dossier - october 2010 - english

68 OER DOSSIER October 2010

October 2010 OER DOSSIER 69


ON THE FAST TRACK TO

GROWTHOMAN HOLDS GREAT POTENTIAL FOR THE FURTHER

DEVELOPMENT OF ITS EXISTING LOGISTICS SECTOR. THE

PROFESSION ALREADY ENJOYS STRONG SUPPORT FROM BOTH THE

PRIVATE SECTOR AND A VERY PROGRESSIVE PRO-BUSINESS OMANI

GOVERNMENT, SAYS WARITH AL KHARUSI, CHAIRMAN OF OLSCA

IN AN INTERVIEW TO A HARIKUMAR

INTERVIEW

WHAT IS OLSCA? WHAT IS ITS

RELEVANCE?

OLSCA – The Oman Logistics and

Supply Chain Association (under

formation) will act as a professional

body to assist those involved in the

various disciplines in this industry, by

providing a common platform for its

members, in the same way as branches

of this organization do already in

other parts of the world. It will

bring together people with common

interests under one umbrella, in order

to act as a think tank, knowledge

house and a discussion board, with

the objective of sharing best practices

and experiences. These activities,

in turn, will lead to improved

industry standards and OLSCA being

recognised as a professional board of

distinction; interacting with academia

and society.

As the country continues to develop

its infrastructure and intermodal

transportation network, people

employed in the industry will require

higher visibility with improved

networks in order to function

effectively and efficiently.

Everyone working in the industry, be

it drivers, supervisors, managers or

entrepreneurs, need to be passionate

in order to develop the pace required

for enhanced growth and be proud of

this profession.

WHAT ARE THE ACTIVITIES OF

OLSCA?

OLSCA is non-profit association

which organises forums and supports

and participates in events where

people from industry, educational

institutions and professionals and

marketers are able to connect.

It also acts as a link with government,

industry and society, to allow

industry views to be shared and

create awareness in the society on the

sector’s views.

OLSCA aims to meet at least once

every quarter, organising seminars

and contributing to various

publications, in order to generate

and share knowledge and create an

effective database of those associated

with the industry.

One of the events which the

Association supports and which

already has been very successful, is

Trans-Oman 2010.

Trans-Oman is a three day

conference, exhibition and industry

awards event, primarily focused on

Transport, Shipping and Logistics.

Oman’s First Logistics Excellence

Awards section of the event aims

to recognise the best of corporate

practices and individual talent.

HOW DO YOU VIEW THE

EVOLUTION OF LOGISTICS

INDUSTRY IN OMAN IN RELATION

TO THE DEVELOPMENT OF THE

COUNTRY?

The growth of Oman has been

steady and the country’s approach

to development has been almost

ideal. The Sultanate has witnessed

huge development in the last forty

years. Logistics and Supply chains

are considered as the life line of the

nation’s development, and its arteries

are the excellent inter-modal and

multi-modal transport networks

WHAT ARE THE ADVANTAGES

OFFERED BY THE SULTANATE TO

THE LOGISTICS INDUSTRY?

Oman has great potential to further

develop both existing and new

trans-shipment centres, because of

having an open shoreline and easy

access to the Middle East and Far

East countries. Salalah Port is a good

example, in that it cuts travel time for

ships from Europe to the Far East by

three or four days.

The Sultanate is well positioned

strategically, which also helps to

attract heavy industry and the huge

investments required to promote

and develop activities such as iron

and aluminium metal production,

followed by end product manufacture

and creation of even more jobs for

many Omani citizens

The Free Trade Zones are also

attracting major investments in

the manufacturing sector and the

formation of dedicated Logistics

Parks.The country has rich mineral

wealth and a lot of mining activities

are progressing around the country.

The Duqm dry dock, with its ship-

refurbishing facilities, has the

capacity to allow entry of biggest

ships in the world. All the above

factors indicate that Oman has

more than adequate infrastructure

to facilitate the rapid growth of the

logistics industry in the future.

HOW SUCCESSFUL IS THE

COUNTRY IN ATTRACTING

WORLD CLASS COMPANIES IN THE

LOGISTICS SECTOR TO OMAN?

Oman has a stable government,

excellent relationships with all

its Gulf neighbors, great growth

opportunities, an investor-friendly

administration, practical commercial

laws and availability of skilled

human resources, all of which are

attracting world-class companies.

Oman’ s membership of the World

Trade Organization is also a major

positive factor.

Many reputed multinational

companies have already set up their

operations in Oman and many others

are in the process of doing so.

A professional Association, such

as OLSCA, helps propagate and

distribute useful and positive

information, which enhances the

potential of attracting major global

brands. This is already being

witnessed at each Trans-Oman event

– where opportunities are being

displayed and agency agreements

and joint ventures are discussed and

formulated.

WHAT WAS THE IMPACT OF

GLOBAL ECONOMIC SLOWDOWN

ON OMAN’S LOGISTICS SECTOR?

HOW ARE THE RATES IN THE

SECTOR CURRENTLY?

The global economic slowdown did

not make any significant impact on

Oman’s economy, especially in the

Warith Al Kharusi, Chairman, OLSCA

Oman has great potential to

further develop both existing

and new trans-shipment centres,

because of having an open

shoreline and easy access to

the Middle East and Far East

countries

Concept and content by Akshay Bhatnagar A. Harikumar Susmita De Mohammed Fahmi Rajab Ghalib Abdullah

Senior Manager - Dossier Business Unit Shivkumar Gaitonde

Senior Media Executive Girija Shankar Mohanty

Senior Art Director Sandesh S. Rangnekar

Art Director Minaal G. Pednekar

Design Shameer Moideen Khoula Rashid Al Wahaibi

Translator Mustafa Kamal

Production Manager Govindraj Ramesh

Photography Rajesh Burman Sathyadas C. Narayanan

CorPorATeChief executive Sandeep Sehgal

executive Vice President Alpana Roy

Vice President Ravi Raman

Senior Business Support executive Radha Kumar Zuwaina Said Al-Rashdi

Published by United Press & Publishing LLC PO Box 3305, Ruwi, Postal Code - 112 Muscat, Sultanate of Oman Tel (968) 24700896 Fax (968) 24707939 Email: [email protected]

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An Presentation

Copyright © 2010 United Press & Publishing LLC Printed by Ruwi Modern Printing Press

10Interview

Warith Al Kharusi, chairman of OLSCA speaks on the growth of the logistics

sector in Oman

Freezone Sohar Sohar free zone signs contract for starting civil works for the development of 500 hectares

18

PoWer oF BUSINeSS INTeLLIGeNCe


FREEZONE

HEAD START FOR

FREEZONE SOHAR

SOHAR FREE ZONE SIGNS CONTRACT FOR STARTING CIVIL

WORKS FOR THE DEVELOPMENT OF 500 HECTARES

D evelopment of Freezone

Sohar, one the biggest

initiatives in Oman aimed

at attracting foreign direct

investment (FDI) got off to a head

start recently following the signing of

a contract for civil works of first five

hundred hectares of the first phase.

The contract to this extent was signed

between Sohar Free Zone and Al

Naboodah Contracting Company

recently in Muscat. HE Sultan bin

Salim Al Habsi, Undersecretary of

Financial Affairs, Ministry of Finance

and Board Member and Jamal T Aziz,

CEO of Freezone Sohar signed the

agreement on behalf of Sohar Free

Zone. Senan Abdullah Mohammed

Al Naboodah, Vice Chairman,

executive committee of Al Naboodah

Construction Group and Peter Keenan

Chief Operating Officer signed on

behalf of the Al Naboodah group.

The contract comprises site clearance,

soil works and perimeter fencing.

This is an important part for enabling

customers in the Freezone Sohar to

develop their individual lots.

Freezone Sohar is a joint venture

between the Government of Oman,

Port of Rotterdam, Netherlands and

SKIL infrastructure based in India.

It is located just before the Strait of

Hormuz, alongside the Port of Sohar.

HE Maqbool Ali Sultan, Minister

of Commerce and Industry and

Chairman of the Board of Port of

Sohar and Freezone Sohar hailed the

signing as an important milestone

to set the stage for local and foreign

small and medium sized enterprises

who wish to take advantage of Sohar’s

booming industrial clusters and its

modern transport infrastructure.

CONSTRUCTION PACKAGES

Jamal T Aziz stated that this

contract is the first of the three main

infrastructure construction packages

of phase one of the Freezone Sohar.

The estimated cost of the first package

is over a million Rials. An estimated

20-25 million Rials will be invested

in three packages, he said. He said

the intention of splitting the works is

to satisfy the wishes of a number of

committed and prospective tenants to

start their projects on their respective

plots within a short span of time.

Parallel to the enabling works, utility

service companies are striving to

implement the initial phases of

their respective master plans to

provide needed electricity, water and

telecommunication services in the

free zone. In addition the ministry

of Heritage and Culture will start the

archaeological excavation of a number

of pre-Islamic graves in the Freezone

Sohar. These works are supported by

Sohar Free Zone and will be carried

out under the auspices of two-year

long Sohar Heritage Project.

Aziz noted that the starting of

construction works will send a

message to investors that Freezone

Sohar is serious about the progress

of works. He said they have received

a large number of enquires already.

Neelima Vyas, Chief Operating

Officer of the Sohar Free Zone said

companies from within the GCC,

other Middle East countries and

Europe have already evinced interest

in setting up facilities there.

The companies which expressed

interest include those from

HE Sultan bin Salim Al Habsi, Undersecretary of Financial Affairs, Ministry of Finance and Board

Member Sohar Free Zone (second from left) signing contract for civil works along with Senan

Abdullah Mohammed Al Naboodah (third from left)

Logistics and supply chain in focusA

fter the recession Logistics and Supply Chain has emerged as a sector to watch in the GCC, especially in Oman. Though opinions differ among industry leaders on the performance of the industry in the country in the first half of the year there is a near unanimous opinion that the future prospects are bright. Two important

aspects related to the logistics and supply chain industry which are currently evident are modernization going on in the industry and effect of infrastructure development on the industry. The huge investments being made by governments in the region for the development of infrastructure is sure to act as a catalyst for the growth of the sector. Airports, ports and new roads are being developed in Oman vastly improving the connectivity. The GCC railway being planned will also improve connectivity. Movements of people and goods will be easier in the coming days. This is definitely going to provide a fillip to the growth of Logistics and Supply Chain industry.

Second aspect is the modernization of Logistics and Supply Chain industry in Oman. Logistics industry has grown from an ad hoc transport system to a scientifically managed industry in the Sultanate. State-of-the automation systems are being used by the industry in Oman currently. One positive thing in Oman for the logistics and supply chain industry is the availability of human resources locally. The educational institutions in Oman are now coordinating with the industry and responding to their needs. The industry also needs to reciprocate to requests of help from leading educational institutions.

Oman Logistics and Supply Chain Association is under formation and there are efforts to form a local chapter of Chartered Institute of Logistics and Transport. These are signs of maturing of the industry. The TransOman event also needs to be mentioned in this context. It helps to bring all players in the industry together and facilitates interaction and growth of the industry. Being one of the most popular B2B publications in the GCC and the only one such in Oman we are pleased to be the official local trade publication of TransOman 2010 and contribute to the growth of logistics industry here.

The issue contains exclusive interviews with industry leaders and experts in Oman and write-ups on the latest developments in the sector. We hope you will enjoy this highly informative issue.

A Harikumar Assistant Business Editor


content

Fast Track to growth Long way to economic recovery Robert Walker, GM, Inchcape Shipping Services speaks on global economic recovery

Interview with Warith Al Kharusi, OLSCA

Fostering logistics disciplineLogistics sector in Oman is experiencing significant growth

Extending Supply Chain A World Bank Report on positive trends in development of private logistics services 20

Harbinger of Logistics Profile -- George Carr, GM, AL Mutahida Transport Co 16

CautiousOptimismWorld BankÕ s logistics performance index Ð a study 56

Excelling in logistics education SQU Course satisfying the needs of the industry

Modern Transport PlanningJohn Charles Todd, BDM, COWI, writes on innovative transport Planning Solutions

24

38

Bringing the World CloserDB Schenker with its global network delivers customers total logistic solutions 59

04

10 50


Fostering Logistics discipLineThe logisTics secTor in oman is experiencing a signifi-canT growTh owing To The sulTanaTe’s considerable progress in all secTors

From an insular position, oman today has made its presence felt on the global platform. the logistics

sector of oman, which is more evolved than ever before, holds out considerable growth opportunities as the sultanate now booms with various infrastructure projects. needless to say, substantial growth is visible in the sultanate’s ports, aviation, road transport and the shipping sector.

Historically, oman had been a hub for cargo movement and transshipment and trade was carried in dhows from small coastal ports and camels were harnessed for land transportation. in modern times, the form has changed;

in place of dhows, cargo freighters, tankers and bulk container ships have come to exist; modern airports and seaports and road networks now connect oman to the rest of the world. the business of logistics has assumed great significance in oman’s economy. its emphasis on infrastructure growth has turned the country into a major logistics hub, moving goods from its point of origin to the point of consumption, meeting the needs of global industries.

there is change in essence also. earlier, business in general was restricted to production and sales only and the business environment per se was not as competitive as it is today. Upgrading the product or its

volume was good enough to increase sales. But now the competition being intense, and the volumes being significantly large and production process often decentralized, many other factors like on-time delivery, transferring goods in-tact are becoming important.

so logistics, which was considered just an additional expenditure by companies in earlier days, is seen as a value addition today. this can be understood by the shift in the size of logistics division in any company. earlier it was a small section manned by one or two people. But now logistics division in any company is upgraded to a significant position run by skilled people.

OvERvIEW


OMan’S ECOnOMiC EnvirOMEnTthe macro-economic environment of oman, generated by the visibly robust economic growth, as is evident, saw huge surpluses in the fiscal and balance of payment position and a notable growth from diversification in recent past.

it may be noted that the growth in investment expenditure was more than double the growth in current expenditure. this resulted in government’s endeavour to channelise large amount of resources to long-term investments in infrastructure and promote economic diversification, crucial for long-term sustainable growth. overall business grew and logistics also grew in size and importance.

THE LOgiSTiCS SCEnariOsun tzu, an ancient chinese military general, strategist and philosopher had very aptly said, “the line between disorder and order lies in logistics.” A sound logistics plan is the foundation upon which today’s business operations are based. if the necessary logistics support cannot be given to the channelized resources

involved, the operation may fail, or be partially successful.

Hence the logistics scenario that was dominated by small and unorganized players some decades ago is now replaced by a more cohesive supply chain system, run by organized large groups. today there are established global and local players operating in the oman market.

they provide end-to-end supply chain solutions, offering freight forwarding, multi-temperature storage, transportation, distribution and value-added services such as labeling, packing, co-packing, bundling and return handling. currently the market players are mainly focusing on fast moving consumer goods, but other sectors like automotive, oil & gas and manufacturing, etc., are also bringing in additional business on the cargo side.

POrTS OF OManthe industrial sector recorded significant growth and export and import grew manifold when oman struck oil. this helped the growth of port sultan Qaboos (psQ), the oldest of oman’s modern ports to

fuel country’s growth, exemplary for its transition to passenger terminal for extending support to sultanate’s tourism development.

oman’s evolution of logistics began from the point of time when long term development strategies were devised in Vision 2020, and it was thought that salalah would benefit with a transshipment port. Later, port sohar, another port of entry was established. With massive investments in the development of the ports sohar and salalah, both are expected to drive the logistics sector in oman.

now that a good number of large and medium sized manufacturing facilities have come up in sohar industrial Zone, owing to the privileges of free zones in these ports, we get to see explosive growth of sohar. For the upcoming heavy industries, these ports have become the conduits for import of raw materials for their sustenance and shipment of exports across the world. A major slice of the logistics trade is, as understood, consumed by the port of sohar. More than $12 billion has already been


committed to the construction and equipping of the port, which is a joint venture agreement between the government and the port of rotterdam through the sohar industrial port company (sipc).

complementing the port of sohar is the port of salalah, on the southern tip of the sultanate of oman; it has become one of the world’s largest container terminals, spearheading transshipment services. straddling across one of the world’s busiest trade routes, sohar and salalah are becoming the hub of the region’s logistics, supported by an active transport sector. A Ministry of national economy bulletin attributed 30 per cent rise in cargo handling at Muscat and salalah ports for the period July-end 2010.

