mahmoodsakhi

1
Oman Logistics Sector Opportunities and
Challenges
Oman Ports Conference 15th January 2018
Mahmood Sakhi Albalushi CEO Al Madina Logistics
Co. CEO Muscat Container Depot (Inland Port)
2
Logistics Sector Value Chain
Logistics Sector is strong as its weakest link
Opportunities
Opportunities
Challenges
Market Efficiency
IT Communication Infrastructure
Air Cargo Infra Efficiency
Ports Infra Efficiency
Start up Procedures
Human Capital
Economic Industrial Zones
Commercial Regulations
Mahmood Sakhi Albalushi
Oman Ports Conference - 2018
3
Oman Comparative Competitive Advantages
Location Located on the Indian Ocean, center
between West East, and North South, on major
maritime and air cargo routes. Great
Infrastructure Deep Sea Ports, Intl Airports,
Road and Railway Connectivity, IT Communication
Infrastructure Investment Friendly Free
Market, Investment Friendly Regulations,
FTAs Potential Investment Opportunities
Logistics Services, Supply Chain Services,
Bonded Facilities, Distribution Centers, Sea,
Air, Land Connectivity, etc.
Mahmood Sakhi Albalushi
Oman Ports Conference - 2018

• OGL owns 16 subsidiaries (the Group) involved
  in the logistics sector including 3 ports, 3
  free zones, 2 shipping and 2 ship management
  companies, 1 dry dock company, the post office,
  the bus company, the railway and potential
  additions to the list.

4
Omans 9th 5-Year Development Plan
Diversification Outline
Macro-Environment
Global Regional Economic Outlook
Competitive Advantage
Socio-Economic Development
Fiscal Framework
Oil Gas
Core
Diversification
Manufacturing
Logistics
Tourism
Fisheries
Mining
Economic Sectors
Utilities
ICT
Enablers
Financial Services
Education
Healthcare
Social Sustainability Themes
Business Environment
Private Sector Development/SMEs
Employment
Regional Development
Youth
Environment Protection, Sustainable Development
and Prevention of Natural Disasters
Science, Technology Innovation
Other Social Development
Machinery of Government and E-Government
Mahmood Sakhi Albalushi
Oman Ports Conference - 2018
5
Sultanate of Oman Logistics Strategy 2040
(SOLS2040)

• Trade Facilitation
• Licensing Processes.
• Operational Processes
• Finance Mechanism Trade Conduct.
• Economic Free Zones, FTAs

• Market
• New Markets.
• Attract New FDIs.
• Leverage FTAs.

• Infrastructure
• Internet Speed Cost
• Public Sector Efficiency
• Regulations

• Human Capital
• Employment Legislations.
• Industry-academia Collaboration.
• Logistics as Career.
• Intl Best Practices.

• Technology
• Enhance IT Infrastructure
• Enhance IT Regulations
• Leverage Technology

Source SOLS2040
Mahmood Sakhi Albalushi
Oman Ports Conference - 2018
6
Omans Logistics Spearhead
Ministry of Transport Communication Setting
policies, regulations and national strategies
Oman Aviation Group
Oman Global Logistics Group ASYAD
ASYAD (Oman Global Logistics Group-OGL)

• OGLS VISION GOALS
• Top 10 Global Integrated Logistics Service
  Provider.
• Multimodal service provider through an integrated
  set of assets and capabilities.
• Leading in leveraging next-generation
  technologies (e.g. robotics, artificial
  intelligence).
• Enabling the development of the private logistics
  sector.
• Successful financially and able to attract
  private sector capital.

ASYAD has two fold mandates

1. To develop Omans logistics capabilities and
   execute SOLS 2040 to make Oman a global logistics
   hub

2) Improve the performance of the Groups
companies (government owned logistics companies
Competing with Private Sector
Mahmood Sakhi Albalushi
Oman Ports Conference - 2018

• OGL owns 16 subsidiaries (the Group) involved
  in the logistics sector including 3 ports, 3
  free zones, 2 shipping and 2 ship management
  companies, 1 dry dock company, the post office,
  the bus company, the railway and potential
  additions to the list.

