A growing number of companies are considering expanding their road networks in Oman. These companies are taking the initiative to develop an integrated logistics system and provide employment opportunities for local residents. By providing subsidies to truck drivers, these organizations are also hoping to attract more business in the region. To achieve these goals, the parties involved have agreed to implement a new system, which will register all truckers and distribute transportation requests according to their truck quality and capacity.
Infrastructure development in Duqm
Muscat is currently moving ahead with the second infrastructure package for the Duqm airport project as part of an overall plan for the city. This development plan also includes building a new dry dock and a ship-building facility. Muscat has also begun the first phase of expansion for the Muscat International Airport, which is expected to handle 12 million passengers per year by 2014.
The Port of Duqm is the trade and maritime core of the 2000-square-kilometer city. It has been designated as a special economic zone, but currently operates at a semi-finished stage, receiving limited traffic from international navies and oil importers. A number of projects are currently underway to develop the Port of Duqm, including a new fisheries harbour and an integrated fish processing zone.
Expansion of road network
The expansion of road network for road transport in Oman is considered a crucial component in the country’s ties with Saudi Arabia. Its government has identified logistics as one of the areas of development in the country. It aims to improve the quality of public transportation. It plans to build rest areas on major roads and integrated transfer stations to enable people to switch from one mode of transport to another. In addition, it aims to improve the attractiveness of the transportation sector to attract Omani nationals to a career in transport.
The pace of economic growth in Oman has increased rapidly over the past half-century. Sharp increases in oil prices transformed the country’s economy, spurring ambitious investment projects. These efforts have resulted in massive economic growth. These projects have improved per capita income, urban development, industrialization, and electrification. In addition, the country has one of the highest levels of energy intensity in the world.
Subsidies provided for road freight
Oman is one of the largest petroleum-exporting countries in the world, with an estimated 5 million trucks on the road. The country has a relatively high vehicle fleet, and the growth of disposable incomes and population are the main factors driving this growth. This, in combination with an absence of national public transportation and highly subsidized fuel prices, has contributed to an explosive increase in the number of private cars.
Despite this, the government is also working to develop railway networks and improve the state of the country’s roads. Developing these sectors will reduce fuel costs and promote alternative transport in the MENA region. In 2014, the Ministry of Transportation and Communication transferred cargo operations to the Sohar port, which has since become the nation’s first commercial port. In the future, this will help Oman diversify its economy and reduce its dependence on hydrocarbons.
Oman’s rapidly increasing population and high disposable income drive a rapid increase in the private Car fleet. As a result, the country now accounts for 56% of road transportation emissions. The lack of public transportation in Oman and highly subsidized fuel prices have also contributed to the rapid increase in car ownership. Nonetheless, it would be counterproductive to subsidize road transportation by offering lower rates of fuel subsidies.
The development of the transportation sector in Oman coincides with the country’s vision to diversify its economy and promote investment in non-hydrocarbon sectors. The country’s road network is under constant development since 1991, and the Muscat Capital Area has given particular attention to expanding and upgrading its road network. But until recently, the country lacked a truly integrated public transportation system, such as subways or bus stations.
Oman’s government is pursuing the development of a high-speed rail network to link the country’s three main seaports and integrate with the GCC’s network at Hafeet. The government hopes that the railway network will spur economic diversification by connecting major ports with growing industrial centres. In addition, the railways being developed in GCC member states are expected to spur an overall construction sector growth of 35% in the region.