Another major port is being developed in duqm which will bring other opportunities for country’s growth. this allows the country to decentralize from Muscat to other regions. places like nizwa, Buraimi, duqm, salalah and Adam are growing centres in their own right.

oman’s strategic location at the mouth of the strait of Hormuz makes the port a potential entry point to the countries of the gulf co-operation council. transshipping cargoes to transshipping cargoes to t

land-based transport means that vessels do not have to enter the strait and the Arabian gulf, making for faster ship turn-around times, thereby lowering costs and insurance premiums considerably.

sohar’s road network allows quick delivery of freight by land to dubai, Abu dhabi, Al Ain and Muscat, all of which are within 240 kilometres periphery of the port. sohar is already a major regional trading hub. Being within the close reach of indian and east African economies, sohar also has the potential of becoming an international logistics hub.

oman is also opening up its coastal transportation route using high speed ferries and boats to connect up development centres and other remote areas. this will relieve the road transportation and compliment other modes of transport and enable tourism to flourish.

industry captains feel that the investment flow to the surface transport sector should continue to retain the momentum. during the past four years, the traffic in port of sultan Qaboos, a premier maritime gateway to the sultanate and a hub for the Arabian gulf, india and markets in east and south Africa, has been growing at around 20 per cent annually, with

operating revenue at around 25 per cent which is quite a significant contribution in local economy.

viaBLE SuPPLy CPPLy CPPL Hain SOLuTiOnAs regional trade and demand for imports are on the rise, international logistics firms are eyeing oman as a base of operations. currently, logistics outsourcing in oman is pegged at around 8 per cent of the overall logistics expenditure. it is expected to grow to 15 per cent in the coming years. the gcc region has become increasingly attractive to international third party Logistics (3pL) operators who are setting up bases in oman and trade routes.

third party logistics (3pL) companies are becoming an integral part of today’s supply chain. these companies offer services that can allow businesses to outsource part of all of their supply chain management function. Many 3pL companies offer a wide range of services including, inbound freight, freight consolidation, warehousing, distribution, order fulfillment and outbound freight. the need for businesses to become more efficient, reduce assets and concentrate on core business processes have led to the growth of 3pL companies. one company that has been associated with the 3pL revolution is Fedex. space and reduce overall costs. the introduction of efficient-consumer-response (ecr) techniques led to smaller and more efficient shipment sizes, which in turn further reduced costs. As companies have started enjoying the benefits of outsourcing delivery and warehousing functions, the number of third party logistics companies has began to rise offering an ever increasing number of services.

FLying Lying L HigHdespite the downturn in global freight, oman Air cargo has expanded fleet growth and revenue. the introduction of its A330 routes has given the company an

OvERvIEW

Location courtesy: Al Mutahidha Transport

Services

GAC shipping

GAC logistics

GAC marine

GAC solutions


opportunity become a network transshipment carrier and look for markets beyond Muscat that includes all Us destinations. oman Air cargo will focus on strategic initiatives, capitalizing on revenue opportunities through custom-tailored cargo handling solutions at Muscat international Airport.

At this juncture, existing airports are being renovated and new airports are coming up. private sector is also participating in oman’s growth. petroleum development oman has established three airports to support movement of cargo and people.

on the airport front, oman is spending at least Us$3bn in expanding the country’s international airport at seeb in Muscat and another in salalah. it will also include the construction of three new airports included one at sohar. A 1.8mn sq mts stretch of land around Muscat international Airport at seeb is currently undergoing redevelopment. As the market analyst and advisor for commercial development, cluttons oman will help in its transformation into an attractive cityscape by creating commercial and retail spaces. All this infrastructural development is going to add to the volume of trade in the logistics sector.

On THE rigHT TraCkLand transport has grown over the years along with sea and air logistics. in 2009, the Ministry of transport and communications signed 17 agreements worth ro 84.8 mn as part of the government’s effort in developing oman’s infrastructure. the agreement includes the construction of roads, long dual carriageways and bridges across the country.

rail is the next area of opportunity in terms of logistics. the 200km railway network running initially from sohar to Barka before being extended to duqm and the proposed pan–gcc rail network will further boost the

growth of the logistics industry. providing greater capacity for freight movement, the railway line will allow quick transfer of goods between countries and eliminate congestion on roadways.

LOgiSTiCS HuBAs dubai is posing as a tough competitor, offering incentives to foreign firms in the sector to base their Middle east operations in the emirate, companies in oman would like to have a logistics hub in oman itself with repair facility, insurance services, etc.

oman government’s plan for a major integrated logistics hub at Barka for rail and road-based freight and support services is on the anvil. the proposed facility will serve the entire Batinah coastal region, with specific focus on sohar, Liwa and key locations.

PErFOrManCE OF LOgiSTiCS induSTry in 2010though oman’s economy is growing, but industry bigwigs are looking at 2010 warily. About industry’s economic performance in 2010, business head of a leading shipping & trading co says, “everybody in the logistics industry is concerned about the performance of the industry this year probably more than last

year’s performance. in 2009 logistics industry had the carry forward of 2008. But 2010 is still a leaner year for the logistics industry. What we see in the transportation sector is business volumes nose diving. We make all efforts to revive them. We look forward to announcements of projects and other activities which will activate business again. We are also on own deliberating on new initiatives and synergies. the basic trend we see is a drop in the transport rates which has been quite acute after a remarkable climb in 2007 and 2008.”

though the situation calls for cautious optimism on the part of the industry captains, the future of logistics industry is upbeat. the growth of oman has been steady and the country’s approach to development is pragmatic. the sultanate has witnessed huge development in the last forty years. Logistics and supply chain, which are considered blood line of a nation’s development, is bound to develop where the arteries are the excellent inter and multi modal transport infrastructure development. it only has to tackle a few challenges. one of them is developing skilled human resources.

OvERvIEW


on tHe FAst trAck to groWtHoman holds greaT poTenTial for The furTher developmenT of iTs exisTing logisTics secTor. The profession already enjoys sTrong supporT from boTh The privaTe secTor and a very progressive pro-business omani governmenT, says wariTh al Kharusi, chairman of olsca in an inTerview To a hariKumar

INTERvIEW

WHaT iS OLSCa? WHaT iS iTS rELEvanCE?oLscA – the oman Logistics and supply chain Association (under formation) will act as a professional body to assist those involved in the various disciplines in this industry, by providing a common platform for its members, in the same way as branches of this organization do already in

other parts of the world. it will bring together people with common interests under one umbrella, in order to act as a think tank, knowledge house and a discussion board, with the objective of sharing best practices and experiences. these activities, in turn, will lead to improved industry standards and oLscA being recognised as a professional board of

distinction; interacting with academia and society.

As the country continues to develop its infrastructure and intermodal transportation network, people employed in the industry will require higher visibility with improved networks in order to function effectively and efficiently.

Warith Al Kharusi, Chairman, OLSCA


everyone working in the industry, be it drivers, supervisors, managers or entrepreneurs, need to be passionate in order to develop the pace required for enhanced growth and be proud of this profession.

WHaT arE THE aCTiviTiES OF OLSCa?oLscA is non-profit association which organises forums and supports and participates in events where people from industry, educational institutions and professionals and marketers are able to connect.

it also acts as a link with government, industry and society, to allow industry views to be shared and create awareness in the society on the sector’s views.

oLscA aims to meet at least once every quarter, organising seminars and contributing to various publications, in order to generate and share knowledge and create an effective database of those associated with the industry.

one of the events which the Association supports and which already has been very successful, is trans-oman 2010.

trans-oman is a three day conference, exhibition and industry awards event, primarily focused on transport, shipping and Logistics. oman’s First Logistics excellence Awards section of the event aims to recognise the best of corporate practices and individual talent.

HOW dO yOu viEW THE EvOLuTiOn OF LOgiSTiCS induSTry in OMan in rELaTiOn TO THE dEvELOPMEnT OF THE COunTry?the growth of oman has been steady and the country’s approach to development has been almost ideal. the sultanate has witnessed huge development in the last forty years. Logistics and supply chains are considered as the life line of the

nation’s development, and its arteries are the excellent inter-modal and multi-modal transport networks

WHaT arE THE advanTagES OFFErEd By THE SuLTanaTE TO THE LOgiSTiCS induSTry?oman has great potential to further develop both existing and new trans-shipment centres, because of having an open shoreline and easy access to the Middle east and Far east countries. salalah port is a good example, in that it cuts travel time for ships from europe to the Far east by three or four days.

the sultanate is well positioned strategically, which also helps to attract heavy industry and the huge investments required to promote and develop activities such as iron and aluminium metal production, followed by end product manufacture and creation of even more jobs for many omani citizens

the Free trade Zones are also attracting major investments in the manufacturing sector and the formation of dedicated Logistics parks.the country has rich mineral wealth and a lot of mining activities are progressing around the country. the duqm dry dock, with its ship-refurbishing facilities, has the capacity to allow entry of biggest ships in the world. All the above factors indicate that oman has more than adequate infrastructure to facilitate the rapid growth of the logistics industry in the future.

HOW SuCCESSFuL iS THE COunTry in aTTraCTing WOrLd CLaSS COMPaniES in THE LOgiSTiCS SECTOr TO OMan?oman has a stable government, excellent relationships with all its gulf neighbors, great growth opportunities, an investor-friendly administration, practical commercial laws and availability of skilled human resources, all of which are attracting world-class companies.

oman’ s membership of the World trade organization is also a major positive factor.

Many reputed multinational companies have already set up their operations in oman and many others are in the process of doing so.

A professional Association, such as oLscA, helps propagate and distribute useful and positive information, which enhances the potential of attracting major global brands. this is already being witnessed at each trans-oman event – where opportunities are being displayed and agency agreements and joint ventures are discussed and formulated.

WHaT WaS THE iMPaCT OF gLOBaL ECOnOMiC SLOWdOWn On OMan’S LOgiSTiCS SECTOr? HOW arE THE raTES in THE SECTOr CurrEnTLy?the global economic slowdown did not make any significant impact on oman’s economy, especially in the

oman has great potential to further develop both existing and new trans-shipment centres, because of having an open shoreline and easy access to the Middle east and Far east countries


logistics sector. this is as a result of careful and conservative budgeting and banking, with oil and gas prices maintaining a reasonable level. the slowdown actually enabled the economy to consolidate. Most new development projects and road works have gone ahead, along with the previously planned infrastructure developments.

HOW aBOuT THE avaiLaBiLiTy OF HuMan rESOurCES in OMan? HOW iS THE EduCaTiOn SECTOr in THE COunTry rESPOnding TO THE nEEdS OF THE LOgiSTiCS induSTry?oman is one of the few countries in the gcc where a quality workforce is available locally for the different types of jobs in logistics industry.

As the population of the sultanate grows, the logistics industry can provide omanis with many opportunities. professional logisticians from oman are given preference in other gcc countries; a considerable number are working in the UAe, Qatar and other locations. oman has the potential to export qualified human resources to work in the logistics sector abroad.

one of the significant achievements of oLscA is creating awareness of skills training in the logistics sector. the organization has connected up with sultan Qaboos University (sQU), which also runs an operations management course. sohar University is now considering starting degree-level logistics courses also, and is developing a logistics and supply chain programme. these are positive developments and oLscA influence is seen to be bearing fruit.

WHaT aBOuT avaiLaBiLiTy OF quaLiTy WarEHOuSing SPaCE in OMan? WHaT arE THE PrOSPECTS OF grOWTH FOr THird ParTy LOgiSTiCS PrOvidErS in OMan?oman demands high quality warehouse space, especially for storing fragile and perishable products. the country offers great scope for third party logistics service providers who can store, transport and distribute for industrialists and businessmen.

therefore there a good scope for 3pL providers and with this growth, the natural progression to 4 pL providers as one stop solution providers will result as more sophisticated and

complex supply chains are created .

WHaT iS THE rESPOnSE OF OMan’S LOgiSTiCS induSTry TO THE idEa OF PrESErving THE EnvirOnMEnT?oman’s logistics sector is taking many steps aimed at preserving the environment. the industry is pro-active in the issue of ensuring efficient use of energy. the 18,000 square metre warehouse being constructed by Al Madina Logistics is an example of the green initiatives of oman’s Logistics industry. this will be the best state-of-the-art warehouse in oman, with application of Leed rating system on design and operating aspects. the building itself will be highly insulated to keep away heat, dust and sand, and to minimize product deterioration, besides maintaining a comfortable working environment for employees. there will be high standard refrigeration equipment.

to minimise loss of energy, container truck doors/docks are designed with top leveling equipment which can close in like a glove for close interface between the warehouse and the container truck. people working will also not be exposed to heat. the

INTERvIEW

Hamriyah Free Zone AuthorityP.O.Box 1377, Sharjah, United Arab EmiratesTel: +971 6 526 33 33; Fax: +971 6 526 35 55Email: [email protected]; www.hamriyahfreezone.ae

Hamriyah Free Zone AuthorityP.O.Box 1377, Sharjah, United Arab EmiratesTel: +971 6 526 33 33; Fax: +971 6 526 35 55Email: [email protected]; www.hamriyahfreezone.ae


warehouse will also have Led lighting to conserve energy besides the use of a Facility Management system that monitors and controls use of energy throughout the facility.

WHaT arE THE MajOr iniTiaTivES in THE auTOMaTiOn OF LOgiSTiCS and SuPPLy CHain induSTry? traditionally the logistics industry used corporate software. now the industry, especially the third party and the fourth party service providers, are using bespoke (custom made) software. these bespoke systems are used for managing logistics, transportation, allocation of vehicles and people booking. it systems are also used for tracking and warehouse operations.

state-of-the-art warehouses use it systems to economise on space, track materials and inventory checks. rFid (radio-frequency identification) is also among the new technologies in the use by logistics industry. iVMs is now being commonly used in fleets and is a tool to improve safety and tracking significantly. As logistics grows you have more international partners to help technology deployment.

WHaT arE THE FuTurE PrOSPECTS OF LOgiSTiCS induSTry in OMan?the Logistics industry in oman is expected to record double digit growth in the coming decade. development of infrastructure and growth of mining industries will help it greatly. in the next 20 years there will be much more multi-modal connectivity which will make movement of goods and people easier. there is going to be much more emphasis on the technical aspects, in order to have virtual visibility of the full network.

this will also help the it industry to grow. professionalism will grow in tandem, from ad hock transport to state of the art service providers. there will

be more use of information technology and more professionalism as a result.

oman’s wise leadership and its quest to diversify have successfully transformed the country from energy dependent economy to industry, tourism and human capital dependent. Very soon, we will start talking and reading about supply chain and logistics playing a very important role.

the signs of these developments are already seen in the huge investments in transport infrastructure being made; the oman Logistics and supply chain Association - oLscA would like to articulate and help catalyse this process.

oman demands high quality warehouse space, especially for storing fragile and perishable products. the country offers great scope for third party logistics service providers

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George Carr, General Manager, Al Mutahida Transport Company

LeAder oF Logisticsgeorge carr who is in The logisTics secTor in oman for more Than 30 years has played a seminal role in The developmenT of The secTor, wriTes a. hariKumar

As a logistics professional working in scotland, george carr never had any plans for a long career

in oman. But as things turned out, he not only came to oman but is currently in the 31st year of his career in the sultanate.

Moreover, george carr, presently the general Manager of Al Mutahidha transport company and ofsat LLc, oman is now considered as the doyen of logistics industry in oman

by his peers. He arrived in oman when the industry was in the nascent stage and along with Abdul Aziz Ali Al shanfari, vice chairman of the company and a team of dedicated professionals built up one of the biggest and most successful group of transport companies in oman. When he joined the company, which was then called Al Ahram transport, there were approximately 46 employees and 15 vehicles only. currently the company has grown to a behemoth with more than 800 employees, 300

pieces of equipment and a turnover of $ 36 million.

Landing in OMan“i landed in oman on september 18, 1980 and this date was incidentally my wedding anniversary too,” said carr. reminiscing the past, he said, “When i first came here i just knew about general road transport. today i know about general transport, heavy lift, rig moving, shipping, freight forwarding, port operations and i am involved in all aspects of business,”

PERSONALITY


he noted. the company grew step by step. Al Ahram transport changed its name in 1996 when it got involved in the salalah port project of which it is one of the founder members.

Working in the same company continuously for 30 years could be boring to many but not to carr. “i always had something interesting to do,” he said. He fondly remembers his association with the development of salalah port. “i was particularly delighted to work in that project as it generated a large number of employment opportunities for omanis. it is nice to give something back to the country where you have been living and gaining a livelihood.”

EarLy LiFEcarr said after his schooling he wanted to become an accountant and joined an accountant’s office. “i used to say i will become a chartered accountant. But later found it very repetitive job and quit,” he said.

He then took up the job of a driver

for a short while. incidentally, his father had also worked as a driver. then he got promoted as foreman and then a depot manager. Meanwhile, he underwent management training.

While working in glasgow in scotland in 1977, he got an offer from saudi Arabia and went to dammam and worked for two and a half years. When he returned to scotland he got an offer from oman which he accepted. carr’s wife and one-year-old daughter joined him here on december 21, 1980. Life was not easy in those days when infrastructure in oman was not that developed. carr still remembers the aftereffects of the weather disturbances that hit oman in May 1981.

