Oman Logistics Company signed two agreements worth RO3.5 million ($9.09 million) for the development of the South Batinah Logistics Area with Alisco Strong Plant Trad & Cont and F&M Engeria.

The agreements were signed by Eng Ahmed bin Hassan al Dheeb, undersecretary in the Ministry of Commerce and Industry and chairman of the founding committee of the Oman Logistics Company.

The first agreement with Alisco Strong Plant Trad & Cont is related to the design and construction of the land port at the logistic area, design and construction of the internal roads and provision of the utilities for it while ensuring the accommodation of the container and shipping movement inside the port, according to reports in the Oman Daily Observer.

It will also design and construct the main gates that will use the most advanced system that ensures smooth entry and exit of containers and commodities. It will also design and prepare the shipping, handling and warehousing yards. It will also provide the electrical connection and power to the points dedicated to storing chiller containers and will design the pathways leading to the utilities. The company will also provide the security fence and supply the portable offices that are provided with the basic services.

The second agreement with F & M Engeria is related to preparing the master plan for the first stage including a proposal for land division and uses, the design of the infrastructure and service networks, identifying the land uses which include dedicating spaces for storing flammable and non-flammable materials, chiller warehouses, preparing the construction bylaw, acting as the technical advisor and supervising the engineering works, it added.

The master plan for the Logistic Area project in South Al Batinah, which stretches over 95 km, will be built on six stages. The first square of the first stage, 3 million sq m, will be dedicated for logistic services including the land port, which will be the first of its kind in the Oman.

The land port includes spaces for custom inspection over the containers coming to and going from the land and marine ports. It will also include spaces for health, agricultural and municipal control. Oman Logistics Company, the developer for the logistic area in South Al Batinah, expects that the drafting of the investment incentives and benefits packages, the land infrastructure agreements and application procedures will be completed the second half of this year.

Eng Ahmed bin Hassan al- Dheeb said that construction of the logistic areas in South Al Batinah reflects the importance of this sector which will play an important role in the efforts made to diversify sources of national income and maximising the contribution of non-oil sectors in the GDP.

He added in a statement that a committee that comprises members from a number of logistic stakeholders in the Sultanate will draft and develop the laws for this sector. He also said that a tender has been floated to select the company that will manage the land port.

The initial assessment for qualifying the companies to this tender has been completed and the companies qualified for the tender will be announced in the coming two weeks. The Sultanate’s logistic strategy (2014-2040) has five aims namely increasing the contribution of the logistic sector in the GDP, increasing the share of Omani commodities that come to the area, generating fresh job opportunities for Omanis, improving the Sultanate’s ranking in world logistic and industrial indicators and enhancing the Sultanate’s position on the world logistic map.

The infrastructure in the Sultanate’s ports in Sohar, Salalah and Duqm, as well as the railway project and airports projects will provide new sustainable logistic business opportunities and enhance the commodity movement from the Sultanate to the countries of the region and the world.