employer requirements and employee skill sets · How to set training standards and ensure best practices are adopted and implemented.

April 2015

· · ·

How to optimize the adoption of technology in an economy without reducing overall employment What is the best way of training and how should government encourage the private sector. What mechanisms should the government use to ensure improvements and standards are raised.

Session Moderator: Kimble Winter, Global Chief Executive Officer, Logistics Executive Group Panelists: · Peder Winther, President- MEA Region, Kuehne + Nagel Management - MEA · Dom McKenna, Group International Director, Freightliner · Aflah Al-Hadrami, VP for Supply Chain Management, Occidental of Oman Inc. · Abdulmalik Al Balushi, General Manager– Support Services, Oman Shipping Company · Jan Steenberg, Chairman of IESC, Chartered Institute of Logistics & Transport International 2:30 – 2:35

Closing remarks (End of Conference Day One)

7:00 Conference Dinner (Qantab Room)

Thursday, 16 April 2015

Oman Auditorium - Conference Day Two 8:00 – 9:00 Registration & Welcome Coffee / Tea 9:00 – 9:20 Opening Remarks, Recap of Previous Day Proceedings Tim Sebastian, Chairman, The New Arab Debates 9:20 – 9:40 Keynote Speech Eric S.C. Ip, Group Managing Director, Hutchison Port Holdings Limited, Hong Kong TRADE FACILITATION SESSION 9:40 – 10:00 Enhancing Trade Facilitation through Improved Cooperation & Integration Mahmood Al Bastaki, Chief Executive Officer, Dubai Trade, UAE 10:00 – 11:00 Trade Facilitation Panel Discussion: Present Challenges of the Government/Customs in Implementing Trade Policies, Framework and Strategies This panel will examine issues and challenges in implementing trade facilitation measure and reforms as well strategies to promote better connectivity & collaboration with all stakeholders. It will focus on: · Trade Facilitation Issues and Impact to the Industry · The role of customs to a successful trade implementation strategy · The difficulties in implementing change in and gaining acceptance and adoption of trade facilitation both within government and commerce · Fostering cooperation and partnership with MNCs/freight forwarders/logistics companies in facilitating a smoother

trade exchange. · The impact of new technologies for trade facilitation. · Session Moderator: Tim Sebastian, Chairman, The New Arab Debates Panelists: · · · ·

Eric S.C. Ip, Group Managing Director, Hutchison Port Holdings Limited, Hong Kong Eddy Bruyninckx, Chief Executive Officer, Antwerp Port Authority Mahmood Al Bastaki, Chief Executive Officer, Dubai Trade, UAE Peter Young, Director, Advisor to the Minister of Transport and Communications

11:00 – 11:30 Refreshment & Networking TECHNOLOGY & INNOVATION SESSSION This session will examine latest leading edge concepts and next generation technologies which would innovate and transform the logistics and supply chain operations. It will focus on different process and perspectives in establishing / deploying a more complex, efficient and successful supply chain & logistic technology that drive measurable results and clear value to both service provider and customers 11:30 – 12:20 Supply Chain Transformation & Innovation This panel will discuss technology developments and adoptions across the supply chain & logistics in the widest sense. It will explore various challenges that the industry face and practical solutions that are currently being adopted. Areas that should be discussed are includes: · Latest technologies for supply chain & logistics industry · Adopting technologies to reduce the environmental impacts · Key technological changes and their possible impacts to key industries over the next 20 years · Best ways of encouraging private industry to make the necessary investments Introductory Presentation from the Moderator: Willem Heeren, Chairman, DINALOG - Dutch Institute for Advance Logistics Speakers & Panelists: · Dr. Salim Al Ruzaiqi, Chief Executive Officer, Information Technology Authority, Oman · David Gledhill, Chief Executive Officer, Port of Salalah · Reggy Vermeulen, Chief Executive Office, Port of Duqm 12:20 – 12:30 Chairperson’s closing remarks & acknowledgements 12:30 End of the Conference & Lunch

3PL News

Contact Person : George Zafirov Designation : Publisher Address: 2201 N.Lakewood Blvd., Suite D-168, Long Beach, CA 90815, USA Tel: +1 562-270-4040 E-mail : contact@3plnews.com Website : www.3plnews.com 3PL News (www.3PLNews.com) is an interactive marketing and PR platform for the logistics and supply chain industry, enabling service providers to take advantage of the newest interactive marketing opportunities. Launched in Long Beach, California, next to the largest port complex in the US, 3PL News has a global reach, including a recently expanded presence in Greater China. 3PL News will not only keep you up to date with the industry dynamics and global supply chain management trends, but can also help spread the word about the latest developments at your organization. We can produce a consistent stream of marketing content for your company – including social media-friendly videos, case studies, and a myriad of online marketing campaigns – to support your global marketing efforts, drive engagement with new customers, create buzz across all marketing channels, and generate leads. For more information visit http:// www.3PLNews.com or follow us on Twitter at https://twitter.com/3PLNews You can connect with 3PL News publisher George Zafirov on LinkedIn at http://www. linkedin.com/in/georgezafirov Related links: · Website: http://www.3PLNews.com · Twitter: https://twitter.com/3PLNews · LinkedIn: http://www.linkedin.com/in/ georgezafirov • Facebook: https://www.facebook. com/3plnews