Life and work in oman offered several challenges. this is a developing market and things change day to day. every day is a challenge, carr said.

WOrk CuLTurEthen what kept him going despite

the challenges? carr said he enjoyed his work and always loved to work in teams. commenting on his management style, he said he would provide freedom to workers to complete their task once they are assigned a duty. “But if they want my help, my advice, my door is always open. then we have the able leadership of vice chairman also,” he added.

carr says the company is a family. “We just happen to be a big family business,” he notes. Many employees in the company are there for decades. staff retention is very important to us, added carr. commenting on the changes in the industry,

carr said his company is trying to create a synergy of the best practices of family business and modern business. We would like to have a happy marriage of the two so that the business continues to grow and continues to have the family atmosphere.

carr said he was happy to have introduced technical advances in logistics in the company. “We were one of the first to bring air suspension trucks and trailers in oman,” he said.

carr loves to exchange professional view points with others in the industry. there is no meaning in keeping one’s knowledge to oneself and dying, he said.

FaMiLycoming to his family, carr said his daughter who came here when she was one year old looks upon oman as home. His wife is the district commissioner for cubs and scouts for the British group abroad. she had been honoured with MBe by the Queen of england for her services to the British community in oman.

carr who shares a passion for football and rugby and loves to drive hates to leave oman after living and working here for so many years. “i will be very sad to leave as i count this and scotland as my homes,” he said.

i was particularly delighted to work in the salalah project as it generated a large number of employment opportunities for omanis. it is nice to give something back to the country where you have been living and gaining a livelihood

“When i first came here i just knew about general road transport. today i know about general transport, heavy lift, rig moving, shipping, freight forwarding, port operations and i am involved in all aspects of business


FREEZONE

HeAd stArt For FreeZone soHAr sohar free zone signs conTracT for sTarTing civil worKs for The developmenT of 500 hecTares

d evelopment of Freezone sohar, one the biggest initiatives in oman aimed at attracting foreign direct

investment (Fdi) got off to a head start recently following the signing of a contract for civil works of first five hundred hectares of the first phase.

the contract to this extent was signed between sohar Free Zone and Al naboodah contracting company recently in Muscat. He sultan bin salim Al Habsi, Undersecretary of Financial Affairs, Ministry of Finance and Board Member and Jamal t Aziz, ceo of Freezone sohar signed the agreement on behalf of sohar Free Zone. senan Abdullah Mohammed Al naboodah, Vice chairman, executive committee of Al naboodah construction group and peter keenan chief operating officer signed on behalf of the Al naboodah group.

the contract comprises site clearance, soil works and perimeter fencing. this is an important part for enabling customers in the Freezone sohar to develop their individual lots.

Freezone sohar is a joint venture between the government of oman, port of rotterdam, netherlands and skiL infrastructure based in india. it is located just before the strait of Hormuz, alongside the port of sohar.

He Maqbool Ali sultan, Minister of commerce and industry and chairman of the Board of port of sohar and Freezone sohar hailed the signing as an important milestone to set the stage for local and foreign small and medium sized enterprises who wish to take advantage of sohar’s

booming industrial clusters and its modern transport infrastructure.

COnSTruCTiOn PaCkagESJamal t Aziz stated that this contract is the first of the three main infrastructure construction packages of phase one of the Freezone sohar. the estimated cost of the first package is over a million rials. An estimated 20-25 million rials will be invested in three packages, he said. He said the intention of splitting the works is to satisfy the wishes of a number of committed and prospective tenants to start their projects on their respective plots within a short span of time.

parallel to the enabling works, utility service companies are striving to implement the initial phases of their respective master plans to provide needed electricity, water and telecommunication services in the

free zone. in addition the ministry of Heritage and culture will start the archaeological excavation of a number of pre-islamic graves in the Freezone sohar. these works are supported by sohar Free Zone and will be carried out under the auspices of two-year long sohar Heritage project.

Aziz noted that the starting of construction works will send a message to investors that Freezone sohar is serious about the progress of works. He said they have received a large number of enquires already. neelima Vyas, chief operating officer of the sohar Free Zone said companies from within the gcc, other Middle east countries and europe have already evinced interest in setting up facilities there.

the companies which expressed interest include those from

HE Sultan bin Salim Al Habsi, Undersecretary of Financial Affairs, Ministry of Finance and Board

Member Sohar Free Zone (second from left) signing contract for civil works along with Senan

Abdullah Mohammed Al Naboodah (third from left)


manufacturing and logistics sectors.

STrEngTHSAziz said the port of sohar is the strength of the free zone. the port has a number of terminals in operation. it includes one container terminal, one general cargo terminal and other for liquid cargo. A dry bulk terminal for iron ore and other minerals and another one for grains are under construction.

the development of infrastructure connecting Freezone sohar and port of sohar to a state-of-the-art transport network is fast progressing. there will be corridors connecting the free zone with sohar airport which is being developed and the proposed railway network.

Aziz said the free zone is strategically located to attract foreign direct investment. it lies on the crossroads

of the east and the West offering easy access to global markets. its position before the strait of Hormuz avoids increased insurance premiums associated with passing through this waterway and ensures immediate access to the world’s shipping lanes.

sohar Free Zone has been authorised by the government of oman to manage and develop 4500 ha greenfield site as a free zone. the first phase will cover an area of 500 hectares. the free zone will be operated on the basis of landlord model.

phase one will include a number of industrial and petrochemical ventures. According to the master plan 121 hectares will be earmarked for trading and logistics, 68 ha for light manufacturing, 26 ha for petrochemicals, 18 ha for aluminium related activities, 100 ha for iron and

steel, seven ha for cement grinding and 20 ha for education and services.

inCEnTivES TO invESTOrSthe incentives offered by Freezone sohar to investors include 100 per cent foreign ownership and free repatriation of capital and profits, corporate tax holiday for ten years, with possibility to extend the period depending upon criteria based extension and no personal income tax and currency restrictions or duty on imports and exports.

companies based in the Freezone will be allowed to sell to omani market on payment of five per cent of duty. there will not be any minimum capital requirements for companies to set up base in the Freezone sohar. All permits and consents will be granted by a one-stop shop operated by the Freezone sohar Authority. there is also relaxation in level of omanisation for companies in the Freezone.


REPORT

extending sUppLy cHAina world banK reporT finds posiTive Trends in developmenT of privaTe logisTics services among The 155 counTries surveyed during global crisis; germany ranKed as The besT-performing counTry, while somalia came lasT

A few years ago, it took three or four days for a shipment of goods to clear the Uganda-kenya border.

today, crossing the border has been reduced to a few hours, and land-locked Uganda is seen by shippers as a more efficient place for trade.

that’s one of the findings of the 2010 Logistics performance index and its underlying indicators, a joint effort of the World Bank, logistics providers from around the world, and academic partners, released in Berlin. the

ranking of 155 economies on the ease of importing and exporting goods is the result of a comprehensive survey—much of it conducted during the economic crisis—of nearly 1,000 international freight-forwarders and express carriers on the frontlines of world trade.

germany topped the list as the best-performing country, while somalia was last. Uganda, along with Brazil, china and Bangladesh, moved up from their rankings in the first 2007 survey as part of an overall

trend toward better trade logistics. “Following our first survey in 2007, many developing countries have improved their capacity to connect to international markets, which is a key ingredient for competitiveness and economic growth,” says otaviano canuto, World Bank Vice president for poverty reduction and economic Management.

“But if developing countries want to come out of the crisis in a stronger and more competitive position, they need to invest in better trade logistics.”


SurvEy HELPS idEnTiFy WEakEST LinkSone of the survey’s goals is to identify the weakest links in the logistics chain, so countries can fix them, says World Bank trade economist Monica Alina Mustra, a main author of an accompanying report, “connecting to compete 2010: trade Logistics and the global economy.”

World trade between countries is conducted via a network of increasingly connected logistics operators. But the ease with which traders can use this network to link up with international markets depends in large part on country-specific factors such as trade procedures, transport and telecommunications, infrastructure, and the domestic market for support services, says the report. indicators derived from the survey rate quality of infrastructure, efficiency of clearance processes, logistics competence, timeliness, cost and other factors.

“A country can have a quick look and see which one of these indicators is not performing as well as you’d expect. it’s a first signal as to which areas might need more attention,” says Mustra. After the first Logistics performance index was released in 2007, “A number of countries responded and said, ok, we don’t like where we are, what can we do to fix it?” says World Bank trade director Bernard Hoekman.

TradE LEnding dOuBLESthe World Bank has doubled its trade-related lending to $3.45 billion in Fy 2009, up from an average of $1.54 billion per year in Fy2006-08. About 35 per cent of trade projects are in Africa. A majority of this lending is going to projects designed to facilitate trade and transportation. in its country-level activities, the Bank conducts in-depth trade and transport facilitation audits to dig deeper into particular segments of

the logistics chain, including customs and roads. increasingly, projects, such as those on trade corridors, are regional in focus, in order to address the situation of landlocked developing countries such as chad, central African republic, Uganda, rwanda, and Burundi, or Afghanistan and central Asia.

the Bank has also helped countries including indonesia, Vietnam, colombia, and tunisia develop comprehensive strategies. these typically involve creation of Logistics councils comprising representatives from transport, customs, government agencies and the private sector. the councils identify what needs to be done to fix trade bottlenecks and work to ensure that such changes happen.

“the private sector is a key player in terms of identifying where things aren’t working; also, a lot of the improvements have to involve the private sector,” says Hoekman.

a COMPrEHEnSivE aPPrOaCH BringS THE grEaTEST EFFiCiEnCy gainSthe biggest logistics improvements come with policy changes and investments that address performance of infrastructure sectors like ports or road corridors, markets for logistics services such as trucking or customs brokerage, and efficiency of border clearance processes, adds Hoekman.

“increasingly, the message from shippers is that customs is still a problem, but increasingly not the problem. it’s also the other agencies at the border. it’s partly related

to security, food safety, health standards. it’s increasingly those types of agencies that are blocking rapid clearance of goods.”

A “single window” or a one-stop-shop for clearances, including tariff payments, food safety, health and security-related inspections, “is a big help to solve this latter problem,” says Hoekman.

colombia’s improved ranking, from 82 to 72, on the Logistics index is largely due to proactive policies including adoption of a comprehensive logistics strategy, which implemented a “single window” but also addressed reform in services and improvement in port management, says Mustra. such measures are catching on. the report finds positive trends in modernization of customs, increased use of information technology, and development of private logistics services.

“there was a bigger gap last time [2007] between the highest- and lowest-performing countries,” says report co-author and World Bank senior trade economist Jean-Francois Arvis.

“this time, people are relatively positive about the trends. even in countries where things are not really going very well right now, things are improving. When you look at the scores and the numbers we are crunching, those are relatively better. it’s small, but there are encouraging signs. For policymakers, investing in this area can generate big pay-offs and be something visible.”

the private sector is a key player in terms of identifying where things aren’t working; also, a lot of the improvements have to involve the private sector

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exceLLing in Logistics And sUppLy Ly LcHAin edUcAtionAtionAThe head of deparTmenT of operaTions managemenT and business sTaTisTics, college of commerce and economics aT sulTan Qaboos universiTy, dr. said gaTToufi, dr. abdullah al hajri and dr. shahid al balushi, faculTy members aT The deparTmenT speaK To a hariKumar abouT The deparTmenT, The college and general scenarios in logisTics indusTry

in less than two decades after it was established in 1993, the operations Management major is becoming one of the most

popular majors for students at the college of commerce and economics, sultan Qaboos University. the high quality teaching offered at the department, like all other departments in the college is one of the reasons.

Moreover, there is increasing demand from the industry, for graduates with operations management major as they have both technical and managerial soft skills. recently, teaching at the department was oriented toward providing more technical courses with the support and encouragement

of the University to provide the students with the latest technologies and edge knowledge to satisfy the specific demands of the industry and to contribute to the country’s development in a better way.

the department offers a Bachelor of science degree in operations Management as well as a Bachelor degree in Business statistics.

the department interacts closely with the industry and the degree programme has updated courses aimed at catering to the needs of the industry. the college is seeking more support and higher collaboration from the industry to know the market needs and adjust the curriculum.

BaCHELOr dEgrEEthe courses offered at the major include, management science, operations management, quality management, logistics and supply chain management, production and inventory management and service operations management. Moreover, a large variety for electives, theoretical and also computerized, is offered among from which the student has to select 4 additional courses to obtain the degree in operations Management.

to satisfy the need of the market, to satisfy the need of the market, tthe department is introducing new courses in areas such as purchasing Management, entreprise requirement planning (erp) and softwares

EDuCATION

Two Decades of Safe Operations with Petroleum Development Oman

Photo courtesy: SQU

Two Decades of Safe Operations with Petroleum Development Oman


for operations Management, said dr. said gattoufi, Head of the department.

He said the degree programme provides high quality theoretical background. We also try to connect students to the industry to provide them real world experience. this is being supported by the dean and the University.

dr. Abdullah Al Hajri, Assistant professor said they have decided to split the course called logistics and supply chain management. “We have decided to split the course into two which are logistics management and supply chain management. this is going to be launched in the new degree plan,” he said.

“it has already been approved. When the new batch is going to major, they can take two courses; Logistics management and supply chain Management. We also know the importance of purchasing. so we are starting purchasing management course as well from the next semester. We have also got approval for starting a new course named enterprise resource planning (erp). this involves application of new technology,” he concluded.

dr. shahid Al Balushi, also Assistant professor at the department, noted that logistics and supply chain is like a big umbrella. Most of courses in the department like the ones on warehousing, inventory management etc are all interrelated.

these are specific areas of logistics management. “What we do is teach students on how to manage specific areas like warehousing, inventory and transportation problems using management science and linear programming,” he said.

“in the past we had individual courses which were operations management related activities. then

the concept of logistics and supply chain came and it interconnected different parts of operations management. We teach students how to manage operations within a chain; i.e. entire chain and two tier chain and so on, said shahid.

“Warehousing is included under special course category now. We have recommend another separate course on warehousing management to be offered as a major elective,” he said. the name of the course and other information has been submitted to the curriculum committee and is waiting for approval. the department is refining content of courses this year.

WOrking WiTH THE induSTryon the department’s initiatives with the industry, gattoufi said they engage in discussions with industry people, hold open day of logistics and try to create new courses listening to market. “to maximize the benefit to maximize the benefit tof our students, we carefully select the places where they take their two months summer internship.

Last year and with the help of the Logistics industry, 60 students were placed in different logistics companies in the country. this initiative was taken during the Logistics open day organized at the college and chaired by dr Fahim Al Marhubi, dean of the college, and Mr Warith Al-kharusi, Head of the department of Logistics in pdo.

We are frequently organizing visits to logistics and supply chain departments in different major companies, particularly those in Logistics and we thak them for their help and we are looking forward for more visits. We want our students to be knowledgeable on what they have to do. We don’t want to disappoint the market.

through visits and guest speakers we are bridging the gap between the University and the industry.” he said.

to satisfy the need of the to satisfy the need of the tmarket, the department is introducing new courses in areas such as purchasing management, entreprise requirement planning (erp) and softwares for operations Management

Dr. Said Gattoufi, Head,Operations

Management and Business

Statistics Department

EvOLuTiOn OF LOgiSTiCS in OManon the evolution of logistics in oman, shahid said earlier in oman there was just production and sale and the competition was less. now there is a lot of competition. people have to improve services and minimise costs. earlier the strategy was to manage production to face competition. now competition is not only confined to production. Whole chains are competing. if companies effectively manage their supply chains, they can offer better product or services, and better prices to their customers.

earlier, most of the production was in Muscat. now other parts are also booming. in the context, other aspects like transportation, location of warehouse and managing these have become critical. customers want products quickly. the industry has to look into all these. now people think

EDuCATION


of building warehouses at convenient locations, try to optimise the flow of material and minimise costs and improve the service.

Abdullah noted that not many of the companies had logistics department in the past. Furthermore, several omani companies were putting the cost measurements such as transportation cost and warehousing cost in the forefront while service measurements such as percentage on time delivery and percentage order filling fall behind. With time, we see that logistics has been recognized as a value adding process as it manages the time and place values of the business.

you can see logistics department and more posts, like managers of logistics in companies. currently there is more understanding and awareness of logistics. We are currently trying to open a chapter of chartered institute of Logistics and transport in oman. there is one in dubai. We also have

EDuCATION

Warehousing is included under special course category now. We have recommend another separate course on warehousing management to be offered as a major elective,” he said.

Shahid Al-Balushi,

Assitant Professor

omani Logistics and supply chain Association (oLsA) in formation. this is already going through approval process.

