Investments in new green energy fuel stations, EV charging infrastructure, and a major LNG bunkering project highlight the promising future of transport sector decarbonisation.

Decarbonisation strategies outlined by the Ministry of Transport, Communications and Information Technology (MoTCIT) underline the potential for investments across the maritime, transport and logistics segments of this pivotal national infrastructure, according to a new report.

Published by the Ministry of Commerce, Industry and Investment Promotion (MoCIIP), the Advisory report – put together by Oxford Business Group (OBG) - highlights high-growth opportunities in key sectors, including transport and logistics.

Significantly, the Omani government’s commitment to carbon neutrality by 2050 opens up an array of investment opportunities in, among other industries, the transportation sector, which currently accounts for 19 per cent of total emissions, the report notes.

Already, strategic initiatives by the government, in the form of supportive policies and incentives, have spurred investments in Electric Vehicle charging infrastructure, the introduction of hydrogen-powered vehicles, and of late, hydrogen fuelling stations as well. Also boding well for further investments are plans by the government to establish a dedicated corridor for hydrogen powered trucks, and mandate offshore power solutions for ships in select ports. Longer term, the production and supply of LNG for bunkering in the maritime sector is set to become a reality by 2028, when the all-electric Marsa LNG plant is operational at Sohar Port.

Beyond decarbonisation, the wider transportation sector is also being primed for investment, according to the report. These investment opportunities are linked to recently unveiled plans to, for example, transform creeks into marinas and business centres, develop mining jetties for the export of gypsum and limestone, support ship repair and scrapping activities, catalyse the growth of multipurpose ports, re-export and repackaging hubs, and e-commerce fulfilment centres, as well as foster the development of airport free zones and new dry ports.

In the logistics sector, investment growth is projected in green supply chains, last-mile delivery and contactless delivery solutions. Also prospective for investment are opportunities linked to the expansion of regional aviation connections and partnerships in Africa and China, while strengthening ties with European and South-east Asian markets.

Eng Khamis bin Mohammed al Shammakhi, Under-Secretary of the Ministry of Transport, Communications and Information Technology for Transport, was quoted in the report as saying that Oman is enhancing its logistics capabilities to support inward investment.

“Oman is implementing innovative measures to strengthen its logistics infrastructure. The country is piloting blockchain technology to track the movement of goods within economic zones, significantly improving lead times. The Royal Oman Police’s Customs clearance system mandates that goods must be cleared within two hours, a measure intended to boost efficiency. Additionally, a port community system has been introduced to streamline procedures, reducing the time required for operations from two days to two hours – as well as minimising fees. These advancements help to enhance the appeal of Oman’s logistics sector to foreign investors,” he said.

Additionally, Oman is improving last-mile logistics by introducing supportive technologies and stronger regulations. “Efforts include new regulations that require operators to register through a central platform in a move to ensure compliance and streamline inspections. The entry of investors like technology firm Yandex – which will provide an application that combines taxi services with last-mile delivery – showcases Oman’s commitment to modernising this segment. These steps aim to make the logistics chain more efficient and attractive to investors by ensuring delivery solutions that are both reliable and scalable,” Al Shammakhi added.

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