7dimensions Media LLC

Contact Person : Israr Ahmad Designation : Media Marketing Strategist. Address: Q1-08, SAIF Zone, P O Box 9604, Sharjah, United Arab Emirates Tel: +971 6557 9579, Fax : +971 6557 9569 E-mail : israr@7dimensionsmedia.com Website : www.aircargoupdate.com Air Cargo Update is the first and only independent bi-monthly magazine featuring news, views and analysis of the challenges and changes faced by the fast-growing and everchanging air cargo industry. Air Cargo Update, now in its 13th year, covers leaders and provides neutral, independent news of the air cargo industry in 68 countries 62

in the Middle East, Africa and South Asia. The magazine serves as a platform for industry leaders to put forth their views on various issues pertaining to air cargo industry. Air Cargo Update, enjoys a reputation of being the voice of the industry as it reports latest views of industry players. With a network of dedicated correspondents, covers news briefs and updates, which include information about civil aviation bodies, airports, airlines, freight forwarders, multi model transportation, shipping, specialized logistics service providers and all other major components of the air cargo supply chain. The insightful features and information about critical industry issues from recognized industry leaders. The journal’s research- based articles, opinion columns and features create high-value interest amongst readers who are mostly decision makers. The advertisers are guaranteed to reach their target audience.

Al Madina Logistic Services Company SAOC Address: P.O. Box 1466 Postal Code 133 Tel: +968 2689 5600, Fax : +968 2689 5666 E-mail : info@almadinalogistics.com Website : www.almadinalogistics.com www.muscatcontainerdepot.com

Al-Madina Logistics(AMLS) is a leading 3rd party logistic service provider in Sultanate of Oman with Clients based in all sectors including Oil & Gas, Construction, FMCG, Retail, Brown Goods, White Goods, Pharmaceutical offering end- to end solutions related to Supply Chain & Logistics. First & Only Inland Port: Al Madina Logistics owns and operate the first and only Inland Port in Oman, under the name of “Muscat Container Depot”. It’s fully custom-bonded facility with full clearance and collecting of LCL shipments. AMLS Services Freight Forwarding Land-Freight, Ocean-Freight and Air-Freight with active affiliation globally over 180 International Freight & Logistic Companies. AMLS is also board member of Arab Freight Forwarding Association Transportation Includes Prime Movers (HGV) complete with IVMS (OXY, BP & PDO Certified), Flat Bed, Skelly & Low Beds, Refrigerated Rigid Box Trucks, Container Side Loaders, 40 Footer Curtain Sider Trucks and 40 Footer Refrigerated Trucks. Warehousing & Distribution Centre Warehouses & Distribution Centre fully operational with multi temperature regimes around Oman. Open Yard & Container Yard Large Open Yards at strategic locations Laden Container Stacker (40 Ton SWL Capacity). Bonded Container Freight Station (ICDCFS)

Muscat Container Depot providing services with ROP Customs counters for clearance and collection of LCL shipments. Equipment & Resource Supplies · Supply of skilled or unskilled resources related to Logistics & Supply Chain Operations. · Supply of Material Handling Equipment (Diesel, LPG & Battery Operated) · Supply and Installation of Modular Warehouses/Stores (30-45 days fully completion) Consultancy Services · Outsource Operations of Clients’ Warehouse or migrate operations into AMLS Warehouse · Warehouse & Distribution Centre Design - Complete design to ensure risk-free, sustainability, and efficiency. · Storage & Handling Automation Solutions - Complete design of automated solutions to fit operations methodology · Warehouse Management System (WMS) Selection & Project Management Selection of WMS from functional specifications to go-live covering pre to post implementation phases OTHERS · ISO 9001:2008 Certified · ISO 14000:2004 Certified · OHSAS 18001:2007 Certified • ISO 22000 Certified

BAHHAR – Total Media LLC

Contact Person : Khalil Al Balushi Designation : Editor-in-Chief. Address: Bousher Oman Tel: +968 22006100, Fax : +968 22006100 E-mail : Info@bahharoman.com Website : www.tms-oman.com Shipping is one of the most important industries playing a vital role in the global economy and in the economy of individual countries. Oman and GCC are not an exception. The maritime industry in GCC is emerging to be one of the most important. From these facts, the idea of the maritime platform «BAHHAR» has come. ‘BAHHAR’ is a unique maritime magazine to be published in English language in Oman with the aim to highlight the maritime services and to be distributed to all stakeholders in Oman and the region. The magazine is called ‘BAHHAR’, the Arabic word for Sailor or Seafarer. One of “BAHHAR”s objectives is to focus on the services offered by various sectors of the maritime industry. It aims also to raise the awareness of the public of the importance of this industry in many ways including for job creation. This is a good opportunity for the companies in the maritime industry to showcase and present themselves to the stakeholders as the magazine is intended to be distributed - with the help of our clients -