FuTurE PrOSPECTSreal estate was the driver of the economic development in the region for the last two decades but not anymore, noted gattoufi. currently there is wide agreement that logistics will substitute real estate as the main driver of development in the region. oman is witnessing extraordinary development of infrastructure including roadways, ports, airports, air transport and hopefully railroad soon. Logistics sector will see impressive development in the coming two decades, gattoufi believes. Moreover, logistics is a labour intensive industry which is very generous in job creation. it is yet far from reaching saturation point.

over the history, oman was leading in logistics. omanis were the first to reach Beijing and indonesia. oman has a huge potential to develop logistics because of the location. salalah and sohar ports have great potential for development.

auTOMaTiOnAutomation in the past started with individual departments in different industries. they had their own systems. Later it was material requirement planning (Mrp). it was managing the whole production. then it was enterprise resource planning (erp). popular erp vendors included sAp and oracle. currently it is collaborative tools. collaborative tools not only help one to manage your business within your organisation but also connect you to suppliers and customers.

through implementing collaborative tools, companies can exchange resources more frequently and improve the visibility throughout the supply chain. When the customers are looking for giving

order, collaborative tools help them to see the products, said shahid. they can track it and find whether it is in the production, beginning or middle. these tools help to manage supply chain more easily. sAp and oracle are two examples of the leading companies in providing these collaborative tools. now different companies can connect information systems and exchange information, noted shahid. exchanging information has become one of the critical elements of managing supply chain and logistics.

But again there is the risk of sharing information. sometimes information is critical as it is akin to proprietary rights. “But information sharing is happening in oman among companies. they are collaborating with suppliers, customers, and are improving efficiency and effectiveness benefitting the whole chain. My study showed that it is happening in oman contrary to the view that only in west it happens, commented shahid.

the radio frequency identification technology (rFid) has transformed warehousing segment. the rFid tags on products help one to track where the product is in warehouse and its quantity. We introduce all such innovations to students and teach them how it could be used. We are introducing it in our supply chain course.

in the current course, Abdullah noted, we use a combination of software like excel and Logware (logistics software). We teach students about vehicle routing and scheduling, facility location, transport service selection, other inventory related issues and consolidation of warehouses. We are going to introduce erp as we are working with industry. this course will enable students to see the effects of decisions taken in operations on other departments, among other things.


in industry, several companies are turning their logistics activities toward third parties and fourth parties which in turn place an increasing pressure on logistics companies to get equipped with the latest technologies in order to satisfy their customers’ requirements. therefore, transoman 2010 can be considered as an exceptional opportunity for these companies to discover the latest developments and trends in the transport and logistics sector.

aPPEaL TO induSTrygattoufi requested logistics and supply chain industry to help the department access advanced software. “We need the help of industry. We cannot afford to buy these systems. We seek the help and support of all big companies. our aim is that students should be ready for

job once they graduate. there should not be any need for further training,” he said. He noted that it would help the department to respond to the needs of industry in a better manner.

PLaCEMEnTgattoufi said, “We have job fair at the University level. several companies come to the fair and it is in the focal interest of the University. it was college based earlier but is now centralized. Both summer training and after graduation placement are of importance to the department. “We have been able to establish direct contact with leading industries and place our students in the right departments for summer training,” he said. “We are intensifying our efforts to provide placements to students. We are thankful to all who are helping and looking for more collaboration” concluded gattoufi.

We are going to introduce erp as we are working with industry. this course will enable students to see the effects of decisions taken in operations on other departments, among other things.

Abdullah Said Al Hajri

Assistant Professor


What are the facilities and benefits offered by hamriyah free Zone to companies Who set up their base there?Hamriyah Free Zone today offers a range of services and facilities for every need and budget. From long term land leases, pre-built warehouses, factories to executive office suites, Hamriyah Free Zone has more than 22 million square meters of prime industrial and commercial land and a 14 meter deep water port designed to accommodate VLS vessels.

What are the advantages offered by hamriyah free Zone to companies ?The top 3 advantages are: tax free environment, full ownership of business and most cost effective lease agreements. The main facilities we offer are land plots, pre-built warehouses and executive office suites, supported by minimum formalities and barriers for entry, splendid visa solutions and ideal geographic positioning with a 14 meter deep water port adjacent to the free zone. We have solutions for all types of business whether it’s an SME or large company.

What type of companies can set up their base in hamriyah free Zone?We offer our investors a freedom in choosing their activities, as long as these activities don’t harm the environment and are in accordance with our sustainability policy.

do companies and individuals operating from there need to pay

Hamriyah Free Zone-An investor’s paradiseHFZ in Sharjah, UAE has emerged as one of the best and cost effective free zones in the GCC offering investors advanced infrastructure and security, says Dr. Rashid Al Leem, Director General Sharjah Department of Seaports and Customs and HFZA

FREE ZONES

SPONSORED FEATuRE

the top 3 advantages offered by Hamriyah Free Zone are tax free environment, full ownership of business and most cost effective lease agreements. the main facilities offered include land plots, pre-built warehouses and executive office suites and splendid visa solutions.

Dr. Rashid Al Leem, Director General Sharjah Department of Seaports and Customs and HFZA


corporate or income tax? is there any restriction on the movement of capital from the fZ outside the country?No, there are no taxes or commercial levies in HFZA. Investors also enjoy full repatriation of capital.

What are your offerings to small and medium enterprise companies?Hamriyah SME Zone is a specially designated area in the Free Zone supported by a remarkable deep and inner harbor facility. The 7 Magnificent Zones include: Steel City, Timber Land, Oil&Gas Zone, Perfume World, Maritime City, Petrochemical Zone and Construction World.

We offer discounted lease rents with annual rate of AED 30 (USD 8.22) per square meter only, fixed for 5 years. Furthermore, throughout these five years, SMEs are given rent holidays of 2 months annually.

Another important angle of our SME strategy is Hamriyah E-office: Executive, Economical, Efficient, Electronic. This unique, specially designed initiative is aimed on helping SMEs weather economic turmoil. Simple legal framework and documentation allow investor to set up the office in only 24 hours following three easy steps and for as low as $6,850. HFZA is a place to be for SMEs.

What is the total number of companies operating from hamriyah free Zone? There are over 4,800 companies from more than 120 countries operating in the free zone at the moment.

hoW Was the performance of hamriyah free Zone in the last tWo years, Which saW many countries in the region, suffering from the impact of economic crisis?The impact of financial crisis was minimal on us because of the tax free environment, long term lease agreements, quality services and SME initiatives we took before to support SME sector.

Earlier this year we celebrated the successful completion of mega-infrastructure projects in Hamriyah Free Zone. Valued at over 800 million Dirhams (approximately US$217 million), the major projects include development of Inner Harbor Phase 3 and 4, Road Works Phase 1 and 2 and an ergonomically designed labor Accommodation Complex to support the housing needs of investors’ fast growing work force.

hoW did hamriyah free Zone fare in the first half of current year? What are the development Works initiated in the period?Since the beginning of this year we already registered 27 per cent of growth in companies’ registration and this number

will increase further. We register an average of 110 company registrations per month since the beginning of the year.

What are your strategies for ensuring groWth in the future? Which markets are you focusing for attracting fresh investment?We are researching to penetrate new markets where we feel the potential is growing, such as African markets. We are continuously working on promoting the free zone and our well-informed teams travel to international events, conferences and expositions worldwide. We are also very active in road shows and meeting international businessmen worldwide.

Hamriyah sMe Zone is a specially designated area in the Free Zone supported by a remarkable deep and inner harbor facility. the 7 Magnificent Zones include: steel city, timber Land, oil&gas Zone, perfume World, Maritime city, petrochemical Zone and construction World

earlier this year we celebrated the successful completion of mega-infrastructure projects in Hamriyah Free Zone. Valued at over 800 million dirhams (approximately Us$217 million), the major projects include development of inner Harbor phase 3 and 4, road Works phase 1 and 2 and an ergonomically designed labor Accommodation complex


strong perForMAnceworld banK’s logisTics performance index poinTs To heTerogeneiTy and significanT performance boTTlenecKs in arab region as a whole buT gcc counTries fare beTTer. compared To previous years, The secTor is performing much beTTer in The currenT year

STuDY

the performance of Arab countries in the logistics sector is superior to that of the sub-saharan Africa and

south Asia regions but lags slightly behind the other three developing regions of east Asia and pacific, europe and central Asia, and Latin America and the caribbean according to the international Logistics performance index (Lpi) prepared by the World Bank. the overall picture that emerges from the Lpi is one of heterogeneity and significant performance bottlenecks within many Arab countries.

LPi SCOrES in THE araB WOrLd vErSuS OTHEr rEgiOnS For comparing Lpi scores in the Arab World with other regions, the World Bank report has split the region into four broad country groups ie: i. the gulf states; ii. the Maghreb

(excluding Mauritania and Morocco due to limited data availability); iii. the Mashreq+egypt; and iv. djibouti, sudan, and yemen.

performance in the mostly high income gulf states is noticeably stronger, but still well below their income group average. the standout performer is the UAe, ranked 24th in the world in the 2010 Lpi, with a score comparable to that of korea. the Mashreq countries’ score is in line with the middle income average. But performance lags in the Maghreb, which is in line with the low income average despite being made up of middle income countries. the djibouti-sudan-yemen group’s Lpi score is broadly in line with these countries’ low- and lower-middle income status Maghreb countries include Algeria, Libya, Mauritania, Morocco and tunisia. Mashreq group

includes iraq, Jordan, Lebanon, syria and egypt. the gulf countries are UAe, Bahrain, kuwait, oman saudi Arabia and Qatar. djibouti, sudan and yemen are considered as a separate block.

comparing results from the 2007 and 2010, Lpis is difficult due to differences in the survey instruments and respondents. But on average, the overall picture shows noticeable improvement. Most countries have comparable or slightly improved performance in 2010. there is little evidence of backsliding, except in sudan. Much higher 2010 scores, as for syria and Lebanon, probably overstate performance improvements because the survey samples are different in 2007 and 2010.

PErFOrManCE FaCTOrS the four Arab sub-regions follow a fairly consistent ordering in the six


core areas of logistics performance. the six core areas are: (1) efficiency of the border clearance process; (2) Quality of trade and transport-related infrastructure; (3) ease of arranging competitively priced shipments;(4) competence and quality of logistics services; (5) Ability to track and trace consignments; and (6) Frequency with which shipments reach the consignee within the scheduled or expected time.

the gulf states are generally the strongest performers, followed by the Mashreq+egypt countries, the Maghreb, and finally the djibouti+sudan+yemen group. the gap between the gulf states and the rest of the region is stark in areas such as infrastructure quality, and the efficiency of border clearance. in these areas, the gulf countries can provide regional leadership on trade facilitation, by helping diffuse best practices.

excluding the gulf countries, infrastructure quality, efficiency of border clearance, and the quality and competence of service providers, are areas that potentially need further attention. More detailed analysis is required to highlight the exact nature of the reforms that should be undertaken to boost performance in different countries.

POSiTivE TrEndS Although substantial bottlenecks still exist, private logistics operators are strongly positive about recent trends in all sub-regions. the djibouti+sudan+yemen group stands out for having strong positive trends in all areas. there is consistent evidence of catch up. But it is important not to over-interpret these results since they primarily reflect performance in major international gateways. in the gulf states, improved quality of private logistics services stands out. For the Mashreq+egypt and Maghreb countries, it is improvements in information and telecommunications (itc) infrastructure.

Logistics performance in the Arab world, 2010 compared with 2007

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Lpi

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Arab world sub-regions’ performance in the six core logistics areas

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Lpi

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the Maghreb countries are gradually catching up to the rest of the region—a very positive development. However, continued attention is required to customs and border clearance procedures. the Maghreb and Mashreq+egypt countries both need to work further on limiting trade-related corruption.

dOMESTiC LPi – idEnTiFying BOTTLEnECkS the domestic Lpi provides further information on specific elements

of major supply chain bottlenecks, such as time and cost, infrastructure, services, and border management.

the time and cost of moving goods across borders is an important outcome measure of logistics performance. With the exception of the Mashreq+egypt countries, best performance on export time is comparable to the high income group. However, export times are much less reliable in djibouti, sudan, and yemen, as well as in the


STuDY

Mashreq+egypt countries. import times are slower in the Arab world than in the high income group, with the exception of the gulf countries. they are comparable to the europe and central Asia group average, which includes transition economies and oil exporters. it also contains a range of country income levels, as is the case for the Arab world groupings. closing the performance gap between export and import lead times is crucial. it improves domestic manufacturers’ access to vital imported goods, such as high quality intermediates and capital equipment.

in the domestic Lpi survey, the private sector indicates that the major sources of trade delays are: djibouti+sudan+yemen: compulsory warehousing and transloading, and to a lesser extent pre-shipment inspection and maritime transshipment, gulf: Maritime transshipment and Maghreb: solicitation of informal payments, maritime transshipment, and to a lesser extent compulsory warehousing and transloading, and pre-shipment inspection.

rELiaBiLiTy Being able to rely on the quality of delivered goods is also important. the gulf countries perform very well in this area—in excess of the High income group average. However, the Maghreb and Mashreq+egypt countries lag: the proportion of shipments that do not meet firms’ internal quality criteria is 2.5 to 3 times higher than in the gulf, and is also higher than the Middle income group average.

inFraSTruCTurE quaLiTy in the Lpi 2010, logistics professionals rated the quality of air and maritime ports, road and rail links, telecommunications and it infrastructure, and warehousing facilities.

As in other regions, telecommunications and information

technology infrastructure stands out as being of relatively high quality. However, the Maghreb and Mashreq+egypt countries are noticeably below the middle income group average.

rail infrastructure lags behind other transport modes; this pattern is common across regions. Airport quality is below the middle income and europe and central Asia comparator group averages. Maritime port quality is also lower than the middle income average. Although transport infrastructure in the gulf states is not rated particularly highly, warehousing and transloading facilities score well above the comparator group averages.

there is a clear need to explore the scope for modernizing and upgrading trade-related infrastructure in the Arab world. rather than a “big push” of major projects, the focus should be on identifying incremental improvements that offer a strong return on investment. coordination of initiatives on a regional basis is also important, so as to facilitate the development and efficient

management of trade corridors. A dedicated corridor agency could assist this process, in particular by incorporating best practice from other regions.

iMPrOving SErviCES SECTOr services sector regulation and performance is closely interrelated with infrastructure quality, and logistics sector outcomes. service providers in air and maritime transport, and freight forwarding are rated highly across the region. the Arab countries as a whole perform more strongly that the middle income and europe+central Asia averages. However, the djibouti+sudan+yemen and Mashreq+egypt groups lag in some areas.

rail transport performance is weaker than the comparator group averages in all Arab country groups. With the exception of the gulf states, the same is true of warehousing, transloading, and distribution service providers.

BOrdEr ManagEMEnT clearance times when goods are physically inspected are much longer in Arab countries than in the


comparator groups, even though clearance times without inspection are comparable. One-third to nearly one half of goods are subject to physical inspection, which means that border delays are a serious issue across the region.

This performance problem cannot be solved just by adopting customs reforms. Customs performs more strongly than other agencies, particularly in the Djibouti+Sudan+Yemen group. The Maghreb’s performance is lower in customs than in other areas.

Health/SPS agencies tend to be rated lower than other agencies, except in the Maghreb countries. On quality/ standards and health/SPS, the Djibouti+Sudan+Yemen group lags considerably behind the comparator groups.

Improving border management requires a coordinated approach across all agencies involved in the clearance process. Better clearance times are an important outcome, but so too is improved reliability.

In the Maghreb, 80 per cent of LPI respondents say that exports are “often” or “nearly always” cleared on time, but for imports the comparable figure is only 37 per cent. Even in the strongly performing Gulf states, over 50 per cent of LPI respondents indicate that they “hardly ever” or “rarely” receive adequate and timely information on regulatory changes.

Addressing bottlenecks Moving forward on trade facilitation requires action on a number of fronts. Some governments have already embarked on significant reform programme. In Morocco and Tunisia, the imperative of accessing

the European market has been an important driving force.

Much remains to be done. The region currently trades more with Europe than it does internally. Regional trade corridors can help move goods more quickly and cheaply. Ideally, they should be managed by dedicated agencies that draw on overseas best practice examples. Trade corridors can only function if the transport sector is efficiently regulated. Reforms could include harmonization of trucking standards, financial incentives for fleet upgrades, and sectoral liberalization programs.

Improving border clearance processes and upgrading border facilities is also important. Reform of quality/standards agencies and health/SPS agencies is the priority. Coordination among the different border agencies is more critical in the short term than.


TRuCkInG wITH TECHnOLOGY The sTory of The success of schneider naTional is an example of how Technology can minimise cosTs and help companies To overcome challenges and grow

Technology

when uS federal government deregulated trucking industry in 1980’s,

it revolutionised the business environment overnight. Competition in the industry heated up. Many companies did not know how to face the ensuing competition. As transportation rates fell many companies went bankrupt.