7
Trade Facilitation Bayan AEO
Mahmood Sakhi Albalushi
Oman Ports Conference - 2018
8
Logistics Services Market Structure
Challenges Market Sophistication. Oil Gas
Projects Regulations Approvals Urban
Planning IT Infra
Mahmood Sakhi Albalushi
Oman Ports Conference - 2018
9
Logistics Market Structure Opportunities
Logistics Services In-house or Outsourced
Transportation from warehouse to distribution
network.
Transportation from/to point of entry to/from a
warehouse.
Warehouse for commercial goods
3PL services
Source AMLS EY
Mahmood Sakhi Albalushi
Oman Ports Conference - 2018
10
Oman A Regional Intl Logistics Hub
Mahmood Sakhi Albalushi
Oman Ports Conference - 2018

• OGL owns 16 subsidiaries (the Group) involved
  in the logistics sector including 3 ports, 3
  free zones, 2 shipping and 2 ship management
  companies, 1 dry dock company, the post office,
  the bus company, the railway and potential
  additions to the list.

11
Global Trade Internal External
External Trade
Internal Trade
Source Logistics Management
Mahmood Sakhi Albalushi
Oman Ports Conference - 2018
12
Major Logistics Clusters
Current
Sohar Port, Airport Free Zone Industrial Estate
Future
Musandam Free Zone
Muscat Airport Inland Port Tourism Port
Bruaimi Free Zone
Duqm Port, Airport Dry Dock, Economic Zone,
Ibri Logistics Hub
Khazaen Logistics Hub
Salalah Port, Airport Free Zone Industrial
Estate
Mazyona Free Zone
Mahmood Sakhi Albalushi
Oman Ports Conference - 2018

• OGL owns 16 subsidiaries (the Group) involved
  in the logistics sector including 3 ports, 3
  free zones, 2 shipping and 2 ship management
  companies, 1 dry dock company, the post office,
  the bus company, the railway and potential
  additions to the list.

13
Major Logistics Clusters
Sohar
Duqm
Salalah
Mahmood Sakhi Albalushi
Oman Ports Conference - 2018

• OGL owns 16 subsidiaries (the Group) involved
  in the logistics sector including 3 ports, 3
  free zones, 2 shipping and 2 ship management
  companies, 1 dry dock company, the post office,
  the bus company, the railway and potential
  additions to the list.

14
Oman Comparative Competitive Advantages

• Potential Investment Opportunities
• Logistics Services,
• Supply Chain Services,
• Bonded Facilities,
• Distribution Centers,
• Oil Storage Farms,
• Air Cargo,

Industrial Estates
Special Economic Zones
Free Trade Industrial Zones
Logistics Parks
Bonded Warehouses
Air Cargo Hubs
Distribution Centers
Dry Ports
Oil Storage Farms
Mahmood Sakhi Albalushi
Oman Ports Conference - 2018

• OGL owns 16 subsidiaries (the Group) involved
  in the logistics sector including 3 ports, 3
  free zones, 2 shipping and 2 ship management
  companies, 1 dry dock company, the post office,
  the bus company, the railway and potential
  additions to the list.

15
GCC E-Commerce
Source A.T. Kearney Analysis 2016
Mahmood Sakhi Albalushi
Oman Ports Conference - 2018
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Internet E-Commerce
Internet of People
Mahmood Sakhi Albalushi
Oman Ports Conference - 2018
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Air Cargo Growth
70
Source Boeing Report 2017
Mahmood Sakhi Albalushi
Oman Ports Conference - 2018
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Ports Triple-E Vessels 21,500 containers
Mahmood Sakhi Albalushi
Oman Ports Conference - 2018
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Competition Regional Ports Logistics Hubs
Source AMLS Analysis
Mahmood Sakhi Albalushi
Oman Ports Conference - 2018
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Challenges of New Routes
Chinese One Road, One Belt
Mahmood Sakhi Albalushi
Oman Ports Conference - 2018
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Competition Regional Ports Logistics Hubs
Source AMLS Analysis
Mahmood Sakhi Albalushi
Oman Ports Conference - 2018
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Strategy for Growth Tools to use
Competitive Strategy is about different. It
means deliberately choosing to perform activities
differently or to perform different activities
than others to deliver a unique mix of
value. Michael Porter
Porters Generic Strategy
Mahmood Sakhi Albalushi
Oman Ports Conference - 2018
23
THANK YOU
Oman Ports Conference 15th January 2018
Mahmood Sakhi Albalushi CEO Al Madina Logistics
Co. CEO Muscat Container Depot (Dry Port)