April 2015 to the relevant government agencies and the private companies in Oman and the region and the ships visiting the ports

Balkans.com Business News

Balkans.com Business News is a prominent and recognized voice for business globally. As a Balkans business resource, we provide upto-date daily news and weekly reviews, market research, financial reports, company news linking and database of companies who do business in Albania, Bosnia-Herzegovina, Bulgaria, Croatia, Cyprus, FYR Macedonia, Greece, Montenegro, Romania, Serbia, Slovenia and Turkey. In addition, our notable industry news section provides detailed information on business happenings for over 30 specific industries. Our readers are high-level executives, business leaders, educational institutions, investors, business owners and government institutions throughout the world. The business-only website in English, Serbian and Greek keeps our readers up-to-date with its comprehensive coverage of the region, indepth analysis of industries and business opportunities, interviews with business leaders, special reports and a searchable database.

Bhandarkar Shipping News

Contact Person : Vinod Sagar Designation : Marketing Address : 10, Hammersmith Indl.Premises Sitaldevi Temple Road,Mahim, Mumbai-16, India Tel: +91 40764200 (100) LINES, 02224444248, Fax : +91-022 24444 250 E-mail : mktg@bhandarkarpub.com Website : www.bhandarkarpub.com An author, inventor and entrepreneur Late Prof. K. R. Bhandarkar founded Bhandarkar Publications, the flagship company, in October 1, 1975. He held several patents on navigation and authored twelve books, the most acclaimed of which was Marine Radar in 1976. Under leadership of Capt. Vivek Bhandarkar son of K.R. Bhandarkar, Bhandarkar Group added many more maritime publication titles. Since 1986, the company branched into news paper publication with the launch of ‘Bhandarkar Shipping News’ – critically looking at and lobbying for maritime & logistics interests. Aiming to create awareness the company began organizing innovative educational events such as on: transportation of hazardous materials titled ‘HAZMAT’, Coastal Shipping, Bill Of Lading, Shipping and Logistics Finance, Export Incentive Scheme, Maritime

Logistics, Material Handling Systems and others. The company instituted prestigious ‘Samudra Manthan Awards’ intended to raise the performance bar in maritime industry. Bhandarkar Publications has launched eROR Mobile application, world’s first such application for tech savvy young seafarers. It makes learning ‘Rules of the Road’ much simpler in an easily accessible format preferred by the Gen Y navigators. The application has been rated 4 and ½ Star on Google Search Engine. A clip and its link is appended below. OUR WEBSITE: www.bhandarkarpub.com.

Forkliftaction

Contact Person : Sie Clifford Address : PO Box 1439 - Milton QLD 4064 - Australia Tel: +61 7336 9909 0, Fax : +61 7336 9909 6 E-mail : info@forkliftaction.com Website : www.forkliftaction.com An institution in materials handling, Forkliftaction (www.forkliftaction.com) has been connecting business people who buy, sell and work with materials handling equipment since its launch in 2000. A unique B2B platform, Forkliftaction offers its 500,000+ monthly visitors (160,000+ unique) information and resources that they can rely on. They utilise the online platform daily. They source or sell equipment on the marketplace of used equipment. They consult and network with industry professionals, via the popular discussion forums. They stay informed with quality, independent news that they can trust. They draw upon other valuable resources such as an extensive business directory, spec checker, jobs market, events calendar, photo galleries, safety columns, industry blogs and more. More than just a website, Forkliftaction gives its global audience the tools to gear up their business. Register with Forkliftaction for full access to the whole range of industry resources. Subscription is free and immediate: www. forkliftaction.com/subscribe

Freight Talks

Contact Person : Ayman Elias Designation : Founder Address : Cairo, Egypt Tel: +02226214997 E-mail : pr@freight-talks.com Website : www.freight-talks.com Freight Talks is the largest Freight Forwarders directory with more than 20,000 verified freight forwarders listed on our website

providing you the easiest access to the most updated and comprehensive information and contacts from every corner in the world. Freight Talks is not just a freight forwarder directory but also aims to become the largest logistics marketplace on the web by facilitating the flow of information, news and networking between our members on our website and our pages in all leading social media platforms. Freight Talks participates in all leading freight events around the world giving perfect exposure and networking opportunities to our members; in addition to our Annual Freight Talks Symposium, which is organized annually in major business centers around the world to facilitate one to one meeting between forwarders from around the world by creating the perfect platform to meet and exchange ideas and business opportunities without any network or organization strings attached. Join Freight Talks today to avail our low cost membership fees and give your company the benefits and exposure that you need to help you develop your business and increase your contacts around the world. Ask about the promotional rates on pr@ freight-talks.com.