But Schneider national, a privately held transporting company headed by Donald Schneider faced the crisis differently. Its multipronged strategy was mainly based on the use of information technology. Computer systems were made to play

a major role in Schneider national’s operations. Moreover, the company also began treating its employees differently in a major step toward democratizing the company.

needless to say, Donald Schneider’s strategy transformed the company and the company grew by leaps and bounds. In fact, Schneider was the first trucking executive to use scientific logistics, making sure each truck was filled and not just running traditional routes.

Donald Schneider, an alumnus of wharton School of Business joined Schneider national, a company founded by his father, in 1961. In

1974 when he succeeded his father as the CEO, the company was a regional player with a turnover of around $ 35 million. But the farsighted steps taken by Donald catapulted the company to the position of the largest full load trucking company in north America. Currently, Schneider’s total assets are estimated to be $ 3 billion according to Forbes.

Don Schneider’s business philosophy was simple. use the advances of information technology to communicate with customers, do business and make business grow.

Schneider national was the first transporting company to introduce


OmniTracs, a satellite-based communications and positioning system in 1998. The company was the first to introduce scientific logistics, making sure each truck was filled and not just running traditional routes. with smart investments, Schneider was so far ahead of the curve that it created a new business area.

OmniTracs was produced by QualComm, a wireless communication company based in San Diego. Schneider national and QualComm worked together to develop the system. For it to operate, each truck has a radio frequency identification tag, a computer with keyboard in the cab, and a satellite antenna with a GPS (global positioning system) on its back.

using this system, the company could locate trucks within 300 feet. The driver could communicate with headquarters whenever required. The dispatchers can send information to the driver on how to get to the delivery spot, the next pickup location, directions to the pickup spot, the necessary papers if required, and even traffic and road problems. The driver can respond with approval and raise any questions about the

instructions, the truck, or the road.

Schneider national and QualComm again teamed up to develop SensorTracs, a system which could provide engine data, such as speed, RPMs, and oil pressure, with the help of satellite. The data not only helps to maintain engines in a better manner but also help drivers to drive more safely and to take better care of the vehicles.

It can even increase the drivers’ incomes. The company calculates the monthly bonus of a driver based on staying within certain key factor ranges when operating the vehicle and the SensorTracs helps drivers to comply with it.

Schneider national and QualComm later developed a wireless trailer-tracking system also. Each trailer is fixed with a radio frequency identification tag, which is read by devices that are placed at various points along the rail lines and in the rail yards. The data are directly linked to Schneider national’s fleet management and logistics systems. using this, the senders and customers could be informed if trailers are empty or full and if they are hooked onto a cab, sitting in a yard, or, rolling on a train.

The trailer-tracking system helps to improve customer service through more on-time deliveries and better in-transit knowledge. It increases drivers’ billable miles and so their earnings. ultimately it will increase trailer utilization and efficiency.

Schneider’s Global Scheduling System (GSS) helps to optimize the use of both the company drivers and the loads throughout the country. The system processes about 7,000 load assignments daily, looking at all the possible combinations of drivers and loads on any one day.

It accesses more than 7,000 possible combinations of drivers and loads per second, and of course the loads and trucks are at different locations each day. Its primary value is servicing customers by satisfying their requests to move freight. However, the GSS can also save the company money because fuel is expensive, and the system makes it more likely that when the trucker delivers his or her load, the next load to be picked up is close by.

Information technology is also being used to help Schneider drivers. The company’s Touch Home program uses the existing in-cab computer technology to give the drivers e-mail access via satellite. The system thus enables drivers to stay in contact with their families.

In its colossal headquarters building, the ground floor contains its call center where 600 customer service representatives work. using computers, they access customer’s history, enabling each customer service representative to answer customers’ questions. According to reports the company is currently working with on a web site in which the entire logistics transaction will be accomplished electronically, including the order, its acceptance, pickup, delivery, billing, payment, and reporting.

Schneider national was the first transporting company to introduce OmniTracs, a satellite-based communications and global positioning system in 1998. The company was the first to introduce scientific logistics, making sure each truck was filled and not just running traditional routes


MODERn TRAnSPORT PLAnnInGroad auThoriTies everywhere are searching for soluTions To avoid Traffic relaTed problems and achieve equal access for all road users. John charles Todd - business developmenT manager highways and TransporTaTion, cowi, wriTes on The innovaTive TransporT planning soluTions offered by cowi in This regard

COwI has more than 75 years experience in transportation consultancy. This solid experience is underpinned by exceptional expertise and an outstanding technical pedigree. The portfolio of work undertaken by COwI spans widely with ranging depths and complexities, covering all aspects and phases, from fundamental planning and feasibility studies to design, construction, commissioning, operation and maintenance management

innovAtive trAnsport plAnningAn increasing number of urban centres are experiencing increased

traffic and related congestion problems on their road networks due to; the upsurge in the rate of urbanization, dense urban forms, increasing mobility and burgeoning economic prosperity. These problems are compounded by inadequate planning and the absence of proactive provision of demand responsive transportation infrastructure.

Road authorities often face situations where they have to prioritize resources, and at the same time provide the best possible service. The objective is to avoid traffic delays, reduce accident risks, limit the environmental impact and achieve equal access for all road users.

This dilemma calls for a key COwI competence: innovative transport planning. COwI provides consultancy services on the design of traffic installations, road accident analyses, road safety plans, intelligent transport systems (ITS), public transport (including bus and rail) and research & development to assist local authorities and national transport departments.

In the Gulf Region, COwI is able to respond to the transport planning demand of our clients via our comprehensive presence and established offices in Oman (Muscat), Bahrain (Manama), Qatar (Doha), uAE (Dubai and Abu Dhabi) and Saudi Arabia (Jeddah).

TransporT planning


trAnsport modelsComputerized transport planning models and traffic micro-simulation models are important tools for estimating traffic movements and its impact on the future network and the environment. Traffic flow simulations can be used to optimize flows, safety and capacity. These types of simulation provide a platform that can reflect the reality of live traffic loaded on the planned orientation, with design specifics and layouts of urban road networks and junctions. we use state-of-the art modelling programmes including VISuM, VISSIM, VISEM, EMME/2, CuBE, COnTRAM, STAn, SIDRA, SYnCHRO and TRAnSYT.

what we do:

•Establish,operateandmaintaintransport models

•Carryoutstrategictrafficimpactassessments for large projects

•Carryoutdetailedtrafficimpactassessments

•Calculatetheeconomicandenvironmental impact of traffic

•Designmodelsforbothindividualand public transport systems

•Trafficflowsimulationand3Danimations

•Preparemodelstoanalyzecongestion and level of service

•Creategraphicinterfacesforuser-friendly solutions.

mAster plAnning supportThis service provides traffic engineering and planning support to master planners and architects in order to facilitate an efficient and effective transport system within the proposed development.

The master planning teams, in-house or external, aim to improve traffic systems, the built environment and the surrounding landscape in a comprehensive perspective. Roads, railways and parking spaces are

not only meant to be functional structures, but also an inspiring part of everyday life, woven into squares and parks or providing the best possible view of the scenery. The transport team can assist in designing and visualizing how new spaces are evolving under fully loaded traffic conditions and offer alternatives.

The services include:

•Settingobjectivesofthepreferredpattern of development, in view of supporting sustainable transport goals

•Evaluationofforecasttrafficentering and exiting the development (trip generation and attraction) and provide recommendations on land use schedules

•Evaluationofstatutoryparkingrequirements and recommendation on preferred locations

•Assistingnetworkplanning,settingroad hierarchy, access location and intersection type as well as broad capacity evaluations

•Undertakepublictransportplanning, internal feeder services routes and external services connection points

•Walkingandcyclingnetworkplanning and best practices to support soft transport modes.

Deliverables for these services include:

•ReportsorPowerPointpresentations, including concept sketches, cross sections, designs.

•Visualizationin2Dor3Dstillsandvideos

plAnning And trAffic engineeringA road network must accommodate traffic without major delays with a low risk of accidents, minimal environmental impact and safe access/segregation to all road users/pedestrians respectively. we identify problem areas, define objectives and prioritize and present results in a user-friendly way. Our experience has been built up through many years of contributing to a wide range of traffic planning and engineering assignments.

what we do:

•Ruralandurbanroads

•Trafficcalming/safety

•Cycletraffic

•Publicopenspacesanddesignsforpedestrians

•Parkingfacilities,onstreetandmulti-parking system design

•Busandrailwayterminals

•Harbourareasandairports.


intelligent trAnsport systems – itsITS increases road safety through the enhancement of expeditious traffic flow and relay of up to date traffic information to traffic engineers. we are involved in all phases of ITS projects in Denmark and internationally, from analysis, planning, specification, preparation, supervision and testing to evaluation and supervision of operation and maintenance. we deliver coherent solutions designed to integrate existing and planned technical, organizational and administrative systems.

what we do:

•Strategictrafficmanagement

•Dynamicrouteguidance

•Parkandridesystems

•Intelligentpublictransportterminals

•Passengerinformationsystems

•Electronicticketingandpaymentsystems.

roAd sAfetyRoad accidents are amongst the leading cause of personal injuries in the Middle East with casualties from road accidents ranging from slight, to serious and fatal. Improving

road safety means fewer fatalities and injuries, reducing costs for road authorities and society in general and improving safety for citizens. COwI has extensive international experience in consultancy on road safety and a growing presence in the Gulf. we carry out all phases of road safety, from research and analyses to national action plans and implementation of physical measures on the roads.

COwI is able to show strong technical leadership at all levels of road network audits and assessments, enforcement advice, driver licensing and institutional capacity development.

what we do:

•Roadsafetyplansandpoliciesatlocal and national levels

•Roadsafetyaudit(newprojects)bycertified auditors

•Roadsafetyassessments(existingprojects) by certified auditors

•Accidentstatistics

•Impactassessmentsofmeasures

•Accidentanalyses

•Informationandcampaigns

•Safecyclingandpedestrianstrategies.

public trAnsportCOwI assist municipalities, public transport authorities and operators in developing optimum solutions for public transport assignments. Potential solutions are compared and assessed against the service offered to passengers, the possibilities of attracting new passengers and the effect on costs and revenues.

To support competitiveness and viable transport solutions, we have developed a number of revenue distribution models and offer advice on alternative fare systems.

These services are particularly suited for the growing demand for public transport systems in the Gulf Region.

what we do:

•Planningofmetro,lightrail,busrapid transit and other bus systems in the urban areas

•Planningofbusinruralareas

•Analysisofviabilityinpublictransport services

•Prioritysystems

•Analysisofpassengerbehaviour,travel patterns and selection of appropriate use of ticketing systems

•Developmentoffaresystemsandrevenue sharing models.

rAilwAy plAnningCOwI has extensive knowledge of all the aspects of the railway industry from planning, through design, procurement, construction to operation and management. we understand the complexities created by technical and economical constraints and the impact on stakeholders. Our unique strength is the combination of planning expertise with design expertise in railways, tunnels, bridges and roads. Our clients benefit from this through a clear assessment of projects during the early phases and the development of comprehensive risk mitigation strategies.

TransporT planning


what we do:

•Planningofrailwaysystems

•Feasibilitystudies

•Tenderingofconstruction,maintenance and operation of railway systems

•Organisationalandfinancialanalysis

•Evaluationsandlegal/institutionalanalysis

•Technicalduediligence

•Technicalstrategiesincludingsafety and interoperability.

trAnsport economicsBased on COwI’s solid competence, proven technical expertise and knowledge of the transport sector, we perform a range of analyses and assessments of the economic situation and changes in infrastructure networks, services and charge regimes. These comprise all transport types, transport modes, passenger type and freight.

what we do:

•Economicandfinancialfeasibilitystudies

•Cost-benefitanalyses

•CalculationsusingtheHDMmodeldeveloped by the world Bank

•Valuationofexternalcostsandbenefits

•Demandanalysis.

summAry urban Transport Systems work best when an integrated approach that accommodates all forms of transportation modes and related infrastructure are considered. COwI has over the years curved a very strong market knowledge, experience and expertise of the functional characteristics of individual transport systems including Engineering, planning, design, policy formulations, operational and economics functions of the various constituents of a transport system. However, COwI’s integrated approach to providing transportation solution rather than isolated remedies makes it a best value consulting business for clients.

A design and planning approach modelled on local needs is what COwI does best rather than a ‘one size fits all’ philosophy. COwI also

utilises innovative propositions and futuristic technologies to advance legacy transportation systems in fitting to modern transportation realities. The foundation of any well functioning transport system is the establishment of well researched and fact based transport plans and policies. Over the last 75 years COwI has constituted a firm authority and competence in assisting both public and private sectors with the development of comprehensive transport policies that form the spine of urban transport systems.

The ranging depths and breath of industry expertise acquired by COwI over the last 75 years qualifies it to comprehensively carter for clients needs with regards to transport solutions. COwI works very hard in the establishment of good client relationship through the provision of quality consulting services.

The intention is to gain long term clients’ confidence with visible and lasting quality output. The superb consulting solutions provided by COwI are underscored by the company’s standing conviction of employing and retaining the best work force in the business.

TransporT planning


corporaTe profile

DELIVERInG EnGInEERInG ExCELLEnCEglobal leaders in mulTi-discipline engineering and planning for large-scale proJecTs, cowi seeks To provide soluTions ThaT creaTe value and opporTuniTy

Established since 1930 and today employing over 6,000 people worldwide, COwI Gulf is the regional

practice of Danish based international consultant COwI A/S. The company has been providing consultancy services in the Gulf for over 30 years especially in the buildings, marine and energy sectors. In Oman, COwI and Partners LLC has been established since 1986 and today has over 140 staff on full time contracts.

within the Gulf region, COwI is the lead designer for the 40 km. Qatar - Bahrain Causeway (the ‘Friendship Bridge’), the 30 km. Subiya Causeway in kuwait and the 4.5 km. Sitra Causeway in Bahrain.

The company has been involved in the design of the coastal/offshore residential developments in uAE and Qatar including the Palm Dubai and the Lusail Development, Doha.

Today COwI has expanded its operations in the Gulf and in particular in Oman, where the company now offers services in transportation, environmental engineering and mapping and is undertaking the design and supervision of mega projects such as the new International Airports of Muscat and Salalah.

“Engineering will always play a vital role in the social and economic development of towns, cities and outlying regions. As countries like Oman look to develop new infrastructure and improve existing facilities to cope with increases in demand, COwI hopes to play a key role by not only providing expert knowledge but also training opportunities for local people. Having a local presence in all Gulf countries, with the majority of work designed and implemented in country, we can provide long term career prospects, giving local people the skills and experience required for them to play a key role in the future development of their own country.

There are now plans for Oman to develop new industrial areas in Sohar and Salalah as well as an entire new township in Duqm, plus the introduction of a rail network to the region. This is truly an exciting time to be involved in engineering.”

David McCann, Managing Director, COWI Oman

- David McCann


The Transportation division of COwI Oman undertakes major road design assignments for the Ministry of Transport and Communications such as the 140 km Ibra - Sur national Highway. COwI is the designer for the development of a new 90 km road between khasab and Diba in the Musandam peninsula, where the new alignment will cut its way across the steep mountainous terrain to link the coastal settlements such as Lima with an existing road network and the inhabitants will no longer have to rely on boats for connecting to the outside world.

The development of 18th november Street in Azaiba is presently in hand with Muscat Municipality, as well as the new Airport Interchange in Salalah.

The traffic planning department has undertaken many assignments related to traffic modelling for new residential and commercial developments which have also included traffic impact assessment where we work closely with the relevant government agencies. Currently COwI is engaged in Traffic Impact Study Services for Zahrat Al khareef Residential and Commercial Development located in the area of Salalah in the Sultanate of Oman.

The Buildings and Structures division has been involved in a range of projects covering large prestigious commercial, residential, leisure, retail and industrial developments down to individual housing. Past projects include the Central Bank building in Ruwi, Qasr Al Alam Guest House, the Chedi Hotel Muscat, nizwa Town Centre Development, new building for the Ministry of Civil Service and latterly the Royal Opera House. COwI is presently the lead consultant for a new hotel in Duqm and the new Six Senses Spa at Al Bustan Palace Hotel.

In Oman, COwI has been involved in planning, development and repairs

of marine structures of commercial ports and container terminals in Muscat, Sohar and Salalah, coastal protection and repairs of seawalls at Seeb, Muttrah and Muscat areas, mathematical wave modelling and review of wave conditions for design and repair of marine structures at Masirah island and port of Salalah. The most recent assignments are for the development of Musandam Loading Facility and the design and supervision of dredging works for upgrading of port of Salalah.

In environmental engineering, COwI has undertaken several assignments, where the clients require assistance in obtaining environmental permits from the local authority, MECA.

