Oman is likely to see a steady upward growth in air freight handled in the short to medium term as international trade gains momentum whilst growth in road freight will see a drop in tonnage by 2020. Though the two sectors will see important investment taking place over the coming years in a bid to increase Oman's trading capacity and further diversify away from oil the low oil prices will continue to impact negatively on the country's economy.
Overall economic growth in the country will be hampered by the effects of low oil revenues on the public finances. However it is predicted that over the coming years, the Omani government will make far-reaching efforts to build a recovery strategy which will included investing in the non-oil trade sector and revamping transport and logistics services in the country. Both a healthy banking sector and high domestic savings have been recognised as two factors contributing to resilience and stability in the country.
Oman's move to reduce the country's deficit will include efforts to reduce dependence on oil with areas such as agriculture, manufacturing, textiles, copper, mining and cement all benefiting from investment in innovation, development and transport infrastructure. The strategy will feed into objectives for the logistics sector to surpass the USD12bn mark by 2017. The ports will be a particular focus for investment but road and air networks will also see substantial improvements to efficiency and capacity over the coming years. The development of oil refineries will also help the country expands its trade offering.
The road freight industry will see mixed fortunes over the medium as investment in road development will continue to enhance vital trade links within the GCC region. Investment in the expansion of the country's key airports will form part of the government's logistics strategy and contribute to the growth of the sector. The imminent construction of a new railway network to connect the GCC region may change the freight dynamic in the long term.
Release of new blueprint for the logistics industry, Sultanate of Oman Logistics Strategy 2040 outlines measures to improve soft infrastructure as well as investing in hard infrastructure.
Recent investments in country's airports will soon to be in operation, with expansions at Salalah Airport and Muscat Airport adding capacity and encouraging trade links with international partners.
Oman Air signs agreement for Cargolux to use its facilities in key Omani airports, for sea air freight services to India.
Construction of a 680km road between Oman and Saudi Arabia will provide a more direct route between the two countries as well as reducing the number of border crossings and increasing efficiencies for road transport.
Oman's airport operator outlines plans for further expansion, including the construction of a maintenance hub and free trade zones, with the identification of sites around five main airports that are undergoing expansion.
Key BMI Forecasts
2016 tonnage on the roads is forecast to reach 21.7mn tonnes on growth of 1.52%, with growth to average 1.39% to 2019.
2016 air freight volumes forecast to grow by 6.15% and to average 6.82% over the medium term to 2019.
2016 Oman total trade real growth is forecast at 3.0%, and set to average 2.34% to 2019, with exports growing by 2.3% in 2016 and imports by 6.5%.
Ores and metals will be the fastest growing export in 2016, with a y-o-y growth of 2.77%.
The Oman Freight Transport Report has been researched at source, and features latest-available data covering commercial transport and logistics by road, rail, air and water; industry forecasts, company rankings covering leading national and multinational operators; and analysis of latest industry trends, opportunities, projects and regulatory changes.
BMI Research's Oman Freight Transport Report provides industry professionals and strategists, sector analysts, investors, trade associations and regulatory bodies with independent forecasts and competitive intelligence on the Omani freight transport and logistics industry.
- Benchmark BMI's independent freight transport industry forecasts on Oman to test other views - a key input for successful budgetary and planning in the strategic freight transport market.
- Target business opportunities and risks in the Omani freight transport sector through our reviews of latest industry trends, regulatory changes and major deals, projects and investments in Oman.
- Assess the activities, strategy and market position of your competitors, partners and clients via our Company Profiles (inc. SWOTs, KPIs, and latest activity).
BMI Industry View
Summary of BMI’s key industry forecasts, views and trend analysis covering freight transport and logistics, regulatory changes, major investments and projects and significant national and multinational company developments.
Industry SWOT Analysis
Analysis of the major strengths, weaknesses, opportunities and threats within the freight transport sector and within the broader political, economic and business environment.
BMI Industry Forecasts
Historic data series (2008-2012) and forecasts to end-2019 for all key industry and economic indicators (see list below), supported by explicit assumptions plus analysis of key downside risks to the main forecast including:
- Transport Sector: Total freight carried by road, rail, inland waterways, maritime, air and pipeline (mn tonnes-km/mn tonnes).
- Trade: Exports and imports (USDmn) by category of goods (manufactured goods, food, chemicals etc.); top five import and export trade partners (USDmn); imports/exports to each global region (USDmn)
- Port Data: Throughput (‘000 tonnes) for all major ports in the state.
- Oil Products Prices: Price forecasts for gasoline and aviation fuel (USD/bbl) at all major global energy trading hubs.
- Economic Indicators: Nominal GDP (USDbn); real GDP growth (%); GDP per capita (USD); industrial production (%); unemployment (%)
Details of the freight infrastructure in each state by segment (road, rail, air, water and pipelines). Full analysis of the competitive landscape within each segment.
Industry Trends and Developments
Analysis of the latest projects across the freight transport sector (road, rail, air, sea and logistics) including a market overview which provides an outline of the key elements driving development.
The Freight Transport market reports contain a chapter detailing the political outlook of a given region, examining the domestic politics, long-term outlook and foreign policy, and assessing the impact this could have on freight and transport businesses.
Examines the short- to medium-term business strategies of key industry players. Strategy is examined within the context of BMI’s industry forecasts, our macroeconomic views and our understanding of the wider competitive landscape to generate company SWOT analyses.
The latest financial and operating statistics and key company developments are also incorporated within the company profiles, enabling a full evaluation of recent company performance and future growth prospects.
The Freight Transport reports draw on an extensive network of primary sources, such as multilateral organisations, government departments, industry associations, chambers and company reports
*Company profiles are not available for every country. Those reports instead contain information on the current activities of prominent companies operating in the market.