Ithraa

Address : PO Box 25 Wadi Kabir, 117, Sultanate of Oman Tel: + 968 24 62 33 00/ 24 62 33 33, Fax : + 968 24 62 33 35 E-mail : info@paiped.com Website : www.ithraa.om Ithraa is a modern expression of Oman’s rich and vibrant trading past – founded in 1997, we are an ambitious, government-run, ISO and Investor in People certified inward investment and export promotion agency tasked with helping secure the Sultanate’s long-term economic prosperity. From developing ports, free zones, airports, industrial estates to science parks, Ithraa supports Oman’s efforts to nurture existing as well as create new trade and investment ties with fast-growing businesses and economies from across the world. Capitalising on our entrepreneurial heritage, Ithraa is paving the way for Oman to become a leader in the Innovation Economy. We employ seasoned and knowledgeable investment and export professionals and with representatives in major global markets, we have the international expertise and reach to assist companies of all sizes realize their full potential. In brief, we provide tailored, independent and free-of-charge services to help companies set up, and export from, Oman. To learn more about what Ithraa can do for your business connect with us.

Logistics & Supply Chain World

Contact Person : Harish Bhatia Designation : Founder & CEO Address : Kshtij, 103 – 1st floor, opp. Andheri sports complex, veera desai road, andheri west, Mumbai, India Tel: +91-9821022236 E-mail : harish@kamikaze.co.in Website : www.kamikaze.co.in Logistics & Supply Chain World’ is one of India’s premier industry magazines with a subscriber base of more than 11000 across Asia. The digitised version has more than 25000 subscribers across the world. LSCW is well known for its rich content which is thoroughly researched and contributed by leading authors and well known industry personalities from across the globe. This magazine covers a variety of subjects cutting across industries to give the reader a wider spectrum of knowledge in the world of supply chain. To subscribe log on to www.kamikaze. co.in

Contact Person : Masa Vlakancic Broznic Designation : Senior Administrator Address : Giuseppe Carabina 11, 51000 Rijeka, Croatia Tel: 00385 51 263083, Fax : 00385 51 263083 E-mail : masa@maritime-connector.com Website : www.maritime-connector.com Maritime Connector brings the latest vacancies in the maritime industry. With over 84.000 registered seafarers and over 2.100 maritime companies and recruitment agencies we collaborate with, Maritime Connector is the ultimate place to find job at sea as well as seagoing personnel. Maritime Connector web portal contains everything a maritime professional needs; maritime news, maritime events and maritime jobs all at one place. We help seafarers to find new job opportunities and boost their careers. At the other hand, we help maritime recruiters to find their crew fast and to stay in line with the latest trends in recruitment.

• Electrical & Electronics • Engineering Products • Projects Division • Gases, Chemicals & Medical Equipment • Building Materials Division ASSOCIATE COMPANIES Oman : • Darwish Polycon LLC • Elite Supply of Manpower • Fajar Pioneer Trading LLC • Gulf Retreading Solutions LLC • Lujaina LLC • MHD AVON • MHD Engineering & Contracting LLC •MHD Infosys LLC •MHD Infotech LLC •MHD Invesco LLC • MHD Logistics LLC • MHD Training Institute LLC • Special Engineering & Construction Company LLC • Special Oilfield Services Company LLC Qatar: • United Cooperation for General Trading W.L.L UAE (Dubai): MHD LLC• Fajar Pioneer Trading (FZCO), Jebel Ali

Mohsin Haider Darwish LLC

Logistics Executive Group

Contact Person : Brian Cartwright Designation : Managing Director, Middle East & Africa Address : Knowledge Village, Block 6, 1st Floor, Office F08 Tel: +971 4 361 6275 E-mail : BrianC@LogisticsExecutive.com Website : www.LogisticsExecutive.com Logistics Executive Group is the acknowledged industry leader providing a suite of whole-of-lifecycle business services including Corporate Advisory, Executive Search and specialist Supply Chain and Logistics Training. We are a single source for leadership development, talent & recruitment services and business consulting to empower businesses and leaders to reach their goals. Offering a full suite of solutions designed and executed to position our clients for growth and overall improved performance, our service pillars include; · Executive Search & Leadership Recruitment · Corporate Advisory & Business Performance Consulting · Accredited Training & Education Programs for the Supply Chain and Logistics sector

Maritime Connector (Nexus d.o.o.) 64

Contact Person : Mohammed Abdallah Mohammed Al Kharusi Designation : Group Director- Business Development Address : PO Box 880, Postal Code 112, Ruwi, Sultanate of Oman Tel: + 968 24732500, Fax : +968 24793256 E-mail : info@mhd.co.om Website : www.mhd.co.om Established almost half a century ago, Mohsin Haider Darwish LLC, in its growth truly exemplifies the tremendous progress Oman as a nation has achieved under the wise and able stewardship of His Majesty Sultan Qaboos Bin Said. In tune with the rapid modernization the nation has undergone, the MHD LLC Group of Companies has developed into a vast and diversified business empire. Its various Business Divisions/Associate Companies are associated with some of the most reputed and well-known international brands from across the world, making them available to the evergrowing customer base in the Sultanate of Oman. Over a period of more than five decades MHD LLC has placed strong emphasis on the development of human resources. Provision of jobs to the Omani workforce in all its business divisions has been a key facet of all its programmes. This is shown effectively in the high percentage of Omanisation in most of the business divisions of the company. BUSINESS DIVISIONS • Automotive Sales • Automotive Parts & Service • Tyres and Batteries • Computers, Office Automation & Telecommunications