COwI has extensive experience in carrying out Environmental Impact Assessments (EIA) for different types of projects (Airports, Hotels, Roads, Industry, Marine and waste water). COwI is also involved in several waste projects both in the planning phase and design phase along with treatment of contaminated land sites.

COwI represents one of the most technically advanced service providers for mapping. In Oman,

COwI has utilised specialist aerial mapping technology known as LiDAR (Light Detection And Ranging) where, with COwI’s own aircraft, scanning accuracy down to 2 cm can be achieved. The survey and mapping of the above Ibra-Sur and Musandam road alignments have been carried out using LiDAR technology. This service has also been used for the entire mapping of Qatar and preparation of 3-D town images for both Doha city and Dubai.

with specific reference to transport and logistics, COwI has addressed the needs for the safe and efficient transit of both passengers and baggage in the design of the two new international airports (Muscat and Salalah) using the latest state-of-the-art automatic systems.

COwI is one of the world leaders in the development of safe highways and are actively working with the Royal Oman Police and other government agencies in supporting the national initiative on Road Safety.

Focus is made on the reduction of accidents caused by poor driving habits and designing safer roads.

COwI represents one of the most technically advanced service providers for mapping. In Oman, COwI has utilised specialist aerial mapping technology known as LiDAR (Light Detection And Ranging) where, with COwI’s own aircraft, scanning accuracy down to 2 cm can be achieved


Q. Would you kindly tell us a little about agility’s history in oman and give us an overvieW of your current operations?Established in 2005, Agility started out initially with warehousing operations and third party logistics, a sector where we have forged a very strong presence. Our state-of-the-art facility here in Oman was pioneering for the country when it was built in 2005 and we now have facilities in three other locations: Salalah, Nizwa and Sohar.

At Agility, we offer customers complete tailored supply chain solutions, supporting a number of sectors in

Oman. Our core services include contract logistics, freight forwarding as well as project logistics within the oil & gas, energy and infrastructure sectors. Additional specialty services include fairs and events and records management.

Within the fairs and events sector, Agility is now the official logistics partner for Oman Expo, providing logistics services for some of the largest exhibitions and conferences in Oman, including BIG (Builders International Gathering), the Oman Oil & Gas show and the Oman Motor Show. Our records management services, offers businesses

Vivek Nambiar, CEO, Global Logistics Oman (Agility)

tangible productivity improvements, cost savings and markedly reduces the risk of material or consequential loss, by managing their physical and / or electronic archives.

Q. hoW has agility managed to stay ahead of the curve?One of the aspects that distinguishes Agility in the region is the scale of assets, with in an excess of 550,000 m² of environment controlled warehousing space, over 600,000 pallets positions and more than 6,000 transport assets.

In Oman, we built and are operating the first state-of-the-art warehousing

inTerview

Pioneering ExcellenceVivek Nambiar, CEO, Agility Oman, talks to OER Dossier about their current operations and what makes them tick

agiliTy


facility, offering the very latest technology and control systems and supported by a team of 160 dedicated employees in our offices throughout Oman. Along with our comprehensive solution this facility has helped position us as one of the leading logistics providers in Oman.

Furthermore, as part of a global network with a presence in 120 locations, this adds to our overall capabilities and local strengths. If you look at Agility as an entity in Oman, we have a sizeable operation and believe that we have the right assets along with very capable and knowledgeable workforce, who continue to play a vital role in our success today.

Q. hoW has agility maintained hse standards and hoW have you kept your operations environment friendly? Health and safety is integral to the success of our business and we have stringent policies and procedures to maintain our high standards. In order to ensure safe operations, all our employees are empowered within our work systems to bring attention to any unsatisfactory or unsafe work conditions.

We recognise that the logistics industry can be prone to incidents but spreading more awareness and following safety guidelines ensures minimum incidents. As a result of our safety measures, Agility has a very good track record and in 2010 we have not had any incidents or faced loss times due to health and safety issues. For us everything begins with HSE and nowadays there is a lot more emphasis on health and safety, which I believe is making the sector safer.

Likewise, we are actively involved in environment projects and Agility has a very strong policy on sustainable operating procedures. Our priorities are threefold; to reduce energy consumption in our own operations, waste management, especially of packaging used in supply chains we manage; and finally, to work with customers, NGOs, and industry partners to raise awareness

of environmental issues in the supply chain. At Agility we are very aware of the impact of our operations on the environment and there is a conscious effort from our end to work towards a cleaner environment.

Q. What are agility’s plans for the future?It is an exciting time to be working in Oman, with the development of the

global perspective - Agility logistics

north & south AmericaOver 100 locations in 25 countries

In 2009, Agility positioned itself in Latin America by acquiring

new businesses in Brazil and Mexico, thereby complementing its

existing presence in Chile.

Asia pacificOver 200 locations in 24 countries

Agility has made substantial investments in its China business.

Today, Agility China has 1600 employees and 50 offices throughout

China. In India, Agility has over 1500 employees, and 300,000 sqm

of warehousing space in 44 cities.

europe

Over 140 locations across 25 countries

Following earlier expansion into Poland, Austria, Hungary and

Slovenia in 2008, Agility Europe has broadened its coverage in

Eastern Europe by opening a new subsidiary in Romania.

middle east and AfricaOver 100 locations in 46 countries

Agility is the principal logistics player in the Middle East with a

strong presence across all countries in the region from the GCC to

the Levant.

global Assets

2.15 million square meters of warehousing space around the world

5.55 million square meters of open yard storage

8,000 vehicle fleet, largely in the Middle East.

transport infrastructure and the future of the rail network being discussed and free zones, etc. Agility is relatively large for the Omani market, but there is also a lot of scope for continued growth as the industry develops and further investment is pumped into infrastructure project. We have a strong footprint in Oman and we certainly see that growing, especially in Sohar and Salalah.


The catchphrase ‘local leader with a global presence’ may seem to be a cliché but nothing explains Gulf

Agency Company (GAC) better.

Started in kuwait in 1956, GAC has become one of the world’s topmost service providers in shipping and logistics industry while retaining the edge to cater to all types of local needs.

GAC (Oman) was established in 1971 and is all set to celebrate 40 years of distinguished service to customers in 2011. Its current staff strength is 185. The head office is located in Muscat. It has an airport office, and seaport office also in Muscat. It covers all ports in Oman. It has offices in Sur, Salalah and Sohar. It has also got a satellite office in khasab.

on the top“we are among the top three shipping agents in Oman and in some sectors we are number one,” said Patrik Hallden, General Manager GAC, Oman. Explaining the global reach of the company Hallden said “we are operating in Asia Pacific, Indian sub continent, Middle East, Europe Mediterranean, Africa and Americas. Our corporate head office is in Jebal Ali, Dubai since 2001.”

The company has 300 plus offices spread all over the world, and 9500 staff. Its area of operations includes shipping, logistics and other marine services. It also offers different solutions to shipping and logistics customers through GAC Solutions. Services provided by GAC solutions

include hub agency, marine logistics, weather solutions and protective solutions which provides non armed protective services to ships passing through pirate infested routes. Besides, it also offers fire, rescue and safety services and lay-up solutions to ships.

LOCAL LEADER wITH A GLOBAL PRESEnCE gac (oman), sTarTed in 1971 has grown wiTh The counTry and is currenTly one of The biggesT shipping and logisTics companies in oman. iT offers a specTrum of services To cusTomers mainTaining highesT safeTy sTandards

profile

Patrik Hallden, General Manager, GAC (Oman)

we have exceeded our targets. we continue to move forward positively. we will exceed 2009 results which was best ever


“we have courier service and also provide warehousing, consolidation and international moving. we consider as one stop shop any customer needed services related to transportation,” said Hallden. All the offices of GAC are linked to the head office online. warehouses also are linked to head office.

GAC Oman has faced several challenges during its growth but has been able to overcome it by working in close cooperation with authorities and customers and keeping things transparent. Comparing Oman with other countries in the region regarding infrastructural problems, Hallden said in 2008 there was severe congestion in all ports. But ports in Oman overcame it working 24x7 and trying to accommodate and assist vessels.

Hallden is excited about the 40 th anniversary celebrations of the company which will be held next year. There will be celebrations together with supporters and customers who have been with the company for long, he said. The company continues to plan development based on the demands of the clients. “we are a customer driven organization,” added Hallden who has been with GAC since 1998.

economic slowdown And gAc omAnOn the company’s performance in Oman in the current year Hallden said it was better than expected. “we have exceeded our targets. we continue to move forward positively. we will exceed 2009 results which was best ever,” he said.

On the impact of slowdown he said it was evident. It affected the company in certain areas but some other sectors performed well. “we did feel the pinch, he said. But we continued to be positive and with a realistic mindset, kept close contact with market. we continued to invest, employ people, and concentrated on

training employees. we invested more in GAC corporate academy which is an e learning academy, controlled by the corporate head office in Dubai and accessible to all staff,” informed Hallden.

The customers of GAC in Oman include car dealers, construction industries, companies in the oil and gas sector and heavy industries like Vale.

sAfety stAndArds On the standards of safety offered by GAC to customers, Hallden said the company has developed its code of ethics and a well developed HSSE (health safety, security, environment) system. GAC has HSSE supervisors. The drivers receive advanced training in safety driving and handling goods safely. All the trucks of GAC are GPS enabled.

“we have our lounge placed in SQP and we attend to all kinds of ships including tankers, containers, bulk carriers and cruise vessels,” said Hallden. we have our own fleet of trucks in Muscat,” he added.

According to Hallden GAC gives great importance to environment protection. “Environment is part of our HSSE concept. Apart from installing GPS on vehicles to improve fuel use, we encourage staff to come up with good ideas how to save environment.

we have an in-house initiative to minimise use of energy in office. All GAC offices around the globe

are encouraged to participate in chairman’s excellent award, for the best idea as to how environment could be protected,” he said. The winner gets a prize of ten thousand uS dollars.

trAining And omAnisAtionOn the employee training, Hallden said GAC provides guidance to employees at all stages right from the probation period. GAC has an induction programme. There is an in house developed quality concept, ‘Total Innovative Management Excellence’ (GAC TIME) in which all employees are trained.

The most important initiative of GAC towards employee training is GAC Corporate Academy (GCA), which is the authorised training centre of GAC. It offers courses using state-of-the-art e-learning technology combined with work based learning process.

On the Omanisation initiative, Hallden said the company has achieved a high level of Omanisation. “we have received prizes from the ministry for supporting omanisation and achieving high levels,” he said. we also support International Maritime College of Oman by taking trainees, sponsoring some of the students and providing opportunities,” he said.

Commenting on the future prospects, of GAC, Oman, Hallden said he expected to exceed targets this year and continue to record good growth in 2011 also.

we continued to be positive and with a realistic mindset kept close contact with market. we continued to invest, employ people, and concentrated on training employees


LOnG wAY TO ECOnOMIC RECOVERYcomparing currenT balTic dry index (bdi) levels againsT economic indicaTors, roberT walker, general manager-oman inchcape shipping services, wriTes ThaT unTil The global financial sysTem is fixed, prospecTs of global economic recovery in The currenT year and coming year are noT brighT

analysis

The budget season, for companies that close their financial year in line with the calendar year, is coming

up and therefore there have been a lot of discussions recently about global economic growth prospects in future and in particular, whether we are heading for a “double dip” recession. Clues on prospects are usually hidden in forward looking economic indicators, whether they are futures

traded on world markets, movements in 10 year T-bills, or perhaps, equity versus bond yields. In any case, I think it’s fair to argue that a preferred indicator should be market driven, delivering a non political aggregate view of the future.

bAltic dry indexFrom a shipping industry perspective, the “Baltic Dry Index” (BDI) provides a useful insight

into the future state of the Global Economy. The shipping business is basically divided into “Dry” and “wet” cargo. “wet” cargo, such as Crude Oil and aromatic derivatives from the distillation process, tends to face relatively inelastic demand curves.

However, dry bulk primarily consists of materials that function as raw material inputs to the production of intermediate


or finished goods, such as limestone and clinker (producing cement for construction) or coal (producing electricity) or iron ore (for yet more construction) or grains (for food).

Clearly, any index that captures pricing of future ship fixtures for the movement of these raw materials will provide a short to medium term outlook for global prospects (and for the business of moving these raw materials, i.e. the shipping industry). This is where the BDI comes in.

It is an index that began in London’s financial district in 1744, at the Virginia and Baltic Coffee House – the concept of the coffee house having been (justifiably) around even longer than the Index. The Baltic canvasses brokers around the world on a daily basis to collect a matrix of costs to book certain cargoes of raw material on certain trade routes.

The Index collates rates from 3 classifications of dry cargo ship that ply these routes with these cargoes. The three classifications are “Capesize” (so called as they are too big to go through the Suez Canal and therefore have to sail around the Cape), “Panamax” (built to fit through the Panama Canal - no longer than 295 metres and no wider than 32 metres) and “Handysize” (the smallest of the classifications and no more than around 50,000 DwT).

strength of bdiThe strength of the BDI as an indicator lies in its independence. There are no payroll or employment numbers to massage, no GDP figures to constantly revise, and no speculation. At the end of the day, freighters are not booked unless someone somewhere has cargo to move. So, the Index measures the demand for shipping capacity against the supply of dry bulk carriers.

The Index we recognise today was introduced in 1985, and apart from freight rates determined in global

markets the only other factor which will affect the Index level will be the relative strength of the uS dollar against other currencies, since ship fixtures are quoted in dollars.

So let’s see where the Index is right now and how it got there. In early September, the Index was at 2,712. If we step back a little, you’ll see that the Index reached its peak of 11,793 points on May 20, 2008. with hindsight I think it’s fair to say that the Index reflected the ever increasing pace of economic activity once global economies gradually recovered from the media and

telecoms boom and bust at the turn of the century. By 2004 the global economies of significance (G20) had begun to recover from the colossal loss of money (and therefore demand) witnessed during the TMT bust, where stock valuations in triple digit multiples rapidly turned to worthless scraps of paper.

bdi peAk And crAshBy 2006 the global economy was growing at an increasing pace – the first BDI peak in the first week of november 2007 followed by a significant fall should really have put an end to the global economic

2006

5000

10000

15000

May Sep 2007 May Sep 2008 May Sep 2009 May Sep 2010 May

Volume

Baltic Dry Index


exuberance, and my gut feel is that many speculators who were in a position to leave the market did so at this point, especially in the light of the warning signs with regard to the uS housing market.

The rest, as they say, is history. Speculators misread the pricing as a fully priced correction and jumped back into the markets while the demand for consumer items on cheap credit continued to fuel growth in freight rates up to the crash in September 2008.

The BDI forecast the crash in October 2008 well in advance, with slippage in the index starting in July of that year.

By December 5, 2008, the Index had dropped by 94 per cent, to 663 points, the lowest since 1986 and although by early February 2009 it had recovered back to 1,316, these low rates moved close to the combined operating costs of vessels, fuel and crews.

The shipping industry reacted by reducing speeds to save fuel consumption, “laid up” a significant part of the fleet, commenced a programme of early scrapping and cancelled or postponed delivery of new tonnage. This reduction in supply was, however, in the face of collapsing raw commodity prices, creating a perfect storm for the

world’s marine commerce.

whither globAl economy?So where to now, for the BDI and the global economy? well, I’m by no means a technical analyst but I still think it’s worth considering current BDI levels against today’s economic indicators. Firstly, the Index suggests that in 2009 various G20 global stimulus packages provided an uptick in the Index, creating good upward momentum especially during seasonally active shipping periods, and this seemed to stick during the first half of 2010.

However, since May 25, 2010 the Index has fallen from 4,187 to a low of 1,709 (a 59 per cent drop) as China’s growth suddenly looks unsustainable, unemployment in the G20 continued to rise (further reducing demand) and G20 governments either withdraw stimulus measures or actively seek to reduce public sector spending (magnifying the reduction in demand).

If you recall also that the stiffer rates seen reflect a significant reduction in global tonnage in use, then the weakness of the global dry cargo market is clearly identifiable. whilst no-one can be 100 per cent sure of a “double dip” recession there are serious global factors at play that make it look more likely than not.

until the global financial system is fixed, interest rates begin to rise to reward savings and interest rates begin to fall for would-be investors (i.e. Financial Institutions cease using cheap Central Bank money to recapitalise their balance sheets and look instead to attract commercial deposits and lend to the economy), the prospects for the rest of 2010 and 2011 are not bright. If history is anything to go by, and if you agree that the parallels with the crash of 1987 are striking, it looks like we have a long way to go before we see the “green shoots of recovery”.