Neopromo

Contact Person : Sylvie Kastoun Designation : Marketing Manager Address : Design House Building 3rd Floor Block B Rm 301, Al Sofouh 1 Dubai, United Arab Emirates Tel: +971 43914842, Fax : +971 04 391 8022 E-mail : sylvie.kastoun@neopromo.net Website : www.capitalbusiness.me Capital Business Magazine is a B2B English monthly publication focusing on business best practices and is a publication accredited by the Dubai International Financial Centre (DIFC). It enjoys a sizable footprint in the Middle East on the strength of feature articles contributed by certified financial and business experts, as well as coverage of a broad spectrum of topics including banking, IT, oil & gas, real estate and construction, human capital, risk management, corporate finance and cash management, corporate governance, investments, IPOs, tools of trade and more.

Oman International Container Terminal LLC (OICT)

Contact Person : N. Kolling Designation : Corporate Affairs & Communication executive Address : PO Box 82, Postal Code 327 Tel: +968 26865600 , Fax : + 968 26865606 E-mail : Kolling.nadia@oict.com.om Website : www.oict.com.om Oman International Container Terminal

April 2015 (OICT) was formed in 2005 and is a joint venture between Hutchison Port Holdings (HPH), the Government of the Sultanate of Oman, Steinweg of Netherlands and a number of other well-established Omani Investors. OICT is located inside the Port of Sohar and have been equipped with the most advanced facilities, having the ability to cater to the largest container vessels sailing today. It will serve as the gateway for international trade in Oman as well as a hub for container carrier connections. The Port of Sohar is strategically located outside the Strait of Hormuz in the Gulf of Oman, approximately 200km from Muscat and 160km from Dubai, with 18 meter depth berths, surrounded with sufficient road capacity and connection to the new rail system in Oman in near future. The currently Terminal C container capacity has reached 800,000 TEU per year and it will reach up to 1.5 million TEU in the near future. OICT is preparing for growth with the development of Terminal D which will bring the total capacity to 6 million TEU. The facility is operated by Hutchison Port Holdings; the world’s leading port owner and operator. OICT is the gateway to Oman and building for the future.

Oman Shipping Company S.A.O.C.

Contact Person : Khalid Al Mahruqi Designation : Senior Officer Communications Address : PO BOX 104, Postal Code 118, AL HARTHY COMPLEX Tel: +968 24400900, Fax : +968 24400922 E-mail : Khalid.almahruqi@omanship.co.om Website : WWW.OMANSHIP.CO.OM Established as a closed joint stock company, Oman Shipping Company S.A.O.C. (OSC) continues to look for areas for growth that directly benefit Oman and enhance its economy. The company is committed to providing maritime transport to Omani Exim and costal trade, and makes efforts to enhance Omani maritime traditions to make it distinct from others in the region. Incorporated in 2003 and owned by the Government of Oman with the Ministry of Finance and Oman Oil Company S.A.O.C. holding 80 % and 20 % stakes respectively, OSC is involved in ship owning, chartering and technical management activities through its subsidiary companies: Oman Charter Company S.A.O.C., Oman Ship Management Company S.A.O.C., and Oman Container Line S.A.O.C. Oman Shipping Company is currently operating a total fleet of 42 vessels of approximately 7.8 million DWT, operating in the territorial waters of the Sultanate and international waters. Oman Ship Management Company is currently managing 26 vessels including full technical management of owned and 3rd party vessels as well, comprising of 8 VLCCs, 6 LNG vessels, 4 VLOCs, 3 LPG vessels, 2 Methanol Carriers, 1 Chemical Tanker, 1 MR

Tanker and 1 Multi-Purpose Vessel. Going forward, OSC has plans to bring more of its vessels under OSMC’s technical management.

Oxford Business Group

Contact Person : Lavlesh Bhoorani Designation : Event and Media CoordinatorME Address : Dubai, United Arab Emirates Tel: +971 4 426 46 42, Fax : +971 4 426 46 41 Oxford Business Group (OBG) is a global publishing, research and consultancy firm, which publishes economic intelligence on the markets of the Middle East, Asia, Africa and Latin America. OBG offers comprehensive analysis of macroeconomic and sectoral developments, including banking, capital markets, energy, infrastructure, industry and insurance. OBG’s acclaimed economic and business reports are the leading source of local and regional intelligence, while OBG’s online economic briefings provide up-to-date indepth analysis. OBG’s consultancy arm offers tailor-made market intelligence and advice to firms operating in these markets and those looking to enter them.

Pangea Logistics Network Ltd

Contact Person : Sarah Bidmead Designation : Network Manager Address : Leigh House, Weald Road, Brentwood CM14 4SX ESSEX, United Kingdom Tel: +44 0 1277 800 047, Fax : +44 0 1277 800 048 E-mail : info@pangea-network.com Website : www.pangea-network.com Pangea Logistics Network is an international group of first class independent freight forwarders, with presence in all main airports/seaports worldwide. PANGEA is represented in more than 380 local offices over +90 countries worldwide with an independent understanding, from where more than 10,000 trained staff operate to provide comprehensive and competitive logistics solutions (air, sea and road freight) to transportation needs, moving more than 1,500,000 shipments per year. PANGEA embraces a worldwide group of Freight Forwarder leaders in their markets, representing a block of solid and wellestablished companies. The services offered by PANGEA Associates are intended to facilitate logistics for any business, large or small, moving cargo domestically or internationally. PANGEA Freight forwarders offer a full startto-finish service which will, in fact, include

the pick-up of goods from your warehouse right through to loading the goods at your purchaser’s location. PANGEA Associate agents count on their local understanding and expertise backed by PANGEA’s global reach to provide a full range of transport and logistics solutions worldwide. Please visit www.pangea-network.com or contact us at info@pangea-network.com for more information.

Port of Duqm Company S.A.O.C

Contact Person : Reggy Vermeulen Designation : Chief Executive Officer Address : PO Box 2409, Postal Code 111, CPO, Sultanate of Oman Tel: +968 24342800, Fax : +968 24587343 E-mail : info@portduqm.com Website : www.portduqm.com Port of Duqm lies under the management of Port of Duqm Company SAOC, a 50:50 joint venture between Oman Government and Consortium Antwerp Port which is supported by the Port of Antwerp (Belgium), one of Europe’s largest hub ports. Under an agreement signed with the Omani government in April 2011, the joint venture has been granted a 28 year concession to co-invest, operate, manage and market the Port of Duqm. Responsibility for the management and operation of the port area lies with the Port of Duqm Company, as well its responsibility for navigation within and around the port, as well as the wider bay of Masirah.

Privatbahn Magazin (Bahn-Media Verlag GmbH & Co. KG)

Contact Person : Heike Schielsky Designation : Marketing Address : Salzwedeler Straße 5 Tel: +49 5820 9701 770, Fax : +49 5820 970 1 7720 E-mail : info@privatbahn-magazin.de Website : www.privatbahn-magazin.de The Privatbahn Magazin reports on trends and developments of the railway industry. Permanent categories are: Railway companies, technology, research, logistics, international issues and career. Backgrounds, reportages, analyses – the Privatbahn Magazin (PriMa) is the modern business magazine of the railway industry on the way to the logistics-era. Apart from the presentation of innovative companies from the fields of industry, logistics and transportation the Privatbahn Magazin extensively reports on the developments of the carrier ‘railway’. Regular interviews with decision makers, news on the latest trends in the fields of

logistics, research, technology, economy and transportation policies as well as excurses concerning the history of railway transportation are all aimed towards experienced readers as well as interested laities. The European-Rail Markets is the English version of the Privatbahn Magazin and is available (free download) on www.railmarkets.eu. Visit us at www.privatbahn-magazin.de and www.rail-markets.eu Frequency: every other month, six issues per annum

Rail Professional Magazine

Contact Person : Dean Salisbury Designation : Accounts Manager Address : Hallmark House, Downham Road, Ramsden Heath, Essex, CM11 1PU Tel: +44 0126 8711 811/0126 8712 093 E-mail : Dean@railpro.co.uk Website : www.railpro.co.uk Rail Professional is read by senior executives in every sector of the UK rail industry who need to keep up-to-date with the big picture issues - the ever-changing technological, commercial, political and legal developments that will have a direct impact on their company. With a well-deserved reputation for getting interviews with the most influential players in the industry - from rail regulators, ministers and top directors to exciting newcomers, Rail Professional also offers unique thought pieces from leading industry bodies such as the RSSB, Passenger Focus, the Rail Delivery Group and the Freight Transport Association. As well as that, the extensive Business news and Business profile sections provide all the latest news from a huge range of rail-related companies, large and small. It is because of this unique editorial mix that Rail Professional is essential reading for senior executives in every sector of the UK rail industry, nationwide.