However, since May 25, 2010, BDI has fallen from 4,187 to a low of 1,709 as China’s growth suddenly looks unsustainable, unemployment in the G20 continues to rise and G20 governments either withdraw stimulus measures or actively seek to reduce public sector spending

analysis

KHIMJI STORAGE SOLUTIONS

Khimji Ramdas Storage Solutions is a market leader in providing optimum solutions tailored to meet individual requirments

KHIMJI RAMDAS LLCP.O. BOX 19, PC 100, Muscat, Sultanate of OmanTel: 24852800, Fax: 24852899, E-mail: [email protected] Website: www.khimjiramdas.com, Toll Free: 80075000

Our Expertise:

Heavy Duty Pallet Racking

Drive in Pallet Racking

Multi Tier Mezzanine Floors

Slotted Angle Shelving’s

Library & Archive Solution

Mobile Shelving’s

Bolt Free Shelving’s

ASRS System

Conveyors

KHIMJI STORAGE SOLUTIONS

Khimji Ramdas Storage Solutions is a market leader in providing optimum solutions tailored to meet individual requirments

KHIMJI RAMDAS LLCP.O. BOX 19, PC 100, Muscat, Sultanate of OmanTel: 24852800, Fax: 24852899, E-mail: [email protected] Website: www.khimjiramdas.com, Toll Free: 80075000

Our Expertise:

Heavy Duty Pallet Racking

Drive in Pallet Racking

Multi Tier Mezzanine Floors

Slotted Angle Shelving’s

Library & Archive Solution

Mobile Shelving’s

Bolt Free Shelving’s

ASRS System

Conveyors


In the offing is the development of the Oman National Railway, a multibillion dollar project designed to create a freight and passenger

railway, linking the Sultanate’s main urban and industrial centres. Early this year, Oman received pre-qualification bids from 31 global firms intending to become project manager of the national railway. The strong international interest generated in this project is a show of greater confidence in the Sultanate’s infrastructure development.

Phase one of the national railway project will see the construction of 280 km line linking the industrial zone of Sohar with the capital Muscat. As Sohar is being targeted by the local government to become a business hub next to Muscat, the national railway is expected to boost its investment potentials particularly in terms of transport and logistics movements.

Another project that strengthens the links between Muscat and the industrial zone of Sohar is the opening of the region’s fist inland clearance depot (ICD) at Muscat Container Depot and the construction of the airfield for Sohar Airport at a cost of RO 27.6m ($71.39m). The new project is set to be operational in 2013 as a domestic airport.

Further development in the country includes the Adam airport, located approximately 30km from the historic town of Adam in the Dhakiliyah region. Targeted to be operational by 2012, its Passenger Terminal Building will have the capacity to handle 250,000 passengers annually. The new airport is also capable to handle the largest commercials aircraft in the world, A380.

Oman takes strides in logistics The Sultanate of Oman, one of the growing economies in the region, is spending multibillion dollar on projects aimed to boost the country’s existing resources. Oman’s industrial sector in particular is witnessing significant growth with various activities set to enhance the Sultanate’s capacity as a new logistics hub

evenT

On ports development, Oman Drydock Company (ODC) is already positioning to commence ship repair operations at its world-class facility in Quqm in March 2011. An $800 million facility, the drydock complex will have the capacity to handle vessels of all sizes including ULTRA LARGE CRUDE CARRIERS (ULCC’s) of up to 600,000 dead weight home tonne (DWT) capacity.

ODC will be one of the biggest repair yards in the world with the two ULCC-sized drydocks, with main focus on oil tankers and specialised liquefied natural gas (LNG) vessels. When operational, Duqm will be providing a one-stop service beneficial for shipping lines and will rival the Dydock World Dubai and Bahrain’s Arab Ship Building and Repair Yard.

Furthermore, 15 agreements at a total worth of RO 136.9 million have been signed in July this year to improve the Sultanate’s transport infrastructure. Such agreements covering projects in land, sea and air are expected to lead to further improvement in the Sultanate’s logistical capacity in the coming years, enabling greater access to international markets and improving local trade links with GCC neighbours.

With the Sultanate’s transport and logistics developments now in full swing, the country’s transport and logistics event – TransOman will once again provide a special showcase of various players in the sea, air and land transport.

TransOman is organised in cooperation


with the Ministry of Transport and Communications and supported by the Port Services Corporation S.A.O.C – Port Sultan Qaboos, Oman Drydock Company, National Ferries Company, Port of Salalah, Petroleum Development Oman and Oman National Transport Company. Other patrons include Bahwan Wagenborg as lead sponsor, Al Madina Logistics as platinum sponsor, DHL Global Forwarding, GAC and Integrated Logistics Services as gold sponsors, Fleet Management Systems International and Middle East Shipping & Transport Company as silver sponsors, Majan Shipping & Transport Company as lanyard sponsor, National Ferries Company as visitor bag sponsor.

TransOman Expo will be held on October 10 to 12 at the Oman International Exhibition Centre, while a conference on transport and logistics will be held alongside the exhibition on October 10 to 11 at the Golden Tulip Hotel.

According to Ebrahim Taher, project manager of TransOman, “Over 40 players in the transport and logistics sectors have currently confirmed participation in TransOman 2010 expo. Last year, TransOman witnessed over 70 participants coming from UAE, Qatar, Sri Lanka and the Sultanate of Oman. This year, TransOman is set to surpass the previous record.

The two-day TransOman Conference to be held under the theme “Oman – Your global partner in transport and logistics” will highlight the Overview on Oman’s Transport Infrastructure Projects, Oman Spatial Strategy, and will have a panel to discuss The Role of Ports and Freezones, The Future of Transport and Logistics Industry and the Impact of Infrastructure Developments; The Transport Logistics and Challenges, National Road Strategy and Action Plan, Road Safety Logistics, Global Trends in Supply Chain Logistics amongst others.

Following the success of the inaugural TransOman event last year, TransOman 2010 will provide unparalleled

opportunity for industry players to exchange views on latest developments and investment potentials. For the first time, TransOman will host the “Oman Logistics Excellence Awards” with the objective of recognising and honouring outstanding logistics companies and professionals for their significant and innovative contributions to the logistics industry and profession in the Sultanate.

The award categories include the following: Logistics Innovator of the year, Technology Leader of the Year, Best Local Brands in Logistics, Leading Company in People Development, Logistics Leader in Road Safety,

Logistician of the Year Award, Leading Women in Transport and Logistics Award, Best Young Emerging Logistician Award, Professional Driver of the Year Award.

TransOman is being organised by Oman International Trade and Exhibitions (OITE) in partnership with the TransOman Advisory Committee headed by Warith Al Kharusi, logistics manager at Petroleum Development Oman.

The official B2B magazine of the event


From left: Robert Walker, General Manager - Oman, Ajith George, Assistant General Manager, Hussain Abdul Aziz Al Sajwani, Human Resources &

Admin.Manager

Inchcape Shipping Services (ISS) is the world’s leading marine services provider. Through its proprietary network of some 245 offices

employing over 3,800 people across 63 countries, ISS provides its customers with an unparalleled global resource delivered locally and tailored to each customer’s individual needs.

Its diversified customer base includes clients across the oil, cruise, container and bulk commodity sectors as well as serving naval, government and inter-governmental clients. Additionally, ISS provides landside commercial and humanitarian logistics, transit, offshore support and other associated marine services.

The Company also provides a growing range of outsourcing services. These include global crew and marine spares logistics; port agency management and commercial representation; and sophisticated Enterprise Resource

Cautious optimismInchcape Shipping Services is making good progress despite the global economic downturn

inchcape shipping services (oMan) llc

warehouse-to-site solutions for the business community.

In addition, ISS is a market leader in providing Household Effects solutions to the expatriate community resident in Oman. As well as providing services for the clearance and delivery of personal effects, ISS will also re-build furniture that has been flat packed for transit and remove used packing materials. We can also provide local advice on schools, hospitals, rents, women’s groups etc. on request. When the time comes to leave Oman, ISS can take care of the packing and removal of items to any country globally through a network of local agents. ISS can also store personal effects for an agreed period of time in air-conditioned secure space in our Muscat warehouse, thus giving expatriates the flexibility they prefer when making a choice of rental accommodation in the local market, or simplifying the process of leaving the country as required.

Planning solutions through its subsidiary ShipNet and other associated services.

service profileInchcape in Oman have their head office in Ruwi, strategically located close to the port of PSQ, and have well established offices in Sohar (on the main Muscat – Dubai road in Falaj Al Qabail, close to Sohar port), Salalah (we are the only non-liner ship’s agent in the Port Authority Building) and are planning a new office in Duqm.

In addition to this national coverage, ISS also have a fully air-conditioned warehouse in the MQ district of Muscat, primarily used for the storage of household effects, and a completely refurbished Airport Office, which also incorporates our British Airways Cargo agency.

The freight forwarding and logistics arm of the business focuses mainly on cargo in the oil & gas sector, providing purchase order management and

corporaTe profile


ISS clientele •Cruiselinesandcontainerlines•Bulkerandtankeroperators•Ownersandcharterers•Navies•Heavy-liftandprojectcargocontractors•Otherspecialistandnicheoperators

key differentiators There are two key differentiators that ISS believe set them apart from their competitors. According to Robert Walker, General Manager, “our global network is second to none – we are able to offer an international service and deliver it locally. Our employees are, however, the biggest single factor in our success. Service delivery is absolutely vital in this business. We invest significant resources into the training and development of our people. We currently have 6 employees (a mix of Omani and Expatriates) in the process of taking their Chartered Shipbroking Examinations. We have seen 4 of our

Omani employees gain the Lloyds of London CCSP examinations, and we are currently implementing an internet based learning programme through our training academy in London.

Ajith George, Assistant General Manager, commented “We provide an integrated logistics service to the Energy and Infrastructure sectors, ensuring on-time delivery of all materials from vendor to rig or platform and back again. We manage warehouse, packing, transport, and bulk – using our own assets and resources or third party suppliers according to client requirements and local custom.

Our freight team works closely with oil and gas operators and EP&C contractors to provide innovative solutions to complex and challenging project freight requirements. They look after the general freight requirements of many of the leading oil and gas operators and service companies.”

current market environment“Current trading conditions are tough and it comes as no surprise given that there is a world recession. Unemployment continues to rise in the G-20 countries, which is further reducing demand for Global goods. To further complicate matters, G20 Governments are reducing their own spending in many cases, further reducing demand, and this is impacting on trade. The Omani Government has been careful to generate additional revenues from oil and gas during the good times, and is therefore able to smooth out the cyclical fluctuations in the market place by going ahead with the construction projects that keep the economy going”.

“We are reasonably optimistic for next year. The government of Oman is willing and able to spend and pursue a policy of gradual expansion over the year. While no economy will be immune from the effects of the global recession, we think

that Oman will fare better than most. But there is still a global recession out there and all markets are affected adversely, particularly the construction and real estate sectors” says Robert, adding that “the strategy is very clear for Inchcape -- to remain revenue driven and channel investment into training and development, with Omanisation being central to the business moving forward.”

we are reasonably optimistic for next year. The government of Oman is willing and able to spend and pursue a policy of gradual expansion over the year. while no economy is immune from the effects of the downturn, we think that Oman will fare better than most

Robert Walker

Contact: +968 2470 1291

e-mail: [email protected]

Website: www.iss-shipping.com

Ajith George

Contact: +968 9931 7411


Website: www.iss-shipping.com


Contact: Tel: 24499694

Tel: 80075000 - TOLL FREE

Fax: 24495984

[email protected]

If you are looking for logistics services within Oman and the greater Middle East, “we can offer our services professionally” - says Mr. Hackl. So far, Mr. Hackl has been satisfied with the responses he has received from the market here in the Sultanate and is looking forward to continued business opportunities with his existing and new clients in Oman.

With a turnover of some EUR 15 billion, about 91,000 employees and approximately 2,000 locations in all the

world’s major economic regions, DB Schenker holds top positions in global air and ocean freight, the densest land transportation network in Europe, and the rail competence of Europe’s largest rail freight company. Integrated Logistics at DB Schenker, with its three business segments, Land Transport, Air/Ocean Freight and Contract Logistics/Supply Chain Management, is one of the world’s leading logistics service providers.

The business units offer Europe-wide land transport and worldwide air and ocean freight, as well as comprehensive logistics solutions and global supply chain management from a single source. The group also holds top positions in automotive, high-tech and consumer products, as well as in trade fair forwarding, special transportation and services for major sporting events.

Martin Hackl, Commercial Delegate for DB Schenker, has been based in Oman for 1,5 years and is closely working with the local DB Schenker partner - Khimji Ramdas - to ensure clients in Oman enjoy the full advantages of the services provided by DB Schenker.

DB Schenker recently launched a campaign called ‘Delivering Solutions’ which shows that we are able to offer outstanding solutions no matter how complex the challenges may be.

Within Muscat for a period of 1,5 years, we have provide our customers with a one-stop shopping solution in terms of their logistics requirements, and in so doing we hope that we have become easy to do business with to our

customers. Whether a customer has one shipment from China or New York or from multiple origins/destinations across the world, we possess the capability to provide all the necessary solutions.

The big advantage of having a solution provider with a global network like DB Schenker’s, is the seamless movement of goods and services it offers you the customer. Couple that with precise tracking and tracing capabilities and you the client can be assured of on-time and in good order deliveries. DB Schenker offers its services across all industries, no matter what your core business is.

Bringing the world CloserDB Schenker with its global network delivers customers total logistic solutions

DB schenker

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DB Schenker recently launched a campaign called ‘Delivering Solutions’ which shows that we are able to offer outstanding solutions no matter how complex the challenges may be

Martin Hackl-Commercial Delegate, DB Schenker


built at a Chinese shipyard. Rounding off the list of newbuildings on order are two Supramax bulk carriers, each of 55,000 DWT capacity, under construction at a Japanese shipyard.

They are earmarked for the shipment of alumina for Sohar Aluminium’s smelter. Deliveries of the 19 new buildings are scheduled at regular intervals through to the mid-2012, starting with the delivery of a VLCC in September this year. The fleet’s total tonnage is projected to rise to over 8 million DWT by 2012.

Oman Shipping Company (OSC), established in 2003, is involved in ship owning, ship operating, ship chartering and ship

management services. Over the years. OSC’s growth and success has been tremendous. 80 per cent of OSC is owned by the Ministry of Finance and 20 per cent by Oman Oil Company (OOC). The company also has two Omani subsidiary companies, namely Oman Charter Company S.A.O.C. and Oman Ship Management Company S.A.O.C., which overlook chartering and ship management respectively.

diversificationOSC started its core business in LNG and energy transportation. Today, however, it has diversified into liquid and dry bulk shipping, covering petrochemicals and mineral ores. Some of OSC’s clientele are reputed Omani entities like, Sohar Aluminum, Oman Trading International, Oman Refinery & Petrochemical Company, Oman LNG and Qalhat LNG; some are world-class charterers like Mitsubishi Corporation, Vale, and Itochu Corporation. Having assembled a world-class fleet, Oman Shipping is now entering a period of consolidation, and the company is now focused on firming up its overall business.

expanding horizonsRecently OSC has been initiating plans for furthering its horizons. The company is set to double the size of its fleet over the next two years, underscoring the government’s ambition to establish a truly world-class, ocean-going national shipping fleet. Currently, OSC has 19 vessels in hand, and four on charter. The company is looking to ramp up the state-owned shipping line’s fleet strength to 42 owned and chartered vessels by 2012.

The high-tech fleet spans a diverse range of cargo carrier segments, from LNG tankers and Very Large Crude Carriers (VLCCs) to dry bulk carriers, chemical and product tankers, ore carriers, gas carriers and even multipurpose vessels.

Nineteen new vessels are under various stages of design and construction at shipyards in Korea, Japan and China. Very Large Crude Carriers (VLCCs) account for 13 of these newbuildings, of which 10 are being built in Korea and the remainder in Japan. Also under construction are four Very Large Ore Carriers (VLOCs), which at 400,000 tonne capacity apiece, are the largest vessels of their kind in the world. The mammoth carriers, destined for Brazilian conglomerate Vale’s iron ore pelletising plant at Sohar, are being

Sailing Towards SuccessOman Shipping Company gears up for ambitious growth

oMan shipping coMpany

OSC has been initiating plans for furthering its horizons. The company is set to double the size of its fleet over the next two years

Contact Tel: +968 2440 0900

Fax:+968 2440 0922

Website: www.omanship.co.om

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Water and Power Project, Qalhat LNG, Shadeed Steel, Dodsal Engineering, Galfar Group, Al Hassan Engineering etc.

Our Oil Field clients include Occidental, BP Exploration, BG Oman, Oman Oil, Weatherford and many more. Our International clientele includes reputed names like Bechtel, Alstom, JGC, Chiyoda-Foster Wheeler, Mitsubishi Heavy Industries, GS Engineering & Construction, Doosan Heavy Industries etc.

hoW do you train your staff to maintain high standards? What is your level of automation?We provide training to all our drivers in the PDO nominated training centres and they undergo certain mandatory/accepted safety courses. We provide high quality training to other staff also as required. Our HSE managers monitor their work. We use oracle software for billing and accounting purposes and we have In Vehicle Monitoring System for tracking our vehicles.

hoW is the performance of logistics industry in the first half of current year?The current year is a much leaner year for the logistics industry compared to previous years. We are making extra efforts to revive them and we are looking forward to announcements of projects and other activities which will activate business further. We are also on our own thinking of new initiatives and synergies.