Robban Assafina Magazine

Contact Person : Capt. Haytham Chaaban Designation : CEO Address : Bechara El Khoury, Adonis Bldg, 5th flr, Beirut, Lebanon Tel: +9611662496, Fax : +9611662496 E-mail : administration@assafinaonline.com Website : www.assafinaonline.com Shipping is one of the most important International Industries in the world, covering more than 90% of world trade through the transfer of large quantities of goods more cost-effectively, hygiene and safely, the thing that makes maritime trade the lifeline of the Global Economy and without it, it would no longer be possible to provide the modern 66

world with all its significant supplies. From this fact, the idea of “ROBBAN ASSAFINA” was born; The Maritime Media Platform which we decided to sail onboard through this vast world, to explore its keys, and importance as well as highlighting the vital role of shipping, offshore industry and trade in Middle East and North Africa Regions. “ROBBAN ASSAFINA” is a Bi-monthly Arabic/English Magazine Specialized in Shipping, Ships, Offshore, and Marine Technology Sectors published by Oceanic Spark sarl with approximately 8000 copies. It is based in Lebanon, with offices’ chain in Dubai, Kuwait, Cairo and Tripoli (Libya). “ROBBAN ASSAFINA” closely follows up Maritime Shipping and Offshore News, Deals, with a keen eye on the latest Developments of Ships, Machineries, Shipbuilding and Repair Yards, Ports, Container Terminals, and everything related to the world of Marine Communication, Yachts and New IMO/ILO/ Shipping Regulations.

Royal Indonesia

Contact Person : Ronny Ridwan Designation : Manager Tel: +62 81385208180 E-mail : ronnyridwan@ royalindonesiaonline.com Website : www. royalindonesiaonline.com

Salalah Port Services Co. SAOG

Contact Person : Mohammed Al Mashani Designation : GM, Corporate Affairs Address : P.O Box 369, Postal Code 211, Salalah Tel: +968 23220108 / 92866643, Fax : +968 23219236 E-mail : Mohammed.Almashani@ salalahport.com Website : www.portofsalalah.com The Port of Salalah is one of the leading ports in the Middle East. It was incorporated in 1997 within the Dhofar region of the Sultanate of Oman. Operations within the port include a container terminal, general cargo terminal, cruise terminal, and bulk liquid operations, making the Port of Salalah a world-class multi-purpose and multi-cargo port. The Port of Salalah has reached a significant milestone marking its 35th millionth container handled at the port in over 15 years of operations. The port handled a throughput of 3,032,954 TEUS in 2014 and 10,313,144 tons of general cargo. The Port of Salalah has risen to a rank amongst the world’s top 30 container ports and has broken the world record for productivity twice. The port has also won local and international awards in economic development, health and safety,

innovation and environmental initiatives. The port is partly owned and managed by APM Terminals, one of the largest container terminal operators in the world, making Port of Salalah a globally networked port.

Shell Oman Marketing Company SAOG

Contact Person : Mohammed Ali Al Farsi Designation : GM – External Affairs & Business Development Address : P.O.Box. 38, Postal Code. 116, Minal Al Fahal, Sultanate of Oman Tel: +968 24570200 / 24570100, Fax : +968 24570444 E-mail : feedbackandissues-om@shell.com Website : www.shelloman.com.om Shell Oman is the leading fuel marketing company in Oman, contributing to the economic prosperity of Oman in an environmentally and socially responsible manner. At around 90% Omanisation, Shell Oman is a role model for successful talent development and for delivering excellence for all stakeholders. Shell’s range of automotive, aviation and marine quality products include fuels, lubricants and bitumen. Shell Oman has a network of over 150 Shell service stations strategically located throughout the Sultanate. Shell Super is the only petrol in Oman that has been designed for extra kilometers at no extra cost. Shell Diesel Extra for companies has been specially formulated to help save fuel consumption, and reduce fall-off in engine performance and CO2 emissions. Shell’s Polymer Modified Bitumen (PMB) is a testament to its commitment to the Sultanate’s growth story by supplying the new Muscat and Salalah International Airports with PMB for the new runways. Shell’s ISO 9001 certified Lube Blending Plant produces Made-in-Oman lubricants for the local and international markets. Shell Oman is a consistent leader in the industry on HSSE performance, and is an active player in the field of Corporate Social Investment through its variant activities with charity organizations, road safety and community development.

Signature Media LLC

Contact Person : Deepak Chandiramani Designation : Director Address : P.O.BOX 49784 Tel: +971 43978847 / 3795678 E-mail : deepak@signaturemediame.com Website : www.globalsupplychain.me Global Supply Chain is a magazine that aims to provide quality editorial content aimed at providing the supply chain industry with information that assists in meeting and overcoming challenges and making the most

April 2015 of supply chain opportunities. Each issue will be a complete information pack with unmatched editorial covering today’s logistics’ challenges, trends, news, breakthrough and research from industry insiders, top logistics’ thinkers and innovators. The magazine will have exclusive inside information on emerging technology and strategy.

SOHAR Port and Freezone Contact Person : Aisha Al Maamari Designation : Communications Manager Address : PO Box 9, Postal Code 327 SOHAR, Sultanate of Oman Tel: +968 26852700, Fax : +968 2685 2701 E-mail : info@soharportandfreezone.com Website : www.soharportandfreezone.com SOHAR Port and Freezone is a deep sea port and free zone in the Middle East, situated in the Sultanate of Oman around 200 kilometres northwest of its capital Muscat. With current investments exceeding $15 billion, it is one of the world’s largest port and free zone developments and lies at the centre of global trade routes between Europe and Asia. SOHAR provides unequalled access to booming Gulf economies while avoiding the additional costs of passing through the Strait of Hormuz. The existing road network and airport and the future rail system provide direct connectivity to the UAE and Saudi Arabia, as well as to the rest of the world. Equipped with deep-water jetties capable of handling the world’s largest ships, SOHAR has leading global partners that operate its container, dry bulk, liquid and gas terminals including Hutchison Whampoa, C. Steinweg Oman, Oiltanking Odfjell and Svitzer. SOHAR Port and Freezone is managed by Sohar Industrial Port Company (SIPC), a joint venture between the Port of Rotterdam and the Sultanate of Oman.

Supply Chain & Logistics Group

and Industry and is founded with the help of senior management professionals representing variety of industries on Supply Chain. This group shall strive to bring the best of education, seminars and interaction through partnership/ alliances with a variety of similar bodies across the globe.

The Business Year (TBY)

Address : Dubai Media City, Building Number 10, Office 143, 1st Floor, PO Box 502538, Dubai - UAE Tel: +971 4 551 93 05 E-mail : conferences@thebusinessyear.com Website : http://www.thebusinessyear.com/ The Business Year (TBY) is a leading provider of business investment services and publisher of yearly information resources on national economies and business environments. The Business Year provides accurate, timely and country-specific economic and business data. We meet with the country’s economic decision makers and business leaders to provide targeted information, in-depth analysis and strategic advice to the global business community on economic trends and investment opportunities. Written by experts based in country for months at a time who work closely with local business leaders and key stakeholders, our publications provide in-depth and authoritative analysis of the business community in the countries that we survey. The Business Year assesses trends and developments in all major economic sectors of the country, including real estate, telecoms, construction, finance, banking, tourism, industry, and energy and is one of the most comprehensive annual economic publications available internationally on the countries we cover.

TRL LTD

Contact Person : Fritzie Gay Designation : Relationships Officer Address : P.O.Box 124907, Dubai, United Arab Emirates Tel: +9714 3318855, Fax : +9714 3318856 E-mail : fritzie@sclgme.org Website : www.sclgme.org

Contact Person : Haider Yousif Designation : Technical Director Address : PO BOX 210529, Qatar Science and Technology Park, Qatar Foundation, Doha, Qatar Tel: +974 44914475 , Fax : +974 44914476 E-mail : hyousif@trl.co.uk Website : www.trl.co.uk

The Supply Chain & Logistics Group (SCLG) is an industry business group established to promote the cause of supply chain & logistics. This group brings an opportunity of education, training, seminar and networking among like-minded professionals and corporations on global basis. The group is now operating with the legal backing of the Dubai Chamber of Commerce

TRL provides independent and impartial world-class research, consultancy, testing and certification for all aspects of transport. The fast paced development of transportation systems in the Middle East is being driven by the demand for more capacity from rapidly growing populations, the desire to modernise society thereby improving the quality of life, concern for the environment and also major

events such as the 2020 Expo in Dubai and the 2022 World Cup in Qatar. TRL Middle East TRL has been working across the whole Middle East region for over a decade and has well established offices in Abu Dhabi and Qatar. We have built a reputation for technical excellence, innovation and the ability to adapt world leading ideas to the unique conditions of the region: • Sustainability • Road Safety • Transportation • Training, Testing and Certification Markets TRL’s respected industry reputation speaks for itself. A collaborative approach, exceptional customer service and innovative technical ability mean we consistently deliver high quality consultancy, applied research, testing and certification to a range of clients in a number of markets all around the world: • Road • Rail • Automotive • Legal • Defense and Security • Cycling and Walking

Twintec Industrial Flooring

Contact Person : Ruth Waugh Designation : International Business Development Director Address : Prospect Park, Valley Drive, Rugby CV21 2QH United Kingdom E-mail : info@twintecgroup.com Website : www.twintec.co.uk Twintec is a specialist ‘jointless’ concrete flooring contractor offering a design and construction service worldwide to provide clients with a quality superflat floor slab to meet their operational requirements. A ‘jointless’ floor designed and constructed by Twintec will provide many benefits, including: · reducing floor maintenance costs · reducing equipment maintenance costs · improving the efficiencies of your logistics operation · fast construction Designed specifically with your business in mind, Twintec take total responsibility for the floor from design, materials supply and construction. Providing a 5 year warranty for ongoing peace of mind. Working in the Sultanate of Oman in partnership with the Aflag group of companies, Twintec has already completed several projects and has an extended portfolio of completed projects throughout the Middle East Region. Worldwide Twintec design and build over 6 million m2 each year and strive to be the specialist contractor of choice for quality ‘jointless’ concrete floor slabs.

THE GATEWAY OF OMAN

April 2015

seabury report

THE NEW GATEWAY TO THE GULF