What about your omanisation levels?We are always striving to achieve the Omanisation targets set by the Government for the industry. We employ a large number of young Omanis and provide them on the job training for their development.

give a brief description of middle east shipping and its operations.Middle East Shipping is a leading logistics company offering one-stop shop solution to customers. Transportation is our core sector. We offer unrivalled freight forwarding services and are agents of Panalpina, a global leader in freight forwarding. We are one of the leaders in customs clearance and forwarding in Oman. We have an outlet in almost every entry to Oman including Muscat International airport, Sohar Port and Port Sultan Qaboos. We concentrate mainly on onshore project logistics, and we are specialized in providing logistics services to PDO.

What are your capabilities? What are the advantages you offer to your clients?We operate over 100 trailers of various sizes, moving all types of cargo over

all parts of Oman and GCC countries. We have heavy lift capability jointly with our Group Company, Bahwan Wagenbourg, which was launched last year. We also have association with heavy lift companies from UAE. We meet all PDO stipulations and conditions and we follow PDO safety standards everywhere. Safety is our passion and it is the single most important factor in our operation. We are existing for 25 years in the business and till date our vehicles have not met with any fatal accident.

What are the key projects undertaken by mest? Who are your main clients?We have provided onshore logistics services to almost all major industries in Sohar. Some of our major project clients include Sohar Refinery, Oman LNG, Sohar Aluminium, Sohar Fertilizer, Oman Poly Propylene, Sohar Aromatics, Integrated

The final word in safety and reliabilityMiddle East Shipping and Transport provides all types of logistics solutions maintaining highest standards of safety, says Kuruvilla Mathai, Business Head of the company

MiDDle easT shipping & TransporT coMpany llc

Contact: Tel: 24790024, 24592632

Fax: 24786429

E mail: [email protected]


Anand Venkat, Divisional Manager – Khimji Ramdas Office Furniture & Storage Solutions and

Noaman M, Manager, Khimji Ramdas, Storage Solutions

Contact Details: Tel: 24852890

email: [email protected]

www.khimjiramdas.com

region’s leading designer and integrator of office storage and filing solutions with a full range of internationally-sourced storage and filing products.

The essential ingredient to an orderly structured office is to get the storage right. Once this is in place, one can organise one’s workload more effectively and efficiently. Whether you require a simple filing cabinet or complete motorised mobile racking units, Khimji Ramdas Storage Solutions can provide the best and perfect storage solutions to suit your particular business and office.

Khimji Ramdas Storage Solutions prides in its workforce and having the largest and probably the first team of Omani sales & service engineers in storage industry. Anand Venkat, Divisional Manager says, “Our professional engineers possess unparalleled technical competence to meet a variety of customer requirements over the entire range of a project from basic design to detailed application using the latest technology in CAD, 3D Modeling, and Concept Design.”

Each project, regardless of size, receives the close attention of a project manager. They work with the architect, consultant, contractor, and corporate service personnel of the client to achieve a synergistic team approach to the project that delivers on time and within budget.

Whichever storage solution the customer chooses, Khimji Storage Solutions team can provide the full service from planning, specification, design, installation and maintenance through to after sales. Khimji Storage Solutions have implemented some major installations throughout the Sultanate and is successfully recognized as leaders in this arena.

Khimji Ramdas Storage Solutions is the market leader in major projects involving industrial storage Equipment such as

pallet racking, shelving, small parts storage systems, raised storage areas and other Specialist storage needs in Oman. The company takes a total approach to provide the best storage solution possible. From site surveys to installation, Khimji Storage Solutions establishes the most space-efficient and practical configuration for your available space.

Khimji Ramdas Storage Solutions enjoys an excellent reputation for its turnkey industrial storage solutions, including the design and installation of Dexion shelving and racking systems. Dexion is a world leader in storage solutions, and has become a byword for efficient,

practical storage of every kind. Dexion Integrated Systems is a specialist in designing smart distribution solutions and integrating them into a customer’s business, ensuring that planned benefits are realised.

office storage Khimji Storage Solutions is also the

Innovative storage solutions Khimji Ramdas Storage Solutions has become a market leader by providing the optimum solution, tailored to meet individual requirements, with the latest and most advanced storage system

khiMji raMDas sTorage solUTions

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MTrak 75 Vehicle Tracking devices over the last 3 years and they are all working in adverse temperature conditions and thus are technically very sound.

Our IVMS configured around the MTrak 75 has been ratified by PDO, Oman based on trials involving stringent technical and functionality requirements. The functionality of our software is vast and our customers generate a wide variety of MIS reports which help in better Fleet Management.

What is majees’ future plan in the ivms domain?We are soon launching an advanced IVMS device called the Mtrak 275 taking IVMS to a different level altogether.

in Which areas does majees technical services provide turnkey solutions? What are its strengths?Majees Technical Services LLC is a multi-divisional organization which provides turnkey solutions in the areas of Fire & Security, Telecom, Vehicle Tracking, Oil & Gas and Civil Contracting. We have an enviable customer list which includes large industries like Oman LNG, Sohar Aluminium, Government establishments like Royal Court Affairs and residential complexes like Saud Bahwan Palm Gardens.

Our strengths lie in forging strong exclusive relationships with global leaders like Tyco, Cellmax, Enerflex & Digi, to name a few, and then use highly qualified in-house expertise to provide comprehensive integrated solutions in all its focus areas. Based on the consistent successes notched up by the company in the last three years, Majees is well on its way towards the realization of its vision to become a major contributor to the development of the Omani economy by providing turnkey solutions and by setting high service standards.

Would you explain the concept of in-vehicle monitoring systems or ivms as it is called and tell us hoWis it used effectively?An In-Vehicle Monitoring System comprises basically of a device which is fitted in the vehicle which needs to be tracked. This device has a GPS (Global Positioning System) module which ascertains the position of the vehicle at any given point of time. The device is also equipped with a SIM Card of the prevalent cellular network to communicate the position of the vehicle to a centralized server vide Internet

using GPRS technology. Users are given their own log-ins and passwords and can then view vehicle information on digital maps / Google maps, etc. and track assets on a real-time online basis. Based on this, users of Vehicle Tracking Systems can analyze vehicle efficiencies and driver performances, monitor events like over-speeding, fuel levels, temperatures etc. and generate MIS reports. This helps in increased productivity, reduced operational costs, improvement in fleet operations and last but not the least meeting safety standards in transportation.

Who is your ivms technology partner?Majees’s technology partner for providing In-Vehicle Monitoring Systems is Digi International, USA – a leader in the domain of remote device solutions.

tell us about your mtrak ivmsdevicesMajees has installed a large number of

Smart trackingMajees has installed a large number of M-Trak IVMS (In-Vehicle Monitoring Systems) tracking devices. Murli Pillai, GM, Majees Technical Services, tells more about his company

Majees Technical services llc

Contact : Tel: +968 24597226/7/8


Website: www.majeestech.com


Al Jenaibi International Automobiles LLC (AJIA), part of Suhail Bahwan Automotive Group, is the authorised distributor for BT brand of Warehouse Equipment in Oman.

For over 60 years BT brand has become synonymous with innovation, ergonomics and offering cutting-edge technologies to meet varied customer demands. Today BT is the global leader in offering reliable Warehouse Equipment solutions suited for almost every application.

The BT range extends from Hand Pallet Trucks, Battery powered Pallet Trucks, Stackers, Reach Trucks, Order Pickers to Very Narrow Aisle Trucks. Each of this equipment is also available in Cold Store version and Explosion proof version to meet specific operating conditions.

BT Orion powered pallet trucks combine high load capacities with operator platforms and class-leading compactness for heavy-duty pallet handling in intensive applications. The BT Powerdrive – an integrated drive and control system – ensures a smooth and intuitive response to driver inputs as well as excellent energy efficiency. BT’s Powertrak system ensures that drive wheel traction is always optimised according to load weight.

BT Ixion Stackers are available in a wide range of capacities upto 2 ton and lifting height upto 5.4 m. BT Stackers feature the BT Powerdrive and BT Powertrak system. Together with 5-wheel chassis design BT Stackers offer productivity, safety and reliability.

BT presents the new generation BT Reflex Reach Trucks that are well

known for their reliability under tough operating conditions. BT Reflex offers a complete range of models with capacities from 1.4 tons to 2.5 tons with lifting height upto 12.5 m. Apart from AC

power technology which BT pioneered 12 years ago, the new generation BT Reflex offers higher performance levels in terms of productivity, safety and comfort.

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Right solutionsBT product range offers the right solution for customersÕ material handling needs, wherever in the world they are, from loading and unloading to order picking, stacking and horizontal transport

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In applications involving picking of items from storage locations, BT offers a wide range of man-up Order Picking Trucks – Low level, Medium Level and High Level models upto 1.2 ton capacity and picking height upto 11 m. BT Order Pickers are available in Rail-guided and Wire-guided versions for increased productivity and safety.

BT Vector series of man-up Very Narrow Aisle (VNA) Trucks offer class leading technology for high intensity warehouse operations. BT Vector models range from 1 ton to 1.5 ton capacities and lifting height upto 14.8 m and are extremely productive for combined operations of stacking and order picking.

BT is the only brand which offers Articulated Chassis that reduces the transfer aisle width thereby improving storage density in a given area. Apart from AC power technology for enhanced performance, BT Vector has patented Advanced Lifting System – a combination of hydraulic and gas-pressure lifting – which results in significant energy savings over conventional trucks.

virtual WarehouseBT has a unique system for optimising customers’ warehouse and material handling equipment --- Virtual Warehouse. With a simple press of a button, you can optimise your current warehouse facility or design a new one. A customer can benefit from BT’s 60 years of experience and extensive knowledge.

environmental safetyBT trucks are produced in a favourable environment, managing waste effectively and reducing hazardous chemicals. Environmental systems at BT production facilities are certified according to ISO 14001 standards. The paint systems used for BT trucks have been changed to systems with very low

emissions of solvents.

BT Warehouse Equipment is the market leader in Oman having significant presence in sectors such as FMCG, Cold Store Chains, 3 PL companies and manufacturing. BT warehouse equipment is sold & serviced by Al Jenaibi International Automobiles. A team of trained service personnel are always available to render on-site services backed by un-matched after market support.

Contact: Tel: +968 24545032

Fax:+968 245 37642

24 Hour Helpline: 96 300 200


Iveco is present in all five continents: 27 production plants located in 16 countries around the world manufacture. Apart from Europe,

the company operates in China, Russia, Australia and Latin America. Located all over the world, the Research & Development centres focus on Iveco’s capital investment on technologies and products aiming at their high performance, low operating costs and high environmental standards.

All of Iveco’s manufacturing sites apply avant garde technologies and manufacturing methods to build high quality products and to ensure that the plant is a working environment tailored to employees. As a result, all the plants have obtained ISO 9001 - vision 2000 and ISO 14000 (environmental management) certification.

iveco rAnge for omAn mArketIveco offers a full range of commercial vehicles designed to guarantee the best results and to perform the most varied on road and off road applications. Iveco vehicles are engineered to be performing with any climate, cargo and mission. That’s why the Iveco range for the Middle East has been engineered to deliver the highest performance levels in Oman climate. All models are fitted tropicalised engines and air-conditioning. Iveco offers a wide range of heavy commercial vehicles such as 6x4, 4x2, 4x4, 6x6, 8x4 suitable for various applications such as Tippers, Tankers, Trailers, Concrete Mixers & Pumps, Garbage Compactors etc.

iveco trAkker: Trakker was designed to guarantee the

Everybody’s choice: IVECO As a major player in the global transport world, Iveco is an international entity in the development, manufacture, marketing and servicing of a vast range of light, medium and heavy commercial vehicles, with engines running on diesel and alternative fuels

al jenaiBi inTernaTional aUToMoBiles llc

Contact: 99429877

95335105

Toll Free: 96300200

best results and to perform the most varied applications in the off-road construction sector. Designed to work in all weathers over any type of terrain, from unsurfaced roads to extreme off-road conditions while also offering comfort and productivity.

The Trakker is a true benchmark due to its body conversions and its versatility. It provides highly specialised solutions for every task: from handling materials in the quarry to transporting concrete, from working as a snow plow to carrying exceptional loads, from road maintenance to refuse collection. It has been designed to facilitate every type of equipment: the chassis structure is the most suitable for easily fitting a great variety of different superstructures such as mixers, rear tipping bodies, cranes with box, tanks, road sweepers, etc.

iveco strAlis:The Stralis Active Time (AT) and Stralis Active Day (AD) range of vehicles are designed for exceptional comfort and productivity to offer their owners the very best of everything. The Stralis AT is recommended for medium and long-haul missions and is available in a rigid or

tractor version. Drivers are offered a choice between two practical and user-friendly new generation cabs: sleeper with standard roof and sleeper with high roof. The Stralis AD is an extraordinarily versatile vehicle for urban and suburban applications. Both rigid and tractor versions come with a 2300 mm wide newly designed day cab.

After sAles support:IVECO has 14 strategically located facilities to serve within the Sultanate. Skilled technicians, diagnostic specialists and support staff, equipped with a fleet of service vehicles are on call 24 hours daily to serve the needs of the client.

Suhail Bahwan Automotive Group Training Institute offers Operational and Periodical Maintenance Training to customers and also technical studies relating to Driveline, Mechanical, Hydraulic, Electrical and Electronics in vehicle application and Pneumatic disciplines.

Cluster the monochromatic screen with white backlighting, in order not to fatigue the eyes, displays vehicle parameters: average speed, fuel consumption, travel times and all maintenance conditions with onboard diagnosis function.

Manual Gear Box: The ZF 16-speed manual gearbox is equipped with the “servoshift” power assistance system which guarantees comfortable and safe driving thanks to quick and accurate gear engagements.

Trakker frames are made of double bottleneck longitudinal members with U-shaped cross-section in Fe E 490 steel. The ideal frame for travelling on every type of grounds and loads.

The Cursor 13: in line layout with overhead camshaft, low running costs, high torque at low speeds, fewer vibrations, less noise and assured flexibility of operation.

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designed to accommodate various types of cargo. FASTCO provides a comprehensive range of third-party logistics, andwarehousing and distribution services that can be scaled and customised to clients’ individual requirements and to the service quality they set.

The 3PL warehousing and distribution services provide a key differentiation in supply chain business process integration that leverages on collaborative work between buyers and suppliers. The company’s point-of-origin to point-of-consumption program offers an effective means to balance supply with demand, while maintaining seamless and total visibility into all the customers’ inventory. In effect, the end-to-end supply chain execution solutions tie together all key processes in the supply chain to ensure customers receive the goods when they expect them.

F ASTCO’s logistics division provides an array of services including integrated logistics solutions to a wide gamut of industries ranging from mining,

pharmaceutical, fast moving consumer goods, automotive, electronics, construction to oil & gas industries. We believe in partnerships and that have enriched the lives of customers and business associates. Our professionally trained staff provide best logistics solutions, in the most economical way, irrespective of the place, size of the cargo and mode of transportation.

Falcon Air Services and Transport Company LLC( FASTCO) is the transportation solutions arm of OHI(Oman Holdings International Co. SAOG) Group of companies. The company’s activities include customs brokerage services, freight forwarding, land transport, packing and removals, project cargo and warehousing. FASTCO represents the France based Geodis Wilson Group in Oman. The French multinational ranks amongst Europe’s top five transport and logistics

companies, with a workforce of more than 6000 people and presence in all continents.The Courier division of FASTCO has been associated with UPS, a US $49.6 billion and the world’s largest package delivery company and a leading global provider of specialised transportation. The power of UPS brand is in the promise UPS keeps everyday and the people that stand behind the UPS shield.

People are the reason UPS is consistently ranked among the world’s most admired companies and has been rated Fortune’s World’s Most Admired Transportation Company for 21 consecutive years. FASTCO has been the authorised service partner for UPS in the Sultanate for several years.

The company’s third party logistics (3PL) facility is strategically located within 20 minutes drive from the Oman International Airport and equidistant to the new Oman International Container Terminal at Barkha. This facility is equipped to handle diverse inbound freight and product configurations and is

Providing Client Specific SolutionsFalcon Air Services & Transport Co. LLC (FASTCO) specialises in a comprehensive range of supply chain and logistics solutions

falcon air services & TransporT co. llc

Contact : Tel: 24683960

Fax: 24683958

dossier - october 2010 - english

Documents

oman logistics

industry views

industry awards event

improved industry standards

activities of olsca

growth of oman

chairman of olsca

existing logistics sector